Industry Analysis & Industry Trends
Component manufacturers in the Motor Vehicle Parts and Accessories Manufacturing industry faced challenges over the five years through 2012-13. Being part of the automotive supply chain, the shifting preferences of car buyers and woes of car manufacturers indirectly affected component manufacturers. The popularity of small imported cars grew, which put downward pressure on domestic motor vehicle production. Component manufacturers felt the brunt of the decline in motor vehicle production, particularly since they are small companies not equipped to deal with sustained periods of falling demand.
Ailing car manufacturers frequently used cheaper imported components at the expense of domestic components... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Automotive Parts and Accessories Manufacturing industry is in decline, mainly due to its unaddressed structural problems. The industry is cutting back on workforce as it attempts to adjust to overcapacity and compete with overseas firms in low production costs economies. The industry's investment in new capital is also expected to slow as manufacturing capacity moves overseas. As such, the industry's contribution to the economy is expected to decline by an annualised 5.5% over the 10 years through 2017-18. Meanwhile, the Australian economy will grow, with GDP forecast to increase by an annualised 2.4% over the 10 years through 2017-18. Consequently, the industry's economic contribution will shrink in proportion to the rest of the economy, hence the decline life cycle stage... purchase to read more