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. Business exponents give the following outline regarding the records that constitute great possible cost since the automobile industry is characterized by intensive capital and labour.
Labor remain and bear the highest cost according to the research. Regardless of large stake deployment of resources and use of robots and machines acting the focal point making and building of automobiles the labour expense is still escalating. Owing to the fact that most of this industries are located in urban areas, they create employment opportunities simultaneously inside the industry as well as within the related industries. The role of the automobile industry in cutting down of unemployment cannot be understated.
The materials form the main part. For manufacturing to effectively take place, various substances such as aluminum, seats, tires, steel and other more are needed. These materials are acquired from external suppliers thereby, as a result, triggering a significant growth within the related industries.
Advertising has not been left off also. Owing to the recent stiff competition within the automobile industry globally, it has become a necessity for companies to invest billions of cash in marketing and promoting their products. 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.
The the industry comprises of two elements namely 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.
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. Some of these companies build their elements 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 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 customers, therefore, need eminent consideration over earnings and debt burdens.