Study: Auto parts industry makes up 2.3 percent of U.S. GDP

By Andrew Thurlow
AUTOMOTIVE NEWS

Published: April 15, 2013 10:38 am ET
Updated: April 15, 2013 10:40 am ET

Related to this story

Topics Automotive

DETROIT -- The auto parts industry is the nation's biggest manufacturing employer, accounting for 2.3 percent of the U.S. gross domestic product, a new study says.

The study by the Motor & Equipment Manufacturers Association found that the industry directly employs more than 734,000 workers in all 50 states, while contributing nearly $355 billion to the GDP.

The study outlines the size of the U.S. auto parts industry, and details the impact of three segments: suppliers of light-vehicle parts to automakers, suppliers of parts for the light-vehicle aftermarket and suppliers of parts for heavy-duty vehicles.

The study, conducted in association with research firm IHS Automotive, relied on Bureau of Labor Statistics analysis and proprietary IHS forecasts that measure spinoff impacts and indirect employment.

Direct employees are those involved in making auto parts. Indirect employees include those who supply parts-making factories, but with services or materials that don't go into the vehicle parts, such as janitorial services or machine tools.

Michael Robinet, managing director at IHS Automotive, said for every direct job in the auto parts industry, another five jobs are created.

First, direct manufacturing jobs lead to indirect ones. The study said that the 734,000 direct employment jobs in the U.S. auto parts industry generate an additional 1.27 million indirect U.S. jobs.

Next, the report said, "The combined 2 million direct and indirect employees create their own economic impact through their everyday purchases within their local economy." That includes restaurants and other businesses that the workers at the parts-making factories patronize.

So the total employment impact from the auto parts industry in the United States was 3.6 million workers in 2012.

Those 3.6 million total employees generated more than $220 billion in wages and income. This represents 2.6 percent of all U.S. wages and salaries paid in 2012.

Light-vehicle automakers' suppliers accounted for most of the industry's direct employment: 58 percent. Robinet said aftermarket parts manufacturing accounted for 19 percent, while employment in the heavy-duty sector made up 23 percent.


Comments

Study: Auto parts industry makes up 2.3 percent of U.S. GDP

By Andrew Thurlow
AUTOMOTIVE NEWS

Published: April 15, 2013 10:38 am ET
Updated: April 15, 2013 10:40 am ET

Post Your Comments


Back to story


More stories

Ford shrinks its supplier 'watch list'

October 20, 2014 1:35 pm ET

Ford purchasing chief Hau Thai-Tang says suppliers are starting to invest in additional production capacity because they think the recovery is real.    More

Image

Plastikon expanding in Kentucky

October 17, 2014 11:24 am ET

Automotive supplier Plastikon Industries Inc. plans to more than double the size of its production facility in Leitchfield, Ky.    More

Image

Chrysler's Busse has a surprise for you

October 16, 2014 6:00 am ET

Chrysler Group's interior design chief Klaus Busse and his team enjoy hiding what they call "Easter eggs" throughout Chrysler Group vehicles for...    More

Image

Yazaki expanding in Romania

October 16, 2014 6:36 am ET

Japanese car parts maker Yazaki Corp. has unveiled plans to open two new production facilities in Romania, reported local business daily Ziarul...    More

Image

French molder betting on growth in the auto industry, Detroit

October 14, 2014 6:00 am ET

Precision French molder AdduXi Group is opening its first factory outside of its home country — in a Detroit suburb — and the top local ex...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events