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An Economic Analysis of the U.S. Wooden Pallet and Container Industry 16 The direct output, which is the starting point, was determined by NWPCA and industry experts. In 2016, this is estimated to be approximately $10.7 billion dollars. Direct employment totaled 67,000 jobs. Value added generated was about $3.8 billion, and of this, about $3.0 billion was labor income. This is all shown in the first line of Table 6. From the second line, we can see that indirect output amounted to an additional $10.7 billion, generating 48,300 jobs, $5.0 billion in value added, and $3.2 billion in labor income. Figure 6. Upstream Analysis Units Indicated In addition to the direct and indirect impacts, we have calculated 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). We estimate the mix of consumer goods and services purchased by this income, and calculate the output, employment, value added, and labor income associated with this induced output. This is shown in the third row of Table 6. The total impacts are summarized in the fourth row. For example, the total upstream direct, indirect, and induced employment comes to 172,900 jobs. Note that Table 6 shows only a summary of results. Each industry has its particular employment to output ratio, value added to output ratio, and labor income to output ratio. For example, a dollar of output generated in the retail trade industry creates more jobs than a dollar in the automobile manufacturing industry. The latter, on the other hand, generates more capital income per dollar of output. The individual footprint of any given industry is a result of several factors: $10.7 $10.7 $9.3 $0 $2 $4 $6 $8 $10 $12 Direct Indirect Induced Output Effects (Billion $) 67.0 48.3 57.6 0 20 40 60 80 Direct Indirect Induced Employment Effects (# of Persons) $3.8 $5.0 $5.2 $0 $1 $2 $3 $4 $5 $6 Direct Indirect Induced Value Added Effects (Billion $) $3.0 $3.2 $2.9 $0.0 $1.0 $2.0 $3.0 $4.0 Direct Indirect Induced Labor Income Effects (Billion $) NWPCA-related activity helped support $10.7 billion in upstream indirect output and over 48,300 upstream indirect jobs.