Industry Analysis & Industry Trends
Industry revenue plunged during the recession as a result of the crisis in the automobile industry and low disposable income across the economy. Since then, the industry has begun to recover, and pent-up demand will continue to promote growth over the next five years; however, offshoring will increasingly limit industry expansion. In the long term, the industry is declining... purchase to read more
Industry Report - Industry Investment Chapter
Investment for ongoing operations in this industry is medium. For every dollar spent on wages, the average industry firm will invest roughly $0.18 in capital equipment. The technology needed for tire manufacturing is quite capital intensive and skilled labour is needed to carry out the production process. The recession caused many companies to cut back on capital expenditures and instead use less of the existing plants for production. This process also involved laying off workers, but companies mainly focused their efforts on using the existing plant capacity.
Many of the new types of tires that cater to the cost-conscious consumer do not require significant capital investment because manufacturers can build these tires on existing production lines with little added investment... purchase to read more