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An Economic Analysis of the U.S. Wooden Pallet and Container Industry 17 The distribution of purchases from supplier industries, and the purchases from their suppliers, etc. The labor/output, value added/output, and labor income/output ratios in each industry. The import share of each industry. 3.2 Downstream Analysis In addition to jobs, value added, and output in the supplier industries, some portion of economic activity in the wholesale and retail trade industries is due to sales of NWPCA- related products. This impact, which is often termed the "downstream" impact, also has direct, indirect, and induced components. The IO framework includes estimates of margins on each transaction. These may be wholesale and retail markups, the cost necessary to bring the product to its final users. Looking across the row of the IO table shows the distribution of buyers of each product. Table 7 shows the largest elements of such distribution by industry segment. Table 7. All Other Wood Products (NAICS 32192, 32199) Sales to Other Sectors Most of these purchasing industries buy products through wholesale dealers. A small amount of purchases from this industry are made through retail trade. For the downstream analysis, we calculated intermediate and final sales. Next, we calculated the wholesale and retail margins associated with these sales. The total margins were taken as direct output for the downstream analysis. Table 8 and Figure 7 show a summary of the direct, indirect, and induced impacts arising from downstream sales. The first row of the table shows direct output at $1.9 billion. This is the total wholesale and retail margins associated with sales of NWPCA-related Rank NAICS Industry Title % of Intermediate Sales 1 n/a State and local general government 13.1% 2 42 Wholesale trade 9.4% 3 23 Other nonresidential structures 6.6% 4 23 Other residential structures 6.0% 5 23 Single-family residential structures 3.8% 6 32192, 32199 All other wood products 3.3% 7 721 Accommodation 3.0% 8 32212, 32213 Paper and paperboard mills 2.9% 9 442-4, 446-8, 451, 453-4 Other retail 2.8% 10 23 Educational and vocational structures 2.8% 11 445 Food and beverage stores 2.6% 12 7222 Limited-service restaurants 2.2% 13 3363 Motor vehicle parts 2.1% 14 23 Commercial structures, including farm structures 2.0% 15 32191 Millwork 1.9% 16 23 Nonresidential maintenance and repair 1.9% 17 5612 Facilities support services 1.6% 18 334411,2,4-7,9 Other electronic components 1.4% 19 23 Health care structures 1.3% 20 32619 Other plastics products 1.3% All other sectors 28.1% Total Intermediate Demand 100.0%

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