$15.4 Billion Contributed to Michigan’s Economy by the Food Retail Industry

01/25/2017

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Michigan’s food retail industry contributed $15.4 billion to Michigan’s gross domestic product – 3% of the state’s GDP, according to a recent analysis by MSU Center for Regional Food Systems using State Treasury data.

 

Other data highlights include:

  • Michigan’s food retail industry supported 273,000 jobs in 2014, representing 5% of the state’s overall employment.
  • For every dollar directly contributed to Michigan’s GDP by the food retail industry, approximately 64 additional cents circulated through the state’s economy.


The study was commissioned by AFPD, a multi-state trade association that represents retailers in Michigan and surrounding states.

“The premise of the analysis is to remind people that the grocery industry is a major contributor to the state’s economy, “said Auday Arabo, president and CEO of APFD. “Grocery stores are part of a community’s infrastructure.”

See the full press release from AFPD below. View the executive summary and full report, Estimating the Economic Contribution of Michigan’s Food Retail Industry, on the MSU Center for Regional Food Systems website. 

 

Food Industry Helping to Fuel Michigan’s Economy: MSU and AFPD Economic Analysis of Michigan Food Retail Industry shows why not to take the industry for granted

January 25, 2017 – Food retail stores are often the anchors of commerce in urban and rural communities across the state.

The Associated Food and Petroleum Dealers (AFPD) commissioned a study by Michigan State University (MSU) Center for Regional Food Systems (CRFS) to better understand the industry’s contribution to the state’s economy.  Michigan’s food retail industry includes grocery stores, supermarkets, specialty stores, gas stations, conveniences stores, general merchandise stores and pharmacies.

“We commissioned this study because we believe that people often take grocery stores for granted,” said Auday Arabo, president and CEO of AFPD. “Everyone talks about the auto industry and healthcare, but the grocery industry is the anchor to every community in the State of Michigan and around the country.”

The study highlights the contribution of Michigan’s food retail industry to its economy, estimating the jobs created and supported by the industry – both direct and indirect – as well as employee income and the contribution of taxes.

“Using State Treasury data as the foundation of our analysis, we estimate the food retail industry contributed $15.4 billion to Michigan’s gross domestic product and supported 273,000 jobs in 2014,” said Laura Goddeeris, MSU CRFS Specialist. “This accounts for not just the industry’s direct sales, but its purchases from other Michigan industries for things like real estate and utilities, as well as the spending patterns of its employees.”

“The premise of the analysis is to remind people that the grocery industry is a major contributor to the state’s economy,” said Arabo. “Grocery stores are part of a community’s infrastructure. They are just non-government infrastructures but still very important to the viability of a community.”

Michigan grocers are in agreement. “Just about every community in the state has some sort of retail outlet that provides good-paying jobs and often careers for the family bread-winner,” said Phil Kassa, co-owner of Heartland Marketplace and AFPD board Chairman. “Grocers also have several entry level positions for people living in the neighborhoods in which we serve. We become part of the community in so many ways. Also, every community benefits from the tax dollars generated from payroll taxes, and property taxes collected, not to mention the charitable contributions that are made by a lot of businesses.”

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About AFPD

As the “Voice for the food, beverage and petroleum industry” since 1910, AFPD is a multi-state trade association representing thousands of retailers operating in Michigan, Ohio and surrounding states. Our members include independent supermarkets, convenience stores, petroleum retailers, service stations, and specialty food markets. Our membership also includes wholesalers, distributors and manufacturers who support the retail industry.  Visit www.afpdonline.org


About MSU Center for Regional Food Systems

The Michigan State University Center for Regional Food Systems (CRFS) works toward a thriving economy, equity, and sustainability for Michigan, the nation, and the planet. CRFS cultivates regionally-rooted local food systems that yield Good Food: food that is healthy, green, fair, and affordable. Through applied research, education, and outreach, CRFS unites the expertise of community partners with that of MSU faculty and staff to advance understanding of, and engagement with, regional food systems. Learn more at http://foodsystems.msu.edu and connect on Twitter and Facebook @MSUCRFS