As we enter the initial weeks of 2024, our sector is cautiously optimistic, hoping that the worst is now behind us with respect to the pandemic and post-pandemic challenges.
A study conducted by the Canadian Automobile Dealers Association (CADA) and New Car Dealers Association of British Columbia (NCDA) — along with research partner MNP — has underlined the extraordinary impact of BC’s New Car Dealers on the economic and social landscape of the province – from data accumulated during 2022 when our sector was still encountering a significant micro-chip shortage and significant supply chain disruptions.
Despite facing hurdles, the industry generated a staggering $17 billion in retail activity. The contribution to the province also generated $286 million in tax revenue and a whopping $775 million in total tax revenue for all levels of government. On top of that, an additional $489 million in indirect or induced revenues carried through British Columbia and other parts of Canada due to supply chain linkages.
The sector is not only a financial force but also a crucial employer, supporting nearly 30,000 Full-Time Equivalents (FTEs), with 19,000 employed directly. The employment generated by new car dealers in BC is equivalent to the construction of 8,940 new homes or 57% of the total employment generated by the film industry in 2021. To make things even more impressive, these numbers surpass the employment created through handling 40 million containers at the Port of Vancouver — Canada’s largest port.
New car dealers in BC aren’t just driving economic activity through sales; they are also investing in their communities. Between 2018 and 2022, an estimated $142 million was invested annually in new and existing facilities, resulting in nearly $38 million in total revenue for all levels of government. These construction and renovation projects have, in turn, generated an additional 1,260 FTEs, reflecting the industry’s commitment to local employment.
The study also highlighted the social and community contributions of BC’s New Car Dealers. Kelowna Toyota, for instance, continued its tradition of giving back to the community by donating over $200,000 to various charities in 2022. This included a $20,000 contribution to the Mental Health and Wellness Program and ongoing support for Mamas for Mamas — a national charity aiding mothers and children in need. Capilano Volkswagen demonstrated its commitment to health by sponsoring the Cypress Challenge, raising over $418,000 for pancreatic cancer research and patient care in 2023 alone.
The study highlights the extraordinary role and contribution of new car and truck dealers on the economy, as an employer, and as a part of the social fabric in communities across the province. Despite ongoing challenges associated with post-pandemic recovery, our members continue to rise to the challenge and demonstrate their resiliency, providing thousands of family-supporting jobs in the more than 55 communities they call home.
Stretching far beyond the showroom, BC’s New Car Dealers are driving not just automobiles, but the province’s economic and social vitality. Their commitment to resilience, community, and employment solidifies their role as key players in shaping BC’s future.
The link to the BC provincial report can be found here.
More big news for 2024: We’re thrilled to announce the long-awaited return of the Vancouver International Auto Show, happening on March 20-24 at the Vancouver Convention Centre! For more on the show, including ticket information, please head to: www.VancouverInternationalAutoShow.com.
If you have any questions or thoughts to share, feel free to email Blair Qualey, President and CEO of the New Car Dealers Association of BC at [email protected].