Industry Analysis & Industry Trends
Over the five years to 2015, the Car and Automobile Manufacturing industry has struggled to recover from recessionary lows. Dissuaded by high labour costs in Canada, many international automakers have refocused investment towards Mexico and the United States. As a result, output has fallen from Canada's biggest car producers. Over the next five years, the industry is expected to continue declining, although at a slower rate. While automakers are expected to continue their foreign investment strategies, a significant amount of production will remain in Canada. Disposable income levels are anticipated to rise, while demand from new car dealerships will climb at a moderate rate. These factors will stabilize revenue growth to a degree.
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Industry Report - Starting a New Business Chapter
The Car and Automobile Manufacturing industry has very high barriers to entry, due primarily to its high level of capital intensity, the necessity for economies of scale, rapid technological change and established brand recognition. The industry is dominated by automobile manufacturers that leverage strong brand awareness and longstanding relationships with key supply chain partners to drive sales. Additionally, car manufacturing is a highly capital-intensive enterprise that requires sophisticated manufacturing facilities and robust supply chains. Most automobile manufacturing plants are equipped with specialized or automated manufacturing equipment and machinery, along with a substantial amount of floor space... purchase to read more