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ALBANY -- The construction materials industry in New York State, which accounts for most of the state’s mining of natural resources, generates $5 billion annually, far outpacing other manufacturing industries, according to a new report on the industry’s economic impact.

Working with the Center for Governmental Research in Rochester, State Geologist Dr. William Kelly, director of the New York State Geological Survey, recently completed a study on the construction industry’s contribution to the state economy.

Most of the mining in New York State is for construction purposes, involving cement, crushed stone, and sand and gravel. Excluding fuel resources, last year each New Yorker used over 20,000 pounds of minerals to maintain his/her standard of living. Per person, this accounted for more than 18,000 pounds of cement and construction aggregates in roads, bridges, homes, schools, highway repair, parking lots and a host of other projects that require concrete, black top, or stone fill.

Included in the study were the mining industry and the ready mix concrete and hot mix asphalt industries, which consume most of the output of New York’s mines. The economic impact encompassed both the direct expenditures of the industry -- wages paid to miners -- and also the value of the indirect impact of the business. The indirect impact addressed the dollars subsequently spent by those who receive direct expenditures.

The study revealed that the activities of the construction materials industry generate $1.3 billion in labor income for 30,000 jobs in New York, $100 million in taxes on income, sales, fuels and corporations, and roughly $3.5 billion in sales. This accounts for more salary and jobs than what is generated by the state’s warehouse and storage industry. It is twice the salary and employment of the primary metal manufacturing industry, and four times that of New York’s wood product manufacturing sector.

The current economic impact of the construction materials industry also greatly exceeds to potential economic benefits of the very intensely promoted Marcellus gas play in central New York. The Independent Oil and Gas Association of New York estimates that the economic impact of natural-gas wells drilled in the Marcellus Shale would generate $1.4 billion in economic activity, $32 million in state tax revenue, and hundreds of jobs.

Mines are not always welcomed into communities in New York but the products of those operations are essential to modern life. The study looked at what the cost would be for transporting aggregates for projects on the New York State Thruway as an example of what would happen if New York did not have a viable mining industry. The mines that serve the Thruway with building materials were located and one-quarter and one-half of them were randomly eliminated as sources of stone. The cost of transporting aggregates for Thruway projects was then recalculated.

Results indicate that if a quarter of mines along the Thruway corridor were not in operation, transportation costs would increase 42 percent. If half of the mines were not available to supply resources, costs would increase roughly 60 percent. This obviously would impact total project costs and, ultimately, the scope of the project. This analysis can be applied to any construction project in New York that makes use of stone, asphalt or concrete.

The New York State Geological Survey (NYSGS)is the geological research arm of the State Museum.

The New York State Museum is a cultural program of the New York State Department of Education’s Office of Cultural Education. Founded in 1836, the Museum has the longest continuously operating state natural history research and collection survey in the U.S. Located on Madison Avenue in Albany, the Museum is open daily from 9:30 a.m. to 5 p.m. except on Thanksgiving, Christmas and New Year's Day. Admission is free. Further information can be obtained by calling (518) 474-5877 or visiting the museum website at www.nysm.nysed.gov.

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