Gov. Mike DeWine speaks at the Ohio Statehouse Oct. 11 during an announcement that Honda and LG Energy Solution will build an electric-battery plant in Fayette County with a total expected investment of $4.4 billion. Honda also announced it will spend an additional $700 million to retool its three existing Ohio plants to focus on electric-vehicle production. (Jeremy Pelzer, cleveland.com)
WASHINGTON, D.C. — Ohio makes more car engines than any other state — driving the future of American manufacturing. But this didn’t happen by accident. For 40 years, Ohioans and international automakers like Honda have been building the backbone of the American auto industry in the Buckeye State. And as we celebrate Manufacturing Month throughout October, this recognition means something different here.
Each year at Autos Drive America, we release an Economic Impact Report highlighting the essential impact of the operations of international automakers in the United States. And this year, the data reinforced what we already knew — that the future of auto manufacturing is here in Ohio. International automakers have invested more than $15 billion to ensure that cities like Anna, East Liberty, and Marysville reap the benefits of modern American manufacturing.
Just this month, Honda announced it will establish a new state-of-the-art electric-vehicle battery plant in Fayette County, working with LG Energy Solution to invest more than $3.5 billion and create 2,200 careers – the latest realization of international automakers’ continued confidence in Ohio workers, and solidifying the state as an automotive manufacturing hub for decades to come. Honda also announced it will invest an additional $700 million to retool several existing auto and powertrain plants for electric-vehicle production, which will add an additional 300 new Honda careers across Ohio.
Investments like these will help keep Ohio’s workers globally competitive and the state a leader in the future of auto manufacturing. Last year, seven separate vehicle models produced by Ohioans in international automaker facilities were exported to eager customers in 42 different countries around the world. Soon enough, these international markets will also benefit from quality, Ohio-made electric vehicles.
Ohio’s workers make it possible for the world’s consumers to access the newest, most technologically advanced vehicles. In fact, international automakers, dealers, and suppliers in Ohio support almost 200,000 careers, and are helping Ohioans grow their technical skills to be able to meet the needs of a robust 21st-century manufacturing industry. These employees work on every line of operation, building engines and transmissions, for a total output of more than 416,000 vehicles, over 741,000 engines, and nearly 600,000 transmissions last year. But they also work in Ohio testing labs and research and development facilities in Raymond and Columbus, designing, developing, and assembling the next generation of smart, clean vehicles.
And these are high-quality, good-paying careers. Last year, international automakers in Ohio and the other companies they support paid out $12.5 billion in total employee compensation. This impacts workers in meaningful ways, with careers that support workers and their families. It also benefits Ohio’s economy more broadly, helping grow manufacturing across the state. International automakers contributed $20.4 billion to Ohio’s Gross State Product in 2021 and paid out almost $2 billion in state and local tax receipts. The benefits of international automakers are being realized in communities from Dayton to Youngstown.
Jennifer Safavian is the president & CEO of Autos Drive America, the trade association representing international automakers with operations in the U.S. (Photo courtesy of Autos Drive America)
These contributions don’t just represent a financial commitment — they represent a larger investment in the future of the American worker, the U.S. economy, and communities all across Ohio. Last year’s investments from international auto manufacturers in the United States brought their grand U.S. total to over $100 billion dollars. With announcements of new assembly lines, new manufacturing facilities, new technologies, and new research and design hubs every day, it’s clear that international automakers are driving the American manufacturing industry.
In October, as we celebrate Manufacturing Month, we celebrate the achievements of Ohio’s manufacturing workers. I’m proud of the commitment that international automakers have made to Ohio’s economy. America has a robust history in automotive manufacturing — the industry represents the model for the rest of the world. Manufacturing workers like those found here in Ohio are the ones at the wheel, driving the manufacturing renaissance. The future of the American automotive industry is here and now.
Jennifer Safavian is the president & CEO of Autos Drive America, the trade association representing international automakers with operations in the United States.
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