Automobile manufacturing industry is changing at a rapid pace, all thanks to globalization. With each passing quarter, the competition is getting more intense unleashing price wars and sometimes even leading to a soft look over the stringent quality controls. The ongoing upheaval is certainly helpful for the buyers who are able to make their regular purchase at never before prices, however, it is seriously denting the profits margins of the suppliers.
Frost and Sullivan has recently released a report where in they have re-emphasized that globalisation has placed extreme cost pressures on producers, requiring them to outsource low-cost manufacturing processes outside America.
Other than the costing issues another issue which is bothering the manufacturers is the stringent carbon emission guideline. Every day new technologies are being tried out to come up with something which is able to meet environmental policy challenges within a stipulated budget assigned.
One segment which is more worried out of the entire lot is that of electric motor manufacturers. Many electric motors suppliers insist that that any negative dip in their profit margin could have wide spread repercussion across the industry. By definition, an electric motor is a device which converts electrical energy into mechanical energy. This makes them one of the most basic and most required electronic component for almost every industry specially automotive.They are mostly used in rotating machines such as fans, turbines, drills, the wheels on electric cars, locomotives and conveyor belts.
Electric motor suppliers think that prices would get stabilised with a quarter or two as price war as a strategy could not be sustained over a loner period of time.
Every story has two sides and this one too isn’t an exception. Emerging manufacturing destination hubs like India, South American countries along with China have a happy problem of – plenty. Too many clients want to set up their offshore manufacturing unit and some even have unrealistic expectations from their vendors. These countries are the sure beneficiaries of the current crisis.
Trade Pundits say that eventually electric motors industry will emerge out of this strongly due to its wide spread usage and a huge scope specially in the home appliances, military equipments and industrial productions.
Industry analysts unanimously hope that electric motor suppliers would be able to survive this highly competitive phase and emerge as profitable as before.