Economic Contributions of Toyota

Last month, Toyota Motor Manufacturing Kentucky, Inc. (TMMK) announced a $1.33 billion investment in its Georgetown operations to increase manufacturing flexibility and decrease model changeover times. The investment will improve equipment and add new technology in multiple manufacturing areas to prepare TMMK for the Toyota New Global Architecture (TNGA), a global vehicle platform for multiple configurations and powertrains. TNGA is a new way of designing, engineering, and manufacturing vehicles that will create a flexible production environment allowing quick response to demand while preserving Toyota’s values of exceptional quality and safety. Furthermore, TMMK will be the first vehicle assembly facility in North America to adopt TNGA.

Toyota Motor Manufacturing Kentucky, Inc. (TMMK) in Georgetown, KY, is Toyota’s largest manufacturing plant in the world, producing 550,000 vehicles and 600,000 engines annually at its 1,300-acre campus featuring over 8.1 million square feet of work space. TMMK produces four cylinder and V-6 engines, Camry, Avalon, Camry Hybrid, Avalon Hybrid, and the first U.S.-assembled Lexus.

In fact, Toyota produced more than 2 million vehicles in North America in 2016, and nearly one-fourth were made in Georgetown. Looking back even further, Toyota has produced more than 30 million vehicles since 1986 in North America, and one-third were made in Georgetown.

Additionally, there are over 100 parts and commodities suppliers for Toyota located in Kentucky, and a total of more than 350 suppliers in the U.S.

The Kentucky Cabinet for Economic Development estimates that there are over 9,500 people employed by Toyota across the state (as of May 8, 2017), excluding Erlanger. Toyota plans to close its operations at the Erlanger Engineering Laboratory Building, which it will then donate to Boone County Schools for a STEAM-focused education center, the Ignite Institute – an innovative, tuition-free school for students grades 9-12 with a focus on biomedical sciences, advanced manufacturing, pre-engineering, logistics/IT/coding, and building trades, with the opportunity to earn an associate’s degree.

Toyota’s involvement in the Bluegrass Region goes beyond employment and dollars invested in infrastructure. Several years ago, Toyota created the Advanced Manufacturing Technician (AMT) Program in collaboration with the Bluegrass Community & Technical College to craft a homegrown workforce with soft skills as well as technical knowledge. Today, the program has grown into a new,  $24 million, 78,000 square foot Advanced Manufacturing Center in Georgetown, KY, with over 60 students enrolled in the most recent semester. Through an apprenticeship-based curriculum, the AMT program combines learning with hands-on experience in an immersive environment. Students learn the knowledge and skills required to be advanced manufacturing technicians and apply those concepts while working part-time for actual manufacturers in the region, such as Toyota.

According to a study by the Center for Automotive Research, Toyota has operations in 19 states around the country and that 70 percent of Toyota vehicles sold in the United States were also built in the United States. Toyota employs over 135,900 people in manufacturing, supporting operations, and dealerships, with another 108,400 intermediate jobs that supply Toyota and 225,800 induced jobs created by the spending of these direct and indirect employees. This brings Toyota’s total American employment impact to 470,000 jobs.

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