Thursday, July 18, 2024

LADA Report: Louisiana Auto Dealers Propel $19.2 Billion Economic Boom in 2023

by BIZ Magazine

BATON ROUGE – The Louisiana Automobile Dealers Association (LADA) has unveiled its 2023 economic impact report, highlighting a remarkable $19.2 billion surge in total sales driven by Louisiana’s franchised new car and heavy truck dealers. This substantial contribution underscores the automotive industry’s pivotal role in the state’s economy.

Economic Impact and Job Creation

The report reveals that Louisiana’s new car and heavy truck dealerships were instrumental in supporting 38,402 direct and indirect jobs throughout the state. With each dealership employing an average of 55 Louisianians, the industry has provided substantial employment opportunities with competitive salaries averaging over $75,000 annually. The total payroll for these jobs amounted to $1.5 billion, significantly boosting the state’s economic vitality and generating more than $325 million in combined state and federal income taxes.

“With over 350 franchised dealers dispersed throughout our state, Louisiana’s auto industry remains a crucial economic driver of our state’s economy,” said Coulter McMahen, President and CEO of LADA. “Our industry provides consumer choice, accessibility, and market competition for buyers. It also offers steady careers for employees, all contributing to Louisiana’s prosperity and advancement.”

Tax Revenue and Philanthropy

New car sales alone contributed an impressive $672 million in sales tax revenue for Louisiana in 2023, underscoring the industry’s significant fiscal impact. Additionally, Louisiana dealerships demonstrated a strong commitment to their communities by contributing over $18 million to charitable and nonprofit organizations.

“Once again, these figures affirm the profound impact Louisiana’s automotive dealerships have on their communities,” said Kristie Hebert, LADA Chairwoman and Dealer Operator of Arceneaux Ford in New Iberia. “Beyond their economic significance, these establishments are led by individuals dedicated to nurturing, guiding, and developing their staff professionally while also generously contributing their time, services, and resources to various philanthropic endeavors.”

Recognition and Industry Leadership

The automotive industry in Louisiana continues to receive accolades, with Louisiana automobile dealerships consistently ranked as top privately-owned companies by industry and trade publications. This year, 12 Baton Rouge area dealerships were featured in the Top 100 Private Companies list by the Baton Rouge Business Report. Collectively, these dealerships generated a combined revenue of $4.7 billion in 2023, underscoring their significant contribution to the economic prosperity of the Capital Region.

The economic impact analysis for 2023 was conducted by the National Automobile Dealers Association, drawing upon data from the Center for Automotive Research, S&P Global, the Tax Foundation, U.S. Bureau of Labor Statistics, and U.S. Census Bureau.

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