New car dealerships play a vital role in the economic and social fabric of communities across Canada.  In Manitoba, these dealerships contribute significantly to the local, provincial, and national economies.  A recent economic impact study conducted by the Canadian Automobile Dealers Association (CADA) and the Manitoba Motor Dealers Association (MMDA), in partnership with MNP LLP, sheds light on the contributions of new car dealers in Manitoba.  This blog post will provide an overview of the key findings from the study.

Key Statistics

According to the study, new car dealers in Manitoba sold 43,075 new vehicles in 2022.  These dealerships directly employed 6,010 people and generated total revenues of $4.8 billion.  Approximately 56% of the jobs at new car dealerships are skilled positions requiring a postsecondary credential, professional certification, or significant experience.

Economic Impacts

The economic impacts of new car dealerships in Manitoba are significant.  In 2022, these dealerships were estimated to generate $1.6 billion of total output, $968 million of total GDP, and 9,830 full-time equivalent (FTE) jobs.  Additionally, they contributed $239 million in total tax revenue for all three levels of government.

Investments in Facilities

New car dealerships in Manitoba also invest in new and existing facilities.  Between 2018 and 2022, these investments amounted to approximately $48 million annually.  The economic impacts of these investments include $104 million of total output, $46 million of total GDP, and 400 FTE jobs.

Workforce Profile

New car dealerships provide stable long-term employment for both skilled and unskilled labor.  Skilled positions include automotive service technicians, parts people, service advisors, and managers, while unskilled positions include detailers, lot people, and drivers.  Approximately 56% of the workforce at new car dealerships are employed in skilled positions.

Social and Community Contributions

New car dealerships in Manitoba actively support economic reconciliation and Indigenous communities.  They provide scholarships for Indigenous students, engage with Indigenous communities for recruitment, and participate in cultural initiatives. These contributions help foster opportunities for education and employment for Indigenous peoples.

Comparison with Other Industries

The economic impacts of new car dealerships in Manitoba can be compared to other industries.  For example, the employment generated by these dealerships is equivalent to the employment created through the construction of approximately 3,400 new homes in Manitoba.  Also, the employment generated is equivalent to 57% of the employment generated by Winnipeg International Airport in 2019.

Read the full study

The economic impact study highlights the significant contributions of new car dealerships in Manitoba.  These dealerships generate substantial economic activity, provide employment opportunities, and contribute to tax revenues.  Furthermore, they actively support economic reconciliation and Indigenous communities.  The findings of this study emphasize the importance of new car dealerships in Manitoba’s economy and society.

You can read the full study here

Source: The Economic Impact Study conducted by the Canadian Automobile Dealers Association (CADA), the Manitoba Motor Dealers Association (MMDA), and MNP LLP.