Study Shows Industry Supports 24,000 Jobs, $6.3 Billion in Economic Output in Kentucky
ROSSLYN, Va., Oct. 17, 2013 /PRNewswire-USNewswire/ -- A new study released today confirms the growing importance of the domestic aluminum industry to the Kentucky economy. Research conducted by economic research firm John Dunham & Associates found that the industry directly employs more than 6,500 and generates $3.4 billion in economic output.
According to the study, for each aluminum industry job an additional 3.7 jobs are created elsewhere in the Kentucky economy for a total of 24,000 jobs. When supplier and induced impacts are taken into account, the industry has an economic footprint of more than $6.3 billion – more than 3% of Gross State Product.
Other key findings from the report include:
- Workers directly employed by the Kentucky aluminum industry earned more than $540 million in wages and benefits in 2013.
- Indirect employment by the industry creates another $947 million in wages and benefits.
- When all employment supported by the industry is taken into account, these jobs generate nearly $650 million in federal, state and local taxes.
- These workers earn average compensation of more than $60,000, far exceeding the national average of $43,000.
"As an integral part of the U.S. manufacturing base and overall economy, the aluminum industry supports hundreds of thousands of high quality manufacturing jobs in communities of all sizes," said Layle "Kip" Smith, President and CEO of Noranda and Chairman of the Aluminum Association. "Aluminum is a vital material for the modern era and a bellwether for domestic manufacturing."
On the national level, the report found that the U.S. aluminum industry directly employs more than 155,000 workers and generates $65 billion in economic output in all 50 states and the District of Columbia. When supplier and induced impacts are taken into account, the industry creates 672,000 jobs and has an economic footprint of more than $152 billion – nearly 1% of Gross Domestic Product.
"It's encouraging to see that, as an industry, we're growing," said Heidi Brock, President of the Aluminum Association. "As the country recovers from the recession, we're seeing demand for our product bouncing back – up 30 percent since 2009. Lightweight, durable and highly recyclable, aluminum is a metal uniquely suited to the 21st century."
The study was completed by economic research firm John Dunham & Associates and is based on data provided by Dun & Bradstreet, Inc., the federal government and the Aluminum Association. The analysis uses the Minnesota IMPLAN Model to quantify the economic impact of the aluminum industry on the overall U.S. economy.
For the purposes of the report, the aluminum industry is defined to include alumina refining; primary aluminum processing; secondary aluminum smelting and alloying; manufacturing of aluminum sheet, plate, foil, extrusions, forgings, coatings, and powder; aluminum foundries; metals service centers, and wholesalers. The study measures the number of jobs in this industry, the wages paid to employees, total economic output, and federal and state business taxes generated.
The complete study, including an interactive map with economic contribution breakdowns by state and congressional district, is available at http://www.aluminum.org/economy.
The Aluminum Association, based in Arlington, Virginia, works globally to aggressively promote aluminum as the most sustainable and recyclable automotive, packaging and construction material in today's market. The Association represents U.S. and foreign-based primary producers of aluminum, aluminum recyclers and producers of fabricated products, as well as industry suppliers. Member companies operate approximately 180 plants in the United States, with many conducting business worldwide. For more information visit www.Aluminum.org, on Twitter @AluminumNews or Facebook.com/AluminumAssociation.
SOURCE The Aluminum Association