Automobile Industry: A Catalyst to Economy Growth
The means of life have been more refined in some profound ways and life ameliorated with coming of the automobiles. 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 occupy the central place. For proper running of the industry, various elements such as aluminum, seats, tires, steel and other more are required. The source of these materials is by some external suppliers, and hence this results in growth in interrelated business.
Sales promotion remain central in all this. The automobile industry has been forced to extensively deploy their resources to curb the escalating completion among the players with the industry itself. This industry is also spending large sums of money in conducting effective market surveys untended to give them the glimpse and understanding on customer’s preferences, tastes, and trends. This enables the company to design the products that are going to meet the market needs.
The the industry comprises of two elements namely the auto manufacturing and auto part manufacturing. This contributes highly toward the advancement of the industry. The auto part is subsequently categorized into different sections.
There are those replacement parts at are quite significant after purchase of an automobile. they may be composed of items such as air filters, brake plates, oil filters among others. A few of the industry players manufacture their components such as car seats.
Another field deals with synthesizing and making of the rubber. 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.
With an exception of the material and labor expenses, the globalization has significantly altered the trend and business are investing in international business. Competition in the market has also increased greatly.
The increase in the market can be ascribed to the high demand in consumer preferences and trends. Consumer are main contributors to the industry’s sales. The customers, therefore, need eminent consideration over earnings and debt burdens.