Automobile Industry: A Catalyst to Economy Growth
The discovery of cars has in a major way changed the current lives in some unbelievable means by transforming the means of life. Owing to the fact that this industry is characterized by both high labor and capital demands, the market analysts have the following suggestions to the sections involving the maximum costs.
According to the research labour is at heart of major expense. Despite high investment and application of robots and machines playing that central part in manufacturing of automobiles the cost of labor remains high. Bearing in the mind that most of the automobile industries lies within the urban areas, they produce job opportunities both to this within the industry as well as those engaging in the related field. It is therefore notable that this automobile industry performs the main role in reducing the cases of unemployment with the market.
The materials form the main part. For proper running of the industry, various elements such as aluminum, seats, tires, steel and other more are required. the growth in the related industries is catalyzed when the automobile manufactures engage the external suppliers to provide them with raw materials.
Advertising has not been eliminated in this. The automobile industry has been forced to extensively deploy their resources to curb the escalating completion among the players with the industry itself. The industry is also deploying large chunks of money in carrying out effective market surveys with the aim of getting an inner insight and understanding on the consumers preferences ,trends and tastes. This enables the company to design the products that are going to meet the market needs.
It is of importance to note that the industry research is composed of auto manufacturing as well as auto part manufacturing. This is the main catalyst to the industry. The auto part manufacturing can be further subdivided.
The are those replacement parts that are very important after purchasing of the motor vehicle. they may be composed of items such as air filters, brake plates, oil filters among others. Some of these companies build their elements such as car seats.
Fabrication of the labour is an additional field that is entailed. Rubber is used with making of essential parts such as belts, tires as well as hoses in a vehicle. In order to realize the goal of satisfying the customer, the manufacturer buys rubber and its product.
Apart from material and labor-related costs, globalization has greatly changed the tendency and business are now venturing into international businesses. The level of competition has greatly escalated over time.
The increase in the market can be ascribed to the high demand in consumer preferences and trends. Consumer sales account the high revenues in the industry compared to the selling to the businesses. The customers, therefore, need eminent consideration over earnings and debt burdens.