R E TA I L A U T O M O T I V E
ECONOMIC IMPACT REPORT
F I S C A L Y E A R 2 021
[MORE ] It’s a word we say often around the Association office. We know you are more than auto dealers. We know you give more to the betterment of your communities than most realize; and we know you employ more people and contribute more to the local economy than most recognize. Hence, here is an updated version of our Economic Impact Report so those who need to learn more, can easily do so. Data from 2021, which is included in this report, found dealerships within the five-county region of Philadelphia employee directly and indirectly more than 31,000 individuals. Further, the average area dealership paid more than $7,100,000 to its employees. Including both direct and indirect sources, the new vehicle retailing industry resulted in more than $2.4 billion of total compensation to area residents. And…there’s more. In 2021, new franchised automotive dealerships in the Greater Philadelphia area collected or paid nearly $900,000,000 in state and local taxes, an average of $4,109,000 per dealership!
02
That is just a sample of the valuable and important information in this piece. We encourage you to share it with local public officials, the media and your customers. Many thanks to all who participated in the survey so we could produce it. Enjoy,
Kevin Mazzucola Executive Director
Auto Dealers Association of Greater Philadelphia
Background & Methodology Dealership financial data (and other information cited in the report) was collected from a detailed survey sent to all new vehicle automotive retailers in the Greater Philadelphia Area. Economic impact is separated into two main categories: direct and indirect. Direct impact comprises economic activity at automotive dealerships themselves, such as dealership employment and compensation to employees. Indirect impact occurs away from the dealership, and takes into account the extended contribution dealerships and their employees make to the Area’s economy.
The indirect economic impact of automotive retailers was estimated by Auto Outlook, Inc. Estimates were based on previous impact studies that relied upon regional input-output economic models. Indirect economic estimates in this report are intentionally conservative, and therefore, may underestimate the overall contribution automotive retailers make to the Area’s economy. Auto Outlook, Inc. is a regional automotive market analysis firm providing market research services to automotive dealers. Jeffrey Foltz, the President of Auto Outlook, Inc., obtained a Masters Degree in Economics from the University of Delaware, and has conducted many research projects analyzing state and regional economies.
QUICK FACTS: Philadelphia-Area Auto Retailing
200,500 units
$18.1 billion
360,500 units
$82.5 million
1,646 units
22,100
Total new retail light vehicle sales
Total new and used retail light vehicle sales
Average dealership new and used vehicle sales
Total area gross sales
Average dealership total sales
Number of vehicles serviced by dealership
03
Dealership Trends: EMPLOYMENT [EMPLOYMENT TOTALS FOR NEW VEHICLE RETAILING INDUSTRY] In 2021, area new vehicle dealerships employed a total of 17,740 individuals.
An additional 13,300 individuals were employed due to the indirect economic impact of dealership operations. Automobile dealership operations accounted for 18.3% of total retail employment in the Area during 2021.
Dealership Contribution to Total Employment in Area
DIRECT 17,740
Total employment resulting from auto dealerships
TOTAL: 31,040 INDIRECT 13,300
(This includes both direct and indirect employment.)
Total retail employment Dealership percentage of area employment
31,040 169,528
81
The average number of people an area dealership employs, with 40.8% in the service department
04
Percentage of emplyees in departments
40
30
20
10
0
Service
Sales
Admin
PARTS body shop
18.3%
Payroll
Employee Compensation Due to New Vehicle R
$6,460,000
Fringe Benefits
$720,000
2021 Estimates
Direct
Indirect
Payroll TOTAL Revenue: $7,180,000 PAYROLL & Employee TAXES$1,414,740,000
$749,812,200
Fringe Benefits
$157,680,000
TOTAL $1,572,420,000 COMPENSATION DUE TORetailing NEW VEHICLE INDUSTRY Employee Compensation Due to NewObservations Vehicle Industry RETAILING [EMPLOYEE ] 2021 Estimates
$1,414,740,000
Fringe Benefits TOTAL
$833,382,600
In 2021, the average area dealership paid more than $7,100,000 to its employees. Including bo Indirect TOTAL 2021 Estimates Per Dealer direct and indirect sources, the new vehicle retailing industry resulted in over $2.4 billion of to compensation to Area residents! $749,812,200 $2,164,552,200 Payroll $6,460,000
Direct
Payroll
$83,570,400
$157,680,000
$83,570,400
$241,250,400
$1,572,420,000
$833,382,600
$2,405,802,600
Fringe Benefits
$720,000
TOTAL
$7,180,000
In 2021, the average area dealership paid more than $7,100,000 to its employees. Including both direct and indirect
Observations
2021sources, Estimatesthe new vehicle Per Dealer retailing industry resulted in over $2.4 billion of total compensation to Area residents! Payroll
Tax Revenue Generation - 2021 $6,460,000
Fringe Benefits TOTAL
$900M
Total State and Local taxes collected or paid
[TAX REVENUE GENERATION]
$720,000
Tax Category $7,180,000
In 2021, the average area dealership paid direct and indirect sources, the new vehic compensation to Area residents! Total
Average Per Dealer
State Sales Taxes Collected State and Local Payroll Taxes
Observations Real Estate Taxes
$3,475,000
$761,025,000
$321,000
$70,299,000
$151,000
$33,069,000
Other State and Local Taxes $162,000 $35,478,000 In 2021, the average area dealership paid more than $7,100,000 to its employees. Including both Area Total $4,109,000 $899,871,000 direct and indirect sources, the new vehicle retailing industry resulted in over $2.4Generation billion of total - 2021 Tax Revenue compensation to Area residents! Federal Payroll Taxes
$1,760,000
Federal Business Income Taxes
$151,000Tax Category
$385,440,000 $33,069,000
State Sales Taxes Collected
and Local Payroll In 2021, new franchised automotive dealerships in the GreaterState Philadelphia area Taxes collected or Real Estate Taxes paid nearly $900,000,000 in State and Local taxes, an average of $4,109,000 per dealership.
Tax Revenue Generation - 2021
Other State and Local Taxes Area Total
Tax Category State Sales Taxes Collected
Average Per Dealer
Total
$3,475,000
$761,025,000
Average Per Dealer $3,475,000 $321,000 $151,000 $162,000 $4,109,000
05 Federal Payroll Taxes
$1,760,000
Bucks
56
Delaware
29
Chester
45
878
49,160
24.5%
746Retail New 33,570 16.7% Vehicle Sales (units) 992 28,770 14.3%
$81,600
$4,569,400
25.3%
$61,700 $2,776,400 Total Dealership Sales 15.4% (thousands of $s) $88,200 $2,557,700 14.2%
Montgomery 71 of 998 70,830 $90,600 $6,432,500 % 35.6% Number % 35.3% of area DEALER of area County Economic Impacts: COUNTY AND DATA dealerships total total County Per Dealer Total Per Dealer Total Philadelphia 18 18,170 9.1% $96,200(units) $1,731,500 Retail New Vehicle Sales ($’s)1,010 and Total Dealership Sales - 20219.6% Bucks
Chester
878 49,160 (units) 24.5%& Total $81,600 $4,569,400 Sales 25.3%($) Sales Dealership [Retail 56New Vehicle ]
Delaware
45
29
746 33,570 16.7% Retail New Vehicle Sales 992 28,770 14.3% (units) 998 70,830 35.3% % of area 1,010 18,170 9.1% total Per Dealer Total
of Employment and Number Employee Earnings - 2021 Philadelphia 18 Montgomery County
Bucks
Chester
Delaware
6,031
71
dealerships 56 45
29
878
746
49,160 33,570
24.5%
16.7%
992 Dealership28,770 Employment14.3% 998 70,830 35.3% % of area 1,010 18,170 9.1% total Per dealer Total
Montgomery 71 Employment and Number Employee Earnings - 2021 of Philadelphia County
Bucks
18 dealerships 56
85
[
$61,700 $2,776,400 15.4% Total Dealership Sales $88,200 (thousands $2,557,700 14.2% of $s) $90,600 $6,432,500 35.6% % of area $96,200 $1,731,500 9.6% total Per Dealer Total $81,600
$4,569,400
$61,700 $2,776,400 Employee Earnings $88,200 $2,557,700 (thousands of $s) $90,600 $6,432,500
$96,200 Per dealer
$1,731,500 Total
25.3%
15.4%
14.2%
35.6% % of area 9.6% total
]
Employment & Employee 4,755 26.8% $6,538 $366,128Earnings 25.9%
Chester 45 67 3,016 17.0% $4,897 Employee $220,365 Earnings 15.6% An estimated Dealership Employment of $s) Delaware 29 83 2,395 13.5% $7,153 (thousands $207,437 14.7% 6,031 individuals Montgomery 71 of 85 6,031 $6,911 $490,681 % 34.7% Employment and Number Employee Earnings - 2021 % 34.0% of area of area were employed dealerships total total County Per dealer Total Per$7,229 dealer Total Philadelphia 18 86 1,543 8.7% $130,129 9.2% by Montgomery Bucks 56 85 4,755 26.8% $6,538 $366,128 25.9% Chester 45 67 3,016 17.0% $4,897 $220,365 15.6% County Employee Earnings Dealership2,395 Employment13.5% Delaware 29 83 $7,153 (thousands $207,437 14.7% automobile of $s) Montgomery 71 85 6,031 34.0% $6,911 $490,681 34.7% dealerships Number of % of area % of area Taxes onPhiladelphia Employee Earnings -862021 1,543 18 8.7% $7,229 $130,129 9.2% dealerships total total County Per dealer Total Per dealer Total during 2021, Bucks 56 85 4,755 $6,538 $366,128Earnings 25.9% ] Taxes on Employee [26.8% 34% of the Chester 45 67 3,016 17.0% $4,897 $220,365 15.6% Federal Payroll Taxes State and Local Payroll Taxes area total. Delaware
29
83 (thousands 2,395of $s) 85 6,031
Montgomery 71 of Taxes onPhiladelphia EmployeeNumber Earnings -862021 1,543 18 County
Bucks
Chester
Delaware
06
dealerships 56
45
29
Per Dealer $1,782
Total
$99,792
Montgomery
71
$1,881
$133,551
Bucks
56
$1,782
$99,792
45
34.0% % of area 8.7% total 25.9%
$1,337 $60,165Taxes 15.6% Federal Payroll of $s) 14.7% $1,948 (thousands $56,492
Number of Taxes onPhiladelphia Employee Earnings - 2021$35,424 dealerships County Per$1,968 Dealer Total 18 Chester
13.5%
$1,337
$60,165
% 34.7% of area total 9.2% 25.9% 15.6%
$7,153 (thousands $207,437 of $s) $6,911 $490,681
Per$7,229 Dealer $301
$130,129 Total
$16,856
14.7%
34.7% % of area 9.2% total 24.0%
$238 $10,710 State and Local Payroll Taxes15.2% of $s) $335 (thousands $9,715 13.8%
$319 Per$576 Dealer $301
$238
$22,649 Total $10,368
$16,856
$10,710
% 32.2% of area total 14.7% 24.0% 15.2%
DEALERSHIP SALES
[BY DEPARTMENT - 2021]
Total sales for franchised new vehicle dealerships in the area during 2021 exceeded $18 billion. Average dealership sales were $82.5 million, with $45.02 million resulting from new vehicle sales.
Executive Summary: PRIMARY CONCLUSIONS Greater Philadelphia Automobile Dealers: Vital Contributors to the Area Economy os Sales Total Gross Sales T Total Gr$18,067,500,000 Retail Light Vehicle Sales units Total New Retail Light Vehicle Sales T Total New200,500 ed Retail Light Vehicle Sales units Total Used Retail Light Vehicle Sales T Total Us160,000 and Used Retail Light Vehicle Salesunits Total New and Used Retail Light Vehicle Sales T Total New360,500
AREA DEALERSHIP AVERAGE $82,500,000
Dealership New Retunits ail Light Vehicle Sales Average Dealership New Retail Light Vehicle Sales T Average916
TOTAL SALES
Dealership Usedunits Retail Light Vehicle Sales Average Dealership Used Retail Light Vehicle Sales T Average730
AREA TOTAL $18,067,500,000
Dealership New and Usedunits Retail Light Vehicle Sales Average Dealership New and Used Retail Light Vehicle Sales T Average1,646 Number of Vehicles Serviced per Dealership Average Number of Vehicles Serviced per Dealership T Average22,100 bs in Area Dealerships Average Number of Jobs per New Vehicle Dealership T Total Jo81
AVERAGE DEALERSHIP
New Vehicle Used Vehicle Service and Parts Other
$45,020,000 $26,480,000 $10,150,000 $850,000
TOTAL
$9,859,380,000 $5,799,120,000 $2,222,850,000 $186,150,000
$18B
Total area industry sales
Number of Jobs per New Vehicle Dealership Total Jobs in Area Dealerships T Average17,740 bs in Area Attributable to Automotive Retailing Total Jobs in Area Attributable to Automotive Retailing T Total Jo31,040 otal Earnings for Area Residents Attributable to Total Earnings for Area Residents Attributable to Dealership Operations T T $2.4 billion hip Operations million Average Dealership Payroll Expense T Dealers$7.18 Dealership Payrol Expense Average Employee Salary T Average$79,750 ate and Local Taxes Collected or Paimillion d Payrol Taxes Total State and Local Taxes Collected or Paid T Total St$899.9 ate and Local Taxes Collected or Paimillion d Payrol Taxes Total Federal Payroll Taxes Collected or Paid T Total St$385.4 (Note: all figures are for 2021, unless otherwise noted.)
07
3311 Swede Road, Suite A
n
East Norriton, PA 19401
(610) 279-5229 MoreThanAutoDealers.com