Today’s automotive industry is enormous. In the United States, it is one of the largest manufacturing businesses and creates many jobs for Americans. This can be traced back to the fact that almost everyone and every other business is dependent on vehicles to transport people and goods. Because so many people rely on automobiles, the industry is continuously developing and implementing new technology, such as the use of alumina in shock absorbers and sensors, which requires that many industrial manufacturing companies stay busy as well. Since this industry has become such a large part of life in the United States, it is important to know some facts about it.
Consolidation is very prevalent in the automotive industry. The output of motor vehicles is in the hands of a few very large companies and smaller producers have virtually disappeared. This is because the industry tends to lean towards mass production, which is only feasible for larger companies. Mass producing cars is a favorite in this industry because it provides companies with a large return that gives them an advantage. These large companies can also look at spending patterns of consumers and predict the number of cars they want to produce. Additionally, the increasing fees and regulations for environmental issues is another reason players in this industry lean towards consolidation.
Diversity of Products
While most people think of the automotive industry and think cars, many companies that produce motor vehicles, also dabble in other products. For instance, the Ford Motor Company has produced both tractors and airplanes, while General Motors designed refrigerator motors and diesel locomotives.
Since the automotive industry is one of the largest manufacturing businesses in the United States, it is important to stay informed about its trends. Some of the top industry trends today include consolidation and the diversifying of products.