2007 NAIAS Economic Impact Projected Between $540 to $550 Million

2007 NAIAS Economic Impact Projected Between $540 to $550 Million  
Filed under:
Motor Shows
on 12/14/2006

Source: North American International Auto Show

The economic impact of the 2007 North American International Auto Show (NAIAS) is projected to be consistent with last year, reaching between $540 - $550 million, said David Sowerby, C.F.A., portfolio manager and chief market analyst at Loomis Sayles & Co. "The NAIAS covers two full weeks, plus the considerable assembly that begins in late October each year and the dismantling of the individual exhibits afterward. The NAIAS is consistently the number one contributor to business activity in Detroit due to the amount of time spent on its extensive set-up and execution," said Sowerby. "Intense competition in the auto industry has also inspired new display designs for one-third of the exhibits this year."

Among the most important factors that are expected to contribute to this year's total include:

* In 2007, the motor vehicle industry is again unveiling over 45 new models only at the NAIAS.

* Ticket sales for NAIAS 2007 Public Days, Industry Days and the Charity Preview are running well in spite of the challenging issues that confront the industry.

* A positive year for travel, consistent with an expanding national economy, could lead to favorable attendance. For example, major travel companies are witnessing 10 percent gains in revenue supported by rising income levels, improved labor markets and improved consumer confidence as energy prices have subsided from the abnormally high levels that prevailed in July. Gasoline prices have declined nearly $1.00 a gallon, supporting stronger consumer spending.

* Local area personal income growth is currently growing at a 4.0-4.5 percent pace. The rate of growth in personal income has a high correlation with the anticipated total economic benefit gains for the auto show and likely details why revenues should be stable versus last year.

"We are extremely proud of the annual economic impact the NAIAS brings to our region," said Robert Thibodeau, Jr., senior co-chairman for the NAIAS 2007. "Ranging from hotels to restaurants to exhibit companies and retail, everywhere so many businesses and their families reap the benefit of this show year in and year out. Our goal is to keep that revenue stable and here in Michigan for the continued benefit to our economy."

100th Anniversary

In 2007, the Detroit Auto Dealers Association (DADA) will celebrate the centennial of its successful association with the North American International Auto Show (NAIAS). Since its inception in 1907, the show has grown from a regional event featuring 17 exhibitors to an internationally-sanctioned show with over 90 exhibitors, adding more than $600 million to the metro Detroit region last year alone. With the support of Detroit area auto dealers the NAIAS features more new vehicle debuts and garners more media coverage than any show in North America.

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