Jan 12, 2018
Oliver Wyman partner Ron Harbour, was quoted in a story titled, “Toyota and Mazda Choose Alabama for $1.6 Billion Car Plant” in The New York Times.
The article provides insight and details on the new plant as well as the current auto market in the US.
According to Ron Harbour, new-vehicle sales in the United States are declining, “demand has leveled off, so now it’s a battle over market share. And somebody is going to lose,” he said.
Despite lower consumer demand, auto plants are considered highly desirable employers because they tend to have a major impact on local employment. In addition to supplier, auto plants stimulate home building, spending in restaurants and stores, and the creation of companies to provide services ranging from office cleaning to technology support.
“If you have a plant with a work force of 3,000, you need a lot of other businesses that support the plant, not just parts supplier,” Mr. Harbour said. “Car plants have a significant impact on the regional economy. That’s why states want to get them.”
To read the full article, click here.