Kentucky’s automotive industry contributes $14.3 billion to the state’s economy – roughly $1 out of every $13 – and contributes $6.1 billion to payrolls annually.
Those are two key findings from the Kentucky Automotive Industry Association’s first in-depth study of the industry’s economic impact. The nearly six-month study was conducted by researchers at the University of Louisville Urban Studies Institute.
Other key findings include:
· The average annual wage of a manufacturing employee in the automotive sector is $58,280.
· Automotive-related businesses directly employ 85,552 workers at more than 470 establishments in Kentucky.
· Automotive-related manufacturers and suppliers support 136,500 jobs in Kentucky. Roughly 1 out of every 18 jobs in the state is supported by the direct, indirect or induced effects of automotive-related manufacturers.
· $1 out of every $14 in state taxes results from the automotive industry. A total of $488 million annually in state income and sales taxes come from industry-supported jobs.
· One-fifth of the state’s exports last year were tied to the auto industry. The value of Kentucky’s automotive-related exports totaled $5.9 billion in 2014.
· Existing and new employers in Kentucky’s automotive industry have announced $5 billion in investments over the last five years, and nearly 20,000 new jobs have been announced.
“Kentucky’s automotive industry is more than Ford’s assembly plants in Louisville. More than GM’s Corvette plant in Bowling Green. And more than the Toyota and Lexus operations in Georgetown,” said Gov. Steve Beshear. “This vital industry includes regional parts suppliers, tool-and-die shops, warehouses, trucking companies and metal-stamping operations throughout the Commonwealth.”
A series of industry forums will be held later this month on KCTCS campuses across the state to facilitate discussions about the industry, its challenges and opportunities. Details about the events can be found here.
“These forums are an opportunity for industry members, local and state leaders and our educators to be part of the conversation about the future of the automotive industry in Kentucky,” said Dave Tatman, executive director of the KAIA. “We hope these conversations will help pave a path to continued prosperity for our state and the automotive industry.”
Beshear also announced that the state will host its first-annual automotive conference in September. The event will be held in Louisville and feature international experts and leaders from the automotive industry. More details about the conferences will be announced in coming weeks.
From Kentucky Automotive Industry Association