my point of view…

Report Details Value of the Aggregates Industry

As Congress moves closer to transportation reauthorization a new report provides an incentive for maximizing infrastructure investment. “The Impact of the Crushed Stone, Sand & Gravel Industry on the U.S. Economy,” prepared by Stephen S. Fuller, Ph.D., faculty chair and university professor and director of the Center for Regional Analysis of the School of Public Policy at George Mason University, underscores the impact of the aggregates industry on the U.S. economy.

The study was commissioned by the National Stone, Sand & Gravel Association (NSSGA) as part of its centennial celebration. Its objective was to measure the industry’s overall contribution to the nation’s Gross Domestic Product (GDP). In a letter presenting the study’s findings, John Cramer, NSSGA chairman, writes “While aggregates producers and others associated with the industry have instinctively believed that the industry plays a major role in the U.S. economy, here’s the proof.”

According to the report, the aggregates industry has out-performed the U.S. economy during the past decade, despite its cyclical sensitivity. In 2001, industry output totaled $14.59 billion with its major consumers being new construction, maintenance and repair, and stone and clay product firms. To determine the industry’s true impact on the U.S. economy, however, Fuller writes that you need to take into account the subsequent economic benefits derived from the re-spending of payroll income, purchases by the consumer industries, and re-spending of the proceeds of the industry’s sales throughout the national economy. His analysis shows that the crushed stone industry has a multiplier of 2.62. That means that for every $1 of output produced by the industry, an additional $1.62 is generated in the national economy. For each $1 million in output, the crushed stone industry generates 19.2 new jobs nationwide with personal earnings of $772,800. Similarly, the sand and gravel industry has a multiplier of 2.52 and for each $1 million in output generates 19.9 new jobs with personal earnings of $757,300. With the nation’s economy in need of major stimulus, it sounds like transportation investment is just what the doctor ordered!

Therese Dunphy, editorial director
therese@aggman.com

August 2003 my point of view... Report Details Value of the Aggregates Industry				my point of view… Report Details Value of the Aggregates Industry As Congress moves closer to transportation reauthorization a new report provides an incentive for maximizing infrastructure investment. “The Impact of the Crushed Stone, Sand & Gravel Industry on the U.S. Economy,” prepared by Stephen S. Fuller, Ph.D., faculty chair and university professor and director of the Center for Regional Analysis of the School of Public Policy at George Mason University, underscores the impact of the aggregates industry on the U.S. economy. The study was commissioned by the National Stone, Sand & Gravel Association (NSSGA) as part of its centennial celebration. Its objective was to measure the industry’s overall contribution to the nation’s Gross Domestic Product (GDP). In a letter presenting the study’s findings, John Cramer, NSSGA chairman, writes “While aggregates producers and others associated with the industry have instinctively believed that the industry plays a major role in the U.S. economy, here’s the proof.” According to the report, the aggregates industry has out-performed the U.S. economy during the past decade, despite its cyclical sensitivity. In 2001, industry output totaled $14.59 billion with its major consumers being new construction, maintenance and repair, and stone and clay product firms. To determine the industry’s true impact on the U.S. economy, however, Fuller writes that you need to take into account the subsequent economic benefits derived from the re-spending of payroll income, purchases by the consumer industries, and re-spending of the proceeds of the industry’s sales throughout the national economy. His analysis shows that the crushed stone industry has a multiplier of 2.62. That means that for every $1 of output produced by the industry, an additional $1.62 is generated in the national economy. For each $1 million in output, the crushed stone industry generates 19.2 new jobs nationwide with personal earnings of $772,800. Similarly, the sand and gravel industry has a multiplier of 2.52 and for each $1 million in output generates 19.9 new jobs with personal earnings of $757,300. With the nation’s economy in need of major stimulus, it sounds like transportation investment is just what the doctor ordered! Therese Dunphy, editorial director therese@aggman.com