A new study, “Energizing Manufacturing: Natural Gas and Economic Growth,” released by the National Association of Manufactures (NAM) Center for Manufacturing Research and IHS Economics reveals how domestic natural gas has strengthened the U.S. manufacturing sector and encouraged robust economic growth. Surging domestic production of this affordable, clean-burning resource has transformed the U.S. economy, adding 1.9 million new jobs in 2015 alone according to the study.
“Over the next decade our nation’s demand for natural gas is only going to grow and much of that growth is from manufacturing,” said NAM President and CEO Jay Timmons. “Natural gas is responsible for millions of jobs, tens of thousands in manufacturing alone. This study highlights several specific examples of how manufacturers of all sizes have benefitted from utilizing natural gas.”
— Jay Timmons (@JayTimmonsNAM) May 3, 2016
Notably, the study highlighted the importance of an abundant supply of affordable natural gas to Marble King, Inc., a small manufacturing business located in Paden City, West Virginia. “Today, we can be more competitive and a lot of that is because of the lower gas costs,” says Beri Fox, president of family-owned and –operated business. “…when gas prices were off the charts, it was crazy—w couldn’t be competitive with China.”
Critical natural gas infrastructure projects like the proposed Rover pipeline will be essential to supporting sustained economic growth and a manufacturing renaissance that extends far into the 21st Century. “As our pipeline network grows, so does manufacturing opportunity,” says Chad Moutray, chief economist for the National Association of Manufactures Center for Manufacturing Research. To date, new pipeline construction has resulted in the creation of more than 347,000 jobs, including 60,000 in manufacturing. Furthermore, the study affirmed that:
Pipeline construction means more than just reliability and energy security. It generates increases in economic activity when inputs like steel pipe, coatings, construction equipment, compressor motors, gauges and instruments, sand and gravel, or engineering and design services. And when workers spend disposable income, there is a multiplier effect to the broader economy. … When you also consider the ongoing impacts of operation and maintenance of existing pipelines as well, it adds up to nearly $50 billion in GDP.
Over the next decade the demand for natural gas is poised to increase by 40 percent, leading to a plethora of opportunity for continued economic success and revitalization of the “Made in America” brand.
To learn more about the study, we invite you to check out the below links.
Executive Summary and Full Report