The economic recovery remains sluggish, but the overall picture for the US automotive industry is positive, largely thanks to pent-up demand.
According to a KPMG LLP survey, about 67% of automotive survey respondents have added staff in the last year, and 72% will continue to hire throughout the rest of 2012. 23% of the executives in the survey say their hires will increase total staff by 7% or more, and almost a third say their staffing is or will be at pre-recession levels by the end of the year.
The dark cloud within the silver lining includes pricing challenges and a difficult European market, but they are not sufficient to dampen the overall positive vibes within the industry.
76% say revenues are up this year, and 83% expect revenues to grow in 2013.
“The survey results clearly demonstrate a U.S. automotive industry that is regaining confidence,” said Gary Silberg, national automotive industry leader for KPMG LLP. “Even though the overall economic recovery remains weak, that is not the case in automotive where pent-up demand for vehicles in the U.S. is expected to carry over for years. As a result, auto companies and suppliers are ramping up their hiring and production activities, and investing heavily in new products and facility expansion.”
In addition to hiring, companies are ready to indulge in capital expenditures, particularly with an eye toward offering new products and services, or to expand facilities.
“This investment follows market success,” adds Silberg. “Revenues are higher and execs feel confident that revenues will grow stronger still.”
RBR-TVBR observation: One of the first business groups to benefit from a resurgence of the automotive industry is – you guessed it – the broadcasting industry. This is great news for all broadcasters, who should be super-motivated to maintain primo A-1 relationships with all their automotive friends.
