Study Shows Alcoa Inc.’s Economic Impact on East Tennessee More Than $4.5 Billion a Year
Monday, August 13th, 2007
To most of the world, Alcoa means aluminum. To East Tennessee, it also means more than $4.5 billion a year.
Thatâ€™s the finding in a new economic impact study done on Alcoaâ€™s East Tennessee operations, which include facilities in Blount, Knox and Hamblen Counties. Through its operations and its impact on others, Alcoa creates and supports more than 12,000 jobs, and generates nearly $23 million in tax revenues.
â€œWe have multiple operations in this area because we know itâ€™s a good place to do business,â€ said Geoff Cromer, president of N.A. Primary Metals, based in Knoxville. â€œFrankly, we didnâ€™t know how much of an impact we had on the region, thatâ€™s why we commissioned the study. Weâ€™re obviously pleased to know that Alcoa operations end up creating so many jobs and so much income.â€
The study, conducted by the market research and economic consulting firm Younger Associates, examined the overall impact of all Alcoa operations in East Tennessee as well as the impact of each individual facility located in the region.
Alcoaâ€™s largest Tennessee operation is in Blount County, where its smelting plant and power generation facilitiesemploy 1,668 individuals, while nearly 4,000 other jobs across other industries exist because of activity related to the company. Combined, these jobs were paid more than $3.4 million as a result of Alcoa operations in Blount County. The total annual economic impact in Blount County is in excess of $3 billion.
Knox County is home to Alcoaâ€™s worldwide metal trading operations, and headquarters to the Primary Metals business unit. The office employs 149, while more than 120 other jobs across all industries exist because of activity related to the company. Knox operations include everything from worldwide metal trading and information technology to managing a steamship line delivering materials and products, as well as the corporate energy group. Combined, these jobs were paid more than $28 million. The total annual economic impact in Knox County is in excess of $93 million.
Alcoa Power and Propulsion operates one of its casting facilities in Hamblen County. The plant employs 646 workers, while more than 500 other jobs across all industries exist because of activity related to the site. Combined, these jobs were paid more than $46 million. The total annual economic impact in Hamblen County is in excess of $59 million.
If the staggering impact that Alcoa has on the regional economy has not been fully appreciated, it may be partly due to a lack of awareness regarding the companyâ€™s full range of operations. The economic study will help provide state and local policy makers with an understanding of the economic significance of Alcoaâ€™s operations.
â€œThe methodology in this study is recognized and used by the International Economic Development Council,â€ says Younger Associates President Sharon Younger. â€œOver the years, our approach has proven to be highly accurate and even slightly conservative in projecting tax revenue generation.â€
The full economic impact study can be viewed on-line at www.alcoa.com/tn_operations