Koch Companies Support More Than 200,000 U.S. Jobs, Increase Compensation and Benefits to $13 Billion
By Business Wire News
By Business Wire News
In 2014, Koch companies in the United States directly employed about 60,000 people in 50 states and the District of Columbia, paying compensation and benefits totaling more than $5.3 billion, according to a recent study by Harrah Analytics, an independent economic research firm.
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Among the Koch companies included in the analysis are Wichita-based Koch Industries, Inc.,Flint Hills Resources and INVISTA; Atlanta-based Georgia-Pacific; and Lisle, Illinois-based Molex Incorporated. The analysis does not include the more than 3,100 open roles within Koch companies, the nearly 7,000 contractors who work for Koch companies in the United States, or the 7,300 additional U.S.-based employees in companies affiliated with Koch.
“When we first conducted this study in 2010, Koch employed about 50,000 people in 46 states,” said Dave Robertson, president and COO of Koch Industries. “Since then, we’ve acquired several new companies and continued to invest in our businesses. As a result, we’ve added thousands of good jobs benefitting the hundreds of communities where we operate.”
Koch companies also buy goods and services from local businesses (indirect impacts), and their employees spend paychecks on food, shelter, entertainment and more (induced impacts). This combined spending translates to Koch companies supporting a total of more than 200,000 jobs and earnings of about $13 billion – an increase from $11.8 billion in 2013, Harrah Analytics determined in its study.
The top 10 states in terms of jobs are:
|State||Direct Jobs||*Total Jobs|
* Summing the direct, indirect and induced impacts
The top 10 states in terms of compensation and benefits are:
|State||Direct Compensation||**Total Compensation|
** Summing the direct, indirect and induced impacts
The release of this study comes shortly after Koch’s announced decision to “ban the box” that asks about criminal history on its employment applications. The decision is part of the company’s larger effort to help reform the criminal justice system and provide opportunities for the disadvantaged.
“Koch is a large U.S.-based manufacturing company that employs 60,000 American workers and we recognize our role in providing opportunities for everyone,” said Mark Holden, General Counsel for Koch Industries. “As we continue to grow, we will continue to look at diversifying our workforce and providing those who are capable and qualified an opportunity to find meaningful employment.”
The complete study can be found at http://kochnews.com/articles/2015/2014-jobs-and-economic-impact-study-(1).
Based in Wichita, Kan., Koch Industries, Inc. is one of the largest private companies in America with annual revenues of about $115 billion, according to Forbes. It owns a diverse group of companies involved in refining, chemicals, grain processing and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control equipment and technologies; electronic components; commodity trading; minerals; energy; ranching; glass; and investments. Since 2003, Koch companies have invested more than $70 billion in acquisitions and other capital expenditures. With a presence in about 60 countries, Koch companies employ more than 100,000 people worldwide, with about 60,000 of those in the United States. From January 2009 to present, Koch companies have earned more than 930 awards for safety, environmental excellence, community stewardship, innovation, and customer service. For more news and stories, visit www.kochnews.com.
Janet Harrah, president of Fort Thomas, Ky.-based Harrah Analytics, also serves as senior director of the Center for Economic Analysis and Development at Northern Kentucky University.
To determine the impact of jobs, compensation and benefits by Koch companies, Harrah Analytics began with direct U.S.-based employment and earnings numbers for Koch companies, using data supplied by Koch companies. The employment and earnings at each facility were assigned a Bureau of Economic Analysis industry code. These were multiplied by the industry direct effects multipliers, obtained from the U.S. Department of Commerce, Bureau of Economic Analysis, RIMS II (Regional Industrial Multiplier System) the standard measurement system in federal impact analyses.