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An Economic Analysis of the U.S. Wooden Pallet and Container Industry 71 5. Summary and Main Findings After consultation with NWPCA and industry experts, we have estimated the appropriate size of the overall industry, and compiled recent historical data on output, employment, value added, and labor income. Total NWPCA-related activity, as measured by output, endured steep losses during the Great Recession. Output fell from $12.6 billion in 2005 to $7.6 billion in 2009. However, the industry emerged from the recession era and expanded by an average 4.9 percent per year between 2009 and 2016. Growth was especially robust in 2016, when output surged by 8.9 percent. Recent gains has helped output reach $10.7 billion, its highest level since 2007. NWPCA-related employment was nearly 92,000 in 2005. Job totals declined for the next seven consecutive years and ended 2012 at just 55,400. The industry gained traction starting in 2013, expanding employment by a mild 1.2 percent. Since then, however, NWPCA-related job growth has accelerated, rising 4.8 percent in 2014, 5.7 percent in 2015, and 7.4 percent in 2016. Industry employment exceeded 67,000 last year. While job totals are still far below those recorded in the early 2000s, it is important to note that labor productivity has been on the upswing in recent years. The domestic wood pallet and container industry is tightly interwoven with other manufacturing sectors and several service sectors that supply important materials, components and parts, as well as financial, IP, management, and transportation services. NWPCA-related activity accounted for $10.7 billion in direct output in 2016, creating 67,000 jobs. Reliance on suppliers in other sectors generates an additional 48,300 jobs. Finally, induced impacts of spending of earnings in the direct and indirect sectors contributed to an additional 57,600 jobs, bringing the total upstream jobs impact addressed in this study to 172,900. Downstream analysis addresses the question of output and jobs generated in the distribution of wooden pallets and containers through wholesale and retail outlets. Total direct trade output is the margin or markup earned on sales. This is estimated to be $1.9 billion in 2016, which supports 9,400 direct jobs. An additional 5,600 jobs are supported indirectly and 9,400 jobs are created by induced output. The total downstream jobs impact is estimated at 24,400. Combining the upstream and downstream impacts results in total output impact of $35.1 billion and 197,300 jobs. In 2016, NWPCA-related direct output totaled $10.7 billion and supported 67,000 jobs. Total NWPCA-related activity, including both upstream suppliers and downstream distributors, accounts for $35.1 billion in output and 197,300 jobs.

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