Automotive firms say prospects look good

GE Capital’s national survey of C-suite executives in middle market companies shows growing optimism amongst automotive firms. These are very confident in their local economies and are also positive about the overall state of the US economy.

The findings indicate the proportion of firms reporting year-over-year increases in revenue and employment is higher now than in March of this year, while nearly half of firms expect to add head count in the coming year.

Optimism in the automotive industry is driven by an expectation of industry expansion, cited by 60%, and increases in the new order pipeline, with 44% reporting improvements since last year. Capital expenditures are greater this year than last year at 61% of firms.

Innovation is identified as a key component of the automotive industry with nearly 60% of firms deriving 10% or more of their revenue from products introduced in the past three years. Maintaining margins emerges as the key business challenge due, in part, to an increasing cost structure. A majority expect to increase their prices in the coming year.