Note to Reporters: A copy of the full report and a photo of Martin Shields are available with the news release at http://news.colostate.edu.
Breweries large and small add $83.2 million to the Larimer County payroll and support 938 direct jobs, according to a new study by Colorado State University’s Regional Economics Institute and the Beverage Business Institute.
The study looked at the most recent data available in 2010 and included six major breweries from mom-and-pop businesses to the giants (Anheuser Busch Inc.). The study only evaluates breweries as defined by the U.S. Census Bureau and does not include other categories such as full-service restaurants that brew beer – Coopersmiths, as an example.
Breweries included in the study were Anheuser Busch, Equinox Brewing, Fort Collins Brewery, Funkwerks Inc., New Belgium Brewing Co. and Odell Brewing Co.
In the past decade, these breweries grew faster than other employers in Larimer County: Between 2000 and 2010, the brewery industry grew by more than 22 percent while other county employment grew only 6.3 percent.
“The trends have changed in recent years,” said Martin Shields, Colorado State regional economist and Regional Economics Institute director, who conducted the study with Michael Marturana, research economist at CSU. “Between 1990 and 2010, county employment actually grew faster than brewing employment overall, but brewery growth has been strong over the past decade.
“Clearly, the brewing industry is an important part of our regional economy,” Marturana said.
To evaluate indirect costs, Shields and Marturana considered such factors as output, value added, employee compensation and employment.
They found that every job at a brewery supports 1.7 additional county jobs. Larimer County breweries directly generate $263.1 million in local output, translating into $106 million in value-added activity, which is the economic activity directly attributable to breweries. This represents 938 direct jobs with an average compensation per worker of $88,700.
Indirectly, these jobs support and additional 1,550 spin-off jobs, with an average compensation of $37,900 per worker. In total, the industry supports 2,488 jobs, adding $141.9 million to county payrolls.
The Regional Economics Institute, based in CSU’s Office of Engagement, provides research-based information, analysis and strategies to decision-makers across Colorado as they work to strengthen regional and state economies. The Beverage Business Institute was developed in the College of Business to provide specialized management education and research for the beverage industry.