Economic Impact 2021

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!

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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

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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.)

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