4.0

5.0

6.0

7.0

8.0

9.0

10.0

2001 2005

Automotive industries: Concentration and change

Summary 07-04 / July 2007 U.S. Department of Labor U.S. Bureau of Labor Statistics

From 2001 to 2005, States with

heavy concentrations of jobs in

automobile and automobile-related

industries have exhibited employment declines. A few of these industries in a few States, however, have

grown over the same four-year period. This report will focus on States

with high employment concentrations in three specific auto-related

industries: automobile manufacturing, motor vehicle body and trailer

manufacturing, and motor vehicle

parts manufacturing.

Relative employment concentrations are determined using location

quotients. These location quotients

are the ratio of two elements. The

first element is the ratio of an

industry’s statewide employment to

the State’s total private employment. The second element is the ratio of an industry’s nationwide employment to the Nation’s total private employment. The location quotient, a measure of relative industry

concentration, is the ratio of these

two elements. These location quotients were calculated using annual

average employment levels from

2001 and 2005. States with high

relative employment concentrations

in these three industries are examined below.

Auto assembly: Michigan and Kentucky. In 2001, Michigan’s automobile manufacturing industry had

90,300 employees. By 2005, this

employment had fallen by 24,800

to 65,500 employees. As a result,

the industry’s relative employment

concentration fell from 9.3 to 7.9.

Despite this decline in concentration, Michigan was still the most

concentrated State in the nation in

2005. Kentucky had the second highest concentration in 2005 with a relative employment concentration of

5.3. Although Kentucky was second highest, it too experienced a decline in employment. In 2001,

Kentucky’s automobile manufacturing industry had 20,100 employees. By 2005, employment had

fallen by 2,700 employees to

17,400 employees.

Body fabrication: Indiana and Iowa.

In 2001, Indiana’s motor vehicle

body and trailer manufacturing industry had 29,000 employees. By

2005, employment had grown by

8,800 to 37,800 employees. By the

end of 2005, motor vehicle body and

trailer manufacturing was 9.9 times

as concentrated in Indiana relative

to the industry nationwide. Iowa had

the second largest relative employment concentration in 2005 with a

location quotient of 4.8. Employment grew slightly by 500 employees in Iowa’s motor vehicle body

and trailer manufacturing industry

from 8,600 employees in 2001 to

9,100 employees in 2005.

Auto parts: Michigan and Indiana.

In 2001, Michigan’s motor vehicle

parts manufacturing industry had

203,800 employees. By 2005, employment had fallen by 46,200 to

157,600 employees. As a result, the

industry’s relative employment concentration fell from 7.6 to 7.0. Despite this decline in concentration,

Michigan remained the most concentrated State in the nation in 2005.

Indiana had the second highest relative employment concentration in

2005 with a location quotient of 5.0.

In 2001, Indiana’s motor vehicle

parts manufacturing industry had an

annual average of 86,200 employees. By 2005, this annual average

had fallen by 10,300 to 75,900 employees.

Despite Michigan’s employment

losses from 2001 to 2005, it remained the most concentrated State

in automobile manufacturing and

motor vehicle parts manufacturing

relative to the industries nationwide.

In 2005, Indiana was the most concentrated State in motor vehicle body

and trailer manufacturing and was

the second most concentrated in

motor vehicle parts manufacturing

relative to the industries nationwide.

These data were obtained by the

Quarterly Census of Employment

and Wages in the Bureau of Labor

Statistics. These and other facts can

be found at http://www.bls.gov/

qcew Data presented here are for all

private-sector workers covered by

State and Federal unemployment

insurance programs. For additional

information, contact Spencer Jobe,

an economist in the Division of Administrative Statistics and Labor

Turnover, Office of Employment

Continued on back

NOTE: A location quotient of 1.0 indicates a local industry concentration which is identical to

the national average

State auto employment location quotients 2001 and 2005

Michigan

Automobile

manufacturing

Kentucky

Automobile

manufacturing

Indiana

Motor vehicle

body and

trailer

manufacturing

Iowa

Motor vehicle

body and

trailer

manufacturing

Michigan

Motor vehicle

parts

manufacturing

Indiana

Motor vehicle

parts

manufacturing

10.0

9.0

8.0

7.0

6.0

5.0

4.0
U.S. DEPARTMENT OF LABOR

Bureau of Labor Statistics

Postal Square Building, Rm. 2850

2 Massachusetts Ave., NE

Washington, DC 20212-0001

Official Business

Address Service Requested

and Unemployment Statistics. Email:jobe_s@bls.gov Telephone:

202-691-5498.

Information in the summary will

be made available to sensory-impaired individuals upon request.

Voice phone: (202) 691-5200. Federal Relay Service: 1-800-877-8339.

The report is in the public domain

and may be reproduced without permission.

Automobile manufacturing

Annual Average Employment Location Quotient

2001 2005 Change 2001 2005

Michigan ............................ 90.3 65.5 -24.8 9.3 7.9

Kentucky ........................... 20.1 17.4 -2.7 5.5 5.3

Motor vehicle body and trailer manufacturing

Annual Average Employment Location Quotient

2001 2005 Change 2001 2005

Indiana ............................... 29 37.8 8.8 8.0 9.9

Iowa ................................... 8.6 9.1 0.5 4.9 4.8

Motor vehicle parts manufacturing

Annual Average Employment Location Quotient

2001 2005 Change 2001 2005

Michigan ............................ 203.8 157.6 -46.2 7.6 7.0

Indiana ............................... 86.2 75.9 -10.3 4.9 5.0

Employment and location quotient, selected industries, 2001 and 2005

State

State

State

NOTE: A location quotient of 1.0 indicates a local industry concentration which is identical to the national

average. Employment figures are in thousands.