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. Affirming to the truth that the automobile industry is featured with both significant capital and labour demands, the market exponents suggests their following sectors that are concerning the great possible expenses.
Labour occupies and consistently take largest expense as postulated by the research. The cost of labour has consistently high despite employment of both machines and robots doing the most of the work. 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 a verifiable fact that the automobile industry is at the center of-of reducing the cases of lack of jobs within the job 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. 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 enables the company to design the products that are going to meet the market needs.
It is worth noting that the industry research comprises both the auto manufacturing and 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.
The are those replacement parts that are very important after purchasing of the motor vehicle. They may include 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 utilized in making of crucial parts such as belts, tires as well as hoses in automobile. 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 the intensity of the competition has gone high 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 customers, therefore, need eminent consideration over earnings and debt burdens.