Our Nation’s Economic Health is Directly Tied to the Grid
Monday, September 19, 2016
Many factors play into the health of the US economy but it is nearly impossible to separate energy use from economic growth. Every industry that fuels the US economy relies on an affordable and consistent source of electricity. From farming to the high tech industry, every sector of the economy utilizes electricity in some capacity and would be severely hampered without access to power.
The high tech industry is a great example of how electricity is the foundation for the continued growth of an economic sector that wouldn’t exist without a reliable source of power. Simply try to imagine how appealing computers, phones, and tablets would be without electricity to power and recharge them. Take a step beyond the physical devices that utilize power and you find another segment—software developers and engineers—that simply wouldn’t exist without consistent power for the devices that are their market.
Analysts use the term “intensity” to correlate energy use to the gross domestic product (GDP). The GDP is designed to gauge the economic health of a country. In the US, the electricity intensity, measured by electricity consumption per dollar of real GDP, shows a very close relationship between power generation and economic activity. In other words, when there is ample power, we use it and our economy grows.
A rise in electricity use has coincided with a growth in the GDP since the end of World War II. We continue to see this correlation today because of several factors, including the development of advanced electric technologies, population changes, and the relatively stable price of electricity.
In addition to acting as the foundation for growth in other sectors of the economy, the business of electric power itself is a big driver in economic stability. In 2005, the latest year that data was available, the electric power industry earned more than $268 billion in revenue from sales. In the US, the electric power industry represents 3% of the GDP. In fact, in terms of gross output, it’s one of the largest industries in the country, surpassing other giants like pharmaceuticals ($143 billion), air transportation ($122 billion), and natural gas ($91 billion).
The electricity industry is also a major employer, directly employing more than 400,000 people. These are jobs that can never be outsourced, which means that the electricity industry supports thousands of communities in our own country. There are hundreds of thousands of jobs that are created in the periphery of the electricity industry as well, as it is dependent on scores of businesses to operate each day, ranging from administrative services to the production and manufacturing of complex generating equipment.
Contact us anytime with questions about custom electrical power equipment or submit a Quick Quote.
Subscribe To Our Blog
05/31/2017 - Study: Research reveals electr
11/30/2016 - The IEEE: Technology for Human
09/19/2016 - Our Nation’s Economic Health i
08/16/2016 - How Electric Companies Meet Co
07/14/2016 - Five Reasons To Be Energy Effi
06/15/2016 - Average Household Electricity
05/12/2016 - Batteries and Electricity
04/17/2016 - How Electric Generators Work
03/15/2016 - Electricity: How We Got Here
11/10/2015 - It’s Electric! Electrical News
10/26/2015 - Inside the Job: Electrical Dra
09/23/2015 - Get to Know More About Welding
08/07/2015 - Inside the Job: Welder
07/07/2015 - Inside the Job: Wiremen vs. El
06/11/2015 - Using Electrical Currents: Alt
05/18/2015 - Using Electrical Currents: Dir
04/18/2015 - Electrical Deities in the Amer
03/11/2015 - Electricity as a Deity
02/11/2015 - Time to “Take Off” with This N
01/08/2015 - Intensifying Animals
12/16/2014 - What Caused the War on Current
11/12/2014 - More on the Professions Our Em
10/21/2014 - A Brief Look at Electrical Sci
09/17/2014 - A Brief Look at Electrical Sci
08/19/2014 - Useful Smartphone Apps for Ele
07/10/2014 - A Brief Look at Electrical Sci
06/09/2014 - Electricity: A Beginning
05/21/2014 - Keep Electric Costs Low