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A Major Economic Driving Force: Metro New York's Auto Dealerships
The Greater New York Automobile Dealers Association (GNYADA) recently revealed the astounding economic clout held by local car and truck dealerships in the New York metro area. The 2024 Economic Impact Report outlines how these franchise dealerships significantly elevate the economy, far beyond selling vehicles. They play a burgeoning role in creating jobs, generating substantial tax revenue, and fostering community growth through charitable efforts.
Fueling the Job Market and Tax Revenue
According to the report, franchise car and truck dealerships provide employment to 67,300 individuals across direct and indirect roles, representing 12.5% of the area's retail workforce. This is a massive boon for the local economy, collectively raking in $6.3 billion in wages annually. Moreover, these dealerships form a robust tax foundation, contributing an impressive $2.89 billion to state and local governments, including $2.39 billion specifically from state sales tax.
Community Contributions and Charitable Giving
Metro New York’s new car dealers are credited for 65% of all vehicles sold in the state in 2023, translating to 495,000 vehicles out of a total 762,700. But their influence reaches beyond revenues and profits; dealerships donated $19.8 million to community organizations such as schools and hospitals. These dealerships offer not only financial support but also countless other contributions that strengthen community ties and well-being.
Anticipating Future Trends and Opportunities
Looking ahead, as dealerships gear up to embrace upcoming automotive innovations, including electric and autonomous vehicles, their role in this ecosystem is bound to grow. The relentless march of technology suggests a boon for those prepared to adapt, unlocking new opportunities for economic and community enrichment. Dealership owners and general managers can stay ahead by aligning with these emerging trends, ensuring continued prosperity and market leadership.
Insights from Industry Leadership
GNYADA president Mark Schienberg emphasizes that auto dealers are more than business entities; they’re community pillars. Dealerships touch every aspect of life in the region, demonstrating integrated support that transcends the confines of showroom floors.
GNYADA’s report lays the foundation for a deeper appreciation of the economic ecosystem within the metropolitan area, revealing how dealerships are adeptly placed to bolster both economic and social health.
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