PRESS ROOM

AAMA Releases State's First Auto Industry Study
Auto Manufacturers Employ 27,000 at a $1.3 Billion Payroll

HUNTSVILLE, Ala., May 10, 2002 - Alabama's rapidly growing automotive industry, with thousands of jobs still to come, already accounts for 26,924 direct jobs and a $1.3 billion annual payroll, according to a study released today by the Alabama Automotive Manufacturers Association.

In addition to the direct impact, the survey estimates that automotive manufacturing creates 48,854 jobs at non-automotive companies in the state, generating another $1.5 billion in wages.

"The study was conducted to provide a current snapshot of Alabama's automotive industry and establish a baseline from which we can measure future growth and development," said AAMA Executive Director Bernard Schroer.

The findings are based on survey responses from 116 Alabama automotive manufacturers, who provided information as of year-end 2001. AAMA estimates that there are about 130 companies in Alabama whose operations are dedicated mainly to automotive manufacturing. The study reflects only employment at the end of last year and does not include announcements of future growth. At least 7,000 jobs have been announced by new and expanding automotive companies in Alabama.

The study also provides a look at the growth history of Alabama's auto industry, from 17 companies in 1971, to 42 in 1981 and 60 in 1991. Since 1996, the number of auto plants has increased by 40 percent.

Other key findings of the study were:

• Alabama automotive companies purchased at least $2.3 billion in parts/components from other automotive manufacturers. Of those purchases, 47 percent were made with in-state companies.
• Auto industry workers paid $101 million in state income taxes last year and $46 million in sales taxes.
• Of the 116 companies, 46 percent are Tier 1 suppliers, or companies that supply directly to a vehicle manufacturer. 32 percent are Tier 2 suppliers and 15 percent are Tier 3 or Tier 4 suppliers.
• Of the 26,954 direct automotive jobs, 39 percent are in vehicle and parts assembly, 31 percent in automotive rubber and plastics, 13 percent in automotive electronics, and the remaining 17 percent in a wide range of categories that include stamping, metal castings, fabricated metals, kit assembly and packaging, and auto manufacturing machinery.
• 56 percent of automotive suppliers in the state do business with only out-of-state automotive manufacturers; 23 percent do business with only Alabama auto manufacturers, while 21 percent supply companies in and outside the state.
• On average, automotive companies in Alabama generate 80 percent of revenues from the automotive industry. For 62 percent of the companies, all revenues come from automotive.
• 33 percent of automotive manufacturers have fewer than 50 employees, 23 percent have 101-250 employees, 20 percent have 51-100 employees, 12 percent have more than 500 employees and 11 percent have 251-500 employees.
• The northern region of the state has the greatest concentration of companies and jobs, with 55 plants employing 12,613 workers. The north/central region has 39 plants and 9,518 jobs. In the south/central region, 16 plants employ 2,916 workers, and in the south region there are six plants and 2,533 workers.
• Automotive manufacturers in Alabama have earned quality certifications; 83 percent of the plants are QS registered and 70 percent are ISO 9000 registered.

The Alabama Department of Economic and Community Affairs/the Governor's Office was the major sponsor of the study. Other sponsors were AAMA, the Economic Development Partnership of Alabama and the Alabama Technology Network. Dr. Mary S. Spann, senior research scientist at the University of Alabama in Huntsville (UAH), conducted the study.

The survey was sent to auto manufacturers last November, along with a letter from Gov. Don Siegelman that encouraged participation. Results were obtained by mail, follow-up telephone calls and on-site visits.

AAMA supports the growth and continuous improvement of Alabama's automotive industry. Formed just one year ago, the organization currently has 187 members. More information on AAMA is available at www.aama.to.

For more information contact:
Bernard Schroer
256.824.6855
OR
Steve Sewell
205.943.742