MEMA: Manufacturing is the nation’s largest employment segment

News Jason Cannon April 8, 2013

jobsA new economic impact study shows that the motor vehicle parts manufacturers industry – made up of the original equipment, aftermarket, heavy duty and remanufacturing sectors – provides jobs to more than 734,000 American workers and is the largest employer of manufacturing jobs in the United States.

The report says the industry generates nearly $355 billion in GDP contribution, or more than 2 percent of the total U.S. GDP.

The study, released by the Motor & Equipment Manufacturers Association (MEMA) in collaboration with IHS, the leading global source of information and analytics, shows the total employment impact for motor vehicle parts manufacturers in the U.S. was more than 3.62 million jobs in 2012.

“Motor vehicle parts manufacturers are the largest creators of manufacturing jobs in the nation,” Bob McKenna, president and CEO of MEMA, says. “The study conducted by IHS provides valuable information for policymakers on the industry’s overall impact on the U.S. economy. We hope the data will be used as a resource for our nation’s leaders to continue working to create a sustainable and vibrant manufacturing environment.”

Motor vehicle parts manufacturers have a presence in all 50 states compared to only 18 states where motor vehicles are actually manufactured.

The top three states of direct employment for parts manufacturers – Michigan (102,624 direct jobs), Ohio (89,423) and Indiana (79,651) – make up 37 percent of the national total of 734,000 supplier employees.

Supporting the heavy-duty vehicle OEMs and the associated aftermarket, the heavy-duty market segment of the U.S. motor
vehicle supply industry comprises just more than 23 percent of the industry’s total direct employment.

In 2012, that amounted to nearly 171,000 employees. The direct employment within this market segment created an indirect employment effect of nearly 263,000. The direct and indirect employment figures combine for an induced employment impact of 345,000 employees.

The total employment impact for the heavy-duty market segment is 779,000 jobs, providing $47 billion in wages and income and making up 0.5 percent of all wages and  salaries paid in the country in 2012.

Consistent with other market segments, at 32.1 percent, the manufacturing sector makes up the largest share of the heavy-duty supplier market segment total employment impact.

The 3.62 million total employees supported by motor vehicle parts manufacturing industry generates more than $220 billion in wages and income.

According to the report, OE suppliers make up the majority of the direct employment in the motor vehicle parts manufacturing industry. In 2012, OE suppliers directly employed 424,000 people – 58 percent of total industry direct employment.

The 2.13 million total employees supported by this market segment generate more than $129 billion in wages and income making up 1.5 percent of all U.S. wages and salaries paid in 2012.