Supply chain industries have a massive impact on the North Carolina economy
NORTH CAROLINA’S SUPPLY CHAIN
Conduit for Commerce & Economic Development
An Economic Impact Statement & Analysis
This recent study on the state of the supply chain industry and its impact on the North Carolina economy was completed by a team of who students recently presented both in front of the North Carolina Legislature (Subcommittee on State Logistics) and the Council of Supply Chain Management Professionals in their Charlotte Roundtable. The three students were SCRC Supply Chain Scholars: Dana Magliola, Lindsay Schilleman, John Elliott , for the 2015-16 year.
Economic Impact analysis is a method used to help derive the direct and indirect effects of an industry on the local economy. In their study, supported by the Material Handling Institute, the students estimated the impact of several different supply chain sectors on the economy. The study sought to provide perspective for planning, investment & policy to strengthen this vital conduit for prosperity in North Carolina. The study derived a number of estimates, which were also augmented by interviews with subject matter experts in the industry.
The results are shown below. Supply chain industries create a total of 1,240,000 (direct and indirect) jobs in the state, contribute more than $150B of gross domestic product, and generate more then $32B of stated and federal taxes. This is a massive contribution, and shows the critical nature of the impact of supply chain industries in a number of sectors, also shown below.
The study has several critical outcomes and should be considered by policy makers when they start to think about policies to attract supply chain industries to the state. The study draws a clear line between the supply chain and the scope of the broader economy, and also points to direct relationships between industries and the broader process of bringing goods to market. Their results also focused on successive steps of value creation versus final output, and points to the fact that North Carolina’s supply chain industries may be different than other states.
The students (shown above with Executive Director Clyde Crider) also presented to the NC General Assembly House Committee on Strategic Transportation Planning and Long Term Funding Solutions. Given the critical nature of this sector to the economy, one would expect policy makers to fully understand how their policies can attract more jobs to the state. On the other hand, the session they presented to by practitioners in Charlotte at the Council of Supply Chain Management (shown below) was full to capacity. In fact, the study was released by MHI last week, and the team was asked to also present at the MODEX conference in Atlanta and the NC Chamber of Commerce in April! Kudos to this great group of students, as well as Gary Forger from MHI who sponsored the project!
