CED Account Reveals Considerable Fiscal Effect from U.S. Food and Beverage Industry

WASHINGTON, March 16: The Committee for Economic Development of The Conference Board (CED) published a report specifying the U.S. food and beverage industry's fiscal effect on the country's financial system. The non-partisan, business-led public policy organization showed the conclusions at a setting consisted of business frontrunners at the National Press Club.

The study is component of a sequence of study findings aimed to gauge the influence that particular industries have on the U.S. financial system. Last year, CED published Child Care in State Economies, which assessed the financial influences of the child care industry in states all over the U.S.

The Economic Contribution of The Food and Beverage Industry examines, specifically, how the industry contributes to growth and innovation; the industry's impact on regional economies; how it responds to emerging and dynamic consumer demand; and, the role of public policy in shaping the market environment for the industry.

Select conclusions from the CED study are as follows:

The industry engages 1.46 million employees in approximately 27,000 organizations, accounting for 13 percent of entire U.S. manufacturing employment.  

    It makes a particularly strong impact to lower-population states, accounting for over 20% of all manufacturing work in Nebraska, Idaho, Iowa, South Dakota, Delaware, as well as Hawaii.

Food (comprising beverages) is the only key product group in which the United States upholds a constructive trade balance with other nations, replicating the country's robust comparative gain.

 While other branches of the manufacturing segment have declined, the food and beverage industry has remained far steadier because of the stable requirement for food and the industry's constant novelty.

The industry alone creates a $164 billion in value added. The value added paid out comprises $83 billion in overall pay and welfares, $9.7 billion in taxes, and $62 billion in property income.

Each dollar of the industry's production produces between $0.40 and $1.35 of extra financial action in local economies.

 Furthermore, each dollar of the industry's productivity creates $1.27 of financial action in the U.S. economy with extended worldwide sales.

No less than 40 percent of the industry's new foods and beverages have encouraging nourishment or health characteristics, in reaction to customer demand for healthy products.

The industry expends $5.4 billion yearly on research. Venture capital companies spend another $3 billion to sponsor innovations in food market and processing expertise.

The industry provides to food affordability. U.S. customers spend below 10% percent of earnings on food, and less than customers in other similar nations.

 The industry converts raw farm supplies from over 2 million farms into consumer food and beverage products; they are promoted via approximately 700,000 retail stores and foodservice openings.

The industry gives the connection between farms and retailers to meet the requirements of 320 million U.S. customers.

"The industry is an important contributor to GDP growth and jobs at both the national as well as at the regional and local levels," revealed Mike Petro, Executive Vice President of CED., adding, “With 87 American factories employing more than 51,000 people, we're proud to be part of an industry making such a positive economic contribution to the U.S. economy. Nestlé is also working to address the skills gap in the industry through Project Opportunity, a career-acceleration program designed to help people of all ages gain work experience and training in food and beverage manufacturing."

The study obtained assistance from an employed group of food industry representatives.