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Spatial Concentration in the U.S. Auto Supplier Industry

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  • Thomas H. Klier

    (Federal Reserve Bank of Chicago)

Abstract

This paper investigates the spatial characteristics of auto supplier plant locations in the U.S. in light of the industry's adoption of just-in-time manufacturing methods. The issue of agglomeration is investigated for 3,137 independent supplier plants that were in operation during 1997. The industry is found to be highly spatially concentrated, with Michigan, Indiana, Ohio, Kentucky, and Tennessee representing the preferred location choice of independent auto supplier plants. Within that region, however, domestic and Japanese suppliers concentrate in the northern and southern half, respectively. Each group tends to locate closer to assembly plants of the same nationality.

Suggested Citation

  • Thomas H. Klier, 2001. "Spatial Concentration in the U.S. Auto Supplier Industry," The Review of Regional Studies, Southern Regional Science Association, vol. 29(3), pages 294-305, Winter.
    • Handle: RePEc:rre:publsh:v:29:y:1999:i:3:p:294-305
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    References listed on IDEAS

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    1. Smith Jr. , Donald F. & Florida Richard, 1994. "Agglomeration and Industrial Location: An Econometric Analysis of Japanese-Affiliated Manufacturing Establishments in Automotive-Related Industries," Journal of Urban Economics, Elsevier, vol. 36(1), pages 23-41, July.
    2. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    3. Sukkoo Kim, 1995. "Expansion of Markets and the Geographic Distribution of Economic Activities: The Trends in U. S. Regional Manufacturing Structure, 1860–1987," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 881-908.
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    Cited by:

    1. Thomas H. Klier & Paul Ma & Daniel P. McMillen, 2004. "Comparing location decisions of domestic and foreign auto supplier plants," Working Paper Series WP-04-27, Federal Reserve Bank of Chicago.

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