DETROIT — The 2005 North American International Auto Show (NAIAS) is expected to have a $580 million impact on the Metro Detroit economy, according to David Sowerby, C.F.A., portfolio manager and chief market analyst at Loomis Sayles & Co.
Sowerby said this projection would represent a 5 percent gain from last year’s estimated levels.
“Among high profile events that take place in the Metro Detroit economy, the annual automotive show consistently is the number one contributor to business activity in part due to the event covering two full weeks, plus the considerable assembly and dismantling of the individual exhibits,” said Sowerby. “The economic impact has the potential to be higher in 2005 both in the direct spending at the auto show as well as the important economic spillover effect.”
There are a number of factors contributing to this record estimate, including the U.S. dollar’s depreciation over last year, growth in the U.S. economy, the replacement rate, increased local personal income growth and the expectation that 2005 will be a robust year for travel and tourism.
“Sowerby’s projection is great news and indicates how much southeastern Michigan truly benefits from the NAIAS in terms of jobs and income for many businesses, individuals and families,” said Bill Cook, senior co-chairman for the NAIAS 2005. “The impressive gains in economic growth and tourism are a positive sign to the region, and will help bolster our ambitious plans for 2005. All of the indicators seem to suggest another banner year for the NAIAS and its neighboring beneficiaries.”
Public days for NAIAS 2005 are Saturday, Jan. 15, through Sunday, Jan. 23, 2005. For more information, go to: www.naias.com.
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