Yesterday in Dearborn, MI, the Motor & Equipment Manufacturers Association (MEMA) in collaboration with the Center for Automotive Research (CAR) released a new study that establishes the U.S. motor vehicle parts supplier industry as the nation’s leading manufacturing sector, contributing approximately 4.5 million jobs nationwide and providing more jobs than any other sector in seven states.
Dr. David Cole, chairman of CAR, described the parts supplier industry as the “story of the invisible giant because the auto supplier industry in this country is, in so many respects, invisible.” The industry is hidden behind “smaller facilities, often names not familiar to the average person who buys a car or a truck, but are of huge importance to our overall economy” he continued.
This “invisible giant” certainly is big. According to the study, vehicle parts suppliers directly employ 783,100 U.S. workers and every supplier job creates another 4.7 jobs in the economy. These jobs include an additional 1.97 million in industries ranging from foundries to waste services that support the supplier industry and another 1.7 million jobs supported by the spending of direct and indirect employees. The average income of an employee in this industry is more than $45,000 a year.
The auto supplier industry accounts for nearly 40 percent, or $7 billion, of the total R&D spending in our economy. According to Cole, these numbers show that, “this is a very important part of our technology economy — the contribution, innovation and creativity that comes from the automotive supply sector is astonishing.”
Cole concluded that this study confirms that the impact of the automotive supplier industry on the U.S. economy is far more significant than those involved in the research previously had thought.
According to Bob McKenna, president of MEMA, the study will be used to increase the association’s voice in Washington, D.C. 
“It will be very useful and helpful [in Washington, D.C.]. We have a separate plan to release this data and to get information to regulatory agencies,” said McKenna. “We are beginning to see a lot of opportunities to help the parts supplier industry position itself in state agencies and with governmental agencies.”
In an exclusive interview following the press conference, Steve Handshuh, executive director of the Automotive Aftermarket Supplier Association (AASA), one of MEMA’s three market segments, further discussed the study with AMN.
“Ultimately we all know this is a good industry, but it’s going through a period of tremendous transition and change that is impacting not just the carmakers themselves, but all of those that support it — in this case, the aftermarket,” Handschuh said.
Handschuh said the study can be used by AASA members to communicate intelligently with their congressional representatives. They can specifically detail facts regarding their headquarters and manufacturing facilities, making their stance in Washington, D.C. more effective.
