2013-03-28 / Community

Michigan beer distributors positively impact economy

ALEXANDRIA, Va. – A new economic impact report shows Michigan beer distributors generate 4,763 direct jobs and $1.9 billion in total economic impact. The report, released by the National Beer Wholesalers Association – America’s Beer Distributors: Fueling Jobs, Generating Economic Growth and Delivering Value to Local Communities – provides an indepth look at beer distribution companies’ total impact on national and state economies.

Produced by Dr. Bill Latham and Dr. Ken Lewis of the Center for Applied Business and Economic Research at the University of Delaware, the report takes into account how beer distributor activities are intertwined with many parts of the economy, especially the personal services sector. The report also accounts for the amount of resources contributed by beer distributors in supporting community events and local economic development, contributing to charitable causes and promoting responsible alcohol use and adds the impacts of these activities to the usual impacts of distributor operations.

Key findings of the study include:

•Michigan beer distributors directly employ 4,763 people.

•When the impacts of Michigan distributor operations, capital investment and community involvement are considered, the total number of impact jobs is 13,400.

•Michigan beer distributors generate nearly $2 billion in total economic impacts.

•Michigan beer distributor activities contribute $427 million to the federal, state and local tax bases. This does not include an added $326 million in federal, state and local alcohol excise and consumption taxes on beer sold in Michigan.

•The Michigan beer distribution industry contributes $553 million in transportation efficiencies for the beer industry each year.

•Beer distributor contributions to local community activities generate $5.5 million in impacts annually.

“The beer distribution sector is a hidden gem that has been tremendously undervalued in previous economic reports,” said Dr. Latham. “Fueling more than 345,000 direct and indirect jobs across the country, beer distributors add $54 billion to the nation’s gross domestic product and offer far reaching benefits to brewers, importers, retailers, consumers and government agencies at all levels.”

To view the full report, including state by state data, visit www.nbwa.org.

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