Our region's automotive cluster spans many industry sectors including fabricated metals, machinery, plastics (its own cluster), and transportation equipment. Since Checker Motor drove the last Checker Cab off its production line in the early 1980s, the industry has evolved from a large assembly plant site into an international, high value-added auto component maker. Checker Motors is still in business, stamping out auto components, as is General Motors at its Comstock Township plant. The more dynamic players in the industry, however, are now auto parts companies such as Denso Manufacturing, Technical Auto Parts, II Stanley, Benteler and TRMI (formerly Tokai Rika). These companies manufacture a wide variety of components including automotive lighting products, (II Stanley Company) electro-mechanical switches (TRMI), and front and rear suspension components.

The automotive and metal fabrication cluster employed around 8,800 workers in 1995, constituting 2.9 percent of regional employment and 12.8 percent of its manufacturing base. The transition into a competitive auto parts producer has stabilized a once highly cyclical industry in the area. Since 1987, employment in the industry has remained relatively stable. From 1989 to 1995, employment in the cluster increased by 0.5 percent. However, the industry will be losing a significant number of jobs in the future with the scheduled closure of the General Motors plant in 1999.

The industry is highly export focused with 97 percent of its workers assigned to products for auto assembly customers that are outside the region. Thus, local auto firms account for 6.8 percent of the region's total export employment. Due to its higher-than-average wage structure, the auto industry has a robust multiplier effect on the region's economy. For every 100 jobs generated at the auto parts manufacturers, another 111 individuals are hired in the region. As is true with many of our regional clusters, the automotive industry has a relatively shallow local supplier base. Although a metal fabrication supplier base exists, other local supplier linkages are gradually developing. For example, Pyper Product Corporation, a maker of plastic injection molded components, continues to grow in order to meet the needs of its primary customer, Denso Manufacturing.

Benchmarking: How Do We Compare?

Shift-share analysis estimates what part of local industry growth can be attributed to the actual competitiveness of our firms rather than to national or industry trends. The two main sectors of this cluster, automotive and fabricated metals, show differing results.

The automotive sector of the local cluster has performed well when compared to the national average. From 1986 to 1996 total wage and salary earnings in the sector rose by nearly $250 million in this region. According to the shift-share analysis, only $21.6 million or 8.5 percent of the sector's growth can be explained by overall national trends in growth. Ninety-three percent of the region's growth in wages and salaries was due to how well local firms outperformed their national counterparts from 1986 to 1996. In addition, the local automotive industry significantly exceeds a select group of Great Lake competitors with similar size industries, growing 883 percent.

However, the metal fabrication sector of this cluster is significantly underperforming relative to the national average and competitor regions. The fabricated metals sector possessed only $5,996 million in increased earnings over this period, losing $88,667 million in wage and salary earnings due to national trends, while also losing $113,178 million in regional earnings due to lack of competitiveness relative to other regions.

In addition, the metal fabrication sector faces substantial competition from regions that have been experiencing considerable growth. While fabricated metals has increased earnings only by 2 percent between 1986 and 1996, the top regional competitors with similar size industries for this component of the cluster have grown dramatically, such as Toledo with a 50 percent increase.