Vehicle Supplier Industry Remains Largest U.S. Manufacturing Sector, New Independent Study Shows
Automotive and commercial vehicle suppliers employed more than 907,000 U.S. workers in 2019, impact of industry reached 2.5 percent of U.S. GDP
WASHINGTON, D.C. – Feb. 24, 2021 – Results of a new independent research study show that automotive and commercial vehicle suppliers directly employed 907,000 workers in the United States in 2019. As a result, the vehicle supplier industry continues to be the largest manufacturing sector in the United States.
With direct, indirect and induced employment, the vehicle supplier industry generated a total of 4.8 million U.S. jobs in 2019. The total economic impact of employment in the industry reached 2.5 percent of U.S. GDP.
The study was conducted by IHS Markit and commissioned by the Motor & Equipment Manufacturers Association (MEMA).
“The numbers from this study illustrate the valuable economic contribution of the vehicle supplier industry,” said MEMA President and CEO Bill Long. “Vehicle suppliers are a source of measurable job growth. In addition to remaining the largest manufacturing sector in the U.S, the industry increased direct employment by more than 6 percent since 2015.”
According to the study, the average 2019 U.S. wage for direct vehicle supplier jobs reached $80,300—exceeding the average wage of all U.S. manufacturing sectors.
“These are high-tech, well-paying jobs,” said Long. “Policies that support the vehicle supplier industry will drive further economic growth in our country.”
Footnote/Methodology: IHS Markit conducted the study for MEMA in 2020, utilizing full-year 2019 labor and economic analysis. As a multi-discipline effort between the Automotive and Economics and Country Risk teams at IHS Markit, the research built upon studies in 2012 and 2015 to determine the impact of vehicle supplier employment in the U.S.
Since 1904, the Motor & Equipment Manufacturers Association (MEMA) has been the voice of the automotive and commercial vehicle supplier industry, the largest manufacturing sector in the United States. Across the entire range of new vehicle innovation—from autonomous to zero-emissions technologies—vehicle suppliers are leading the way. Our member companies conceive, design and manufacture the original equipment systems and technologies that make up two-thirds of the value in every vehicle. Member companies also supply the aftermarket with the parts that keep millions of vehicles on the road, fueling international commerce and society’s need for transportation. And all of our members’ work is done with a focus on public safety and the environment.
We live in a fast-paced industry and world, and MEMA is committed to making both a better place to work and live. We foster a respectful, diverse and collaborative community. We are stronger together because we promote inclusion in all aspects of the vehicle supplier industry.
MEMA is the parent organization of four affiliate associations: Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA), MERA – The Association for Sustainable Manufacturing, and Original Equipment Suppliers Association (OESA). MEMA has offices in Southfield, Mich., Research Triangle Park, N.C. and Washington, D.C. Learn more about our organization, our members and the great vehicle supplier community at MEMA.org.