A new analysis and report released by researchers at NC State University's Supply Chain Resource Cooperative (SCRC) and MHI provides detailed perspective on the importance of the supply chain in North Carolina. The report, titled Understanding the Economic Impact of North Carolina's Supply Chain: Conduit for Prosperity and Economic Development, details important trends in the supply chain and the broader economy and their implications for the economic future of North Carolina.
The report analyzed 14 supply chain sectors in North Carolina. Leading sectors include Pharmaceutical, Biologics & Medical Products, Chemical Manufacturing, Industrial Machinery & Transportation Equipment Manufacturing, Transportation, Distribution & Logistics and Tobacco & Foodstuffs.
According to the report, North Carolina supply chain industries employ nearly 12% of the state’s workforce, or more than 479,800 employees. Supply chain average labor income is more than $67,700, 56% higher than the state’s average non-farm wage. Indirect and induced impact on North Carolina’s economy accounts for an additional 770,000 jobs across all industries. Together that represents more than 31% of North Carolina’s entire labor force.
Additionally, in 2013, the North Carolina supply chain provided a total direct, indirect, and induced GDP contribution of more than $150B, or 32% of state GDP. Supply chain tax contributions exceed $32.1B to local, state, and federal governments, while total combined output exceeds $337B across all industries.
The report also concluded that highly skilled labor is a key ingredient in nearly every supply chain sector. Supporting this through the educational infrastructure of the community college and university system in North Carolina is vital to sustaining workforce demands.
On February 1, Members of the Port and Rail subcommittee of the North Carolina State House Select Committee on Strategic Transportation Planning and Long Term Funding Solutions were provided a preview of the report. The report was formally released today in Charlotte, at the Council for Supply Chain Management Professionals (CSCMP) Charlotte Roundtable. The authors will also present their findings at MODEX 2016 in Atlanta on April 4.
The report is available for download at http://www.mhlroadmap.org/downloads/NCSupplyChainIndustry.pdf.
The report was authored by a team of Jenkins MBA students from the North Carolina State University Poole College of Management - Dana A. Magliola, Lindsay T. Schilleman and John C. Elliott. They investigated the economic impact of 14 key supply chain sectors in North Carolina, in terms of direct, indirect, and induced employment, labor income, output, GDP contribution and taxes.
Prior to the completion of this research and report, there have been limited investigations of the overall economic impact of the supply chain in North Carolina. Specific industries within the supply chain have been the subject of individual research and analysis, however, no report has yet provided perspective and visibility across the entire supply chain.
The report provides context and analysis through a sector-by-sector investigation, highlighting pertinent data and dynamics. Key trends for each sector are discussed, while broader themes that more holistically impact the supply chain are also examined.
Report provides model for other states and regions
Another key characteristic of this study was the creation of a systematic and consistent methodology to capture and analyze the economic impact of supply chain related activities and industries in North Carolina today and in the future. This methodology is also intended to provide a simple and easy-to-follow process for investigating the economic impact of the supply chain in other states, regions, and communities.
About NC State SCRC
The SCRC, based in the Poole College of Management, is an industry-university partnership dedicated to advancing the supply chain industry and the professionalism of its practitioners. This study was completed as a Jenkins MBA supply chain practicum project for MHI. MHI is a partner organization of the SCRC.
MHI is a Charlotte-based international trade association that has represented the industry since 1945. MHI members include material handling, logistics and supply chain equipment and systems manufacturers, integrators, consultants, publishers, and third party logistics providers. Much of the work of the industry is done within its product- and solution- specific groups. The association also sponsors trade events, such as ProMat and MODEX to showcase the products and services of its member companies and to education industry professionals on the productivity solutions provided through material handling and logistics.