$2 Billion in One State!!

Beer industry contributed $2 billion to Michigan economy in 2012, says trade group study



Grand Rapids Beer City USA 2012

 Grand Rapids Mayor George Heartwell, center, City Commissioner Ruth Kelly, right, and brewery owner Jackson Van Dyke in the background, toast Grand Rapids designation as “Beer City USA” with a glass of Beer City Pale Ale, devised by a group of local brewers, at Harmony Brewing Co. on Thursday, July 5, 2012. Grand Rapids Beer City USA 2012 gallery (25 photos)

  • Grand Rapids Beer City USA 2012
  • Grand Rapids Beer City USA 2012
  • Grand Rapids Beer City USA 2012
  • Grand Rapids Beer City USA 2012
  • Grand Rapids Beer City USA 2012

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.

Beer Institute study.jpeg 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.(mlive.com)


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