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Study Shows Koch Companies Support More Than 200,000 Jobs in U.S.

Koch companies employ or support the jobs of more than 203,000 people nationwide, according to a recent analysis conducted by an independent economic research firm.

Koch companies, which include Wichita, Kan.,-based Koch Industries, Inc., Flint Hills Resources and INVISTA, and Atlanta-based Georgia-Pacific, directly employ more than 50,000 people in 46 states and the District of Columbia. The companies also buy goods and services from local businesses, and their employees spend paychecks for food, shelter, entertainment and
more. This combined spending generates more than 150,000 additional jobs, Harrah Analytics
determined in its recent study.

States benefiting most from direct and indirect jobs created by Koch companies are:

  • Texas (32,960 total jobs)
  • Georgia (32,350 total jobs)
  • Alabama (13,725 total jobs)
  • Arkansas (12,200 total jobs)
  • South Carolina (11,280 total jobs)
  • Wisconsin (11,000 total jobs)
  • Oregon (10,180 total jobs)
  • Mississippi (7,570 total jobs)
  • Oklahoma (5,910 total jobs)
  • Kansas (5,730 total jobs) 

Koch companies historically invest 90 percent or more of their earnings back into the businesses so they continue growing and providing customers with products. For example, in the past five years, Georgia-Pacific has invested approximately $5.5 billion – mostly in the United States – for acquisitions and other investments, for expansions to grow existing operations, or to improve safety and environmental performance, eliminate waste and become more innovative and efficient. Since 2003, Koch companies, including Georgia-Pacific, Flint Hills Resources, INVISTA and Koch Industries, have completed approximately $32 billion in acquisitions and investments and nearly $11 billion in capital expenditures.

To determine the jobs impact of Koch companies, Harrah Analytics began with direct U.S.-based employment numbers for Koch companies, with numbers supplied by Koch companies. The employment at each location was then assigned a Bureau of Economic Analysis industry code. Direct employment was multiplied by the industry direct effects employment multiplier, obtained from the U.S. Department of Commerce, Bureau of Economic Analysis, RIMS II (Regional Industrial Multiplier System) and considered standard in federal employment projections.

The complete study is at KochCompaniesJobStudy.pdf.

Koch companies are involved in refining and chemicals; process and pollution control equipment and technologies; minerals; fertilizers; polymers and fibers; commodity trading and services; forest and consumer products; and ranching.

Janet Harrah, president of Fort Thomas, Ky.-based Harrah Analytics, also serves as senior director of the Center for Economic Analysis and Development at Northern Kentucky University.