STATE ECONOMIC IMPACT STUDY

Transcription

1 STATE ECONOMIC IMPACT STUDY Toyota Nissan MISSISSIPPI

2 INTERNATIONAL AUTOMAKERS IN MISSISSIPPI BLUE SPRINGS TOYOTA MOTOR MANUFACTURING, MISSISSIPPI, INC. OPENED in 2011 PRODUCES the Corolla EXPORTS the Corolla CANTON NISSAN CANTON VEHICLE ASSEMBLY PLANT 82 OPENED in 2003 PRODUCES the Altima, Armada, Frontier, Murano, NV Cargo, NV Passenger, and Titan EXPORTS the Altima, Armada, Frontier, Murano, NV Cargo, NV Passenger, and Titan Manufacturing Facilities Dealership Franchises 2

3 INTERNATIONAL AUTOMAKERS INVESTMENT IN MISSISSIPPI International automakers have invested more than into 4 facilities and offices directly employed 8,000 people in Alabama purchased $3.5 billion from U.S. suppliers and and in 2015 produced 519,560 vehicles Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015 IMPACT ON MISSISSIPPI S WORKFORCE 34,946 JOBS CREATED IN MISSISSIPPI For every one direct job created by international automakers, approximately 3.4 additional jobs were created in Mississippi. 7,936 direct jobs 27,010 indirect jobs 34,946 jobs represents 4% of Mississippi s private sector employment 3

4 INTERNATIONAL AUTOMAKERS PAYROLL IN GEORGIA INTERNATIONAL AUTOMAKERS CONTRIBUTED $2.1 BILLION TO HOUSEHOLD INCOMES IN MISSISSIPPI IN $2.1 billion employee compensation Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015 MISSISSIPPI COMMUNITY BENEFITS BUILDING & EDUCATING A STRONGER WORKFORCE International automakers offer some of the most innovative workforce development programs to provide workers training and support needed to help advance their careers and increase their incomes. For example: ADVANCED MANUFACTURING: Toyota has helped develop a two-year degree in Advanced Manufacturing Automation Technology in conjunction with Itawamba Community College (ICC) for aspiring Mississippi students. Toyota also works with the University of Mississippi s Center for Manufacturing Excellence to offer a degree in engineering focused on manufacturing. STEM EDUCATION: Nissan has awarded more than $1 million in grants to Mississippi Historically Black Colleges and Universities (HBCU), much of which supports science, technology, engineering and mathematics (STEM) initiatives. Nissan s ongoing partnership with local HBCUs also includes donations in the form of technology for students to gain hands-on learning experience. ROBOTICS EDUCATION: Nissan has donated both funds and human resources to Central Mississippi Robotics with the mission of encouraging collaboration and interest in technology among students. Nissan associates have served as judges and mentors for the youth robotics competition. COLLEGE INTERNSHIPS: Northwest Mississippi Community College s Advanced Manufacturing Partners Program works with Toyota suppliers to provide paid internships to high-skilled electronic engineering technicians. KEEPING MISSISSIPPIANS HEALTHY International automakers offer their workers a range of medical, dental, vision, and pharmaceutical insurance. Improved access to preventive care, coordination of care, and patient safety improves the health of the overall community. 4

5 INTERNATIONAL AUTOMAKERS MOVE MISSISSIPPI FORWARD MISSISSIPPI HAS GROWN TO BECOME THE 10TH LARGEST AUTO-PRODUCING STATE IN AMERICA 600k 500k PASSENGER CAR AND LIGHT TRUCK VOLUME 400k 300k 200k 519,560 Vehicles Produced in k *Production data from WardsAuto InfoBank for Nissan and Toyota. Vehicles are made, built, or manufactured in the United States using domestic and globally sourced parts. MISSISSIPPI EXPORTS MOTOR VEHICLES International automakers exported vehicles manufactured in Mississippi to 28 countries around the globe. Eight Mississippi-made models are exported: the Nissan Altima, Armada, Frontier, Murano, NV Cargo, NV Passenger, and Titan; Toyota Corolla. International automakers contributed $3.4 billion to Mississippi s GSP $4.1 billion WE VE HELPED GROW MISSISSIPPI BY $3.4 BILLION The operations and related activities of international automakers in the U.S. contributed $3.4 billion to Mississippi s Gross State Product (GSP) in 2015 accounting for 3.2 percent of the state s total GSP. hotels/dining/recreation international automakers $3.3 billion agriculture/forestry $3.0 billion utilities $976 million oil/gas/ mining 5

6 INTERNATIONAL AUTOMAKERS SALES IN MISSISSIPPI sold 51,389 vehicles at 82 dealerships DEALERSHIP that a payroll of $169 million with employed 3,300 people in Mississippi Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015 INTERNATIONAL AUTOMAKERS GENERATE $350 MILLION IN STATE TAXES The economic activity generated by international automakers in Mississippi is estimated to have produced $350 million in state and local tax receipts in Type of Tax State Local Individual Income $59.8 million N/A Motor Fuel, Alcoholic Beverages, Tobacco, Utility Services $47 million $3.8 million Sales $108.8 million N/A Other $16.5 million $2.8 million Corporate Income $14.2 million N/A Property $800,000 $90.8 million Motor License $5.2 million N/A Total Tax Receipts $252.3 million $97.4 million 6

7 INTERNATIONAL AUTOMAKERS CONTRIBUTE $471 MILLION TO FEDERAL REVENUE The economic activity of international automakers in MIssissippi generated $471 million in federal tax receipts and other revenues of the federal government in Type of Revenue Total Federal Insurance Contributions (FICA) $255 million Personal Income Tax $102 million Corporate Income Tax $74 million Federal Excise Tax $29 million Customs Duty $11 million Federal Revenues Total $471 million METHODOLOGY: This study was conducted by SCOUT Economics (formerly 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 Mississippi with its Gross State Product. Specific taxes are forecast to flow in the same proportions as observed in the State as a whole for 2012 (the most recent data available from the U.S. Census Bureau, Census of Governments). SOURCES USED TO COMPILE THE DATA USED IN THIS REPORT: AIADA s membership roster, the 2015 Global Automakers and AIADA Economic Impact Survey, NADA DATA, IHS Automotive Vehicle Registration Data, WardsAuto InfoBank, Alabama Department of Commerce, 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