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

Image

China's biggest fuel tank maker getting a US foothold

April 23, 2014 4:41 pm ET

The majority owner of China's biggest fuel tank maker is expanding its global automotive footprint with the acquisition of the fuel tank unit of...    More

Image

How CEO Santi is changing ITW

April 23, 2014 2:48 pm ET

Scott Santi is showing he can do more than just cut costs at Illinois Tool Works Inc.    More

Auto supplier adds production space, jobs at plant in central Hungary

April 22, 2014 9:50 am ET

Automotive parts manufacturer Ábrahám Kft. has expanded its factory in Túrkéve, in central Hungary, with the launch of a new production hall as part...    More

Image

Ascend targets nylon for auto applications, opening propylene monomer unit in Texas

April 18, 2014 10:57 am ET

Materials firm Ascend Performance Materials Inc. is in full operation at its new nylon 6/6 compounding line in Florida and will break ground by the...    More

Image

German auto supplier Dr. Schneider opens second US plant

April 17, 2014 12:57 pm ET

Dr. Schneider Kunststoffwerke GmbH, a German supplier of plastic interior auto parts, has opened a $29 million manufacturing plant in Russell Springs,...    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 – North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events