DiNapoli: Auto Industry Crash Would Hurt Upstate
Any Agreement Must Impose Stringent Conditions
DiNapoli Releases Report on Economic Impact of Auto Industry on New York
State Comptroller Thomas P. DiNapoli today announced his support of a federal rescue of the Big Three automakers following his release of a report on the automotive industry in New York. The report found there are more than 230,000 auto industry-related jobs in New York State.
“This goes beyond Detroit,” DiNapoli said. “More than 230,000 New Yorkers work in the automotive sector. On top of the jobs, the Big Three owe billions to New York financial institutions. A collapse of one or more automakers would hurt upstate communities that are desperately fighting for every job, and hurt the already reeling financial services sector even more. But any bailout deal should have CONDITIONS attached. The taxpayers who foot the bill should know their good money won’t be thrown after bad. There has to be oversight and assurances that the money is being spent responsibly.”
The report found:
- Total Employment and Wages. Approximately 3.2 percent of New York’s workforce is employed in auto-related businesses. According to the U.S. Census, about 30,000 individuals are directly employed by the auto industry in New York. Another 200,000 work in auto-related businesses, such as part suppliers. Individuals employed in the automotive sector in New York receive wages and benefits totaling $12 billion.
- Auto Parts Manufacturing. The bulk of the auto industry jobs in upstate New York are in manufacturing parts. There are almost 200 auto part manufacturers in New York, which constitute about 4 percent of the nation’s auto parts jobs and produce $9 billion in auto parts, or almost 5 percent of the nation’s auto parts shipments by value.
- Geographic Concentration of Jobs. Most of the auto parts manufacturers are concentrated in Western New York. In the Buffalo-Cheektowaga-Tonawanda area, there are more than 16,000 people employed in the manufacture of auto parts, according to the U.S. Census. The automotive parts sector makes up almost 30 percent of the total manufacturing payroll in the region and provides nearly one-quarter of the region’s manufacturing jobs. Another 4,700 people in the Rochester-area are employed in auto parts manufacturing. Other upstate communities, including Syracuse, Ithaca, Cortland and Utica, also rely on employment in the auto parts industry.
- Financial Markets. Automakers owe an estimated $100 billion or more to financial institutions. If automakers default on these loans, New York-based financial institutions could be hit hard.
Click here for a copy of the report.