In an era of rapid technological innovation and growing consumer demand for more advanced vehicles, a robust work force prepared to meet the needs of this evolving market is critical to the success of the U.S. automotive manufacturing industry. New data shows that international automakers are rising to meet this moment, preparing their work forces while supporting a resurgence in U.S. manufacturing and creating thousands of good-paying careers nationwide.
Making up nearly half of our nation’s automotive manufacturing production, international automakers are a critical part of the fabric of the U.S. auto industry. Findings from Autos Drive America and the American International Automobile Dealers Association’s 2023 Economic Impact Report show that investments from international automakers reached $107 billion last year, up $6 billion from 2021, with total investment increasing by 49 percent over the past nine years. International automakers directly employ more than 156,000 American workers across facilities nationwide, 103,600 of those in manufacturing roles at 31 plants — a 10 percent increase, or 16,000 new careers, compared with 2021 — and they generate and support an additional 2.3 million American careers nationwide.
The report also shows that international automakers significantly outpaced national growth in manufacturing last year. Data from the Bureau of Labor Statistics shows that while overall manufacturing employment in 2021-22 grew at a rate of 3.8 percent, the rate for international automakers was nearly triple that. As demands for advanced technologies increase, so too are careers developing and supporting them. Employment in areas such as R&D significantly increased last year, reaching nearly 9,500 jobs nationwide to reflect a 17 percent gain from the previous year.
This dedication to new technologies is supported by data surrounding the green vehicle manufacturing investments made by international automakers. Since 2020, Autos Drive America’s member companies have pledged $22.5 billion toward electrification efforts and the production of green vehicles and their parts in the U.S., along with nearly 11,000 new career announcements in 2022 alone. These investments prove international automakers are rising to meet both consumer demand and our shared climate goals.
Modernizing America’s auto industry to meet technological advances and evolving demands also requires educating, maintaining and supporting a well-equipped and well-compensated work force. Wages at international automakers’ facilities are often higher than auto and manufacturing industry averages, with starting positions offering higher pay than their industry counterparts. With total direct and indirect employee compensation of $184 billion in 2022, international automakers and dealers continue to make important investments in American workers, families and communities.
The contributions of international automakers to America’s economy don’t stop at our shores. International automakers have long played a critical part in America’s trade economy, with the export of nearly 700,000 American-made vehicles to more than 130 countries. Forty-five percent of our exports go to countries the U.S. has a free-trade agreement with, up from 38 percent in 2021. Trade plays a critical role in international automakers’ ability to not only manufacture in the U.S., but toward making the U.S. a globally competitive marketplace for manufacturers and consumers alike.
The transformative contributions — big and small — of international automakers to the economy cannot be understated. As data from the 2023 Economic Impact Report demonstrates, the road toward jobs, trade and growth starts with investments made by international automakers.
By investing in America, international automakers are not only creating advanced transportation options but also invigorating economic growth and job creation across the country. As more and more companies announce new facilities, develop cutting-edge technologies and invest in manufacturing jobs and innovation, they are ensuring the future is bright for international automakers and the workers, families and communities they support.