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Honda Responsible For $12 Billion Annual Economic Impact And 45,000 Jobs In Alabama

BIRMINGHAM, Ala., Aug. 27, 2019 /PRNewswire/ -- 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.

Honda Manufacturing of Alabama has an economic impact in Alabama of more than $12 billion annually, and together with its suppliers is responsible for more than 45,000 jobs in the state. HMA builds the Odyssey minivan (left) and the all-new Honda Passport SUV (right), as well as the Pilot sport utility vehicle and the Honda Ridgeline pickup truck at its facilities in Lincoln, AL.

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% 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% 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 workforce 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-1 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 is taken into consideration," Addy said.

About the Economic Development Partnership of Alabama: Now in its 29th year, the nonprofit Partnership represents the private sector's contribution to economic development in Alabama. Fully funded by more than 70 leading companies invested in the state's long-term economic success, EDPA provides leadership and services that recruit new businesses to the state, retain existing businesses and renew Alabama's economy by encouraging innovation both within existing industries and through the commercialization of new technologies. www.edpa.org

About Honda Manufacturing of Alabama: Honda Manufacturing of Alabama began production in 2001 and now builds the Odyssey minivan, the Pilot sport utility vehicle, the Honda Ridgeline pickup truck and the all-new Honda Passport SUV. HMA also builds the V-6 engines that power each vehicle at its $2.6 billion facility in Lincoln. Using domestic and globally sourced parts, cumulative production in Alabama now totals more than 5 million vehicles and engines. The company has more than 4,500 associates in both process and professional positions and has the capacity to build more than 340,000 vehicles and V-6 engines each year. 

About The Center for Business and Economic Research (CBER): Established in 1930, CBER is a research center of the Culverhouse College of Business at The University of Alabama that is committed to promoting economic development throughout Alabama. CBER provides insight and information for improving the quality of decision-making through research studies on economic and workforce development, economic and fiscal policy, etc. CBER also collects, maintains, analyzes, and releases business and socioeconomic data. 

Contact: Steve Sewell
205.943.4742 ssewell@edpa.org


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