New CED Report Reveals U.S. Food Industry As Strong Economic Contributor
Americans are helping to produce a wide variety of foods and beverages, and it’s having a notable impact on our economic growth.
The Committee For Economic Development of The Conference Board (CED) recently released a report that shows the U.S. food and beverage industry to be a robust contributor to the U.S. economy, as well as a reliable provider of employment and source of innovation.
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Manufacturing Jobs Across The U.S.
The “Economic Contribution of The Food and Beverage Industry” report was completed as part of a series of studies examining the individual contribution of various U.S. production sectors.
The report revealed that food and beverage producers are employers in a number of lower-population states and account for more that 20% of manufacturing jobs in Delaware, Nebraska, Idaho, South Dakota, Iowa, and Hawaii.
The sector also accounts for 13% of manufacturing jobs nationwide, with 27,000 food and beverage manufacturing establishments employing 1.46 million American workers.
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Continuous Innovation And Investment
When it comes to the U.S.’s potential to compete in international markets, food and beverages are the only major products that contribute to a positive trade balance with other countries. Food and beverage production has remained relatively stable compared to other types of manufacturing and this has allowed for more continuous innovation and investment.
The food and beverage industry spends about $5.4 billion on research each year and drives venture capital investments of $3 billion in food market and processing technologies annually.
Generating Additional Income
The report also found the food and beverage industry to be an economic multiplier. Food manufacturers generate an additional $0.40 to $1.35 in local economic activity for every dollar of output, and $1.27 of national economic activity for every dollar of output.
The industry itself generates $164 billion in added value with $83 billion in total salary and benefits for workers, $9.7 billion in taxes, and $62 billion in property income.
Are you surprised to hear that the U.S. food and beverage industry is a thriving portion of America’s manufacturing sector? If you have thoughts to add to this story, share them in the comments.