The Return of the Third Shift: What it Means for Job Creation

Feb 13, 2012

Some American automakers are adding a third eight-hour shift  at many plants this year, providing thousands of auto industry jobs and boosting surrounding businesses. IHS Automotive estimates that U.S. auto factories will operate at up to 81% capacity this year, up from a 49% low in 2009. 

The increased production is due in large part to a rise in U.S. light vehicles sales. For the first time since 1984, light vehicle sales were up at least 10% for two years in a row, outpacing growth among Chinese automakers.  

Autoworkers aren’t the only beneficiaries of the expanded workday, according to estimates from the Center for Automative Research in Ann Arbor, Michigan, as reported in Businessweek: "A third shift at a Midwestern U.S. auto plant typically requires about 1,000 autoworkers and creates about 7,850 spinoff jobs ranging from police and fire workers to construction, retail, and restaurant employees."

The economic boost provided by the new jobs is felt near and far. Roughly one-third of the ancillary jobs created are within 60 miles of the auto plant, with the remaining two-thirds positively impacting businesses and suppliers located further away.

Even outside of the rustbelt, auto plants seem to be thriving. “Every single auto supplier we’ve talked to recently has a positive outlook for 2012 and 2013,” said Holly Sears, a representative of Rutherford County, Tenn. Chamber of Commerce.

Click here to read more about the auto industry employment boost and subsequent ripple effect for local jobs in Businessweek.

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