Factors Affecting the Growth of the Economy by the Automobile Industry
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.
Labor remain and bear the highest cost according to the research. Despite high investment and application of robots and machines playing that central part in manufacturing of automobiles the cost of labor remains high. The fact that many of these automobiles factories are situated with the towns, they are capable of creating work for many individuals involved either directly or indirectly. The role of the automobile industry in cutting down of unemployment cannot be understated.
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. These materials are acquired from external suppliers thereby, as a result, triggering a significant growth within the related industries.
Sales promotion remain central in all this. Considering the current neck throttling competition among players in automobile industry throughout the world, it has pushed the industries to deployed large amounts of money to promote and market their vehicles. 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 allows the company devise the automobiles that area are tailor-made to satisfy the market.
It is of importance to note that the industry research is composed of auto manufacturing as well as auto part manufacturing. The the role played by this is high regarding the growth of the industry. The auto part manufacturing can be further subdivided.
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.
Fabrication of the labour is an additional field that is entailed. Rubber is instrumental in fabrication of parts such as belts, tires as well as hoses in a vehicle. In pursuing of the customer’s satisfaction the manufacturing purchase rubber and its products.
The effect of globalization of the business has greatly affected the way business is carried out, this is with exception to both material and labor expenses. 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 are main contributors to the industry’s sales. The customer need careful attention above all other preferences such as earnings.