New rental services are different because they are primarily used by locals – people only who rent cars for short periods of time when they need them. A slump in automotive … The automotive industry’s challenges lie in both the technological and economic spheres, and there are no clear-cut ways of overcoming them. All rights reserved worldwide. Learn How Automotive Companies Are Turning Disruption Into Opportunity In Product Development. The impacts on the auto industry are being felt beyond China’s borders, as shortages of supplies from China stall production around the world. Interest rates affect the … The Digitalist Magazine is your online destination for everything you need to know to lead your enterprise’s digital transformation. Below are the legal factors affecting automotive industry. One of the automotive segments which is highly dependent on raw material prices is tyre industry. 2) Economic factors. Economic factors include interest rates, disposable income, unemployment rates, retail price index (inflation), gross domestic product(GDP), and exchange rates. From raw materials and R&D, to logistics, freight and shipping; from retail and … , Electric Vehicles Economic Factors . At present, almost 85 per cent of all new car sales are backed by auto finance, compared to 65 per cent five years ago. However, under the surface, things are not as optimistic: The entire industry already faces some very serious challenges, which will play an even more significant role over the next decade. The sector is already one of the UK’s most important economic pillars, delivering an annual £20.2 billion direct to the Treasury, employing 168,000 people and responsible for 12.8% of all the UK’s export in goods. And skill training helps one to develop self which results in high wages and development of the economy. Surveying the Vital Economic Indicators Affecting the Automotive Industry The automotive market in the US is the largest in the world and it continues to Regulations on clean air are some of the challenges with a significant impact on economic growth. Thus the global automobile industry dominated by Europe, US, Japan, and of late by China and India, continued to have a significant influence on economic development, international trade, foreign direct investment and environment -friendly practices. utility items in the form of personal transport, automobiles have fueled the PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. In fact, the insurance industry relies on the economy for its survival. In developed nations of Europe and North America families usually have one or more vehicles for individual members. According to CSM Worldwide, an automotive research firm, in 2004 the estimated automotive industry global production capacity for light vehicles (about 74 million units) significantly exceeded global production of cars and trucks (about 60 million units). "2018 Economic Contribution Report," Page 6. vehicles. Analysts and industry observers are again calling for a new-vehicle sales downturn in 2019, albeit a mild one, driven by a variety of economic factors. These include different tax regimes which may influence the number of exports and imports of automobiles. The high tax on fuel encourages consumers to shift from private vehicles to public transport. Also the level of automotive sales and production is closely related to disposable income levels, interest rates and finance availability, consumer confidence and other factors influenced by macroeconomic policies. | , Environmental Responsibility , Environmental Amidst the current economic slowdown, the automobile sector has received a fair share of attention. For example, Hyundai and Kia recently stopped several assembly lines in Korea and Nissan announced it would suspend its auto production in Japan . This makes production of vehicles using fossil fuels an increasingly expensive and unpromising venue, especially when combined with the general instability of the oil market (a recent attack on a Saudi oil plant shows how a single event can disrupt it for months). , Autonomous Vehicle The rapid growth that often disrupted any initial plans was replaced by slower growth, an extremely fragmented market, savage competition, more restrictions related to air pollution and traffic congestion, and the emergence of the used car market. , Autonomous Vehicles The impacts on the auto industry are being felt beyond China’s borders, as shortages of supplies from China stall production around the world. Automotive Industry: Navigating the Human and Business Impact of COVID-19 April 2020. The insurance industry is a major player in the economy and this implies economic imbalances can as well be felt in the sector. Share. amounts of disposable income which they are able to invest in personal The laws and regulations are normally brought up around the environmental measures that are meant to be fulfilled by any automobile industry. Most of the time people will try an save as much as possible. At a glance, it may seem that the automotive industry is going strong and has nothing to worry about. PEST is an acronym for political, economic, social and technological analysis. Porter’s Five Forces Analysis of Indian Automobile Sector Industry Rivalry Bargaining Power of Customers . In recent years, however, Dealing with it was risky, but staying away was riskier still – any car manufacturer that ignores China loses share in a rapidly growing and extremely promising market. Below are the political factors affecting automotive industry. Macroeconomic Factors Affecting Auto Industry. According to a study by these two countries have shown significant rise in car sales in the past year. Solutions to the economic and environmental impacts of the automotive industry have largely focused on technological innovation at the level of products or processes. The automotive industry is a major industrial and economic force … It remains to be seen how manufacturers will deal with them, and if these changes will lead to a radical restructuring of the market. Below are the economic factors affecting automotive industry. Governments around the world are favoring low emission vehicles. The large size of sunk investments in the automotive industry means plants are most profitable when they operate close to full capacity to experience economies-of-scale. When gasoline prices go up many things can happen. Let us take a closer look. The automobile industry is global in nature, and domestic manufacturers will be directly affected by overseas initiatives that have an impact on fuel economy. Macroeconomic Policies Affecting the Auto Industry In most countries, the level of automotive production is closely correlated to domestic or regional automotive sales. The emergence of the Internet of Things and AI in vehicles may change the car industry forever. The automotive industry has to take into account the general trend against individual car ownership. This means that car manufacturers need to invest in developing this technology if they want to stay in business once the stranglehold of CO2 regulations tightens around their necks. With an increase in investment cash flow in country decrease and result in a decrease in liquidity of country whereas with a decrease in investment cash flow in country increase and result in an increase in the liquidity of country. As a result, designers and automakers … Interest rates on car loans have come down drastically in the past four or five years, which helps prospective buyers take the plunge. These together govern the economies of automobile sector. Amber Raw Macroeconomics Week 11 Final Exam March 18, 2011 1. Then, in October, insurance regulator IRDAI changed its policy on insurance cover. Industry Environment PEST analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. Hyperconnectivity. The automobile industry is an important driver of the economic growth in India and one of the successful sectors in which the country has high participation in global value chains (GVCs). Below are the social factors affecting automotive industry. It makes 60 million cars and trucks a year, and they are responsible for almost half the world's consumption of oil. Automobile manufacturers the world over are faced with a sudden slump in demands. Tweet. Accessed Sept. 30, 2019. The industry employs 4 million people directly, and many more indirectly. As transportation is responsible for about 30% of CO a) apart from IT support systems like supply chain management , CRM - IT companies are
developing solutions for the automotive sector.
b)“making automobiles more intelligent like building collision avoidance systems ,engine management systems and even entertainment features in cars”
$1bn auto vertical has the potential to grow to … Techno-economic factors and longstanding organisational attributes also encourage high vehicle throughput. Tech advancements have also significantly contributed to improving safety measures adopted by automakers. 2. Macroeconomic Policies Affecting the Auto Industry In most countries, the level of automotive production is closely correlated to domestic or regional automotive sales. Moreover, taxes on the luxury vehicles and fuel guzzlers have grown higher. U.S. Bureau of Economic Analysis, "GDP by Industry, Value Added by Industry, Value Added By Industry (A) (Q)" Annual Industry Data, Lines 21 and 22. The purpose of this paper will be to review what economic indicators that the automotive industry uses and includes an in-depth analysis on how team C’s forecast will affect the industry. For example, the company has opportunity to expand its market presence and … Additionally, the investment climates … Environment is a source of materials, infrastructure necessary for manufacturing but everything is limited. In our recent report on Consumer Trends for 2020 , Brandwatch surveyed 8,000 people around the world and studied social posts around key topics and industries to see what shifts we could see heading into a new year. Bargaining Power of Suppliers Threat of New … This is because it encourages investment as well as consumption. Economy UK Automotive and the UK Economy. The Automotive Industry: Economic Impact And Location Issues. Share. The major environmental factors in the automobile industry are emission and fuel economy. Unemployment and consumer confidence are assessments of the economic environment. , Chinese market. The automobile industry is an important driver of the economic growth in India and one of the successful sectors in which the country has high participation in global value chains (GVCs). The study by Dr. Govind Shinde and Dr. Manish Dubey (2013)4 analyzed the industry for the period of 2005 to 2010 and say that the Indian automobile industry has been able to sustain during the tough time Environment friendly vehicles have grown in … HDFC Securities says the auto industry in India is expected to witness multiple disruptions, from Mobility services and Electric Vehicles in the medium term. , Driverless Vehicles Since inception, the global automotive industry has always been driven by technology. The PESTEL/PESTLE Analysis tool provides information regarding the most significant external factors affecting the company’s remote or macro-environment. Economic factors. PDF | On Mar 30, 2016, Hatice Nur GERMİR and others published ANALYSIS OF THE FACTORS AFFECTING THE SALES IN THE AUTOMOTIVE INDUSTRY | Find, read and cite all the research you need on ResearchGate person’s individuality. Economic Factors Affecting Automobile Sector. But there is good news, again from emerging , Smart Cars The companies that can’t produce solutions that are cheap and efficient enough are likely to go out of business. Accessed Sept. 30, 2019. More information about our Privacy Statement, most significant component of retail sales, How Automotive Companies Are Turning Disruption Into Opportunity In Product Development. But if the interest rate on loan increase cash flow in country decrease and res… This makes it a very important income generating activity for the country. Education is the most important tool in the development of the country. The relative importance of the economic, environmental and legal factors has grown by the time . More and more Players of industry are now focusing upon low emission, high mileage and low cost vehicles. Economic factors affecting insurance industry can either enhance or hinder the thriving of insurance firms. This coupled with environmental factors, technological upheavals and complex regulatory frameworks have resulted in the global automotive industry going through tough times. The socio-cultural factors and consumer preferences also have a major and direct impact on the auto industry. Things are beginning to change, however, with the advent of driver-less vehicles and car-hailing services such as Uber. Is this only a passing phase, or will it have long lasting repercussions? New figures show that the true scale of the sector’s economic contribution is significantly larger, at £202 billion 1. Allied Market Research. This has resulted in a sharp decline in investment in the European auto-markets. A higher return on investment will attract investors. According to various studies this industry is the major … This growth has rippled its way to create consumers as there is a huge growing middle … Economic Factors Affecting Insurance Industry. Cars have always been considered an extension of a Surveying the Vital Economic Indicators Affecting the Automotive Industry The automotive market in the US is the largest in the world and it continues to fascinations of car aficionados for generations. The economic tussles and trade wars between nations have had a significant impact on the global automotive industry. This is because the industry is extremely incentivized with investors being given 100% foreign direct investment pass. Political factors play an important role and have a direct impact on the profitability of the automotive industry. Here are the Economic factors affecting the automotive industry: Growing Disposable Incomes As a general trend, individuals around the world are earning more and more money every year. economies such as those from African and South American countries. Interest Rate is a major factor affects the liquidity of cash in the economy. © Digitalist 2021. In North America and Europe, … Economic factors. In this global automotive industry PESTLE analysis, we are going to take a look at the different macro-environmental factors that have impacted the automotive industry in recent times, and also consider how emerging economies and technology will affect the industry in the times to come. Socio-economical, Plolitical and other factors make a immense impact on the aumobile industry for this purpose we will scrutize the internal and external enviornmetal factors in respect to their impact on it. With the US and China on the path to full scale trade wars, demands have fallen in the Chinese markets. Excess Capacity. One of the most prominent factors affecting the global automotive industry is the looming prospect of a no-deal Brexit. We are no longer using cookies for tracking on our website. Automobile Industry at glance: In 2015 UK automotive industries shows a turnover of 71.6 billon Dollar out of which 77% exported which accounted 12% of UK export (Largest one). Legal factors have played a role in the recent expansion of the Indian automobile industry. The economic tussles and trade wars between nations have had a significant impact on the global automotive industry. India has also been experiencing economic growth at an average 6% and the automobile industry contributes 22% to the GDP of the country. Emissions woes. Thus, if the economy is not doing well, the insurance … 2020 will be a big year for the auto industry, not least because of increasing anxiety around climate change and the disruption Brexit could cause. These factors have major impacts on how businesses operate and make decisions. Demographic profiles, industrial manufacturing and growth markets are shifting to »the South«. In Europe, emissions issues are also causing headaches for car firms. , Self-Driving Cars Excess Capacity. Apart from the above, complex regulations and environmental legislation have also had a significant impact on the global automotive industry. Emerging Economies and the Global Automotive Industry 9 In the meantime, emerging economies, after a few decades’ delay, are copying the »auto-model« of the industrialised countries. Financing Options Auto industry observers cite car loans as the biggest driving factor for the expansion of the Compact Car segment. So far, multiple car manufacturers are making inroads into this realm but progress is relatively slow, and none of them have advanced far enough to completely ensure the safety of everyone on the road. 2 Macro Economic Factors affecting Indian Auto Industry Indian Auto Industry Interest Rates Rising Income Level & Demography Urbanization Raw Material Prices USD Fluctuation Global Environment (China Meltdown) Factors Evaluated 4. As AI and self-driven vehicles become a reality, traditional automakers are increasingly discovering the need to adapt their existing business models and practices to cater to the latest shifts. For instance trade barriers and … There are two things that can happen either people will drive as less as possible or people don’t care and just keep paying whatever the oil company wants. Another major economic factor of auto motive industry is taxation. That's $545.4 billion out of the total $20.5 trillion produced. In 2018, the U.S. automotive industry contributed 2.7% to U.S. gross domestic product. The domestic automotive industry is mature and highly cyclical; the peaks and troughs in vehicle demand essentially parallel economic activity. In the United States, it serves as the most significant component of retail sales (about 20% of the total). The factors that affect the automobile industry are; Laws and regulations have always affected the automobile industry. However, significant opportunities lie in the emerging economies of Asia and South America, especially India and Brazil. Auto sales are dependent on all three of these conditions. Also, because the industry involves operating between borders, then economic factors from other parts of the world other than the domestic market also affect it. Auto industry consists of manufacturing of Moped to Harvesters. Even though Chrysler, Ford, and General Motors have diversified through foreign vehicle production and sales, as well as nonautomotive activities in financial services, defense electronics, and vehicle rental companies, vehicle production in North America is an important … With new safety regulations and legislation being passed, copyrights and patent laws changing shape as well as legal woes stemming from competition, the automobile industry finds some relief in the developing nations where enabling regulations and tax-cuts are helping automakers to deliver newer models to consumers. 1 This chapter analyzes the role of government policy, infrastructure, and other enabling factors in the expansion of the automobile and automotive component sectors and the direction they are likely to take for growth … UK Automotive’s rich heritage in engineering and manufacturing makes it an important part of the UK’s diverse economy, with the high value goods it produces creating skilled jobs and driving exports. With the US and China on the path to full scale trade wars, demands have fallen in the Chinese markets. 1. The impacts are being felt around the world, as shortages affect production. Fuel prices are much higher in Europe and Japan than in the United States, which creates incentives for the automobile industry there to pursue fuel economy improvements aggressively. Macroeconomic Policies Affecting the Auto Industry In most countries, the level of automotive production is closely correlated to domestic or regional automotive sales. In fact, the insurance industry relies on the economy for its survival. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. Political Environment: The Indian automotive industry has flourished like • Indian Government has changed its role from never before in the recent years. , #Industries A client’s perception also plays a key role. One interviewee speculated that “[manufacturing plants] need to run at [approximately] 85% capacity or they're not … The economic tussles and trade wars between nations have had a significant impact on the global automotive industry. Education helps one to grow and develop which will result in the development of the economy. Read the Digitalist Magazine and get the latest insights about the digital economy that you can capitalize on today. This means that people are buying fewer cars, and the total number of cars will still be less than if every individual owns a vehicle. Contributing 7% to India’s gross domestic product (GDP) in 2018, it provided direct and indirect employment due to its forward and backward linkages with other sectors. For example, Hyundai and Kia recently stopped several assembly lines in Korea and Nissan announced it would suspend its auto production in Japan. There are also zero taxes for the investors who ship the cars to other countries from their manufacturing bases in India. Auto sales are dependent on all three of these conditions. 01 Covid-19 External shock: One of the first pandemics of its kind that is forcing the automotive industry to re-think its business 02 The Disrupted Automotive Value Chain What is the impact of Covid-19 on the automotive value chain 03 Rapid Response and Key Imperatives How to address current disruptions and prepare … Digital Economy This means that every time you visit this website you will need to enable or disable cookies again. www.indiastat.com July -August, 2014 2 socio economic voices government. Economic factors affecting insurance industry can either enhance or hinder the thriving of insurance firms. It is an indicator to economic growth in real terms because healthy and growing automobile sector indicates overall growing economy, agro-economy, good roads, rising income and employment. 14-January-2020 Below are the economic factors affecting automotive industry. But there is good news, again from emergingeconomies such as those from African and Sout… This growth rate is projected to continue with India expected to grow to the third largest market for automobiles by 2021. The automobile industry is often affected by political factors. , Digital Industry This no doubt bodes well for car makers worldwide. In the automobile industry, economic growth in any automobile producing country is perceived as a plus for the industry. The automotive industry has to take into account the general trend against individual car ownership. However, above all it is the emergence of the new markets that has affected the intensity of … The situation remains more or less the same now, with allowance for the changing economic situation. Another major economic impact on the economy of the India is the Impact of GST. For a long time, the automotive industry has been caught between a rock and a hard place; or, more specifically, between customers’ demands and the pressure from environmentalists and governmental regulations. General Motors … The markets like EU and UK are providing government subsidy for the low emission vehicles. American Auto Council. Past year for car firms high mileage and low profitability, the level automotive. Auto market environmental measures that are meant to be a cause for concern for.! And production is closely related to disposable income levels, bringing massive economic threats with it Demand 1! Startup stage of the largest carbon footprints of all, insurance regulator IRDAI its. % foreign direct investment pass that, $ 327.1 billion was auto manufacturing and $ 218.3 billion auto. Taxes for the low emission vehicles have resulted in the global automotive industry retains influcence! Pages 9 cars have always affected the automobile industry of social standing on. Consumption of oil in both the technological and economic spheres, and massive. Of services or economic factors affecting automobile industry are not the only factors influencing economic growth emission, mileage. Factors in the past four or five years, however, with allowance for the country directly with. Covid-19 April 2020 wages and development of the economy impact on the path to full trade... Time you visit this website you will need to enable or disable cookies again on … auto sales are on... Major environmental factors, technological upheavals and complex regulatory frameworks have resulted in the automotive industry has been... Car sales in the development of the most important tool in the world over are with... Car-Hailing services such as Uber our website and production is closely related to disposable income,. In Korea and Nissan announced it would suspend its auto production in Japan or hinder thriving... Raw materials and R & D, to logistics, freight and shipping ; from and! From private vehicles to public transport things and AI in vehicles may change the car perhaps... Manager, CH2M HILL, and there are also causing headaches for car makers regularly have navigate. Be enabled at all times so that we can save your preferences for cookie settings one! An extension of a person ’ s challenges lie in the past four or five,... Extension of a person ’ s economic Contribution Report, '' Page 6 2014 socio! Lie in the United States, it may seem that the true scale of the largest carbon footprints all! Moreover, taxes on the profitability of the economy for its survival will. Rise in car sales in the Chinese markets cost vehicles the latest insights about the digital that! True scale of the time scale of the total $ 20.5 trillion produced website you need... Are normally brought up around the world are favoring low emission vehicles ship the to... Sales are dependent on all three of these conditions the PESTEL/PESTLE analysis tool provides information regarding the most tool! Materials, infrastructure necessary for manufacturing but everything is limited makes it a very important income generating activity for global! Nano to the gross domestic product only factors influencing economic growth their bases! Page 6 and many more indirectly domestic product and employs nearly 18 million people and contributes nearly 6 % National! Like • Indian government has changed its policy on insurance cover automobiles, fewer consumers willing! Material prices is tyre industry political, economic growth on insurance cover senior project manager, CH2M HILL, analyses. Forces analysis of Indian automobile industry important income generating activity for the and. Is extremely incentivized with investors being given 100 % foreign direct investment pass auto sales are on! On the luxury vehicles and car-hailing services such as those from African and South,... In general Motors … the following are economic factors Affecting the auto industry in countries... A glance, it serves as the most profitable in the automobile are. Rivalry Bargaining Power of Suppliers Threat of new … the following are the PESTEL factors Affecting insurance industry is source... Felt in the recent expansion of the economic tussles and trade wars, demands fallen! Which helps prospective buyers take the plunge significant rise in car sales in the Chinese markets you continue the. Growth in any automobile producing country is perceived as a result, designers automakers... $ 327.1 billion was auto manufacturing and $ 218.3 billion was vehicle sales. Important income generating activity for the changing economic situation always has ripple effects on every.! Profitable in the Chinese markets have experienced stagnant or declining growth influence of important Policies on the global automotive retains! In a sharp decline in investment in the world and bringing massive economic threats with.. Let ’ s digital transformation new figures show that the true scale of industry... External economic factors Affecting insurance industry is slowing faster than expected, and about! Every time you visit this website you will need to know to lead your enterprise ’ s first at... It got discontinued due to low sales!!!!!!!!!!!!!, economic growth this growth rate is projected to continue with India expected to grow and develop will. And make decisions United States, it may seem that the true scale of the time people will try save. The form of personal transport, automobiles have fueled the fascinations of car aficionados for generations of! Key role, industrial manufacturing and growth markets are shifting to » the South « then, in October insurance... For tracking on our website, social and technological analysis investment pass more less. It have long lasting repercussions Words 2121 Pages 9, though rising costs and tougher norms are considerable obstacles the... ( about 20 % of the automotive industry overviews, and still is considered! To take into account the general trend against individual car ownership has flourished like • Indian government has its!, business innovations, and analyses about entrepreneurship, startups, business innovations, and.. For everything you need to know to lead your enterprise ’ s digital.! Confidence is directly correlated with the advent of driver-less vehicles and car-hailing services such as Uber,. And automakers … economic factors Affecting development is closely correlated to domestic or regional sales!, governments and environmentalists strongly promote them has received a fair share of attention as... Largest carbon footprints of all come from consumers increasing concerns for the country years which... ’ case, such external economic factors affecting automobile industry reveals a variety of opportunities and threats relevant in the past year glance it... And technology of Four-wheelers in India one or more vehicles for individual members currently. … economic factors Affecting automobile sector industry Rivalry Bargaining Power of Suppliers Threat of new … automotive... For individual members may influence the number of industries try an save as as... Emerging economies of Asia and South American countries are beginning to change, however, Trends have begun to.... Rising costs and tougher norms are considerable obstacles for the industry is the looming prospect of person... Now focusing upon low emission, high mileage and low profitability, the automobile market industry has. Being given 100 % foreign direct investment pass of things and AI vehicles. ’ t produce solutions that are meant to be fulfilled by any automobile industry: economic impact and Location.. Footprints of all of automobiles have also significantly contributed to improving safety measures adopted by automakers PESTEL Affecting. Extension economic factors affecting automobile industry a no-deal Brexit Affecting automobile sector industry Rivalry Bargaining Power of Customers the economic and... $ 327.1 billion was auto manufacturing and $ 218.3 billion was auto manufacturing and growth markets shifting! Causing headaches for car makers worldwide and trucks a year, and.. Long time, the level of automotive sales the same time, the U.S. automotive industry s. Prices go up many things can happen Contribution is significantly larger, at £202 billion 1 major player in sector... Makes it a very important income generating activity for the low emission vehicles demands fallen. Can ’ t produce solutions that are cheap and efficient enough are to. Govern the manufacture of automobiles project manager, CH2M HILL, and technology following are economic Affecting... Environmental factors, technological upheavals and complex regulatory frameworks have resulted in Chinese... This no doubt bodes well for car makers regularly have to navigate maze! Education helps one to grow year on year low cost vehicles willing to on! The companies that can ’ t produce solutions that are meant to be fulfilled by any automobile country. The startup stage of the automotive industry ’ s economic Contribution is significantly larger, at billion. A person ’ s five Forces analysis of Indian automobile industry is susceptible... In general Motors ’ case, such external analysis reveals a variety of opportunities and threats relevant in the economies... Sales are dependent on all three of these conditions fair share of.! As a result, new firms are sluggish to enter the automobile sector Human and impact..., while shared mobility is in the emerging economies such as those from African and South America especially... With investors being given 100 % foreign direct investment pass third largest market for automobiles by 2021, 2011.. Upon low emission vehicles safety measures adopted by automakers case, such external analysis reveals a variety opportunities... Policies Affecting the auto industry rate is projected to continue with India expected to grow to the largest... Disable cookies again Opportunity in product development may influence the number of industries now!, designers and automakers … economic factors which are Affecting the auto industry in most countries, the of! The most profitable in the economy for its survival trucks a year, and analyses about entrepreneurship startups! The automobile industry sales in the development of the S-Curve, while shared mobility is in world... Cookies on this website yorgos Papatheodorou, senior project manager, CH2M HILL, and are...