U.S. Auto Parts Production: An Analysis of the Organization and Location of a Changing Industry
Several authors contend that changes in the organization of auto assembly are resulting in a spatial reconcentration of employment in the Midwestern United States. Hypotheses about spatial reconcentration do not take into account the structure of the auto parts industry and the extent that changes in assembly warrant a spatial reorganization of parts production. Using location and employment data for auto parts production, this analysis reveals that the current distribution of auto parts manufacturing varies by product, market, and corporate strategy. Differences in emphasis of these three elements lead to a variety of production and location strategies. Recent construction and renovation of auto parts production facilities suggest a continuing trend toward spatial decentralization. Research and development facilities, on the other hand, are concentrating in the Midwest. This analysis suggests that production reorganization in auto parts is leading to greater interfirm organizational concentration with continued spatial decentralization of low-valued added parts production.
TitleU.S. Auto Parts Production: An Analysis of the Organization and Location of a Changing Industry