Contribution of the Automobile Industry in Growth of Economy
The invention of automobiles has significantly impacted the today’s lives in some profound way by completely revolutionizing the way 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.
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. 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. It is therefore notable that this automobile industry performs the main role in reducing the cases of unemployment with the market.
Material is another integral 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 left off also. 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.
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 manufacturing can be further subdivided.
There are those replacement parts at are quite significant after purchase of an automobile. 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. The auto manufacture in their effort to provide their customers, buy this rubber and its products.
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. The customers form the major source of industry revenues. It is therefore paramount that consumer and business data occupy the priority other than revenues and debt load.