Stone, Sand and Gravel REVIEW - May/June 2017 - 15
One Quarry Job Creates
Nearly Five Others
By Patrick Dunne, NSSGA
Michael W. Johnson, NSSGA president
and CEO, and George Ford, Ph.D.,
discuss the economic report at the 2017
NSSGA Annual Convention.
EACH JOB IN A QUARRY supports
nearly five jobs, 4.87 to be exact, in
other industries and sectors, and this
multiplier effect is found at the local
and state levels. This is just one of
many facts found by the Washington
D.C.-based Phoenix Center, which
released an economic analysis of
exactly how a stone, sand or gravel
operation impacts jobs, tax revenues,
other businesses and other key economic indicators in a community.
The Economic Impact of the Natural
Aggregates Industry: A National, State,
and County Analysis was conducted by
George Ford, Ph. D., chief economist
at The Phoenix Center and quantifies
the current impact of the aggregates
industry on the broader economy and
sheds light on how an expansion of
the industry, perhaps through new
infrastructure spending, might ripple
through the economy.
"If you create opportunity in a
county next door, that income comes
back. It creates a feedback loop. This
study helps to see how a specific operation can affect any nearby community," said Ford.
A lot of the economic benefits can
be attributed to the salaries from the
aggregates industry, which are higher
than the national average wages.
According to the analysis, not
only does the aggregates industry
generate $27 billion in annual sales
and employ 100,000 workers at
above-average wages, the economic activity in the sector has
large effects on other industries.
The industry also supports $122
billion in national sales, $32 billion in national earnings (i.e.,
wages) and between 364,000 and
600,000 jobs across a wide range
of occupations and industries.
"We know that a quarry cannot
start or grow without local permits and approval. Unfortunately,
it's often the case that local zoning committees or state departments and even neighbors oppose
quarries seeking permits," said
Michael W. Johnson, NSSGA president and CEO. "This is a welcome
study for our industry. One that
helps to clearly demonstrates the
value of aggregates operations
have for towns and cities, states
and the nation's economy."
In many cases, the benefits of
a quarry are similar at the state
STONE, SAND & GRAVEL REVIEW, www.nssga.org 15