July 15, 2024
International automakers are boosting manufacturing jobs, economic growth

In today’s fast-paced technological landscape and increasing consumer demand for advanced vehicles, a skilled and prepared workforce is crucial for the success of the U.S. automotive manufacturing industry. International automakers are rising to the occasion, supporting a resurgence in U.S. manufacturing and creating thousands of high-paying careers nationwide.

Comprising nearly half of the nation’s automotive manufacturing production, international automakers are integral to the fabric of the U.S. auto industry. Data from the 2023 Economic Impact Report by Autos Drive America and the American International Automobile Dealers Association reveals that international automakers invested $107 billion last year, a $6 billion increase from 2021, and a total investment surge of 49 percent over the past nine years. These automakers directly employ over 156,000 American workers, with 103,600 in manufacturing roles at 31 plants, representing a 10 percent growth of 16,000 new careers compared to 2021. Additionally, they contribute to and support an additional 2.3 million American careers across the country.

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In 2021-2022, international automakers surpassed national growth in manufacturing, with a growth rate almost triple that of overall manufacturing employment (3.8 percent). These automakers are actively developing and supporting careers in areas like Research and Development (R&D), which saw a significant 17 percent increase in employment last year, creating nearly 9,500 jobs nationwide.

The commitment to advancing technology is evident in the green vehicle manufacturing investments made by international automakers. Since 2020, their member companies have pledged $22.5 billion for electrification efforts and green vehicle production in the U.S., along with announcing nearly 11,000 new careers in 2022 alone. These investments demonstrate their response to both consumer demands and shared climate goals.

To modernize the U.S. auto industry and meet evolving demands, a well-equipped and well-compensated workforce is essential. International automakers often offer higher wages at their facilities compared to industry averages, providing higher pay for starting positions. Their total direct and indirect employee compensation in 2022 amounted to $184 billion, reflecting their commitment to investing in American workers, families, and communities.

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Moreover, international automakers play a vital role in America’s trade economy, exporting nearly 700,000 American-made vehicles to over 130 countries. Forty-five percent of these exports go to countries with which the U.S. has a free-trade agreement, an increase from 38 percent in 2021. Trade contributes significantly to making the U.S. a globally competitive marketplace for manufacturers and consumers alike.

The transformative contributions of international automakers to the economy are significant and far-reaching. Through investments in America, they not only drive advanced transportation options but also invigorate economic growth and job creation across the country. As these companies continue to establish new facilities, develop cutting-edge technologies, and invest in manufacturing jobs and innovation, they are paving the way for a promising future for international automakers and the workers, families, and communities they support.

Featured Image Credit: FIA

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