Policy Documents

The Economic Impact of Frac Sand Mining: A Look at Jobs and Earnings in Wood County, Wisconsin

Dr. Hank Robinson, Mr. Timothy Nadreau –
September 30, 2011

EXECUTIVE SUMMARY

The purpose of this analysis is to show the impact of development and expansion of the “frac sand” mining industry in Wood County, Wisconsin. Impacts are reported in terms of newly created jobs and newly created earnings (i.e., labor income). We also estimate the creation of new revenues to county and local governments.

Key Highlights

• New frac sand plant and transport facility investments amounting to over $161 million is projected to occur over the first seven years of the project, including $86 million in the first 18 months, and another $75 million over the subsequent 5½ years.

• In the first year of the project, new facilities construction will result in the creation of approximately 616 new jobs and some $33.3 million in new earnings in Wood County.

• By Year 3 of the project, with plants, mining, and transport facilities in place, frac sand production will account for approximately 700 new jobs and over $42.8 million in Wood County earnings.

• By Year 8 of the project, with both initial and expansion phase investments in place, frac sand production will account for nearly 930 permanent jobs and over $58.7 million in Wood County earnings.

• Frac sand mining will create an array of new county and local government revenues in Wood County. These revenues are estimated to be roughly $1.5 million in Year 1 of the project, growing to nearly $2.6 million per year by Year 8 and continuing at roughly that level every year thereafter.