Map: Automotive Industry, Parts Manufacturing USA

German “Mittelstand” companies in the automotive parts supply chain who are looking to branch out in the U.S. are offered generous tax breaks and other incentives in many states. But for most, the availability of qualified, technically skilled workers with specialized training in the auto industry determines in what region they locate their new manufacturing sites, or expand the ones they already have in place.

There are some interesting numbers flying around , so we put them on a map and into a chart, to make them easier on the eyes.

Auto Parts Manufacturing – Top 15 U.S. States by Jobs

For automotive industry suppliers, the map below shows the states with the job numbers in the sector. It also indicates where German parts manufacturers in the process of establishing new production sites can reach out to qualified automotive workers, engineers and managers who are mobile, and willing to relocate.

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Last week, Business Facilities magazine published its annual Automotive Manufacturing Strength Ranking. The headline summarized: “Tennessee Still No. 1, AL and KY Coming Up Fast.”

In case you wonder about the fat green blot marking Michigan on the map, Business Facilities points to a second automotive category it has created. It highlights the states with the most robust automotive supplier networks. In this category, Michigan (more than 100,000 supplier jobs) ranks top, followed by Ohio (89,423) and Indiana (79,651).

German auto parts supplier HP Pelzer Automotive Systems announced in April that it will open a $28-million plant and create 200 jobs in Athens (McMinn County) that will supply the $1-billion Volkswagen plant in Chattanooga, Tennessee. Just one example of many such moves recently: While “traditional” locations like Michigan, Ohio and Indiana are still attracting large automotive investments, the modern South – Tennessee in particular – keeps rocking the boat.

Bill McMeekinOn of Journal Communications’ Business Climate (motto: “Keeping a Pulse on Economic Development Trends”) has blogged a comprehensive overview this week, Auto Manufacturing, Detroit and New Regions of Strength.

He takes a closer look at current automotive site selection trends and provides many more examples for the job creation in the southeastern United States, which is largely driven by German and Japanese automotive manufacturing companies and auto parts suppliers. BMW in South Carolina, for example, is the largest of by now 250 auto industry companies in the state, including – among many other subsidiaries of German companies – Robert Bosch. Tennessee, with three major assembly plants, is home to more than 900 auto suppliers now.

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Data source: Motor & Equipment Manufacturers Association (MEMA) in collaboration with IHS. Visualization / Infographics: GM Market Research

German-language readers can find an overview why so many German companies open subsidiaries around Chattanooga, Tennessee here.


Kayser Automotive to Invest in Kentucky #jobs #siteselection

— Germany-USA Careers (@jobsgucc) August 2, 2013