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With direct employment of 783,100 people across the United States, motor vehicle suppliers are this country’s largest single manufacturing industry. Although many Americans can identify the manufacturers of most cars, trucks, and buses, many consumers do not know that suppliers manufacture two-thirds of the value contained in motor vehicles and the majority of the parts that service their vehicle over its lifespan. Even fewer Americans know the significant employment, personal income, and governmental tax base generated by motor vehicle suppliers.

While the motor vehicle-parts suppliers may not have the brand recognition of the automakers, their names are on the paychecks of nearly 783,100 direct-employment jobs. In fact, motor vehicle parts manufacturers are the leading U.S. manufacturing employer, accounting for 4.5 million private industry jobs and 5.5 percent of all U.S. manufacturing jobs. This includes 1.97 million indirect jobs in industries from steel to plastics and technical services that support motor vehicle parts manufacturing, and an additional 1.7 million jobs (spin-off) supported by spending from direct and indirect employees. Suppliers’ total employment equates to 4.5 million workers and $253 billion in compensation, or $45,790 average yearly compensation per industry worker.

The Center for Automotive Research, on behalf of the Motor & Equipment Manufacturers Association (MEMA), recently concluded a study of the economic significance of the motor vehicle supplier industry. While the study not only highlights the economic significance to the United States of the motor vehicle parts industry, it also establishes that the industry is the core of U.S. manufacturing. To read a shortened version of the study, click here. The entire study can be found here.