Beer industry contributed $2 billion to Michigan economy in 2012, says trade group study
By Garret Ellison | email@example.com
March 25, 2013 at 4:25 PM
An economic impact study commissioned by a trade group found that America’s beer industry directly contributed more than $2 billion to Michigan’s economy last year.
The Beer Institute Economic Contribution Study released last week pegged the number of breweries in Michigan at 120 in 2012, alongside 141 distributors and 16,744 retail establishments selling beer in Michigan.
Together, that trifecta generated more than $911 million in federal, state and local taxes, and paid more than $293 million in federal and state excise taxes in Michigan. The analysis did not include local sales taxes, although Michigan does not allow city or local governments to impose sales or use taxes.
The study, jointly commissioned by the National Beer Wholesalers Association and the Beer Institute, a Washington DC-based lobbying group, was conducted by John Dunham & Associates of New York City.
The beer industry accounts for 37,220 jobs and $949 million in wages in Michigan, according to the study. The vast majority of positions, 32,050, are in the retail sector, which encompasses employees in restaurants, bars, stores, hotels, airlines, and venues like stadiums.
“Industry-related” jobs, in agriculture, transportation, construction, and other sectors, accounted for another 27,301 positions.
Source: The Beer Institute
According to the study methodology, researchers compiled the number of jobs and wages paid to employees in each of the industry’s three-tier system of brewers, wholesalers and retailers, and measured the “value added and total output of each.”
In addition to direct impact, the study also measured “induced impact” of the industry, which accounts for the multiplier, or “ripple” effect of spending by industry employees on living expenses like housing, food, educational services and medical care.
Measured by “induced impact,” the national beer industry totals $246.6 billion in output or 1.6 percent of gross domestic product, and through production and distribution linkages, impacts all sectors of the U.S. economy, according to the study.
The study did not spin out impact numbers specific to the craft beer industry, which is surging in Michigan. Craft brewers are represented by a separate trade group, the Brewers Association, which is releasing state-specific impact data in May.
According to that group, craft brewers reached 6.5 percent of the total U.S. beer market in 2012, up from 5.7 percent in 2011.
Michigan experienced 20 percent increase in craft breweries in 2011, which outpaced the national trend of 12 percent, according to a report by the Demeter Group Investment Bank of San Francisco.
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