BIRMINGHAM, Ala., Nov. 14, 2006 - Honda Manufacturing of Alabama (HMA) contributes $4.5 billion annually to the state's economy and, along with its suppliers, is responsible for more than 45,000 direct and indirect jobs in Alabama, according to an economic impact study released today by the Economic Development Partnership of Alabama.
The study, conducted for EDPA by the Center for Business and Economic Research at The University of Alabama, measures the impact of Honda and its tier-1 automotive suppliers that are located in Alabama.
Honda employed more than 4,600 associates at its Lincoln, Alabama manufacturing facility in 2005 and accounted for a total of 24,221 direct and indirect jobs. The 24 suppliers to HMA employed 4,036 workers and were responsible for 21,086 total jobs.
"This study demonstrates that Honda is a huge economic engine for the state of Alabama," said EDPA President Jim Hayes. "On the occasion of their fifth anniversary, we wanted to take a snapshot of where they are today and show how much they contribute to our state in a single year."
The $4.5 billion impact represents 3.0 percent of Alabama's $149 billion gross state product (GSP). The study also points out that in 2005 Honda Manufacturing of Alabama:
- Accounted for $1.6 billion in non-payroll expenditures in Alabama
- Had a total payroll of $252.4 million, or $54,443 per employee, which is 57 percent more than the average earnings for an Alabama worker.
- Accounted for $703.1 million in earnings for Alabama households
- Paid $6.9 million in taxes and generated another $64.2 million in state ($41.2 million) and local ($23 million) taxes
In addition, Honda tier-1 suppliers in 2005 had a $567 million impact on the state's economy, accounted for $267.7 million in earnings and generated $26.6 million in state and local taxes.
"Honda is a major reason for the economic transformation that Alabama is enjoying today," Hayes said. "And, they are an outstanding corporate citizen that has genuine appreciation for their Alabama workforce, which they credit for their success."
The CBER study was led by Associate Director Samuel Addy, Ph.D., using actual data collected from Honda, its Alabama suppliers and EDPA.
Contact: Steve Sewell
Economic Development Partnership of Alabama
Office: 205-943-4742 / Cell: 205-531-4033