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Contribution of the Automobile Industry in Growth of Economy

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.

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. 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. Material such as aluminum, seats, tires, steel and other more are main ingredients in the running of the manufacturing process. These materials are acquired from external suppliers thereby, as a result, triggering a significant growth within the related industries.
Advertising has not been eliminated in this. The automobile industry has been forced to extensively deploy their resources to curb the escalating completion among the players with the industry itself. 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 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. This contributes highly toward the advancement of the industry. The auto part is subsequently categorized into different sections.

There are those replacement parts that are very essential for the buying of the automobile. They may include air filters, brake plates, oil filters among others. Some industry player further makes 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.

Apart from material and labor-related costs, globalization has greatly changed the tendency and business are now venturing into international businesses. Competition in the market has also increased greatly.
The growth within the industry can be attributed to the customer’s preferences and changing trends. The customers form the major source of industry revenues. The customers, therefore, need eminent consideration over earnings and debt burdens.

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