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Automobile Brakes Manufacturing

The Automobile Brakes Manufacturing industry has experienced improved demand over most of the five years to 2021.

Brake manufacturers supply brakes and braking systems to two primary markets, including original equipment manufacturing (OEM) industries, which purchase braking systems for new automobiles; and aftermarket industries, which retail braking components to consumers for maintenance.

Gains in household income and consumer confidence, combined with low interest rates and pent-up demand, has supported increased car demand and production.

However, these trends reversed in 2020 due to the COVID-19 (coronavirus) pandemic and its effect on the economy.

As a result, automobile manufacturers have drastically cut production to avoid the accumulation of unsellable inventory, causing industry revenue to drop sharply and offset other gains experienced during the period.

Therefore, industry revenue has decreased at an annualized rate of 0.3% to $12.1 billion over the five years to 2021, including an expected increase of 5.1% in 2021 alone.

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Automatic Fire Sprinkler System Manufacturing

The Automatic Fire Sprinkler System Manufacturing industry produces fire suppression products for use in residential and nonresidential buildings.

Automatic sprinklers typically consist of a network of pipes connected to a building’s water supply that detect heat and automatically release water to extinguish or control flames.

Since sprinklers are most commonly installed in new buildings, demand for industry products corresponds to the level of new construction activity in the United States.

Over the five years to 2020, the slow expansion in domestic construction markets has hampered sales of sprinkler systems.

Overall, Research

expects industry revenue to fall slightly at an annualized 0.1% to $387.3 million during the five-year period to 2020, including an anticipated 0.1% growth in 2020 alone.

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Automobile Engine and Parts Manufacturing

Over the five years to 2020, the Automobile Engine and Parts Manufacturing industry has had a bumpy ride.

Operators in this industry manufacture gasoline engines and related components that are essential to the production of automobiles.

Therefore, industry revenue performance is directly linked to the production of vehicles.

As vehicle sales have increased over most of the past five years, so did demand for engines.

However, as new car sales growth slowed down in recent years, engine manufacturers’ revenue fell.

This decline was accelerated in 2020 as the outbreak of COVID-19 (coronavirus) decimated demand for new cars and therefore, demand for new auto engines.

Consequently, industry revenue has decreased, falling at an annualized rate of 5.1% to $28.4 billion over the five years to 2020, including an anticipated decline of 28.9% in 2020 alone.

This decline in revenue has contributed to declining industry profit as well.

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Automated Guided Vehicle Manufacturing

Over the past five years, the Automated Guided Vehicle (AGV) Manufacturing industry has rapidly expanded.

Industry operators design, manufacture and install AGVs, which are mobile robots used for material handling and tracking or repetitive tasks.

Persistent economic growth has been driven by strong gains in consumer spending.

As a result, more manufacturers, logistics companies and others purchased AGVs to move the rising amount of goods throughout their facilities while reducing manual labor costs.

In particular, operators in these sectors used AGVs to improve efficiency and reduce operating costs in the long term.

As a result, industry revenue is expected to climb at an annualized rate of 25.5% to $804.5 million over the five years to 2020, including a 10.7% increase in 2020 alone.

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Auto Windshield Repair Services

The Auto Windshield Repair Services industry has experienced growth over the five years to 2020.

However, this growth was volatile due to conflicting trends that have created fluctuations in demand for industry operators from year-to-year.

For instance, as per capita disposable income increased, more consumers opted to purchase newer vehicles.

With improved safety features that decrease the likelihood of a car crash, new car sales severely hindered revenue growth during the early half of the five-year period.

Conversely, many consumers who initially postponed nonessential windshield repairs and replacements have also sought the services of industry operators due to increases in disposable income and consumer confidence.

Over the five years to 2020, revenue is expected to grow an annualized 1.4% to $5.5 billion, despite an increase of 0.3% in 2020.

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Auto Parts Wholesaling

Revenue for the Auto Parts Wholesaling industry is expected to have declined over the five years to 2020 at an annualized rate of 2.5% to $173.5 billion.

This rate includes an anticipated 10.3% decline in 2020 alone, as the COVID-19 (coronavirus) outbreak weakens new car sales.

Amid widespread stay-at-home orders, unemployment has spiked in 2020, discouraging consumers from making large purchases, such as automobiles.

Furthermore, consumers are driving less due to the prevalence of working from home, lessening consumers’ need for new cars.

Therefore, automobile manufacturers have reduced and even halted production, weakening demand for industry products.


expects the number of new cars sold domestically to decline 29.9% in 2020 alone.

As a result, industry profit (measured as earnings before interest and taxes) is expected to decline notably during the current period.

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