Consumer Packaged Goods Industry Is Largest Manufacturing Job Provider In U.S.

Published: Thursday, August 8, 2019 - 5:10am
Updated: Thursday, August 8, 2019 - 6:58am

The consumer packaged goods (CPG) industry supports one in 10 American jobs and is the largest manufacturing employer in the United States, according to a report released Tuesday. The report also shows that Arizona’s contribution is very low.

Arizona’s grocery prices are called the most competitive in the nation by industry insiders, which makes for good deals as a shopper, but cutting costs and squeezing margins often translate to lower income for the industry.

Tim McCabe is former president of the Arizona Food Marketing Alliance. He said grocers in the state sell at relatively low cost as a business strategy.

“They’ve come here and made an investment in Arizona because they feel the property and the land is still relatively cheap. It’s a good place to invest. Therefore, what pricing is, the competitive pricing is, is to protect their investment,” McCabe said. 

Report findings show 20.4 million industry jobs generate $1.1 trillion in labor income and $2 trillion to the nation's GDP.

Arizona's contribution is approximately 1.5% to the nation's packaged goods jobs and related labor income, and 1.2% to the industry's gross domestic product.

Indirectly, the CPG industry is responsible for 10.4% of total U.S. employment with bread and bakery, poultry and animal processing, packaged soft drinks and water, and alcohol contributing the most to overall employment.

California and Texas are the two states where CPG jobs contribute the most to overall employment and the nation’s gross domestic product. Nebraska and Iowa have the greatest share of their state employment supported by the industry.

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