STATE ECONOMIC IMPACT STUDY

Transcription

1 STATE ECONOMIC IMPACT STUDY Mercedes-Benz Subaru Honda Toyota INDIANA

2 INTERNATIONAL AUTOMAKERS IN INDIANA MISHAWAKA AM GENERAL, LLC (MERCEDES-BENZ) OPENED in 2015 PRODUCES the R-class EXPORTS the R-class 186 LAFAYETTE SUBARU OF INDIANA AUTOMOTIVE, INC. OPENED in 1989 PRODUCES the Legacy, Outback, and Impreza EXPORTS the Legacy, Outback, and Impreza SUBARU RESEARCH AND DEVELOPMENT OPENED in 1993 Manufacturing Facilities R&D Facility Dealership Franchises GREENSBURG HONDA MANUFACTURING OF INDIANA, LLC OPENED in 2008 PRODUCES the Civic Sedan EXPORTS the Civic Sedan PRINCETON TOYOTA MOTOR MANUFACTURING, INDIANA, INC. OPENED in 1996 PRODUCES the Highlander, Highlander Hybrid, Sequoia, and Sienna EXPORTS the Highlander, Sequoia, and Sienna 2

3 INTERNATIONAL AUTOMAKERS INVESTMENT IN INDIANA Data based on 2015 calendar year. Capital investment total is cumulative through December 31, IMPACT ON INDIANA S WORKFORCE 113,400 JOBS CREATED IN INDIANA For every one direct job created by international automakers, approximately 9.4 additional jobs were created in Indiana. 10,954 direct jobs 102,446 indirect jobs 113,400 jobs represents 4.4% of Indiana s private sector employment 3

4 INTERNATIONAL AUTOMAKERS PAYROLL IN INDIANA INTERNATIONAL AUTOMAKERS CONTRIBUTED $6.6 BILLION TO HOUSEHOLD INCOMES IN INDIANA IN $6.6 employee compensation INDIANA COMMUNITY BENEFITS BUILDING & EDUCATING A STRONGER WORKFORCE International automakers offer innovative workforce development programs to provide workers training and support needed to help advance their careers and increase their incomes. INTERNSHIP OPPORTUNITIES: Subaru of Indiana Automotive s internship program is a collaboration between Subaru, Vincennes University and the Purdue Polytechnic Institute to provide students with an internship opportunity in computer integrated manufacturing, combining classroom education with real-world, hands-on work experience. CO-OP PROGRAMS: Honda Manufacturing of Indiana s co-op program offers realworld training for students at designated universities. Students develop business and engineering skills and gain valuable feedback from professional in a leading manufacturing environment. TECHNICAL TRAINING: Toyota s Advanced Manufacturing Technician Program includes a two-year Associate degree in Advanced Manufacturing Automation Technology that combines a cutting-edge curriculum and best practices with paid work experience. CONTINUING EDUCATION: Working with the Purdue Polytechnic Institute, Subaru associates are able to attend classes at the company s manufacturing plant campus that fit their individual work schedules. COMMUNITY INVOLVEMENT: Honda associates actively participate in community projects and organizations, and visit local schools to generate interest among students in STEM-oriented careers. K-12 EDUCATION PIPELINE: Toyota USA & Project Lead the Way partner in developing manufacturing pathways through project based learning. The program includes a two year $1 million grant to expand STEM education in elementary, middle and high schools. KEEPING HOOSIERS HEALTHY International automakers offer their workers a range of medical, dental, vision, and pharmaceutical insurance. Access to preventive care, coordination of care, and patient safety improves the health of the overall community. 4 Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015.

5 INTERNATIONAL AUTOMAKERS MOVE INDIANA FORWARD INTERNATIONAL AUTOMAKERS PRODUCE NEARLY ONE MILLION VEHICLES IN INDIANA 1 mil 900k 800k 700k 600k 500k 400k 300k 200k 100k PASSENGER CAR AND LIGHT TRUCK VOLUME 905,225 Vehicles Produced in *Production data from WardsAuto InfoBank for Honda, Subaru, and Toyota. Vehicles are made, built, or manufactured in the United States using domestic and globally sourced parts. INDIANA EXPORTS MOTOR VEHICLES International automakers exported vehicles manufactured in Indiana to 40 countries and territories around the globe. Six Indiana-made models are exported: Honda Civic Sedan; Subaru Legacy and Outback; Toyota Highlander, Sequoia and Sienna WE VE HELPED GROW INDIANA BY $13 BILLION The operations and related activities of international automakers in the U.S. contributed $13.0 to the Indiana State Product (GSP) in 2015 accounting for 3.9 percent of the state s total GSP. 5 construction International automakers contributed $13.03 to Indiana s GSP $13.17 international automakers $11.80 hotels, restaurants, arts, recreation $10.92 transportation and warehousing $5.62 utilities $5.287 agriculture/ forestry

6 INTERNATIONAL AUTOMAKERS SALES IN INDIANA Data based on 2015 calendar year. Capital investment total is cumulative through December 31, INTERNATIONAL AUTOMAKERS GENERATE $1.1 BILLION IN STATE TAXES The economic activity generated by international automakers in Indiana is estimated to have produced $1.1 in state and local tax receipts in Type of Tax State Local Individual Income $217 million $52 million Motor Fuel, Alcoholic Beverages, Tobacco, Utility Services $153 million $10 million Sales $296 million $0 Other $23 million $5 million Corporate Income $34 million $0 Property $0 $277 million Motor License $15 million $4 million Total Tax Receipts $738 million $348 million 6

7 INTERNATIONAL AUTOMAKERS CONTRIBUTE $1.7 BILLION TO FEDERAL REVENUES The economic activity of international automakers in Indiana generated $1.7 in federal tax receipts and other revenues for the federal government in Type of Revenue Total Federal Insurance Contributions (FICA) $750 million Corporate Income Tax $445 million Personal Income Tax $415 million Federal Excise Tax $59 million Customs Duty $22 million Federal Revenues Total $1.691 METHODOLOGY: This study was conducted by M. R. Press Consulting, LLC using the IMPLAN economic impact model. The IMPLAN model is used by more than 500 universities and government agencies to estimate the economic and fiscal impacts of investments and/or changes in industry, and forecast tax revenue and employment generation within specific geographic areas. IMPLAN is an input-output model. Input-output accounting describes commodity flows from producers to intermediate and final consumers. Input-output analysis quantifies the multiple economic effects resulting from a change in the final demand for a specific product or service. For example, a person being paid to work on a highway project will spend some of those wages to buy goods and services. The money he or she spends shows up as sales and wages to other parties, who spend the money elsewhere, and so on. This chain of effects, known as the multiplier, captures the distributive effects of the independent economic event, in this case, the production and sale of motor vehicles in the U.S. by International Automakers across a broad range of industries. From these economic impacts, the fiscal implications are derived by reference to the observed relationships between state and local tax revenues in Indiana with its Gross State Product. Specific taxes are forecast to flow in the same proportions as observed in the State as a whole for 2013 (the most recent data available from the U.S. Census Bureau, Census of Governments). SOURCES USED TO COMPILE THE DATA USED IN THIS REPORT: American International Automobile Dealers Association s (AIADA) membership roster, the 2015 Global Automakers and AIADA Economic Impact Survey, NADA DATA, WardsAuto InfoBank, IHS Automotive, U.S. Census Bureau (County Business Patterns and Census of Governments), American Fact Finder, and the Minnesota IMPLAN Group. Automobile manufacturers participating in the 2015 Global Automakers and AIADA Economic Impact Survey: BMW Group, Honda, Hyundai, Kia, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Subaru, Toyota, Volkswagen Group, and Volvo. 7

8 Here For America tells the story of international automakers, their ever-growing impact on the U.S. economy, and the benefits they provide to local communities. The contributions of international automakers and dealers are integral to the success of today s U.S. auto industry, the most vibrant and competitive auto market in the world. Here For America is an initiative of the Association of Global Automakers to increase public education about the importance of international automakers to American job creation, economic growth, technological innovation, and strong communities. LEARN MORE ABOUT THE ECONOMIC CONTRIBUTIONS IN ALL 50 U.S. STATES AT HereForAmerica.com facebook.com/hereforamerica twitter.com/hereforamerica youtube.com/hereforamerica