A study we did here at the Bureau of Business and Economic Research (BBER) at UMD’s Labovitz School of Business and Economics estimated that reconstruction of the refinery contributed about $2.2 billion in total impacts and supported an annual average of 1,952 jobs in the Duluth Superior Metropolitan Statistical Area (MSA), which encompasses Douglas County, Wisconsin, and Carlton and St. Louis Counties in Minnesota,
Superior Refinery operations generate about $312 million in output and support over 760 jobs annually with almost $85 million in labor income for the MSA. Much of this is attributed to the refinery’s production and sale of crude oil, which supports 302 jobs, almost $58 million in labor income, and creates over $123 billion in output.
The BBER study estimated the following economic impacts from the reconstruction investment:
- The output multiplier for the reconstruction project—estimated at 1.50—suggests that for every dollar directly spent by Superior Refinery, $0.50 cents is generated in supporting industries.
- The employment multiplier for the reconstruction project—estimated at 1.60—suggests that for every one job directly supported by Superior Refinery, another 0.6 jobs may be added in other supporting industries.
- The output multiplier for Superior Refinery’s continuing operations is 1.35, indicating for every dollar that is directly spent on operations by the refinery, another $0.35 is generated in supporting industries.
- The employment multiplier for the operations is 1.33, indicating for every job directly supported by the refinery, another 0.33 jobs may be added in supporting industries.
An economic impact study like the Superior Refinery highlights the benefits and consequences of large-scale industrial projects on the local economy.