STATE ECONOMIC IMPACT STUDY

Transcription

1 STATE ECONOMIC IMPACT STUDY Honda Mercedes-Benz Honda Volkswagen Porsche Hyundai Hyundai Mercedes-Benz Kia 264 GEORGIA

2 INTERNATIONAL AUTOMAKERS IN GEORGIA ALPHARETTA AMERICAN HONDA FINANCE CORPORATION VW CREDIT, INC. ATLANTA PORSCHE CARS NORTH AMERICA OPENED in 2016 HEADQUARTERS MERCEDES-BENZ USA OPENED in 2016 HEADQUARTERS MERCEDES-BENZ FINANCIAL SERVICE HYUNDAI CAPITAL AMERICA 264 TALLAPOOSA HONDA PRECISION PARTS OF GEORGIA, LLC OPENED in 2006 PRODUCES transmissions Headquarters Manufacturing Facilities Dealership Franchises Finance Operations WEST POINT KIA MOTORS MANUFACTURING GEORGIA OPENED in 2009 PRODUCES the Optima, Sorento, and Hyundai Santa Fe EXPORTS the Optima, Sorento, and Hyundai Santa Fe HYUNDAI POWERTECH OPENED in 2009 PRODUCES transmissions 2

3 INTERNATIONAL AUTOMAKERS INVESTMENT IN GEORGIA International automakers have invested more than into 34 facilities and offices directly employed over 5,100 people in Georgia purchased $2.1 billion from U.S. suppliers and and in 2015 produced 371,012 vehicles Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015 IMPACT ON GEORGIA S WORKFORCE 67,130 JOBS CREATED IN GEORGIA For every one direct job created by international automakers, approximately 12 additional jobs were created in Georgia. 5,167 direct jobs 61,963 indirect jobs 67,130 jobs represents 2% of Georgia s private sector employment 3

4 INTERNATIONAL AUTOMAKERS PAYROLL IN GEORGIA INTERNATIONAL AUTOMAKERS CONTRIBUTED $4 BILLION TO HOUSEHOLD INCOMES IN GEORGIA IN $4 billion employee compensation Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015 GEORGIA 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: EDUCATIONAL EXPERIENCE: Kia Motors Manufacturing Georgia partnered with the community to found THINC, a college and career academy in Troup County. THINC provides state of-the-art technical training and graduates students who are ready and eager to meet the challenges of working in a globally competitive environment. EDUCATIONAL GRANTS: The American Honda Foundation focuses on advancing youth education, especially in the areas of science, technology, engineering, and mathematics (STEM). The Foundation awards grants to elementary and secondary schools and charitable organizations in Georgia focusing on STEM and environmental education. TECHNICAL TRAINING: Team members at Kia Motors Manufacturing Georgia are exposed to advanced manufacturing technologies and training systems at the Kia Georgia Training Center, operated by Georgia Quick Start, and at similar training sites in Korea. To date, more than 2,200 team members have traveled to Korea for technical skills and spirit-up training. LEADERSHIP TRAINING: Honda Precision Parts of Georgia, LLC partners with West Georgia Technical College to offer leadership training for their coordinators and managers, and collaborates with instructors and leaders to fill open positions at the facility. KEEPING GEORGIANS 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 GEORGIA FORWARD INTERNATIONAL AUTOMAKERS ANNUAL PRODUCTION IN GEORGIA HAS DOUBLED SINCE k PASSENGER CAR AND LIGHT TRUCK VOLUME 300k 200k 371,012 Vehicles Produced in k *Production data from WardsAuto InfoBank for Kia. Vehicles are made, built, or manufactured in the United States using domestic and globally sourced parts. GEORGIA EXPORTS MOTOR VEHICLES International automakers exported 17 American-made models through Georgia ports in Savannah and Brunswick. WE VE HELPED GROW GEORGIA BY $7.3 BILLION The operations and related activities of international automakers in the U.S. contributed $7.3 billion to Georgia s Gross State Product (GSP) in 2015 accounting for 1.5 percent of the state s total GSP. International automakers contributed $7.3 billion to Georgia s GSP $9.0 billion $4.6 billion utilities international automakers agriculture/forestry $1.1 billion oil/gas/ mining 5

6 INTERNATIONAL AUTOMAKERS SALES IN GEORGIA sold 233,441 vehicles at 264 dealerships DEALERSHIP that a payroll of $966 million with employed 17,000 people in Georgia Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015 INTERNATIONAL AUTOMAKERS GENERATE $554 MILLION IN STATE TAXES The economic activity generated by international automakers in Georgia is estimated to have produced $554 million in state and local tax receipts in Type of Tax State Local Individual Income $146.3 million N/A Motor Fuel, Alcoholic Beverages, Tobacco, Utility Services $35.5 million $18.1 million Sales $88 million $64.7 million Other $5.4 million $6.5 million Corporate Income $13.3 million N/A Property $1 million $167.4 million Motor License $7.6 million N/A Total Tax Receipts $297.1 million $256.7 million 6

7 INTERNATIONAL AUTOMAKERS CONTRIBUTE $984 MILLION TO FEDERAL REVENUE The economic activity of international automakers in Georgia generated $984 million in federal tax receipts and other revenues of the federal government in Type of Revenue Total Federal Insurance Contributions (FICA) $433 million Personal Income Tax $271 million Corporate Income Tax $202 million Federal Excise Tax $57 million Customs Duty $21 million Federal Revenues Total $984 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 Georgia 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