Driving Economic Stability: Portland's Automobile Industry Leads The Way
Although Portland's unemployment rate has remained at or above seven percent since October 2001, metro area auto dealers have emerged as a recession-proof industry, experiencing steady sales and providing jobs that help fuel economic recovery ‹ to the tune of $2.4 billion.

Slow growth in the region's labor market is bolstering hopes about the state's overall economic condition. According to the August 2003 Oregon Employment Department (OED) Labor Report, the latest decline in unemployment rates is being fueled largely by the stability of certain industries, such as the Portland metro area's new automobile dealerships. In fact, an OED's 2002 year-end report cites that in the Portland metro area (including Salem and Vancouver), automobile dealerships continue to employ nearly 17,500 people annually. And auto-related industries, such as repair, employ an additional 13,500 people, making the automobile industry one of the largest and most stable employers in the state.

These statistics - and their positive impact on the local economy - were further validated by a summer 2003 report from the National Automobile Dealers Association (NADA), headquartered in Washington, D.C. Focusing primarily on economic contributions of new car dealers, the report's findings indicate an annual average of $25.9 million in sales and $2.10 million in payroll per dealership. With 94 metro area new vehicle dealerships (and 279 in the state), those numbers translate into an economic bright spot of more than $7.2 billion in sales and more than $587 million in payroll, or 21 percent of the state's total retail sales and 10.2 percent of the state's total retail payroll.

"There's no question that the recent economics have been tough for everyone," said Chris Neuber, executive vice president of the Metro Portland New Car Dealers Association. "Many of our association's members are second and third generation Oregon business leaders who have a keen interest in seeing our state rebound. All members of the association have focused on working together to weather the downturn, taking the opportunity to improve our operating efficiencies while continuing to offer consumers cost-competitive products and high quality services. Our goal has always been to contribute to the economic vitality of the region and the state - through consumer sales and as a good employer."

Neuber added that the OED and NADA reports serve as a benchmark of the local industry's ability to help lead the way for Oregon's recovery.