ALCOA, Tennessee – (August 13, 2007) – To most of the world, Alcoa Inc. means aluminum. To East Tennessee, it also means more than $4.7 billion a year.
That’s the finding in a new economic impact study done on Alcoa Inc.’s East Tennessee operations, which include facilities in Blount, Knox and Hamblen Counties. Through its operations and its impact on others, Alcoa creates and supports more than 12,000 jobs, and generates $48.3 million in state and local tax revenues.
“We have multiple operations in this area because we know it’s a good place to do business,” said Geoff Cromer, Alcoa Inc., Vice-President of U.S. Primary Metals, based in Knoxville. “Frankly, we didn’t know how much of an impact we had on the region, that’s why we commissioned the study. We’re obviously pleased to know that Alcoa operations end up creating so many jobs and so much income.”
The study, conducted by the market research and economic consulting firm Younger Associates, examined the overall impact of all Alcoa operations in East Tennessee as well as the impact of each individual facility located in the region. It includes the value of goods produced at Alcoa’s manufacturing facilities and the annual operating costs of its business unit headquarters and administrative offices.
Blount County
Nowhere in East Tennessee is Alcoa more visible than in Blount County. The important role Alcoa Inc. plays in the town which bears its name has been clear to even casual observers ever since the north Maryville area surrounding the original smelting plant was incorporated as Alcoa, Tennessee in 1918.
In addition to manufacturing and production facilities located in Blount County, Alcoa has power generation facilities. All told, the Blount operations employ 1,668 individuals, while nearly 4,000 other jobs across other industries exist because of activity related to the company. Combined, these jobs were paid more than $340 million as a result of Alcoa operations in Blount County. The total annual economic impact in Blount County is in excess of $3 billion.
"Clearly, the financial impact we have on the region is significant," said Malcolm Murphy, location manager for Tennessee Operations' Rigid Packaging Division. "What the numbers fail to reveal is our reliance on the local community to make us viable for the long-term. What started in the 1900s as the quintessential 'company town' has evolved and matured into a 'community town,' where Blount Countians fully appreciate that we can achieve more as neighbors than we ever could alone."
“Alcoa has been a huge part of Blount County and our progress for almost 100 years,” said Don Mull, Mayor of the City of Alcoa. “We’re confident the next 100 years will just as successful.”
Knox County
Knox County is home to Alcoa’s worldwide metal trading operations, and headquarters to the Primary Metals business unit. The office employs 149, while more than 120 other jobs across all industries exist because of activity related to the company. Knox operations include everything from worldwide metal trading and information technology to managing a steamship line delivering materials and products, as well as the corporate energy group. Combined, these jobs were paid more than $28 million. The total annual economic impact in Knox County is in excess of $93 million.
“Alcoa not only helps our economy through its operations here, but they also help prove that you can successfully conduct business worldwide from downtown Knoxville,” said Knoxville Mayor Bill Haslam.
"Alcoa's corporate presence in Knox County is significant -- more so than most realize." Knox County Mayor Mike Ragsdale said. "We appreciate the company's commitment to our community and to East Tennessee."
Hamblen County
Alcoa Power and Propulsion operates one of its investment casting support facilities in Hamblen County. The plant employs 646 people, while more than 500 other jobs across all industries exist because of activity related to the site. Combined, these jobs were paid more than $46 million. The total annual economic impact in Hamblen County is in excess of $59 million.
“Hamblen County has been a great place to do business,” said Plant Manager Matt Kilgore. “In just the past few years we’ve been able to expand our business – recently completing a 16,000 square feet expansion – and added more than 300 people to our workforce. That growth allows us to respond to current and future demands in the aerospace market.”
“Alcoa has been growing in Hamblen County, and as the workforce at Alcoa grows, so does our overall economy,” said County Mayor David Purkey. “We’re glad to have Alcoa here and happy to have a workforce that can meet its needs.”
Economic Impact Study
If the staggering impact that Alcoa has on the regional economy has not been fully appreciated, it may be partly due to a lack of awareness regarding the company’s full range of operations. The economic study will help provide state and local policy makers with an understanding of the economic significance of Alcoa’s operations.
“The methodology in this study is recognized and used by the International Economic Development Council,” says Younger Associates President Sharon Younger. “Over the years, our approach has proven to be highly accurate and even slightly conservative in projecting tax revenue generation.”
Economic models used in the research were based on county-specific data such as local tax rates, state tax rates, historical collection ratios, annual average wage rates, and historical spending patterns. Younger Associates previously has provided analysis of Knoxville’s economic development program “Jobs Now!” and has used the impact calculations in the Alcoa study in hundreds of other projects across the country in the past 15 years.
The full economic impact study can be viewed on-line at www.alcoa.com/tn_operations.
About Alcoa
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa® wheels, fastening systems, precision and investment castings, structures and building systems. The company has 116,000 employees in 44 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com.
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