It is this broad, efficient network of suppliers (located across many states) which leads to the dispersion of total employment contributions from manufacturing operations to all areas of the nation. Figure 2.2 below shows the impact of employment in the industry for motor vehicle assemblers, parts, systems and components manufacturers, motor vehicle dealerships, and the suppliers to these operations. This map does not include expenditure-induced employment.
It
is a portrayal of the direct impacts of employment and suppliers to the industry. As can be seen, the industry provides significant numbers of jobs to every state in the nation.
ALTERNATIVE VEHICLE AWARDS
An organization called the Alternative Fuel Vehicle Institute
www.afvi. org just held its annual conference and passed out an eclectic stack of awards. The award topics provide some insight into where the industry is focused. A few examples:
EV-angelism Award: Chrysler Group Global Electric Motorcars (GEM) received this award for its work on 100% electric vehicles. This division of the company has sold 40,000 of the limited speed vehicles. Models such as the Gem el XD (shown) can carry 1,430 lbs., travel at about 25 mph, and have a range of about 30 miles.
Golden Bullet Award: The U.S. Department of Energy Clean Cities Program is a catalyst for change. Program director Dennis Smith earned this award because his organization disbursed about $300 million toward alternative vehicles under the American Recovery and Reinvestment Act. AFVI
estimates that this federal subsidy will put about 9,000 energy-efficient vehicles and 500 refueling and charging systems into the transportation grid. EV charging stations from
www.coulombtech.com are shown. For more info on Clean Cities, visit:
www1.eere.energy.gov/cleancities/
© Center for Automotive Research 2010
Green Fleet Award: AT&T got a well-de- served tar and feathering for their decision to share millions of private domestic phone calls with spies at the NSA. Maybe they’re ready to clean up their image. Their efforts to reduce the company’s transportation footprint is a step in the right direction.
They plan to phase out 15,000 vehicles over the next ten years and replace them with various types of alternative fuel vehicles. According to the Center for Automotive Research (
www.cargroup.org), about 20% of all vehicles sold in the United States are for fleets, so corporate changes of this level can cause a positive ripple effect. At&T was one of the first companies to purchase two of Ford’s new Tran- sit Connect electric vans (shown) for their corporate fleet.
Magic School Bus Award: As AVFI points out, Twenty-four million American children ride school buses each day that travel more than 4 billion miles each year. This award went to Napa Valley Unified School District Transportation Director Ralph Knight, who has been replacing diesel buses with electric
ones and has just added a hybrid model.
There’s a Ford In Your Future Award: Ford has not only shifted many resources into designing more efficient drive trains and electrification. As a major “fleet” end user, it has embraced that same technology. Fleet Market- ing Manager Gerald Koss was recognized for his consistency in promoting and supporting the company’s evolution into greener technologies.
Each individual state’s economic impact is one effect of the total contribution of the industry to the nation. That is, jobs in one state are not only attributable to investment in that state, but are supported by the auto industry’s investments and activities in nearby states as well. Therefore, an employment multiplier is not calculated for any individual state. Employment multipliers apply to the national economy and are not applicable to, nor can be derived from, any one state’s economy.
THE AUTO INDUSTRY: WHY IT MATTERS
The auto industry is not simply about building cars in factories. It has deep impact on other industries and services. Transitioning to cleaner propulsion technologies will create seismic tremors throughout the U.S. economy. Consider the following analysis from the Center for Automotive Research. Figure 2.2: Automotive Industry Employment by State for Direct and Indirect Jobs
Jobs connected wth the auto industry tend to be heavily concentrated in a few key states.
Total Automotive Employment by State
Less than 20,000 20,000 to 70,000 70,000 to 150,000 150,000 to 300,000 More than 300,000
This chart shows the “value added per employee.” In other words, it’s the dif- ference in the materials cost and the sale price of the finished product. In this analysis, every auto worker in an assembly line creates $321,000 worth of value annually.
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The auto indus- try has one of the highest “job multiplier” scores of any industry. In other words, it creates many jobs in other industries.
Nearly a million employees work in the automotive aftermarket sector, earning about $25.1 billion in compensa- tion.
www.greenbuildermag.com July > August 2010 GreenBuilder 29
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