2018Issue1_Alabama_v2.indd

PRESIDENT’ S MESSAGE

O ur i ndu s t ry ' s i mpac t by t h e numb e r s

ELLIE SMOTHERMAN TAYLOR PRESIDENT ALABAMA GROCERS ASSOCIATION

One of the things we are always touting to our elected officials is the impact of the grocery industry not only in the state of alabama, but also throughout the country.

All this data provides a great picture for us to show our elected officials the difference the food retail industry is making in our state. They always point to the manufacturing industry like Mercedes or Remington or Airbus. I’m here to tell them that our industry makes a large impact as well. So, as we go into this important election year, be sure to tell those running for political office the importance of our industry. You can find all this information at https://www.fmi.org/government-affairs/ grocery-industry-economic-impact . Good things are happening at the federal level. Be sure to take advantage of the new tax reforms. I’m sure all of you are happy with your investments returns and I look forward to another prosperous year. Stay active on the political front – we will need your help in this election year! Many blessings to you and your family for the New Year! .

This is especially important when discussing issues that have a direct impact on our industry like menu labeling, minimum wage, interchange fees, healthcare costs, etc. I am very excited to announce that there is a new study done by the Food Marketing Institute contracted by John Dunham & Associates that looks at the full food retailing industry not only in Alabama but nationwide. I thought I would share a few of the numbers with you as they are staggering. From a nationwide perspective, the total direct economic impact of the food industry across the United States is $363,196,974,500. We employ 4,844,397 people and pay $167,736,840,500 in wages across grocers, general merchandise stores, pharmacies, and wholesalers. If you add in the supplier impact and the induced economic impact the overall economic impact is $899,245,208,200. The food industry across the nation pays over $71.79 billion in state and $81.88 billion in federal taxes each year.

So how does the state of Alabama compare? The direct economic impact of the food retail industry in our state is $5,412,986,900. We employ 69,777 people

and pay $2,266,182,800 in wages. If you add the supplier impact and the induced economic impact in

Alabama, the overall economic impact is $12,111,951,900. In Alabama alone, we pay over $1,042,139,100 in federal taxes and $1,227,259,000 in state taxes. The study then drills down to the Congressional and state level. Let’s take Congressman Gary Palmer’s District for example. His Congressional District 6 employs 12,252 people, provides $389,161,800 in wages for a total direct economic impact of $918,436,800 or a total economic impact of $2,002,215,900. At the state level, let’s use Senate President Del Marsh’s district. His state Senate District employs 2,566 jobs, has $81,772,700 in wages with a direct economic impact of $193,319,800 or a total economic impact of $322,522,500.

| ALABAMA GROCER 6