(ANN ARBOR, Mich., March 20, 2013) -- A newly-released report by the Center for Automotive Research (CAR), a nonprofit research organization based in Ann Arbor, Michigan, calculates the substantial economic impact a single assembly plant has on the state and national economies and showcases an important example of the value of the automotive industry overall.
The report also highlights the plant's importance to the state's supplier network. Michigan Assembly Plant (MAP), in Wayne, Michigan, which employs approximately 5,000 people at the plant, supports more than 24,000 total jobs in the state; with employees earning wages of $1.8 billion annually. The plant purchases more than $1 billion in parts from Michigan-based supplier companies, and through its operations contributes $3 billion to the State Gross Product. Further, the MAP makes a considerable contribution to the national economy by supporting over 48,000 jobs across the country with $3.6 billion in wages.
"Michigan Assembly Plant has a significant impact on the state's economy, and also supports an extensive supply chain in Michigan providing profitable opportunities for small businesses," said Kim Hill, director of the Sustainability and Economic Development Strategies group at CAR, and the study's lead. "This plant provides a case study in the breadth of the supply chain supported by automobile manufacturing."
Michigan Assembly procures parts and supplies from 80 Michigan-based tier one suppliers, who in turn purchase parts from many smaller, Michigan-based manufacturing companies, helping support a vast interconnected, independent supply chain. Many of these supplier companies provide manufacturing, R&D, and product development work necessary to support the engineering, design and production of the vehicles at MAP. In total, MAP purchases $3.1 billion in goods and services from 379 suppliers worldwide, 179 of which are located in the United States.
"With a wealth of ingenuity and innovation right in our backyard, it is smart business to tap as much of that talent as possible," said Joe Hinrichs, Ford's president of The Americas. "It is mutually beneficial and supports our local communities and economic vitality."
The study was funded by Michigan Economic Development Corporation and Ford Motor Company and is available on the CAR website, www.cargroup.org.