ANN ARBOR – A newly-released report by the Center for Automotive Research calculates the substantial economic contribution of the automotive industry to the national economy and the economies of all 50 states. Nationally, automakers, parts suppliers, and dealerships directly employ nearly 1.6 million workers and support a total of more than 7 million total jobs in the private sector.
The study estimates the major contributions of the automotive industry. The industry supports 7.25 million total private sector jobs, nearly $500 billion in annual payroll compensation and more than $64 billion in personal tax revenues. Since the beginning of 2010, automakers have announced $46 billion in investment to expand and retool U.S.-based facilities. In addition to creating jobs and investing in communities, the industry contributes substantially to federal, state, and local tax revenues, providing more than $200 billion to the federal and state governments.
?Only half a dozen years after the worst recession in the U.S. since the 1930s, the American economy demonstrates many signs of strengthening, and the auto industry is helping to drive the recovery,? said Kim Hill, director of the Sustainability and Economic Development Strategies group at CAR, and the study?s lead. ?Jobs related to the automotive industry go far beyond designing, building, and selling vehicles. America?s automakers are among the largest purchasers of raw materials such as aluminum, copper, iron, lead, plastics, rubber, textiles, vinyl, steel, and computer chips. The industry has a significant influence on many other sectors as diverse as construction, machinery, legal, computers and semi-conductors, financial, advertising, and healthcare.?
CAR?s U.S. automotive employment forecast projects that from 2013 to 2018, employment will increase by approximately 11 percent. Over the same timeframe, U.S. production is forecast to continue expanding, resulting in a projected increase of 13 percent. CAR?s econometric analysis also suggests auto sales over the next several years will continue to increase, from 15.6 million units in 2013 to 17.6 million units in 2018. Coupled with relentless technological advances, the automotive industry will continue to be a significant sector of the U.S. economy.
