Industry Analysis & Industry Trends
The Motor Vehicle Manufacturing industry has been recovering quickly thanks to considerable success exporting cars to developing countries, soaring domestic new car registrations, which have been supported by growing consumer confidence, cheap financing deals and rising disposable incomes. Overall, industry revenue is expected to grow at a compound annual rate of 4.6% over the five years through 2016-17 to reach £55.4 billion. Industry profitability has also increased over the past five years as a result of falling steel and fuel prices and the effects of a strengthening pound on input prices.
Industry revenue is expected to grow by 3.8% in 2016-17, despite widespread uncertainty due to the result of the EU referendum... purchase to read more
Industry Report - Industry Investment Chapter
Motor vehicles are produced at large manufacturing plants, which require a significant amount of capital to set up and carry substantial depreciation costs. The production process is highly automated and on a large scale so that companies can benefit from lower average costs. As a result, labour is relatively insignificant in the industry. However, employees are still needed at some stages of assembly. Some segments, such as engine rebuilding, are more labour intensive than other segments. The industry is highly capital intensive, with companies spending an average of £2.13 on labour for every £1.00 invested in capital. Over the long term, the industry is becoming more capital intensive and less labour intensive, as firms continue to look for production efficiencies.
.. purchase to read more