Study Shows Economic Impact of Koch Companies in U.S.

Study Shows Economic Impact of Koch Companies in U.S.

March 20, 2013

In 2012, Koch companies in the United States directly employed more than 47,000 people throughout all 50 states and the District of Columbia, paying compensation and benefits totaling more than $4 billion according to a recent study by Harrah Analytics, an independent economic research firm.

Among the Koch companies included in the analysis are Wichita-based Koch Industries, Inc., Flint Hills Resources and INVISTA; and Atlanta-based Georgia-Pacific. The analysis does not include the nearly 3,000 contractors who work for Koch companies in the U.S., or the 10,000 additional U.S.-based employees in companies affiliated with Koch.

Koch companies also buy goods and services from local businesses, and their employees spend paychecks for food, shelter, entertainment and more. This combined spending translates to Koch companies supporting a total of about 191,000 jobs and earnings of about $11 billion, Harrah Analytics determined in its study.

The top 10 states in terms of jobs are:

• Georgia (6,972 direct; 28,320 total) 
• Texas (6,557 direct; 37,679 total)
• Kansas (2,897 direct; 6,459 total)
• Wisconsin (2,827 direct; 10,344 total)
• Arkansas (2,624 direct; 9,214 total)
• Alabama (2,419 direct; 12,268 total)
• Oregon (2,232 direct; 10,265 total)
• South Carolina (2,092 direct; 7,611 total)
• Oklahoma (1,790 direct; 6,023 total)
• Virginia (1,607 direct; 5,674 total)

The top 10 states in terms of compensation and benefits are:
• Georgia ($746 million direct; $1.8 billion total)
• Texas ($628 million direct; $2 billion total)
• Kansas ($371 million direct; $600 million total)
• Alabama ($223 million direct; $661 million total)
• Wisconsin ($211 million direct; $518 million total)
• Arkansas ($191 million direct; $461 million total)
• Oregon ($187 million direct; $543 million total)
• Minnesota ($154 million direct; $340 million total)
• Oklahoma ($142 million direct; $354 million total)
• South Carolina ($132 million direct; $384 million total)

Koch companies historically invest 90 percent or more of their earnings back into the businesses so they continue growing and providing products and services that people depend on every day. Since 2003, Koch companies, including Georgia-Pacific, Flint Hills Resources, INVISTA and Koch Industries, have invested about $50 billion in acquisitions and other capital expenditures.

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.

The complete study is at

Based in Wichita, Kan., Koch Industries, Inc. is one of the largest private companies in America with annual revenues of about $115 billion. It owns a diverse group of companies involved in refining, chemicals and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control equipment and technologies; commodity trading and services; minerals; ranching; and investments. From January 2009 to present, Koch companies have earned more than 570 awards for safety, environmental excellence, community stewardship, innovation, and customer service.

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.