Recent investments by General Motors in Wentzville and Ford in Claycomo, Mo., will result in 13,959 new and retained jobs at the assembly plants and parts suppliers in Missouri by 2015, according to an economic impact report by the Missouri Economic Research & Information Center.
The "The Economic Impact of Missouri's auto industry" report, released Tuesday by the state's Department of Economic Development, said the automakers' investments will support a cumulative $8.7 billion in personal income and $15.4 billion in gross domestic product in Missouri from 2010 to 2015.
At its peak, auto assembly plants in Missouri employed more than 20,080 workers in 1996, according to the report, and with plant closures, that fell to just over 5,000 by early 2010.
GM announced in September that it plans to add a third shift at its Wentzville plant that builds Chevrolet Express and GMC Savana full-size vans and the redesigned Chevrolet Colorado and GMC Canyon midsize pickups. In the Kansas City area, Ford recently added a second shift at its Claycomo plant that builds the Transit van and F-150 trucks, bringing its workforce there to 6,000 people by the end of this year.
Mike Downing, director of Missouri's Department of Economic Development, said the automakers' investments reflect strength in the auto industry and a skilled workforce in Missouri.
Several plants closed here in recent years, including St. Louis area Chrysler and Ford assembly plants, leaving thousands of workers with automotive experience.
"Automakers are realizing Missouri has the skills, with existing workers," Downing told the Post-Dispatch. "The auto industry nationally and worldwide is picking up, and people are buying vehicles again."
The Missouri Manufacturing Jobs Act, which went into effect four years ago this week, on Oct. 12, 2010, allows automakers to retain withholding taxes on jobs that are retained in the state. Downing said the incentives have been instrumental in attracting investment in Missouri.
"Every state has similar types of incentives," Downing said. "If you're going to compete, you have to compete at the same level as your competitors."
Sixty automotive suppliers in Missouri have announced plans to expand since 2010, adding 4,389 new jobs, retaining 220 existing workers and spending more than $600 million in capital investments, according to the report.
New suppliers may be on the way. "We have a few suppliers we're talking to," Downing said.
Missouri Gov. Jay Nixon is scheduled to attend an event at GM's Wentzville plant Wednesday morning to mark the rollout of the new Colorado and Canyon pickups, which were added to production in recent weeks.
Source : http://www.stltoday.com/business/local/mo-auto-jobs-to-reach-nearly-by/article_9a94461d-f60f-5ec7-983f-881c4423144e.html
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