Industry Analysis & Industry Trends
Despite the woes being experienced by the automotive sector, segments in the industry have been able to avoid disaster over the past five years. The rising popularity of the recreational vehicle (RV) lifestyle partly offset the negative effect of the economic downturn. An ageing population and promotional efforts led to an increase in the demand for caravans and motorhomes. However, the RV segment was not immune to the adverse economic effects.
The situation was much worse for motor vehicle body manufacturers. Rising petrol prices led consumers to search for fuel-efficient options, such as smaller imported vehicles. Motor vehicle body manufacturers that relied on domestic car production suffered greatly. Overall, industry revenue is expected to decline by an annualised 2.0%... purchase to read more
Industry Report - Starting a New Business Chapter
For a new entrant to be competitive in any segment of this industry, it has to be able to source inputs such as components and accessories at reasonable prices. The limited number of suppliers in Australia is a barrier that can only reasonably be overcome if contact is established with overseas suppliers. Labour, being a significant cost component, needs to be well organised and motivated with good relations between management and production. For an entrant to compete on quality or design, commitment to research and development is essential.
Another barrier to entry is the availability of established distribution channels. Dealers tend to stock-up on the fastest moving items... purchase to read more