Research shows that Alcoa’s economic impact in the United States in East Tennessee exceeds US$4.7 billion

A study by Younger Associates, a market research and economic consulting firm, on Alcoa’s East Tennessee company’s research shows that Alcoa’s economic impact on East Tennessee is over US$4.7 billion.

According to an August 20 report from Alcatel-Lucent, Alcoa Inc. means aluminum for most of the world, but for East Tennessee, it also means more than $4.7 billion in annual revenue.

Younger Associates, a market research and economic consulting firm, conducts research on the overall economic impact of Alcoa's businesses in East Tennessee and the economic impact of various processing plants in the state. Alcoa’s companies in East Tennessee include Blount, Knox, and Hamblen County processing plants. Alcoa created and contributed more than 12,000 jobs through its subsidiaries and created approximately $48.3 million in tax revenue for East Tennessee.

Geoff Cromer, vice president of U.S. primary metal company US Primary Metals in Knoxville, said that Alcoa has several companies in East Tennessee because the local area is a good place to do business. He said frankly that he did not know how much Alcoa had impacted East Tennessee, and that was why the company started research, and he was satisfied that Alcoa's companies had created a lot of jobs and tax revenues.

Alcoa's largest company in Tennessee is located in Blount County. Its smelters and power plants employ 1,668 employees locally, and nearly 4,000 jobs in other local industries relate to Alcoa's businesses. The total salary is more than 340 million U.S. dollars. The economic impact of Alcoa on Blount County exceeds $3 billion annually.

Knox County is home to Alcoa’s global metal trading company and the headquarters of U.S. Primary Metals. The junior metal company employs 149 local employees, and more than 120 jobs in various local industries are related to the company's business. Companies in Knox County cover global metals trade and information technology, shipping and shipping route management, and energy groups. The combined salary for these positions is more than US$28 million. Alcoa's economic impact on Knox County exceeds $93 million annually.

Alcoa Power and Propulsion operates a precision foundry in Hamblen County. The factory employs 646 people locally, and more than 500 positions in various industries in the area are related to the plant's business. The total salary of these positions is more than US$ 46 million. Alcoa’s economic impact on Hamblen County exceeds US$59 million per year.

If the outside world is not fully aware of the significant impact that Alcoa has on the economy of East Tennessee, this may be related to its lack of awareness of Alcoa-owned companies. Younger Associates' economic research will help East Tennessee policy makers understand the economic importance of Alcoa-owned companies.

Sharon Younger, the president of Younger Associates, said that the method used in this study was recognized and adopted by the International Economic Development Council (International Economic Development Council). He said that the company’s statistics from successive years have proved to be highly accurate and even conservative in calculating tax revenues.