Car sector contributes
Provincial auto industry creates major economic activity, jobs and tax revenue
There’s no doubt that the automotive sector is a key economic driver in many countries. From sales to parts manufacturing to servicing, the auto industry has become an engine of economic activity around the world.
Here in B.C., a new study entitled the Economic Impact of Members of the New Car Dealers Association of B.C. in 2017 underscores the significant impact of the industry on the provincial economy, government coffers and employment.
The report, prepared by MNP, shows that new car dealers generated more than $16 billion in retail sales across the province last year, an increase of 85 per cent since 2010. The number of new vehicles sold in B.C. increased from approximately 157,000 units in 2010 to 237,000 in 2017 — a 51 per cent increase. B.C.’s dealerships contributed $2.9 billion of total GDP in 2017, while generating $675 million in total revenue to all three levels of government. The automotive sector is now the second-largest retail category in B.C., second to food and beverage sales.
In addition to the impressive economic figures, what should not be lost is the fact that employment at new car dealerships increased 22 per cent from 2010 to 2017. Just last year, dealerships provided almost 30,000 family-supporting jobs for British Columbians across the province.
The activities of the province’s new car dealers in building and modernizing their own infrastructure creates other positive economic impacts as well. Dealerships spend, on average, approximately $154 million each year on new construction and renovation, all of which creates significant economic spinoffs and employment.
But beyond just the numbers, the impact of car dealerships and their contributions to society are most tangible in the communities they operate in.
Many dealerships develop deep roots within their local communities and are highly visible and active in local volunteer activities and charitable activities. As a collective, the New Car Dealers Association of B.C. has worked with Special Olympics B.C. for over 30 years, raising $3.8 million over the course of the partnership. The New Car Dealers Foundation provides annual education grants to students young and old around B.C. Applications for these grants are available on the foundation website at newcardealersfoundation.ca.
Dealerships also create new opportunities for workers through bursaries and contributing to educational funding to provide support for the next generation of employees. The new car dealers and service shops in Kelowna for instance, committed $1 million to the new Trades Training Complex in Okanagan College.
British Columbians continue to have a love affair with the auto shown by growing attendance at the Vancouver International Auto Show, the best attended consumer event in Western Canada.