Popular Searches
Print
E-mail
Comment
Rate
Share
Collapse of auto industry could rock NY economy
Report shows auto manufacturing accounts for 3.2 % of NY workforce
By Tom Wanamaker
ALBANY — A potential bankruptcy or collapse of Detroit’s “Big 3” automobile manufacturers could have a profoundly negative effect on New York’s already struggling economy.
In a recent report, state Comptroller Thomas P. DiNapoli said congressional action is necessary to help the American auto industry. But, he added, adequate oversight is vital to its success.
“New York state’s economy is interdependent with the major U.S. automobile makers through New York state-based auto-related jobs and billions of dollars of debt held by New York-based financial institutions,” he stated in the report. “A collapse of one or more of the major auto makers would further exacerbate New York’s already gloomy economic situation. The extraordinary actions currently under consideration by Congress are necessary to assure the ultimate survival of these companies.”
Citing data from the Center for Automotive Research, the report states that approximately 3.2 percent of New York’s workforce is either employed directly by or is dependent upon automobile manufacturing, and that the industry generates $12 billion in wages and benefits in the state. More than 30,000 people are directly employed in the industry while another 200,000 work in related sectors like parts suppliers and other subcontractors.
The report states that there are 20 facilities throughout the state owned and operated by auto manufacturers, including corporate offices and centers for research and development, parts distribution, sales and marketing, finance, and engineering and design.
More than half of the state’s automotive manufacturing operations are concentrated around Buffalo and Rochester, the report said, while Syracuse, Cortland, Ithaca and Utica also have a significant auto parts manufacturing presence.
In total, New York has about 4 percent of American auto-parts-related manufacturing jobs, which account for nearly 5 percent — or $9 billion — of U.S. auto parts shipments, the report states.
It is estimated that automobile manufactures owe $100 billion to various financial institutions, many of which are based in New York.
“The detrimental effects on state finances arising from the current upheaval on Wall Street have already become clear,” the report states. “Further job losses and declines in tax revenue resulting from multiple large defaults by the automakers would clearly worsen the impact on the state.”
DiNapoli called it “unfortunate” that the auto industry requires such “extraordinary government intervention.”
“This intervention, whatever its final form, must assure an orderly and fiscally sound result,” he said. “To achieve these objectives, clear oversight responsibility must be defined and sufficient conditions imposed on all relevant parties.”
The report is available online at the Web site: www.osc.state.ny.us/reports/economic/autoindustry.pdf.
By Tom Wanamaker
ALBANY — A potential bankruptcy or collapse of Detroit’s “Big 3” automobile manufacturers could have a profoundly negative effect on New York’s already struggling economy.
In a recent report, state Comptroller Thomas P. DiNapoli said congressional action is necessary to help the American auto industry. But, he added, adequate oversight is vital to its success.
“New York state’s economy is interdependent with the major U.S. automobile makers through New York state-based auto-related jobs and billions of dollars of debt held by New York-based financial institutions,” he stated in the report. “A collapse of one or more of the major auto makers would further exacerbate New York’s already gloomy economic situation. The extraordinary actions currently under consideration by Congress are necessary to assure the ultimate survival of these companies.”
Citing data from the Center for Automotive Research, the report states that approximately 3.2 percent of New York’s workforce is either employed directly by or is dependent upon automobile manufacturing, and that the industry generates $12 billion in wages and benefits in the state. More than 30,000 people are directly employed in the industry while another 200,000 work in related sectors like parts suppliers and other subcontractors.
The report states that there are 20 facilities throughout the state owned and operated by auto manufacturers, including corporate offices and centers for research and development, parts distribution, sales and marketing, finance, and engineering and design.
More than half of the state’s automotive manufacturing operations are concentrated around Buffalo and Rochester, the report said, while Syracuse, Cortland, Ithaca and Utica also have a significant auto parts manufacturing presence.
In total, New York has about 4 percent of American auto-parts-related manufacturing jobs, which account for nearly 5 percent — or $9 billion — of U.S. auto parts shipments, the report states.
It is estimated that automobile manufactures owe $100 billion to various financial institutions, many of which are based in New York.
“The detrimental effects on state finances arising from the current upheaval on Wall Street have already become clear,” the report states. “Further job losses and declines in tax revenue resulting from multiple large defaults by the automakers would clearly worsen the impact on the state.”
DiNapoli called it “unfortunate” that the auto industry requires such “extraordinary government intervention.”
“This intervention, whatever its final form, must assure an orderly and fiscally sound result,” he said. “To achieve these objectives, clear oversight responsibility must be defined and sufficient conditions imposed on all relevant parties.”
The report is available online at the Web site: www.osc.state.ny.us/reports/economic/autoindustry.pdf.
Share this Article
 |
 |
|
| Some may be in the dark until Wednesday | Despite economy, hospital still plans to expand services |
Article Rating
Reader Comments
The following are comments from the readers. In no way do they represent the view of registerstar.com.
You must register with a valid email to post comments. Only your Member ID will be posted with the comments.
Registered users sign in here: |
Become a Registered User |
