Industry Analysis & Industry Trends
The Global Motor Vehicle Parts and Accessories Manufacturing industry cannot exist without motor vehicle production. Over the past five years, motor vehicle production has been supported by furious growth in China and other emerging economies. Income levels in China have been rising, which has created new demand for motor vehicles. Motor vehicle manufacturers began opening plants to satisfy demand, and parts manufacturers soon followed. The aftermarket parts segment has also been supported by a rise in the number of vehicles in use globally. Yet, industry revenue is forecast to grow by a mere 0.9% annually to $1.3 trillion over the five years through 2011... read more
Industry Investment
Expenditure on wages accounts for a larger proportion of revenue than does capital, with a typical firm in the industry using approximately 2.6 units of labor for each unit of capital. Over the past five years, the average industry wage rose due to strong economic growth in low-wage countries. This led to a rise in skills levels and wages in those countries. Capital intensity fell because of this rise in wages.
Capital expenditure is confined to the purchase of production machinery and tools, which usually have a lengthy lifespan and are replaced infrequently. Capital costs are also expended on specialized premises and can be significant for larger establishments... read more