Industry Analysis & Industry Trends
The past five years have been tumultuous for the Motor Vehicle Dealers industry. In the aftermath of the global economic downturn, consumer confidence wavered and Australians put off spending on big-ticket purchases such as cars. As a result, demand for motor vehicles slid into a ditch. Motor vehicle sales have since recovered on the back of pent-up demand and strong consumer confidence. High fuel costs over the period also hurt motor vehicle sales. Industry revenue is expected to increase at an annualised 4.3% over the five years through 2013-14 to reach $74.0 billion. This includes expected revenue growth of 1.0% over 2013-14. The solid growth over the five-year period will be due to stronger consumer sentiment and higher real household disposable income... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity is moderate within the Motor Vehicle Dealers industry. The ratio of labour to capital is used to determine the amount of labour used for every unit of capital in the industry. It is an indicator of the capital-labour mix typically used in the industry. Wage costs are used as a proxy for labour while depreciation is used as a proxy for capital. For every dollar invested in new capital, $8.00 is spent on labour, indicating a moderate level of capital intensity.
Retail industries are typically labour intensive. Businesses in the industry require staff to generate sales and carry out administrative work. There has been a decline in the availability of skilled salespeople, which has put upward pressure on labour costs... purchase to read more