Industry Analysis & Industry Trends
The success of the Automobile Transmission Manufacturing industry is closely linked to the performance of motor vehicle manufacturers. Over the five years to 2016, domestic vehicle production in the United States has accelerated dramatically. Rising discretionary income coupled with greater financing opportunities have driven consumers to purchase new vehicles. In turn, this has shifted demand for transmissions into high gear. In the five years to 2021, industry revenue is anticipated to rise at a slower rate. Sales have now recovered to prerecessionary levels, which will preclude growth from reaching the same heights it did between 2011 and 2016. In addition, electric vehicles may become a threat to traditional transmission manufacturers.
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Industry Report - Industry Key Buyers Chapter
The industry has a low level of concentration, with the top four companies accounting for about 17.7% of industry revenue. Companies with less than 500 employees represent 94.6%% of the operators in this industry, while accounting for just 39.0% of industry payroll expenses. Many of the automotive components manufactured by this industry are relatively low value-added commodities, such as gears and differentials, which are easy to contract out to smaller operators. The largest companies in this industry primarily focus on the more technologically intensive segments of this industry, such as transmissions, torque converters and transaxles. For this reason, just 5.4% of businesses employ more than 500 people, while accounting for 61.0% of industry wages... purchase to read more