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Spatial Concentration in the U.S. Auto Supplier Industry

Thomas Klier

The Review of Regional Studies, 2001, vol. 29, issue 3, 294-305

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.

Date: 1999
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