Economic losses from the United Auto Workers strike against Detroit automakers have reached $7.7 billion, according to Anderson Economic Group.
And as the strike enters its fifth week, the Michigan economic consultancy issued a warning.
“We’ve entered the danger zone for many suppliers, and more than one production line,” said Patrick Anderson, CEO of Anderson Economic Group, in a statement. “Without a settlement soon, a plausible restart with higher costs will likely lead to some permanent losses of production, and suppliers that will need financial assistance to return to operation.”
Read more: American manufacturing is coming back. So are strikes.
Anderson Economic Group has been tracking the losses since the first day of the UAW “Stand Up” strike on Sept. 15.
The breakdown of the cumulative losses is as follows:
Anderson said the impact of the strike and the lost dollars are now being validated in other Michigan economic data.
“We’re already seeing retail sales, airline travel, and income tax collections dropping in the State of Michigan,” Anderson explained. “There are also increasing layoffs among vulnerable suppliers.”
Anderson said most of these costs are not impacting the Detroit Three. “They are being borne by workers and by small- and medium-sized businesses.”
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