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Economic Analysis of the US Wooden Pallet & Container Industry

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An Economic Analysis of the U.S. Wooden Pallet and Container Industry 9 2.2 Employment Total direct employment is shown in Figure 3. Employment data and growth rates are in Table 2. Like most manufacturing industries, the wooden pallet and container industry was not immune to the Great Recession. Job losses began in 2006 and accelerated sharply in 2009. Employment continued falling for several years, albeit at a more moderate rate. Between 2005 and 2012, NWPCA-related employment dropped by nearly 40 percent, from almost 92,000 jobs to just 55,400. By 2013, however, employment levels began stabilizing. Growth has accelerated in recent years, expanding 4.8 percent in 2014, 5.7 percent in 2015, and 7.4 percent in 2016. This strong performance has helped wooden pallet and container manufacturing employment rise to over 67,000 jobs in 2016. While job gains are a welcome sign of industry health, it is equally important to note labor productivity trends. Positive labor productivity indicates that firms are able to achieve increasing levels of output using less labor. NWPCA-related labor productivity increased at an average rate of 4.0 percent per year between 2009 and 2016, outpacing the overall economy. Figure 3. Employment Units: Jobs 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 Direct employment at NWPCA- related firms has trended upwards in recent years. Employment exceeded 67,000 jobs in 2016.

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