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1、FEBRUARY 2025SUPPORTING THE U.S.ECONOMY THE ECONOMIC IMPACT OF RECKITT IN THE U.S.The economic impact of Reckitt in the U.S.SUPPORTING PROSPERITY ACROSS THE U.S.IN 2023,RECKITTS U.S.OPERATIONS SUPPORTED:U.S.GROSS DOMESTIC PRODUCT(GDP)CONTRIBUTIONEMPLOYMENT CONTRIBUTIONDirect impactIndirect impactInd

2、uced impactTotal impact$1.9bn$1.4bn$1.3bn27,600jobs*Equivalent to over a third of the value of annual U.S.public healthcare construction.Total tax contribution enough to pay the wages of over 13,200 U.S.nurses.*Figures do not sum due to rounding.Every$1 million in GDP generated by Reckitt supported

3、a further$1.4million in GDP elsewhere in the U.S.economy.2.4GDP multiplier$1 m$1.4 mEvery 1,000 workers directly employed by Reckitt supported an additional 4,600 jobs elsewhere in the U.S.economy.5.6Jobs multiplier4,910 jobs12,000 jobs10,700 jobsReckitts sales of OTC medicines in 2023 saved an esti

4、mated$4.4billionin clinicians time and foregone healthcare expenses.$4.6billionReckitts GDP contribution in the 6 states where it has production sites and R&D Centers of Excellence.In December 2024,Reckitt announced a$200 million investment in a new OTC manufacturing facility in North Carolina.New J

5、ersey$1.5 billionIndiana$433 millionMissouri$144 millionMichigan$255 millionUtah$134 millionMinnesota$71 millionSuppliers in 44 states and employees across the country,generating an economic footprint in all 50 states.Sources:Oxford Economics,Reckitt3The Economic Impact of Reckitt in the U.S.TABLE O

6、F CONTENTSExecutive summary 41.Introduction 81.1 Introduction to Reckitt 81.2 Reckitts activities in the U.S.91.3 Structure of this report 102.The direct economic footprint of Reckitts U.S.operations 162.1 Reckitts direct contribution to GDP and employment 163.The wider economic footprint of Reckitt

7、s U.S.operations 203.1 Reckitts indirect impact 203.2 Reckitts induced impact 224.Reckitts total economic footprint in the U.S.284.1 National impacts 284.2 Reckitts impact across the U.S.31Appendixmethodology 364The Economic Impact of Reckitt in the U.S.EXECUTIVE SUMMARYReckitt is responsible for pr

8、oducing some of the most recognizable health,hygiene,and nutrition brands in the U.S.The companys overarching purpose to protect,heal,and nurture is fundamental to how the business is run.Whether it is through its sales of over-the-counter(OTC)medicines such as Mucinex and Biofreeze to help support

9、the health of individuals,or its ongoing development of Lysol disinfectant products to kill viruses and bacteria on surfaces and in the air,Reckitt is continuously working to support public health ambitions.This study,commissioned by Reckitt,assesses the economic footprint of Reckitts U.S.operations

10、 on the U.S.economy in 2023.It is the second of its kind,following Oxford Economics previous economic impact assessment of the companys U.S.operations in 2019.This subsequent analysis provides an update on the impact of Reckitts activities across the country and demonstrates Reckitts ongoing contrib

11、ution to the U.S.economy.We have used sophisticated modeling techniques to estimate the impact of Reckitts own operations,its supply chain impacts,and the impacts of its spending on wages(through its own employees and employees in its supply chain).RECKITTS ECONOMIC FOOTPRINT ACROSS THE U.S.We estim

12、ate Reckitts U.S.operations supported a total contribution to GDP across the U.S.of$4.6 billion in 2023.This economic footprint was spread across all 50 states,and approximately$1.9 billion was directly generated by Reckitt itself through its 20 sites across the U.S.These included its U.S.headquarte

13、rs,six production facilities,three R&D global centers of excellence(two of which were located on production sites),and 12 additional sales and logistics sites.A further$1.4 billion was estimated to have been supported by its spending with U.S.suppliers across 44 states(indirect impact).Finally,we es

14、timate$1.3 billion was stimulated by the wage-funded spending of its employees,and employees in its U.S.supply chain(induced impact).The total GDP impact was 2.4 times the direct GDP impact alone,meaning that Reckitts“GDP multiplier”was 2.4.In other words,for every$1 million in GDP directly generate

15、d by Reckitt in 2023,its expenditure on inputs and wages stimulated a further$1.4 million in GDP across the U.S.economy.$4.6 billionTotal GDP contribution of Reckitt to the U.S.economy in 2023.5The Economic Impact of Reckitt in the U.S.This economic contribution was estimated to have sustained aroun

16、d 27,600 jobs throughout the U.S.economy in 2023.Reckitt directly employed 4,910 people across its 20 sites across the country in 2023.An additional 12,000 jobs are estimated to have been supported throughout the U.S.supply chain(indirect),while an estimated 10,700 workers were supported through wag

17、e-induced spending.In this case,the employment multiplier was 5.6 in 2023.This means for every 1,000 people employed by Reckitt,4,600 jobs were sustained in other parts of the U.S.economy.The employment multiplier was higher than the GDP multiplier,due to the high productivity and spending power of

18、Reckitts employees,who supported more jobs,on a relative basis,in other parts of the economy.Indeed,Reckitts workers had an average productivity of around$385,000 in 2023,as measured by the GDP contribution per worker.1 This was more than double the U.S.average.Reckitt employees also received an ave

19、rage wage around 60%higher than the national average.2Finally,the economic activity supported by Reckitt in 2023 generated an estimated$1.0 billion in government receipts in the U.S.This was equivalent to the annual salaries of over 13,200 nurses in the same year.RECKITTS WIDER CONTRIBUTIONS TO THE

20、U.S.ECONOMYReckitt provides effective solutions to everyday health and wellness needs.In 2023,the company sold$1.2 billion worth of OTC medication.We estimate this led to savings of up to$4.4billion in clinicians time and foregone healthcare expenses.3 Reckitt also invested$104 million in R&D in 202

21、3 through its three R&D global centers of excellence.These R&D centers were in turn responsible for developing 30 new products in 2023,including the Lysol Air Sanitizer.This R&D will support the long-run prosperity of the U.S.economy.1 This measure of labor productivity is calculated as the direct c

22、ontribution to GDP(employment costs and profits)divided by the headcount.2 We estimate the average wage of Reckitts staff to be$121,000 in 2023.3 Consumer Healthcare Products Association,“The Power of OTCs to Provide Consumer Value”,2022,accessed September 202427,600Total jobs supported by Reckitt i

23、n the U.S.economy in 2023.6The Economic Impact of Reckitt in the U.S.RECKITTS COMMITMENT TO THE U.S.ECONOMY4 Reckitt,“Reckitt Strategy Update”,2024,accessed October 20245 As previous footnote.As this study relates to 2023,the results presented reflect the structure of the business in 2023.In July 20

24、24,Reckitt announced a“significant sharpening of its brands portfolio and a move to a simpler,more effective organisation”.4 This includes focusing on its market-leading Health and Hygiene products,and exiting its portfolio of homecare brands that are no longer core,including Air Wick,Calgon,and Cil

25、lit Bang.Additionally,the company is considering all strategic options for its infant formula and child nutrition business.At the time of this studys publication,there have been no further announcements relating to the possible sale of these business units.However,the areas of the business accounted

26、 for differing shares of Reckitts 2023 footprint.For example,if the infant formula child nutrition business was excluded from the 2023 analysis,Reckitts total contribution to GDP and employment would each have been 30%lower.While the fall in GDP would have been fairly consistent across the three cha

27、nnels of impact,there would have been some divergence for employment.Direct employment would have seen a reduction of 42%,while indirect and induced employment levels would have been 23%and 32%lower,respectivelyreflecting relatively strong productivity in Reckitts U.S.supply chain for this business

28、unit.However,Reckitt notes“these changes allow the company to focus capital against brands that offer the best long-term opportunity for growth”.5 For instance,in December 2024 Reckitt announced a$200 million investment in a new Mucinex manufacturing facility in Wilson,North Carolina.According to Re

29、ckitt,this will become their biggest over-the-counter(OTC)manufacturing facility in the U.S.and is expected to create nearly 300 jobs.In the future,Reckitt plans for the facility to have capabilities to support additional products including Move Free and Biofreeze.This investment,along with Reckitts

30、 capital allocation strategy,should support Reckitts economic footprint in the U.S.going forward.7The Economic Impact of Reckitt in the U.S.8The Economic Impact of Reckitt in the U.S.1.INTRODUCTIONReckitt is a global health,hygiene,and nutrition company,which sells around 30 million products each da

31、y throughout the world.6 It employs over 40,000 people from 125 nations,with a goal to deliver a cleaner,healthier world.Reckitt aims to achieve this through its global brand portfolio,which includes some of the most well-known brands in hygiene,health,and nutrition.More than 70%of its brands occupy

32、 market-leading positions in their respective categories,on a net-revenue basis.7 Reckitts values involve working collectively for its consumers,employees,and wider stakeholders.It strives to minimize the environmental impact of its business and works towards creating a more equitable society,while

33、still addressing evolving consumer needs.Its largest global market,the U.S.,has operations across its manufacturing sites,distribution centers,and Research and Development(R&D)centers of excellence throughout the country.This study,commissioned by Reckitt,assesses the economic contribution the compa

34、nys operations in the United States(U.S.)made to the U.S.economy in 2023.The study updates the results of the previous Oxford Economics study relating to the year 2019.In conducting this assessment,we have used sophisticated economic modeling to assess the impact of Reckitts own operations,its procu

35、rement from suppliers based in the U.S.,and its payment of wages to workers in the U.S.(including those in the companys U.S.supply chain).These impacts are quantified at both a national and state level.Reckitts footprint is evaluated using three key metrics:its gross value-added contribution to gros

36、s domestic product(hereafter“contribution to GDP”),employment,and tax revenues.Reckitts contribution to the U.S.extends beyond this footprint,and a series of case studies,selected by Reckitt,highlight the wider impact the company has across the country.6 Reckitt,“2023 Annual Report”,2024,accessed Ju

37、ne 2024 7 As previous footnote1.1 INTRODUCTION TO RECKITTReckitts business origins date back to the early 19th century,in the U.K.,before the merger of Reckitt&Colman plc and Dutch company Benckiser NV led to the formation of Reckitt Benckiser in 1999.The company re-branded to Reckitt in 2021.The co

38、mpanys global headquarters are in Slough,U.K.,yet Reckitts presence extends across the globe.Its business operations employ staff in 68 different countries(see Fig.1).Reckitts products are also sold in almost 200 countries,generating$18.1 billion in revenues in 2023.The companys global brands are ca

39、tegorized into three areas:Hygienehousehold products such as Lysol,Air Wick,Finish,Resolve,and Woolite.Healthself-care products such as Dettol,Mucinex,Airborne,Neuriva,Move Free,Delsym,Biofreeze,Durex,and K-Y.Nutritionproducts that support nutrition,such as Enfamil,Nutramigen,Enfagrow,Puramino and P

40、rosobee.9The Economic Impact of Reckitt in the U.S.Fig.1:Reckitts global operational presence1.2 RECKITTS ACTIVITIES IN THE U.S.8 Reckitt,“Annual Report and Accounts 2023”,accessed September 20249 ProVoice Survey for IQVIA,accessed August 2023Reckitt has a sizeable presence in the U.S.,the companys

41、largest market.8 From its U.S.headquarters in Parsippany,New Jersey,it manages 19 additional sites across the country,including six production facilities,and three R&D global centers of excellence.In 2023,the company employed 4,910 workers in the U.S.Reckitt brands are household names across the U.S

42、.,demonstrated by their widespread reputation and use.Mucinex for example,is the brand most trusted by U.S.doctors for coughs and colds.9 Reckitt undertakes continuous product development at its R&D centers of excellence to create new and innovative products,while also maintaining high standards acr

43、oss its existing offering via its quality functions.Salt Lake CityR&D Centers of Excellence60+COUNTRIES OVERSIX CONTINENTS9R&D CENTERSOF EXCELLENCEManufacturing sites by business unitHygieneHealthNutritionEvansvilleMontvaleHullSloughOfceAmsterdamOfceHeidelbergGurgaonDongguanBangpakonglleSalMiraMirHu

44、10The Economic Impact of Reckitt in the U.S.In 2023,Reckitt employed 556 workers in R&D and quality roles in the U.S.equivalent to 11%of the companys U.S.-based personnel.Reckitt also invested$104 million in R&D in the same year,filing 31 patents and 59 designs,while also partnering with 23 U.S.coll

45、eges and universities.Moreover,Reckitt launched 30 new products in the U.S.market,reflecting the companys ongoing investment in R&D.Reckitts most significant product launch in 2023 was Lysol Air Sanitizerthe first product approved by the U.S.Environmental Protection Agency(EPA)to kill 99.9%of bacter

46、ia and viruses in the air when used as directed.In recognition of the pioneering nature of this new product,Reckitt won an R&D100 award in September 2024.10 Other recent innovations include Mucinex Instasoothethe only cough drops and lozenges on the U.S.market to contain the oral pain reliever Hexyl

47、resorcinollaunched in 2021,and Neuriva Ultraa brain health supplement with Phosphatidylserine and B Vitaminslaunched in 2023.11In addition to the immediate benefits to Reckitt consumers themselves,the company also supports wider benefits in the U.S.economy through the sale of over-the-counter(OTC)me

48、dication.It is estimated that in 2023,individuals spent$43.4 billion on OTC products across the country,representing an increase of 23%since 2019.12 Reckitt itself generated net revenues of$1.2 billion from sales of OTC medications across all 50 U.S.states in 2023.OTC medications provide effective a

49、nd accessible treatment to individuals with less severe ailments,freeing up the healthcare system and allowing medical professionals to spend more time dealing with the diagnosis and treatment of more serious diseases.Based on external estimates,we have evaluated that in 2023,Reckitts sales of OTC m

50、edicines saved up to$4.4 billion in clinicians time and foregone healthcare expenses.1310 Reckitt,“Lysol Air Sanitizer”,accessed September 202411 Schiff,“Breaking Down the Ingredients Behind Neuriva”,accessed November 202412 Consumer Healthcare Products Association,“OTC Sales Statistics”,2023,access

51、ed June 202413 Consumer Healthcare Products Association,“The Power of OTCs to Provide Consumer Value”,2022,accessed September 202414 Reckitt,“Mucinex launches“Flip the Script”campaign”,accessed June 202415 Value from Centers for Disease Control and Prevention,“Antibiotic resistance threats in the Un

52、ited States,2013”,2013,accessed June 2024,suggests the cost of AMR in the U.S.could be as high as$27 billion in direct healthcare costs,and an additional$48 billion in lost productivity.It has been adjusted for inflation using Oxford Economics GDP deflator forecasts.However,Reckitts impact extends b

53、eyond its productsit also implements initiatives to promote healthier behaviors and habits.Of particular note is the companys decade-long commitment to highlight the increasingly pervasive issue of antibiotic resistance.14 As part of this ambition,Reckitt implemented a video campaign in clinic waiti

54、ng rooms across the U.S.between 2019 and 2020.This is estimated to have led to a 3.5%reduction in antibiotic prescriptions,which has the potential to generate$1 billion(in constant 2023 prices)in healthcare savings across the U.S.each year following this.151.3 STRUCTURE OF THIS REPORTThe remainder o

55、f this report is structured as follows:Section 2 sets out Reckitts direct contribution to GDP and jobs in the U.S.economy for 2023.Section 3 assesses the economic footprint of Reckitt in the U.S.through the indirect and induced channels of impact for GDP and jobs.Section 4 summarizes the companys to

56、tal economic footprint across all three channels of impact for GDP,jobs,and taxes,and disaggregates the GDP and jobs impacts at a state level.The Appendix provides a detailed description of the methodology.11The Economic Impact of Reckitt in the U.S.INTRODUCTION TO ECONOMIC IMPACT ANALYSISThis repor

57、t analyses Reckitts economic impact across the U.S.and along three core channels.These are as follows:The direct impact measures the economic benefit of Reckitts own operations and activities across the U.S.The indirect impact encapsulates the activity driven by Reckitts U.S.supply chain as a result

58、 of its procurement of goods and services from other U.S.businesses.The induced impact captures the impact of the spending of wages on consumer goods and services by Reckitt employees,and those employed in Reckitts U.S.supply chain.The economic impact created and supported for each of these channels

59、 is measured across three indicators:Gross value-added contribution to GDP(“contribution to GDP”)is the contribution that Reckitt makes to U.S.GDP.Employment refers to the number of jobs that Reckitt supports.Taxes includes the gross tax receipts paid at federal,state,and local levels.Fig.2:Channels

60、 of impact quantified for the economic impact assessmentThe results are presented on a gross rather than a net basis.In other words,we do not attempt to estimate what benefits could arise if Reckitts resources were put to alternative uses,as it is not possible to know what they would have produced i

61、f they were employed in their next-most productive use.Nor does it address the displacement of activity by Reckitt from other firms or sectors.Employees(including those of the suppliers)spend their wages in the wider economy,generating more GDP,jobs,and taxes.Added together,these three efects(direct

62、,indirect,induced),comprise the total economic impact of Reckittin the U.S.It spends money with suppliers who employ staf,generate GDP,and pay taxes.They use other suppliers in turn.DIRECTIMPACTINDIRECTIMPACTTOTALIMPACTINDUCEDIMPACTReckitt employs staf,generates GDP and tax for the authorities.12The

63、 Economic Impact of Reckitt in the U.S.SUPPORTING PUBLIC HEALTH DURING COVID-19 As a leader in health and hygiene,Reckitt played an important role in responding to the public health challenges posed by the COVID-19 pandemic.Hygiene is considered one of the foundations of health,and its Lysol disinfe

64、ctant products are highly effective against the virus.Indeed,two of its products were the first to be approved by the U.S.Environmental Protection Agency(EPA)to kill COVID-19 on surfaces.16 Following public health advice on the efficacy of disinfectants in tackling COVID-19particularly in indoor com

65、munity settingsthere was a surge in demand for Lysol.17 In response,the brand rapidly increased the supply of its products,resulting in a 50%increase in sales during Q1 2020 compared with a year earlier.18 Alongside this drive to increase supply,Lysol launched several initiatives to reduce the sprea

66、d of COVID-19 by promoting hygiene in schools and raising awareness on the spread of the virus across the U.S.Reckitt partnered with the CDC Foundation to help schools re-open safely,by distributing“Welcome Back Packs”to 14,000 Title 1 elementary schools.19 These contained educational materials and

67、posters to teach children about healthy habits such as regular handwashing,an empirically proven method of reducing the risk of catching COVID-19.20 Lysol also donated Disinfecting Wipes to 9,000 Title 1 elementary schools,and virtual“Welcome Back Packs”to all 33,000 of such schools in the country.L

68、ysols efforts to bring children back to education could have also prevented them from missing school in the future.Research finds that even after the pandemic,states that had a greater prevalence of school closures have had higher rates of student absenteeism.2116 Gisela Crespo,and Alicia Lee,“EPA a

69、pproves two Lysol products to effectively kill novel coronavirus on surfaces”,CNN,July 2020,Accessed June 202417 CDC,“Safety Precautions:Cleaning and Disenfecting for COVID-19”,accessed November 202418 Kevin Stankiewicz,“CEO of Lysol maker says sales are still up as a result of coronavirus pandemic”

70、,CNBC,July 2020,Accessed June 202419 The CDC foundation is the non-profit supporting the Centers for Disease Control.Title 1 schools receive additional funding based on their number of low-income students.20 Sarah Beale,et al,“Hand Hygiene Practices and the Risk of Human Coronavirus Infections in a

71、U.K.Community Cohort”,Wellcome Open Research 98,no.5(2020),accessed June 202421 PNAS,“https:/www.pnas.org/doi/10.1073/pnas.2312249121”,2022,accessed November 2024 Further to this,the brand released the free Germ-Cast App in October 2020 to help consumers stay protected by improving their awareness o

72、f the spread of COVID-19.This tool provided real time estimates of the prevalence of both COVID-19 and the common flu at the postcode level.It also included videos teaching users how to use Lysol products for effective sanitization.Finally,Lysol created new products to make hygiene more convenient f

73、or consumers.These included“To Go Packs”of disinfectant wipes and the Lysol Hand Sanitizer.FANGSFOR COVERING YOUR COUGH AND SNEEZE BUBBLEBREAKWASH YOURHANDS20WASH FORSECONDS20LYS-HHSK-P-CDC_18X24 AD:Tori Milenthal BL:Jonathan Trottx Original ArtworkHandwashing Posterfinished size:18w x 24hbleed size

74、:18.50 x 24.50scale:100%Notes:Prints 4/C to match supplied Pantone(s).Magenta crop marks represent trim area.Do not print.Release Date:07/27/2120LYC-HHSK-P-CDC-18x24_HandwashingSize:18”x 24”Color:CMYK 4/0Color match background Pink PMS 7423Reckitt launched a campaign against antibiotic misuse in 201

75、9.This led to a marked reduction in antibiotic prescriptions,equivalent to$1billion in U.S.healthcare savings.5Sources:1 CHPA,Oxford Economics,Reckitt.2 IQVIA,ProVoice Survey,July 2023.3 Based on a survey of Clinicians:chiropractors,podiatrists,physical therapists,massage therapists,retail pharmacis

76、ts,and athletic trainers,of OTC topical pain relief products,Ipsos Clinician Survey,Biofreeze.4 Reckitt.5 CHPA,Centers for Disease Control and Prevention,Oxford Economics,Reckitt.Reckitt sales of OTC medicines reached$1.2 billion in the U.S.in 2023.Mucinexis the most trusted brand by U.S.doctors for

77、 coughs and colds.2Biofreezeis the#1 clinician recommended menthol topical pain relief brand.3Reckitt OTC medicines were sold in all 50 states across the U.S.4Reckitts sales of over-the-counter(OTC)medicines in 2023 saved an estimated$4.4billion in clinicians time and foregone healthcare expenses.1P

78、ROVIDING SOLUTIONS TO EVERYDAY HEALTH AND WELLNESS NEEDS14The Economic Impact of Reckitt in the U.S.15The Economic Impact of Reckitt in the U.S.16The Economic Impact of Reckitt in the U.S.2.THE DIRECT ECONOMIC FOOTPRINT OF RECKITTS U.S.OPERATIONSReckitt supports an important economic footprint acros

79、s the U.S.The company provides well-paid jobs to its U.S.workforce,who in turn support Reckitts day-to-day activities by developing,producing,and distributing its products for sale.In this section,we quantify Reckitts direct impact in the U.S.in terms of the contribution to GDP and employment.2.1 RE

80、CKITTS DIRECT CONTRIBUTION TO GDP AND EMPLOYMENTReckitt directly contributed$1.9 billion to U.S.GDP in 2023.This is a measure of the value added by Reckitts operations in the U.S.This direct impact comprises profits and employee income,which is the sum of total wage payments and other employment cos

81、ts(such as social security contributions).In 2023,Reckitt employed 4,910 workers at 20 sites across the country.Almost one-quarteror 1,134of these were employed at the companys U.S.headquarters in Parsippany,NJ.Its next largest sites were Reckitts nutrition product manufacturing and R&D facility in

82、Evansville,IN,with 795 employees,while 520 additional workers were based at its hygiene product manufacturing and logistics facilities in St.Peters,MO.Fig.3:Main Reckitt facilities in the U.S.Salt Lake City,UT431Wanamingo,MN220Zeeland,MI443St Peters,MO520Evansville,IN795Parsippany,NJ1,134Montvale,NJ

83、183R&DBelle Mead,NJ168Product manufaturing Nutrition products Hygiene products Health productsUS Headquarters17The Economic Impact of Reckitt in the U.S.Reckitts own staff are highly productive and well compensated.We measure productivity as the GDP contribution per worker,and Reckitt workers had an

84、 average productivity of around$385,000 in 2023.22 This was 2.2 times the national average,and 1.8 times the manufacturing sector average.Having highly productive workers is important because it boosts the price competitiveness of Reckitts products,and it improves the standard of living for the broa

85、der U.S.economy.This productivity was also linked to the above-average wages Reckitt pays its employees relative to those available in the wider economy.Indeed,our analysis estimates that Reckitts workers in the U.S.were paid an average wage of$121,000 in 202360%higher than the national average.23 2

86、2 This measure of labor productivity is calculated as the direct contribution to GDP(employment costs and profits)divided by the headcount.23 Average wage is calculated by dividing the total wages paid by Reckitt in the U.S.by its total number of employees in 2023.24 Reckitt,“Reckitt Sustainability

87、Report 2023”,2023,accessed September 2024.The median is defined as the midpoint value of a distribution.25 U.S.Bureau of Labor Statistics,“Womens earnings were 83.6 percent of mens in 2023”,accessed September 202426 78%of manufacturing roles were held by men in Reckitts U.S.operations.Reckitt is als

88、o committed to equality in gender pay.In addition to the U.K.(where it is required),the company voluntarily publishes gender pay gap data for nine of its global markets,including the U.S.In 2023,the median gender pay gap for the companys U.S.operations was 19.1%in favor of women.24 This means that t

89、he“typical”wage of a woman employed by Reckitt was 19.1%higher than the“typical”wage of a man employed by the company.This shows a significant variation from the national U.S.median gender pay gap which,in 2023,was 16.4%in favor of men.25 Reckitts gender pay gap reflects the gender distribution of s

90、taff across its functions;a greater share of men work in manufacturing roles,which are likely to be lower-paid,while a greater share of women work in its corporate offices.26Fig.4:Productivity by sector,2023Source:Reckitt,Oxford Economics0Reckitt U.S.Manufacturing$50,000100,000150,000400,000U.S.Aver

91、ageManagement&administrative services200,000 250,000 300,000 350,000384,900216,400174,800128,10018The Economic Impact of Reckitt in the U.S.19The Economic Impact of Reckitt in the U.S.20The Economic Impact of Reckitt in the U.S.3.THE WIDER ECONOMIC FOOTPRINT OF RECKITTS U.S.OPERATIONSReckitts U.S.op

92、erations generate an economic footprint that extends far beyond its direct impact.The additional economic activity is supported by its spending on business supplies(the indirect impact),and the employee spending enabled by its wage payments together with wages paid along the supply chain(the induced

93、 impact).This section describes the wider economic footprint of Reckitts U.S.operations on the countrys economy,in addition to the direct impacts set out in Section 2.3.1 RECKITTS INDIRECT IMPACTReckitt purchases inputs of goods and services from suppliers around the globe during its day-to-day oper

94、ations.These include vital materials such as chemicals and packaging for its manufacturing processes,as well as a range of other inputs like professional and business services to ensure the effective management,and logistics and transportation to efficiently bring its products to market.In 2023,Reck

95、itts U.S.operations spent$1.7 billion on purchases of third-party goods and services.This included both operational and capital spending.Of this,90%(or$1.5 billion)was spent with almost 1,800 suppliers based in the U.S.,with the remaining 10%from suppliers located overseas.The majority of this overs

96、eas spend was with suppliers in the Netherlands,the U.K.,and Mexico.By product type,21%(or$325 million)of spending was with suppliers in the manufacturing sectorwhich included spend on chemicals,and paper and plastic packaging.The same share of the total spend(21%or$324 million)was spent with profes

97、sional servicesincluding advertising,market research,and management consultancy.Additionally,17%(or$264 million)was spent in the information sector(such as internet publishing and communications).Fig.5:Reckitts third-party expenditure in the U.S.by sector,2023ManufacturingProfessional servicesInform

98、ationTrade&transportationFinance&insuranceManagement&administrative servicesOtherSource:Reckitt,Oxford Economics$million325324264249183999621The Economic Impact of Reckitt in the U.S.We estimate this spending with U.S.suppliers supported an indirect contribution of$1.4 billion to GDP in the U.S.econ

99、omy in 2023.This footprint reached all parts of the U.S.economy.Similar to the pattern of procurement spending,just under one-fifthor an estimated$245 millionwas supported in the professional services sector,while the information sector accounted for a further 17%,or$243 million.Manufacturing accoun

100、ted for an estimated 15%of the indirect GDP impactlower than the sectors share of procurement(21%).This reflects the high share of import content embedded in U.S.-sourced manufacturersrelative to servicesand the use of various services by Reckitts manufacturing suppliers supporting subsequent rounds

101、 of supply chain impacts.This economic activity was estimated to have sustained 12,000 jobs in the U.S.supply chain in 2023.Considering the sectors in which these jobs were located,2,900(or 24%)were estimated to have been supported in manufacturing,followed by 2,000 in trade and transportation(17%),

102、and 1,900 in management and administrative services(16%).The distribution of indirect jobs differs from that of indirect GDP due to variations in productivity across sectors.For example,manufacturing accounted for 24%of all indirect jobs but only 15%of indirect GDP,attributable to the labor-intensiv

103、e nature of activity in this sector.Source:Reckitt,IMPLAN,Oxford Economics0Professional servicesManufacturing$million100200300Finance&insuranceManagement&administrative servicesInformationTrade&transportationReal estateOther24524322721018114076120Fig.6:Indirect contribution to GDP by sector,202322Th

104、e Economic Impact of Reckitt in the U.S.Fig.7:Indirect employment by sector,20233.2 RECKITTS INDUCED IMPACTReckitt,and the companies in its U.S.supply chain,pay their staff wages,enabling their workers to make purchases in the wider consumer economy.Employees make purchases at retail,leisure,and oth

105、er outlets across the U.S.and beyond,further stimulating economic activity.We estimate that through this wage-induced spending,Reckitt sustained an additional$1.3 billion contribution to GDP across the U.S.economy,as well as around 10,700 jobs.By sector,the largest impact of$230 million was stimulat

106、ed in real estate,driven by spending on rent and housing by employees,an important component of consumer spending.This was followed by the trade and transportation($226 million)and health,education,and government sectors($189 million).Fig.8:Induced contribution to GDP by sector,2023Source:Reckitt,IM

107、PLAN,Oxford Economics0Professional servicesManufacturingHeadcount5001,0003,000Finance&insuranceManagement&administrative servicesInformationTrade&transportationReal estateOther1,5002,0002,5002,9002,0001,9001,8009301,200720620Source:Reckitt,IMPLAN,Oxford Economics0Professional servicesManufacturing$m

108、illion50100250Finance&insuranceEntertainment&other servicesInformationTrade&transportationReal estateOther150200Health,education&government2302261891358279737118923The Economic Impact of Reckitt in the U.S.24The Economic Impact of Reckitt in the U.S.SUPPORTING LOCAL COMMUNITIES AFFECTED BY DISASTERS

109、As the climate crisis has escalated in recent years,a rising number of Americans have been affected by natural disasters,meaning that the American Red Cross services have become increasingly important.In 2023 alone,there were a record-breaking 28 natural disastersacross 46 stateswhere costs reached

110、or exceeded$1 billion.This is more than double the frequencyon average 12 per yearin the 20 years between 2003 and 2022.The American Red Crosswhich Reckitt has partnered with since 2022provides vital relief services to communities affected by disasters big and small,including home fires,hurricanes,f

111、loods,and countless other crises.The Red Cross responds to about 65,000 disasters across the country each year and provides comfort and care to affected families more than 175 times a day.27Reckitts work as a Red Cross Disaster Responder member is bolstering the efforts of the most comprehensive dis

112、aster relief provider in the country.Reckitts support earned it the Red Cross of New Jerseys“Outstanding Partner”award in April 2024,where Reckitt is headquartered in the U.S.27 American Red Cross,“Disaster Relief”,accessed May 202428 American Red Cross,“Disaster Responder Impact Report Reckitt FY23

113、”,2023,accessed May 2024Disaster Responder members provide financial support to the Red Cross,enabling the organization to train volunteers,maintain its vehicles,update its systems,and stock its warehouses,which in turn facilitates immediate aid to those in need.According to Red Cross estimates,Reck

114、itts financial aid in the 2023 financial year could have provided as many as 12,500 meals,9,300 clean up kits,23 nights of shelter for 150 people,or other vital disaster relief.28 Additionally,Reckitt has provided access to health,hygiene,and nutrition products to people affected by disaster through

115、 in-kind donations.For example,in 2023 they donated 164 pallets of Woolite laundry detergent pods,which were distributed to those affected by home fires and other local disasters in New Jersey,as well as 1,500 cases of infant formula to support relief efforts associated with the wildfires in Maui,Ha

116、waii.Red Cross workers survey heavy tornado damage in Silver City,Miss.Scott Dalton/American Red CrossScott Dalton/American Red CrossHurricane damage in Fort Myers Beach.Source:ReckittInvested$104 million in R&D,up 3.5%from 2019.Employed over 550 R&D staff,equivalent to more than 10%of Reckitts U.S.

117、workforce.LEADING TO30 new products being developed,including59 designs filed31 new patents filed3 Centers of R&D ExcellencePartnerships with 23 U.S.colleges and universitiesRECKITTS U.S.R&D FOOTPRINTQuality functionsR&D and quality at corporate HQR&D Center of Excellence and quality functionsMt Ver

118、non,INLas Vegas,NVSalt Lake City,UTWanamingo,MNSt Peters,MOZeeland,MIHarrisburg,PABelle Mead,NJParsippany,NJEvansville,INMontvale,NJIN 2023,RECKITTS U.S.BASED OPERATIONSBOOSTING U.S.INNOVATION26The Economic Impact of Reckitt in the U.S.27The Economic Impact of Reckitt in the U.S.28The Economic Impac

119、t of Reckitt in the U.S.4.RECKITTS TOTAL ECONOMIC FOOTPRINT IN THE U.S.Throughout this report we have demonstrated how Reckitts total economic footprint in the U.S.extends far beyond its own operations,affecting all sectors of the economy.In this section we summarize Reckitts total economic footprin

120、t across the direct,indirect,and induced channels,and illustrate the wide-reaching geographical impacts across all U.S.states.4.1 NATIONAL IMPACTS4.1.1 Reckitts total GDP footprintIn 2023,we estimate Reckitt supported a total contribution of$4.6 billion to U.S.GDP.This was comprised of$1.9 billion i

121、n the direct channel,$1.4 billion supported in the indirect channel,and$1.3 billion in the induced channel.Since the total GDP impact was 2.4 times the direct GDP impact alone,we can say that Reckitt had a GDP multiplier of 2.4.In other words,for every$1 million in GDP directly generated by Reckitt,

122、its expenditure on inputs and wages stimulated a further$1.4 million in GDP across the U.S.economy.4.1.2 Reckitts total employment footprintReckitt also sustained an estimated 27,600 jobs across the U.S.in 2023.Of these,4,910 jobs were in the company itself,12,000 jobs were supported in the indirect

123、 channel,and 10,700 jobs were supported through the induced channel.Source:Reckitt,IMPLAN,Oxford Economics$billionDirect2.51.01.53.54.55.00.0IndirectInducedTotal3.00.52.04.01.91.41.31.31.41.94.6Fig.9:Total GDP impact by channel,202329The Economic Impact of Reckitt in the U.S.In this case,we estimate

124、 the employment multiplier was 5.6.This means for every 1,000 workers employed by Reckitt itself,its expenditure on inputs and wages supported a further 4,600 jobs across the U.S.economy.The higher employment multiplier,relative to the GDP multiplier,was stimulated by the high productivity and spend

125、ing power of Reckitts employees,in turn supporting more jobs(on a relative basis)in other parts of the economy.There are two key drivers of a sectors employment multiplier:its labor intensity,and how much of the sectors final output is value-added.For example,in manufacturing sectors,the final value

126、 of output tends to be largely comprised of the inputs used in the production processleading to a higher jobs multiplier.Compared to U.S.averages,Reckitts employment multiplier is higher than other manufacturing sectors,which tend to be more labor-intensive and have higher value-added shares of prod

127、uction,such as stationery and footwear manufacturing.On the other hand,manufacturing sectors which are more capital-intensive with a low value-added share of production,such as car and pharmaceutical manufacturing,have higher multipliers.Reckitts employment multiplier reflects its operations in the

128、U.S.which are a combination of manufacturing and management activities.Fig.10:Total employment impact by channel,2023Source:Reckitt,IMPLAN,Oxford EconomicsHeadcountDirect5,00015,00025,00030,0000IndirectInducedTotal10,00020,00027,600Note:figures may not sum due to rounding4,91012,00010,70010,70012,00

129、04,91030The Economic Impact of Reckitt in the U.S.4.1.3 Reckitts total tax footprint In 2023,we estimate Reckitt supported a total tax contribution of$1.0 billion to the U.S.government.This was equivalent to the average wages of over 13,200 nurses in the same year.29 The total was comprised of indiv

130、idual income tax,corporate income tax,and taxes paid during production such as excise taxes and import duties.30 More than two-thirdsor$688 millionof the contribution was paid to the federal government,while the remaining one-third($312 million)was paid to state and local governments.By channel of i

131、mpact,37%or$367 millionwas accounted for in the direct channel of impact(payment by Reckitt and its workers),while a further 33%($328 million)and 30%($304 million)was stimulated in the indirect and induced channels of impact.29 U.S.Bureau of Labor Statistics,“May 2023 National Industry-Specific Occu

132、pational Employment and Wage Estimates”,accessed October 202430 Total does not include customs or excise duties.Fig.11:Employment multiplier of Reckitt compared to U.S.industriesFig.12:Reckitts tax contribution in the U.S.by type,2023Fig.13:Reckitts tax contribution in the U.S.by channel,2023Source:

133、Reckitt,IMPLAN,Oxford Economics0Stationery manufacturing51015Reckitts U.S.operationsFootwear manufacturingPharmaceutical manufacturingCar manufacturing10.06.45.64.22.2FederalState and LocalSource:Reckitt,Oxford Economics$billionTotal:$1.0billion0.30.7DirectIndirectSource:Reckitt,Oxford Economics$bil

134、lionTotal:$1.0billionInduced0.40.30.331The Economic Impact of Reckitt in the U.S.4.2 RECKITTS IMPACT ACROSS THE U.S.In 2023,Reckitts procurement expenditure was made with suppliers located in 44 states across the U.S.Some 16%of Reckitts spending with U.S.suppliers was in the states of Reckitts produ

135、ction facilitieswith New Jersey accounting for the largest amount,at 10%of the companys overall U.S.expenditure.However,the majority of this expenditure(some 84%)was with suppliers spread across the rest of the U.S.,in particular in New York(21%of the total),Illinois(13%),Pennsylvania(9%),and Georgi

136、a(6%).The impact of Reckitts supply chain extends further than the location that the company purchases from too.Reckitt suppliers purchase inputs from their own supply chains located across the U.S.broadening the geographic footprint of Reckitts spending.By contrast,the residence of Reckitt employee

137、s was more closely linked to its facility locations.The greatest share of the companys employees lived in New Jersey(28%),the state of Reckitts U.S.headquarters,while a further 50%of its U.S.workforce resided in the other five states where Reckitts production facilities are located.Reckitt employees

138、 spend their wages in and around the states they live in,supporting further economic activity through the induced channel.Fig.14:Reckitts share of procurement spending by state,2023111.924.959.910+Procurement4%2%1%1%1%1%1%1%2%2%13%21%1%,MA2%,CT10%,NJ1%,DE1%,MD1%,DC3%3%9%1%2%5%5%6%32The Economic Impa

139、ct of Reckitt in the U.S.4.2.1 Reckitts GDP and employment footprint by stateReckitts footprint reached all 50 states of the U.S.economy when all three channels of impact are considered.The six states where Reckitts production facilities and R&D centers of excellence are locatedNew Jersey,Indiana,Ut

140、ah,Missouri,Minnesota,and Michiganaccounted for 55%of the total GDP impact and 44%of the employment impact.However,New York,California,and Illinois made notable contributions too.The greatest shares of Reckitts total spend were with suppliers in New York(21%)and Illinois(13%),and as a result,New Yor

141、k supported the third largest GDP and employment contributions,while Illinois stimulated the fifth largest employment contribution.California generated the fifth largest GDP contribution as Reckitt,and suppliers in its supply chain supported activity in the information and professional services sect

142、ors across the state.Figs.15 and 16 provide more detail on the highest-performing states.Fig.15:Top states by estimated GDP and employment impacts,2023 TOP GDP STATE IMPACTSTOP EMPLOYMENT STATE IMPACTSStateGDP impact ($million)%of totalStateEmployment impact%of totalNew Jersey1,48232.2New Jersey4,60

143、016.5Indiana4339.4Indiana2,6009.2New York3968.6New York2,3008.5Michigan2555.5Michigan1,6005.9California2084.5Illinois1,6005.6Illinois2054.5Pennsylvania1,4005.0Pennsylvania1603.5Utah1,4004.9Missouri1443.1Missouri1,3004.8Utah1342.9California1,3004.6Georgia1342.9Georgia1,0003.7Minnesota711.5Minnesota64

144、02.3Note:states in bold are locations of Reckitt facilities33The Economic Impact of Reckitt in the U.S.Fig.16:Reckitt GDP contributions by state,2023GDP($million)74171347117174314529255396160944342058725343513134491613125191134222112081066222636,MA40,CT4,RI1,486,NJ14,DE24,MD14,DC2,HI$0$10$11$50$51$2

145、00$201$400$401+34The Economic Impact of Reckitt in the U.S.RESPONDING TO THE U.S.INFANT FORMULA SHORTAGEIn February 2022,there was an infant formula shortage across the U.S.As supplies diminished,out-of-stock rates reached an estimated 74%nationally,burdening parents who needed to secure sources of

146、infant formula.31Reckitts subsidiary Mead Johnson Nutrition,one of the largest infant formula producers in the country,led the response to this public health crisis.Mead Johnson Nutrition set into motion a plan to both increase production and expedite transport,while ensuring the highest levels of p

147、roduct safety and quality.The company operated its plants 24/7,streamlined its product portfolio to maximize production capacity,and had its trucks on standby ready to load as soon as the product was quality checked.These measures cut the time to market by 40%,and through strong partnerships with re

148、tailers,they were able to expedite orders and ensure the deliveries of these critical products were prioritized.32 At the same time,Mead Johnson Nutrition worked closely with the U.S.federal government to secure approvals to import base formula powder from its facilities in Singapore and Mexico,whic

149、h then underwent final blending and packaging in the U.S.33By May 2022,Mead Johnson Nutrition was supplying 30%more formula relative to the same period the year prior and feeding over 31 Bloomberg,“One in Five US States Is 90%Out of Baby Formula”,2022,accessed June 202432 U.S.House of Representative

150、s,“Statement of Robert Cleveland before the Subcommittee on Oversight and Investigations”,2022,accessed June 202433 Reckitt,“FDA approval to import infant formula”,2022,accessed June 2024 The FDA does not normally allow imports of infant formula.However,Mead Johnson received approval to import the p

151、roduct from Singapore in June 2022.This enabled the company to bring an additional 66 million 8-oz servings to the country.34 Reckitt,“Spotlight on US efforts”,accessed June 202435 The 19th,“The 19th Explains:Why baby formula is still hard to find months after the shortage”,2022,accessed June 2024ha

152、lf of all formula-fed infants in the U.S.during this shortage.For families enduring economic hardship and participating in the Special Supplemental Nutrition Program for Women,Infants,and Children(WIC),Mead Johnson provided formula to four out of 10 infants.34Mead Johnson Nutritions efforts helped b

153、ridge a U.S.national supply gap of infant formula.By November 2022,it is estimated out-of-stock rates were 12.5%,close to the pre-shortage levels.35Base formula powder ready to be shipped from Reckitts facility in Tuas,Singapore to the United States.Team photo outside Reckitts manufacturing facility

154、 in Tuas,Singapore.35The Economic Impact of Reckitt in the U.S.36The Economic Impact of Reckitt in the U.S.APPENDIXMETHODOLOGYEconomic impact modeling is a standard tool used to quantify the economic contribution of an investment,a company,or a sector of the economy.Impact analysis traces the econom

155、ic contribution of an investment or other spending through three separate channels:The direct impact measures the economic benefit of Reckitts own operations and activities across the U.S.The indirect impact encapsulates the activity driven by Reckitts U.S.supply chain as a result of the procurement

156、 of goods and services from other U.S.businesses.The induced impact captures the impact of the spending of wages on consumer goods and services by Reckitt employees,and those in Reckitts U.S.supply chain.These impacts are quantified in terms of the gross value-added contribution to GDP,employment,an

157、d taxes.Impacts were calculated using the IMPLAN economic impact software.IMPLAN is an industry-standard tool that collates government economic data from a variety of sources and streamlines economic impact calculations across different geographies.For both the national and state level analyses,Oxfo

158、rd Economics collected vendor-level information,and financial and employment data from Reckitt.Vendor-level information included the amount spent and the state where the spending took place.Only vendors based in the U.S.were considered for impact modeling.The duns&bradstreet data were used to identi

159、fy the type of goods and or service purchased,based on vendor name.Capital investments by Reckitt were also treated as indirect expenditures.The number of direct employees and their compensation was provided by Reckitt and includes both full and part-time workers directly employed by Reckitt.Reckitt

160、 also provided the number of contract workers,who are counted as indirect workers in the results.Direct tax contributions were provided by Reckitt,while indirect and induced tax impacts were calculated using IMPLAN.For the state-level impacts,all national model inputs(direct employment and compensat

161、ion and vendor spend)were split to the state level,and impacts were calculated using Multi-Regional Input-Output(MRIO)models in IMPLAN,with total impacts controlled to the national impact value.Other inputs,including capital income,taxes paid directly by Reckitt,and investment spending were allocate

162、d based on employment levels at Reckitts major facilities.Where state information was missing,IMPLAN trade data were used to allocate spending based on the locations of Reckitts major facilities.37The Economic Impact of Reckitt in the U.S.OXFORD ECONOMICSOxford Economics was founded in 1981 as a com

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168、es and financial institutions;key government bodies and trade associations;and top universities,consultancies,and think tanks.February 2025All data shown in tables and charts are Oxford Economics own data,except where otherwise stated and cited in footnotes,and are copyright Oxford Economics Ltd.Thi

169、s report is confidential to Reckitt and may not be published or distributed without their prior written permission.The modeling and results presented here are based on information provided by third parties,upon which Oxford Economics has relied in producing its report and forecasts in good faith.Any

170、 subsequent revision or update of those data will affect the assessments and projections shown.To discuss the report further please contact:Stephen Foreman:Rosie Nolan:Oxford Economics 4 Millbank,London SW1P 3JA,UK Tel:+44 203 910 8061Global headquartersOxford Economics Ltd Abbey House 121 St Aldate

171、s Oxford,OX1 1HBUKTel:+44(0)1865 268900London4 MillbankLondon,SW1P 3JA UKTel:+44(0)203 910 8000FrankfurtMarienstr.15 60329 Frankfurt am Main GermanyTel:+49 69 96 758 658New York5 Hanover Square,8th Floor New York,NY 10004USATel:+1(646)786 1879Singapore6 Battery Road#38-05Singapore 049909Tel:+65 6850 0110Europe,Middle Eastand Africa OxfordLondonBelfastDublinFrankfurtParisMilanStockholmCape TownDubaiAmericasNew YorkPhiladelphiaBostonChicagoLos Angeles TorontoMexico CityAsia PacificSingaporeHong KongTokyoSydney Email:Website:Further contact details: