IHS Markit Study Shows ILMA Member Economic Impact
Earlier this year, ILMA and the ILMA Foundation released results of an important study by IHS Markit, The Economic Contribution of Independent Lubricant Manufacturers Association Members in North America. It contains some very positive information about ILMA members and the lubricants industry.
Did you know?
It is estimated that the lubricants industry accounts for about 1% of North American petroleum consumption and plays a vital supporting role in the smooth and efficient functioning of many key sectors across the North American economy.
ILMA members stimulated $14.4 billion in sales activity and $7.2 billion in GDP.
- ILMA members realized over $6.7 billion of sales activity in North America in 2018 (the “direct” entries under the “sales activity” columns in the table below). Of this, almost $1.4 billion was in the metalworking fluids segment.
- The overall direct sales activity stimulated follow-on (combined indirect and induced) sales of $7.7 billion, yielding a multiplier of 1.2. This means for every dollar realized by the ILMA Sector, another $1.2 of sales activity occurred throughout the North American economy. For the metalworking segment, the corresponding figures were almost $1.7 billion of follow-on sales yielding a multiplier of 1.2.
- Metalworking fluids are predominantly used by companies in four manufacturing sectors: primary metals; fabricated metals; machinery; and transportation equipment. In 2018, these sectors accounted for more than $948.1 billion or 4.0% of North American GDP. Thus, metalworking fluids played a supporting role in generating 4.0% of North American GDP.
ILMA Members helped support over 26,300 jobs that paid $2.6 billion in labor income.
- IHS Markit estimates that ILMA members directly employed approximately 4,262 North American workers in 2018. The indirect and induced activity supported another 22,038 jobs. This means that, for every job in the ILMA Sector, another 5 jobs are supported across North America.
- In 2018, the average employee compensation across the direct, indirect, and induced workers ultimately supported by ILMA member companies’ activities was $101,030 per worker, about 26% higher than the North American average.
ILMA members should be proud of their industry, the work they do, and their contribution to the well-being and prosperity of humanity!