MHI Solutions - Volume 4, Issue 2 - (Page 116)

FEATURE The Jobs, wages, output and Taxes of the Supply Chain "S Well, the answer is-we don't really know all that precisely. Every year, the Council of Supply Chain Management Professionals (CSCMP) publishes its Annual State of Logistics Report. And the most recent edition says the cost of U.S. business logistics is 8.3 percent of U.S. GDP, or about $1.45 trillion. While that's the number typically used, there isn't much more available insight into answering the question. Fortunately, a major step toward developing specific economic impact metrics for the supply chain has been made by Dana Magliola, Lindsay Schilleman and John Elliott. They are business graduate students at North Carolina State University. And after some intense number crunching, they have definitively identified the economic impact of supply chain for their state in a new report, Understanding the Economic Impact of North Carolina's Supply Chain: Conduit for Prosperity and Economic Development. Just as important, they have developed a methodology to determine the economic impact of supply chain for other states, regions, cities- even the entire country. MHI sponsored their report at NC State's Poole School of Management's Supply Chain Resource Cooperative. According to the report, more than 479,800 people work in the supply chain in North Carolina. That's 12 percent of the state's workforce. The supply chain has an indirect and induced impact on an additional 770,000 jobs. Combined, that means supply chain directly or indirectly impacts 31 percent of the North Carolina workforce. It is also worth noting that the average annual labor income for people working in the supply chain in North Carolina is just over $67,800, compared to a statewide income average of $43,300. When it comes to output, the North Carolina supply chain accounts for a value add GDP contribution of $150 billion. That's 32 percent of state GDP. BY GARY FORGER, MHI MANAGING DIRECTOR OF PROFESSIONAL DEVELOPMENT 116 MHI SolutIonS o, exactly how much economic impact does the supply chain have in the United States? * Q2 * 2016 The authors developed a reproducible methodology for determining the economic impact of supply chain in any area of the country.

Table of Contents for the Digital Edition of MHI Solutions - Volume 4, Issue 2

CEO Update
Emerging Technologies Produce Business Benefits and Talent Challenges
Developing a Talent Management Strategy
Collaborating with Education
Love your Supply Chain Career?
The Power of Mentoring
Eleven Ways to Diversify the Supply Chain: Insights from the Field
How Do You Build A Successful Career in Supply Chain?
Donated Equipment Gives High School, Community College Students Hands-On Experience
Industry Focus: Retail
MODEX 2016
2016 MHI Innovation Award to be Presented at MODEX 2016
Industry Trends
Economic Market Analysis
The Jobs, Wages, Output and Taxes of the Supply Chain
Safer Handling
Solutions Group Update
Fulfillment Update
Solutions Spotlight
Scholarship Winners: Where Are They Now?
MHI News
Index of Advertisers

MHI Solutions - Volume 4, Issue 2