Study: Honda had a $6.8 billion economic impact on Alabama in 2014

Study: Honda had a $6.8 billion economic impact on Alabama in 2014

Above: The Honda plant in Lincoln employees more than 4,000 workers and pays an average annual salary above $71,000. (contributed)

 

Honda’s auto plant in Talladega County has emerged as an economic engine for Alabama, boosting the economy to the tune of $6.8 billion in 2014 and causing a ripple that has created 43,339 jobs in the state.

Honda Manufacturing of Alabama and its suppliers accounted for $6.8 billion in economic impact on the state in 2014, according to a new report. (contributed)
Honda Manufacturing of Alabama and its suppliers accounted for $6.8 billion in economic impact on the state in 2014, according to a new report. (contributed)

The Economic Development Partnership of Alabama released the figures from a report it commissioned from the Center for Business and Economic Research at the University of Alabama. That report found Honda Manufacturing of Alabama is responsible for the equivalent of 3.4 percent of the state’s total economic output.

“This study demonstrates that the volume of business that Honda conducts in the state of Alabama supports an incredible array of jobs,” EDPA President Bill Taylor said. “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 that has genuine appreciation for its Alabama workforce, which company officials are quick to credit for the company’s success.”

In 2014, Honda employed more than 4,000 at its Lincoln manufacturing facility and accounted for 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.

Honda first-tier 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. First-tier suppliers contribute parts directly to the Honda plant.

“Our achievements are only possible because of our associates and the employees at our suppliers,” Honda Manufacturing of Alabama President Jeff Tomko said. “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.”

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(Alabama NewsCenter graphic/Jay Parker)

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