Honda spent a record $32.4 billion for parts and materials from U.S. suppliers for its North America operations last year, including firms in Clark and Champaign Counties.
That’s about $1.5 billion more than 2016, when the company spent just shy of $31 billion on those products and services, according to information from the company. Honda also recognized a few local companies as top suppliers for the auto maker.
Of that $32 billion in 2017, Honda officials said the company spent about $10 billion in Ohio with 173 suppliers. Honda employs more than 13,000 Ohioans, including more than 1,400 residents from Clark and Champaign counties.
Topre America Corp., which is currently building a manufacturing facility in Springfield, and KTH Parts Industries, Inc. in Champaign County were also recognized by the company.
“Honda is a huge factor in the economics of Champaign County,” said Marcia Bailey, director of the Champaign Economic Partnership. “Many Champaign County residents work at Honda facilities. KTH is a Tier 1 Honda supplier and the largest manufacturing facility in Champaign County with approximately 1,000 employees. Both Honda and KTH also add to the economics by their continued support of many community projects, events and causes.”
Information from the company shows Honda works with more than 736 equipment suppliers in North America.
“Honda values our collaboration with innovative suppliers as we work together to create high-quality vehicles to meet the growing expectations of our customers,” Tom Lake, vice president for Honda North American Purchasing, said in a news release.
Honda operates facilities in Anna, Marysville, Troy and East Liberty, as well as a transmission plant in Russels Point. The company also operates a research and development facility in Ohio.
Several companies in the region supply parts for Honda, including Yamada North America, Inc. in South Charleston, KTH Parts Industries in St. Paris and Parker Trutec in Springfield and Urbana.
Honda hit an all-time sales record in 2017, barely edging out a sales total the Japanese automaker hit the previous year. The company sold more than 1.64 million Honda and Acura vehicles last year, a 0.2-percent improvement over 2016.
In 2017, more than 90 percent of all Honda and Acura vehicles sold in the U.S. were made in North America using both domestic and globally sourced parts.
The company honored several companies throughout the region for excellence in categories that included quality, sustainability and value.
Topre America Corp.’ facility in Cullman, Ala., was recognized with a double award for excellence in quality and value. Topre first announced plans to develop a manufacturing facility in Springfield in late 2016 at the Champion City Business Park. The company later announced two more expansions even as that facility is still being constructed, and Topre’s total investment now is expected to be about $130 million, with a projected total workforce just shy of 300 employees.
KTH Parts, located near St. Paris in Champaign County, was recognized for supplying service parts that serve the needs of customers after they have purchased Honda and Acura vehicles.
Other regional companies recognized include:
• Yusa Corporation in Washington Courthouse
• Kosei North America, Inc. in West Chester
• Neaton Auto Parts Manufacturing, Inc. in Eaton
• GLT in Dayton
• Nissen Chemitec America in London, Ohio
• NK Parts Industries in Sidney
• Pacific Manufacturing Ohio in Fairfield
• Framgroup in Greenville
By the numbers:
$32 billion — Honda spending on N. American suppliers in 2017
45 — Parts suppliers recognized by Honda
1.6 million — Honda vehicles supported by spending
The Springfield News-Sun has provided extensive coverage of Honda and its impact on the region’s economy. For this story, the paper covered Honda’s spending on parts and supplies in North America last year and its impact on the region.