The United Autoworkers (UAW) strike has wreaked havoc on the U.S. economy, resulting in a massive loss of $3.95 billion. The strike, dubbed the Stand Up Strike, has entered its third week, with 25,000 workers participating since September 21. East Lansing-based firm Anderson Economic Group (AEG) conducted an analysis revealing the extensive financial damage caused by the strike.
The damage has not been limited to the UAW and its members, as the Detroit Big Three automakers have suffered losses of over a billion dollars. AEG’s CEO, Patrick Anderson, highlighted the strike’s impact on suppliers, particularly after the UAW president announced specific plants to be struck just hours before their shutdown. This strategy severely hit suppliers, leading to the closure of 38 parts distribution centers and adversely affecting dealership service operations. Furthermore, the strike resulted in the cancellation of wages for more UAW workers.
The strike at parts distribution buildings has had a ripple effect, negatively impacting companies tangentially connected to the auto industry, such as dealerships, customers, and other suppliers involved in manufacturing vehicle parts. Anderson emphasized that as the strike’s effects continue to spread, it may diminish Americans’ support for the strike, especially when it starts affecting consumers.
AEG also predicted that Ford could face even costlier measures in the future. Although Ford had initially been spared from additional strikes, it was eventually targeted at its Chicago Assembly plant last week.
The ongoing autoworkers union strike has undoubtedly dealt a severe blow to the U.S. economy, with billions of dollars in losses incurred within just the first two weeks. As the strike persists, its consequences are becoming increasingly detrimental not only to the automakers but to suppliers, dealerships, and consumers as well. The strike’s impact on various sectors of the economy has raised concerns about the long-term viability of the strike and the potential ramifications for the industry as a whole.
