An Economic Analysis of the U.S. Wooden Pallet and Container Industry
2
Figure E.2. Employment
Units: Jobs
The impact of the wooden pallet and container industry extends beyond the direct
economic impacts as measured by the variables described above. In this analysis, the
domestic production of wooden pallets and containers is our starting point. This concept
is called the direct output. This activity does not exist in isolation. Instead, it generates
demand from supplier industries. These supplier industries in turn generate demand for
their supplier industries. All of the output generated beyond the direct output is called
the indirect output. In addition to the direct and indirect impacts, we calculate induced
output. This represents the additional demand generated by the disposable income
earned in the industry (this may be both wage income and capital income).
Associated with the output at each round of impact is the employment required in that
sector to produce that output, as well as the value added or income earned. The
"upstream" impacts of supplier industries are displayed below in Table E.1. Total jobs
within the industry (67,000) plus upstream suppliers (48,300) plus induced jobs (57,600)
came to a total of 172,900 in 2016.
Table E.1. Summary of Upstream Analysis
Units Indicated
92,417
83,183
87,825
91,896
86,384
83,132
77,761
62,578
58,748
58,193
55,401
56,057
58,804
62,236
67,007
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Employees
Output
(Billion $)
Employment
(thousand persons)
Value Added
(Billion $)
Labor Income
(Billion $)
Direct 10.7 67.0 3.8 3.0
Indirect 10.7 48.3 5.0 3.2
Induced 9.3 57.6 5.2 2.9
Total 30.7 172.9 14.1 9.2
