9 Lessons Learned: Tips
Contribution of the Automobile Industry in Growth of Economy
The discovery of cars has in a major way changed the current lives in some unbelievable means by transforming the means of life. 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.
Labour occupies and consistently take largest expense as postulated by 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 form the main part. 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.
Advertising has not been eliminated in this. 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. 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 greatly assist the industry only to manufacture what is relevant to the market and usually gifts the demanded tastes.
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 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 used with making of essential 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 the intensity of the competition has gone high over time.
The growth within the industry can be attributed to the customer’s preferences and changing trends. Consumer are main contributors to the industry’s sales. It is therefore paramount that consumer and business data occupy the priority other than revenues and debt load.