​Honda responsible for $6.8 billion annual economic impact and 43,000 jobs in Alabama

Honda Manufacturing of Alabama, LLC. (HMA) contributed more than $6 billion in 2014 to the state’s economy and, along with its suppliers, was responsible for 43,339 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.

In 2014, Honda employed more than 4,000 associates at its Lincoln manufacturing facility and accounted for a total of 43,339 direct and indirect jobs. The suppliers to HMA were conservatively estimated to have employed 7,618 workers and were responsible for 26,003 direct and indirect jobs.

“This study demonstrates that the volume of business that Honda conducts in the state of Alabama supports an incredible array of jobs,” said EDPA President Bill Taylor. “This extraordinary economic impact is possible only because of Honda’s success in a highly competitive, global business. This success does not happen overnight and shows how important Honda is to Alabama’s economic development. The company is an outstanding corporate citizen with genuine appreciation for its Alabama workforce, which company officials are quick to credit for the company’s success.”

The $6.8 billion impact represents 3.4 percent of Alabama’s $199 billion gross domestic product (GDP). The study also points out that in 2014 Honda Manufacturing of Alabama:

Accounted for more than $2.5 billion in non-payroll expenditures in Alabama

The company had a total payroll of $360.8 million, or an average of $71,047 per employee, which is 67 percent more than the average earnings for an Alabama worker.

Paid $ 112 million in taxes, with $62.4 million in state and $49.7 million in local taxes

In addition, Honda tier-1 suppliers in 2014 had a $1.9 billion impact on the state’s economy, accounted for $606.7 million in earnings and generated $57.8 million in state and local taxes.

“Our achievements are only possible because of our associates and the employees at our suppliers,” said Honda Manufacturing of Alabama President Jeff Tomko. “We are excited and grateful to see that HMA’s success is having such a significant impact on the state, and that it translates into greater economic opportunity for Alabamians.”

The CBER study was led by Director Samuel Addy, Ph.D., using actual data collected from Honda, its Alabama suppliers and EDPA.

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