Industry Analysis & Industry Trends
As consumer confidence fell over the five-year period, unemployment soared and consumers delayed big-ticket purchases, such as new cars. As a result, automakers reduced production levels, which hindered industry revenue growth. Over the five years to 2018, domestic auto parts manufacturers are expected to thrive as demand for automobiles continues to increase, bolstered by improving economic conditions... purchase to read more
Industry Report - Starting a New Business Chapter
Auto parts manufacturers must have the production capacity and economies of scale to produce large quantities of products at low prices. Additionally, large-scale auto part production requires advanced manufacturing facilites, which have high set-up costs. Moreover, with the onset of tighter fuel economy regulations, spending on research and development is high for certain products, such as air conditioning units and exhaust systems. New entrants must also acquire considerable technological expertise to produce vehicle components compliant with new regulatory standards.
Auto parts manufacturers, depending on the product produced, face tough competition from abroad. For example, imports are expected to account for more than half of domestic demand in 2013... purchase to read more