La. car and truck dealers drive $19.2B in 2023, how other industries manage transportation

MONROE, La. (KNOE) – According to the Louisiana Automobile Dealers Association’s June 2024 economic impact report, the state’s franchised new car and heavy truck dealers collectively generated $19.2 billion in total sales in 2023.

General Manager Jeff Churchwell of Northeast Louisiana Power Cooperative, Inc. said he normally buys gently used bucket trucks for their linemen but was forced to buy a new truck due to a long wait period.

“It’s $240,000. So, I typically don’t buy one – brand new, but they had no slightly used trucks. So, I put in an order, and my salesman told me that… he said – well, your spot in the queue is for 28. I said, ‘28 months?’ He said no… 2028,” said Churchwell.

President and CEO Coulter McMahen of LADA stated the industry continues to be an economic driver – having a combined payroll amounting to $1.5 billion dollars for the dealerships’ employees. The association’s economic impact report said Louisiana’s new car and heavy truck dealerships employed an average of 55 Louisiana residents earning over $75,000 annually in 2023. The association explained that this kind of compensation contributes significantly to statewide economic enthusiasm, generating more than $325 million in state and federal income taxes combined.

“Our industry provides consumer choice, accessibility and market competition for buyers. It also offers steady careers for employees, all contributing to Louisiana’s prosperity and advancement,” said McMahen.

But for other industries, it comes with a challenging cost to obtain and maintain trucks to make sure crews are out in the communities doing their jobs; and Churchwell said, most importantly, keeping linemen safe.

“We have a good number of trucks, so with hurricane season – what it really does, is – it limits the availability to go help others. So, if your fleet is down and one of my co-op brothers in south Louisiana that gets hit – it does make it difficult and that’s when you have to depend on… you call in contractors,” said Churchwell.

LADA reported that new vehicle sales alone contributed a substantial $672 million in sales tax revenue for Louisiana. The recently released economic impact report also writes that state dealerships contributed more than $18 million to nonprofit organizations.

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