BIRMINGHAM -- Honda Manufacturing of Alabama LLC contributed $6.8 billion in 2014 to the state’s economy and, with its top-tier suppliers, was responsible for more than 43,339 jobs in Alabama, according to an economic impact study released today by the Economic Development Partnership of Alabama.

Calvin Miller, executive director of the Talladega County Economic Development Authority, said the study puts into writing what they have known for a long time--that Honda has a big effect on Alabama and Talladega County.

“We are just really grateful for the opportunity Honda has given us over the years to help the economy of Talladega County grow,” he said.

“This study demonstrates that the volume of business that Honda conducts in the state of Alabama supports an incredible array of jobs,” said EDPA President Bill Taylor.

The study was conducted for EDPA by the Center for Business and Economic Research at The University of Alabama and measures the impact of Honda and its tier-1 automotive suppliers based in Alabama and in Calhoun, Etowah, Jefferson, St. Clair and Talladega counties. The CBER study was led by Director Samuel Addy, Ph.D., using actual data collected from Honda, its Alabama suppliers and EDPA.

Last year, Honda employed 5,079 employees in Alabama, with more than 4,000 associates at its Lincoln manufacturing facility, and accounted for a total of 43,339 direct and indirect jobs statewide. Of that total, HMA suppliers employed an estimated 7,618 workers and were responsible for 26,003 direct and indirect jobs.

“This extraordinary economic impact is possible only because of Honda’s success in a highly competitive, global business,” Taylor said. “This success does not happen overnight and shows how important Honda is to Alabama’s economic development. The company is an outstanding corporate citizen that has genuine appreciation for its Alabama workforce, which company officials are quick to credit for the company’s success.

The study focuses on output, the total or gross business sales, and value-added, the contribution to gross domestic product (GDP) or the value of goods and services produced on a value-added basis. Earnings impacts are part of value-added: the wages and salaries of workers recognized by the employment impact.

HMA has invested $2 billion to date in Alabama. In 2014, HMA had a $360.8 million payroll, an average HMA employee salary of $71,047, which is 67 percent higher than the average earnings for all Alabama workers. The five counties accounted for 87 percent of the company’s Alabama employment and payroll.

HMA also spent more than $2.5 billion in nonpayroll expenditures in Alabama and paid $62.4 million in state taxes and $49.7 million in local taxes.

Honda tier-1 suppliers in 2014 had a $1.9 billion impact on the state’s economy, accounted for $606.7 million in earnings and generated $57.8 million in state and local taxes.

“Our achievements are only possible because of our associates and the employees at our suppliers,” said Honda Manufacturing of Alabama President Jeff Tomko. “We are excited and grateful to see that HMA’s success is having such a significant impact on the state, and that it translates into greater economic opportunity for Alabamians.”

The combined economic and fiscal impacts for HMA and its Tier-I suppliers on the Alabama economy in 2014 are $8.7 billion in output (about 4.4 percent of GDP), $3.2 billion value-added, $1.8 billion in earnings, 43,339 jobs, and $94.6 million in state taxes and $75.3 million in local taxes.

“Honda plays a big impact on the state,” said Greg Canfield, secretary of commerce for the state of Alabama. “There is a story behind the numbers. When a company like Honda located in Alabama, it brings its brand and quality and is a magnet for other businesses.”

Canfield said Alabama needs to concentrate on making certain Honda has the workforce it needs.

“Honda will have a positive impact for generations to come,” he said.

Tomko said Honda will soon celebrate 15 years in Alabama.

“The power of dreams is alive and well,” he said.

Alabama Institute for Deaf and Blind president John Mascia said AIDB has a long-standing relationship with Honda and that the company is more than a financial asset to the area.

“Honda is a company with a heart,” he said. “Monday we had about 50-60 Honda associates volunteer their time to help with landscaping. They have donated vehicles to our equestrian program. We appreciate all they do, not just the business side but the community involvement, in particular what they do to support people with disabilities. We are happy to support their success. It's good for all of us.”

 

Contact Elsie Hodnett at ehodnett@dailyhome.com.