Honda Responsible For $12 Billion Annual Economic Impact and 45,000 Jobs in 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 Economic Impact Study from

Honda Manufacturing of Alabama, LLC. (HMA) contributed more than $12 billion in 2018 to the state’s economy and, along with its suppliers, was responsible for more than 45,647 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.

The $12 billion annual impact represents 5.4 percent of Alabama’s $221.1 billion gross domestic product (GDP). The study also points out that in 2018 Honda Manufacturing of Alabama:

• Accounted for more than $3.45 billion in non-payroll expenditures in Alabama

• The company had a total payroll of $590.5 million, or an average of $79,202 per employee, which is 75 percent more than the average earnings for an Alabama worker.

• Paid $202.9 million in taxes, with $113.4 million in state and $89.6 million in local taxes

In addition, Honda tier-1 suppliers in 2018 had a $3.5 billion impact on the state’s economy, accounted for $865.9 million in earnings and generated $82.2 million in state and local taxes.

“This study demonstrates the magnitude of Honda’s Alabama operation and how important it is to the state’s economy,” said EDPA Executive Vice President Steve Sewell. “At the same time, it underscores the fact that Alabama has provided the skilled work force and positive business climate that a world-class company like Honda needs to be successful in a highly competitive global business.”

In 2018, Honda’s Lincoln manufacturing facility accounted for a total of 19,223 direct and indirect jobs. The suppliers to HMA were conservatively estimated to have employed 7,322 workers and were responsible for 26,451 direct and indirect jobs.

“Our achievements have been made possible through the commitment and dedication of our associates to build only the best for our Honda customers,” said Honda Manufacturing of Alabama Senior Vice President Mike Oatridge. “We are grateful for the support that Honda has experienced with our communities, our local and state leaders and our supplier partners. We are pleased that the success of our operations has had such a positive impact to the people – and to the economy – of the State of Alabama. ”

The CBER study was led by Samuel Addy, Ph.D., Associate Dean and Senior Research Economist, using actual data collected from Honda, its Alabama Tier-I suppliers and EDPA, and Federal and State sources. “Honda’s actual impacts on Alabama are greater than reported here if the company’s full network of suppliers are taken into consideration,” Addy said.

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