Motor vehicle-parts manufacturers are the leading U.S. manufacturing employer, accounting for 4.5 million private industry jobs and 5.5 percent of total U.S. manufacturing jobs. These jobs include:
783,100 direct-employment jobs
1.97 million indirect jobs in industries from steel to places and technical services that support motor vehicle parts manufacturing
1.7 million spin-off jobs supported by spending from direct and indirect employees
The motor vehicle supplier industry has an economic multiplier of 5.7 (4.46 million total jobs divided by 783,100 direct jobs). One direct job in the motor vehicle supplier industry supports 4.7 additional jobs.
Suppliers’ total employment equates to $253 billion in compensation and $47,790 yearly average compensation per industry worker.
Currently, there are more than 240 million total vehicles in the U.S. vehicle operating fleet.
Most components (except for stampings and most powertrains) are provided by suppliers.
Suppliers provide two-thirds of the value of a vehicle.
The supplier industry is exceptionally productive. The number of vehicles assembled in the U.S. has remained relatively constant at 12 to 13 million units since 1994, while total labor headcount in the industry has fallen by 17 percent since 2000.
In the light-duty market, the top three vehicle producers (Ford, GM, and Chrysler Group) controlled 84 percent of North American production in 1992 versus 69 percent in 2005.
The service parts industry has become increasingly complex as independent suppliers support a record number of vehicle manufacturers and vehicle models being sold and operated in the United States. Motor vehicle supplier jobs support high-technology jobs. Supplier jobs also support the many diverse industries that are core to the U.S. manufacturing base.
In 2004, motor vehicle-assembly operations were located in 21 states, whereas direct or indirect employment by motor vehicle suppliers’ operations existed in all 50 states and the District of Columbia. In many states, suppliers represent a significant portion of the labor force.
The total impact of motor vehicle supplier-related employment as a percentage of the total state labor force is more than six percent in Michigan, Indiana, Ohio, Kentucky, and Tennessee. Motor vehicle supplier-related jobs account for three to six percent of the total labor forces in an additional 10 states.
In 1997, shipments by motor vehicle suppliers were worth $178.5 billion. Shipments have continued to grow in value to over $203.5 billion today. This further illustrates not only productivity improvements, growth in unit volumes, and the value of motor vehicle components, but also a growing reliance on the U.S. supply base.
The supplier industry now accounts for 40 percent of total automotive R&D investment.
