An Economic Analysis of the U.S. Wooden Pallet and Container Industry
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Table 2. Employment by Industry Segment
Units: Jobs
2.3 Value Added
Value added represents the enhancement a manufacturer provides (ex: assembly) to a
product before offering it to the end consumer. Put another way, value added is the
difference between total revenue of an industry and the cost of intermediate inputs.
Components of value added include employee labor compensation, taxes on
production and imports, and gross operating surplus (profits). Value added can be
thought of as the industry's contribution to overall GDP.
Figure 4 displays total value added of NWPCA-related activity. Levels and annual growth
rates are provided in Table 3.
NWPCA-related total value added expanded
steadily between 2003 and 2005, was relatively
stable through 2008, but plunged almost 18 percent
in 2009 and fell to $2.6 billion. Immediately following
the recession, value added was unsteady. The
industry recorded 8.6 percent growth in 2010, but
dipped by 5.3 percent just a year later. A sustained
recovery took hold in 2012. Value added recorded
solid growth each year between 2012 and 2016. Expansion has been particularly robust
in the last three years, with value added rising by 10.1 percent in 2014, 8.8 percent in
2015, and 8.3 percent in 2016. Between 2011 and 2016, value added rose from $2.7
billion to $3.8 billion.
Level Growth Rate
2002 92,417
2003 83,183 -10.5%
2004 87,825 5.4%
2005 91,896 4.5%
2006 86,384 -6.2%
2007 83,132 -3.8%
2008 77,761 -6.7%
2009 62,578 -21.7%
2010 58,748 -6.3%
2011 58,193 -0.9%
2012 55,401 -4.9%
2013 56,057 1.2%
2014 58,804 4.8%
2015 62,236 5.7%
2016 67,007 7.4%
NWPCA direct value added
climbed steadily since 2011,
reaching $3.8 billion in 2016.
