Contribution of Toyota Motor North America to the Economies of Sixteen States and the United States in 2010Download Now
This study seeks to estimate the economic impact in 2010 of Toyota’s U.S. operations on the U.S. economy and 16 individual state economies. It finds that Toyota’s employment in the U.S. contributes to the support of more than 365,000 jobs nationally, and compensation of over $20 billion.
Toyota’s U.S. operations directly employed over 28,500 people during 2010, with compensation of nearly $2.3 billion. Toyota’s U.S. operations are defined in this analysis as manufacturing, marketing, distribution, research, development and design, headquarters, and all other operational activities within the company. From the direct employment at Toyota facilities, it is estimated that, including the direct jobs, Toyota’s operations support more than 177,000 jobs in the U.S. economy, with an associated compensation of nearly $11.7 billion.
There are three companies who employ people solely for the production and distribution of Toyota vehicles. These three companies employ a total of 5,700 people and support another 14,000 jobs, for a total of nearly 19,700 additional jobs in the economy.
When factoring in the people selling and servicing new Toyota vehicles, an additional 168,000 jobs and $8.6 billion in annual compensation brings the total jobs supported annually by Toyota in the U.S. to 365,000 and annual compensation to $21.4 billion.
Additionally, Toyota’s newest assembly plant in Tupelo, Mississippi (due to come on line in late 201) is expected to employ 2,000 people once it is fully operational. In an analysis of the expected economic impact of the new plant, this study estimates that almost 16,000 jobs will be created nationally by the operations at this facility. This highlights the substantial impact automotive assembly operations have on job creation—one of the highest job multiplier sectors in all of manufacturing.
This study confirms job creation and retention are occurring on a very large scale as a result of Toyota’s U.S. operations and are having a large impact on the U.S. economy. For those jobs in the U.S. auto industry related to Toyota and those supported by the industry spending, the average employee tends to be very well-compensated, leading to higher than average household spending and tax payments. An analysis and discussion of individual state employment and economic impacts for 16 states occurs further in this report.Download Now