March 25, 2013
In 2012, Koch companies, such as The Matador Cattle Company, 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.
For The Matador Cattle Company, that means its 41 full and part-time employees in Kansas, Montana and Texas totally result in an estimated 135 additional jobs. For example, on average, every Koch company job in Texas generates nearly six other jobs, meaning the 13 Texas ranch roles add 78 others in the area, while in Montana and Kansas, the multiplier is about 2 jobs for every one Matador job.
Matador Cattle Company buys services from veterinarians, feed producers, saddle makers, wildlife biologists, as well as other goods and services from local businesses. In addition, 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.
Top three states -- jobs:
Georgia (6,972 direct; 28,320 total)
Texas (6,557 direct; 37,679 total)
Kansas (2,897 direct; 6,459 total)
Top three states -- compensation and benefits:
Georgia ($746 million direct; $1.8 billion total)
Texas ($628 million direct; $2 billion total)
Kansas ($371 million direct; $600 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 http://www.kochind.com/files/KochCompaniesJobStudy2012.pdf
The Matador Cattle Company, a division of Koch Agriculture Company, operates ranches in Kansas, Montana and Texas covering about 440,000 acres. The company runs commercial cattle, and is developing a purebred Akaushi herd based from its Spring Creek Ranch in Kansas. www.matadorranch.com The company was started in the early 1950s by Fred C. Koch. Koch Agriculture Company is based in Wichita, Kan., and is a subsidiary of Koch Industries, Inc., 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.