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Press Release: New Report: U.S. Motor Vehicle Parts Manufacturing Jobs Up Nearly 19 Percent

Date: February 1, 2017

New economic impact study shows that the largest industry employer of manufacturing jobs in the U.S. just got bigger

A new study released by the Motor & Equipment Manufacturers Association (MEMA) shows that motor vehicle parts manufacturing jobs in the U.S. have risen nearly 19 percent since 2012.

More than 871,000 Americans are directly employed by the motor vehicle parts manufacturing industry. This number, which is up from 734,000 in 2012, represents 2.9 percent of the jobs in the total U.S. employment market and 2.4 percent of the U.S. gross domestic product (GDP).

Together with indirect and employment-induced jobs, the total employment impact of the motor vehicle parts manufacturing industry is 4.26 million jobs, an increase of nearly 18 percent from 3.26 million in 2012.

The Heavy Duty Manufacturers Association (HDMA) is the commercial vehicle and off-highway division of MEMA and represents the manufacturers of original equipment and aftermarket parts and technologies that help create and to maintain in-service vehicles.

In HDMA member markets representing original equipment and aftermarket for both the on and off-highway heavy duty commercial vehicle supplier industry, 203,000 direct U.S. jobs have been added since 2015, an 18.7 percent increase since 2012. 

The vast majority of goods in the United States are transported on highways by HD commercial vehicles; U.S. truck freight is nearly a $800b market. The nation relies on school and transit buses, emergency vehicles, agricultural and other off-road vehicles to support our economy, maintain our infrastructure, and increase our quality of life.

"The commercial vehicle and off-highway component manufacturers help to create the vehicle safety and fuel efficient technologies that are the leading edge in our industry," said HDMA President and COO Tim Kraus.  "HDMA members represent a very large percentage of the U.S. supply base for the industry, and are largely responsible for driving the increase in this sector's jobs since 2015."

"Never before has the Mobility Industry had to embrace so many advances in vehicle technology so quickly and on a global scale. These numbers show that MEMA and its member companies are driving innovation, jobs, and economic growth in the U.S. by combining manufacturing and technology," said MEMA President and CEO Steve Handschuh during a media event at the Washington Auto Show. "The Mobility Industry is a significant contributor to the growth of the manufacturing and high-tech sectors. And MEMA is pulling it all together."  

In addition, the motor vehicle parts manufacturing industry contributes $270 billion in total employee compensation, which is up 22 percent from $221 billion in 2012. Overall, the report shows that the economic contribution to the U.S. GDP generated by the motor vehicle parts manufacturing industry and its supported activity tops $435 billion.

The full report, including state-by-state employment numbers, is available here. The study and methodology, which was conducted by London-based IHS Markit (Nasdaq: INFO), is available here.

About HDMA

Based in Research Triangle Park, NC, HDMA is the Commercial Vehicle Division of the Motor and Equipment Manufacturers Association (MEMA), a major industry association with a mission of advancing the motor vehicle supplier industry and the business interests of our members. HDMA and MEMA have a vision of strengthening the motor vehicle suppliers as a growing, profitable and influential industry. 

A member driven organization, HDMA provides industry leadership for NAFTA based original equipment and aftermarket suppliers in the on and off-highway commercial vehicle equipment industry. This is accomplished through a range of services to its 190 member companies, which represent direct employment of over 200,000 in their US facilities and 1 million+ total US jobs.

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About MEMA

The Motor & Equipment Manufacturers Association (MEMA) and its four specialized divisions comprise the leading international trade association in the fast-changing mobility industry. Representing vehicle suppliers that manufacture and remanufacture components, technologies, and systems for use in passenger cars and heavy trucks, MEMA serves as a critical bridge between high-tech capabilities in new vehicles -such as autonomous vehicles and vehicle connectivity-and the "nuts and bolts" of vehicle manufacturing. MEMA works at state, Federal, and international levels to ensure that the marketplace and public policy support the development of advanced, transformative technologies that enable safer, smarter, and more efficient vehicles. MEMA's members are represented through four divisions: Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA), Motor & Equipment Remanufacturers Association (MERA), and Original Equipment Suppliers Association (OESA).