Industry Analysis & Industry Trends
Companies in the Motor Vehicle Engine and Parts Repair and Maintenance industry can count themselves lucky, as they are some of the select few that benefit from unfavourable economic conditions. As the economy deteriorated, consumers and businesses alike postponed purchasing new vehicles due to lower budgets. They instead held on to their existing vehicles. These older vehicles have required more servicing and maintenance. As a result, industry revenue is expected to rise at an annualised 2.5% over the five years through 2012-13, to reach $14.5 billion. Industry revenue is forecast to grow by 2.0% in 2012-13. Demand from households and businesses are forecast to grow, as many drivers carry out repairs on an increasing vehicle fleet... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity is low in the Motor Vehicle Engine and Parts Repair and Maintenance industry in Australia. This means the industry does not rely much on invested capital but relies more on labour. The industry spends an estimated $18 on labour for every dollar invested in capital. Capital intensity is low because the investment requirements for new capital is low. Firms spend relatively little on equipment and facilities in comparison to employees. Meanwhile, firms spend large amounts on skilled people who input a lot of time into the industry's services.
Capital intensity varies from segment to segment. High-end automotive repair centres require sophisticated and cutting-edge technology to repair vehicles... purchase to read more