Ohio can't cry in its beer
Brewing means 43,000 jobs, $7.7 billion for economy, industry analysis says
By Rick Armon
Beacon Journal staff writer
Published on Saturday, Apr 11, 2009
Maybe Gov. Ted Strickland should open a state brewery to improve the economy.
The beer industry directly and indirectly contributes $7.7 billion a year to the Ohio economy, according to an updated study released this week by the Beer Institute and National Beer Wholesalers Association.
''It's good for us to help people understand and appreciate that impact,'' said Jeff Becker, president of the Beer Institute, a trade association in Washington, D.C.
The industry — which uses the numbers to lobby policymakers — has a direct economic impact of $3.5 billion a year and employs 42,998 people in brewing, distributing and retail jobs in Ohio, according to the study. (By comparison, Wal-Mart employs 55,000 Ohioans.)
The economic figure balloons to $7.7 billion when factoring in suppliers and the ''induced economic impact'' — the benefits generated from spending by workers.
The industry in Ohio also pays $435 million in local, state and federal taxes, the study said.
''It doesn't surprise me at all,'' said Dennis Holland, brewmaster at the Ohio Brewing Co. in Akron. ''Breweries really have
taken off in the last few years.''
Ohio is one of the largest beer producing states in the U.S.
Last year, a Beacon Journal analysis of Ohio employment data found beverage making — primarily breweries — was the only category of manufacturers to add jobs in the past decade.
Anheuser-Busch, MillerCoors and Boston Beer Co. operate large breweries in the state, and dozens of microbreweries and brewpubs are located here. The new study estimated that there are 51 brewing businesses, including importers, in the state.
Nationwide, the beer industry directly and indirectly contributes more than $198 billion to the U.S. economy and provides nearly 1.9 million jobs, according to the study.
The economic analysis — done by John Dunham & Associates in New York City — has been conducted for about 20 years and helps provide a feel for the size and scope of the industry, Becker said. It is updated every two years.
The majority of Americans don't realize the beer industry's contribution to the economy, Becker said.
Beer sales have held steady during the economic downturn thanks to a variety of styles and price points available to consumers, he said. The industry has noticed consumers seeking out more economy brands than in the past, he added.
For more details, including state-by-state breakdowns, go online to: www.beerservesamerica.org, www.beerinstitute.org and www.nbwa.org.