Study highlights role of explosives in building the economy in Utah

A new study from the Institute of Makers of Explosives (IME) found that the commercial explosives industry contributes $1.1 billion and 3,220 jobs each year to the economy in Utah. The first-ever institute study highlights the importance of the commercial explosives industry at the national, state and congressional district levels and is based on 2023 data.

Nationwide, the commercial explosives industry creates more than 60,000 jobs and contributes more than $19 billion to the U.S. economy.

Considered the ultimate power tool, commercial explosives are essential for quarrying aggregates necessary to build our nation’s infrastructure, mining critical minerals and producing both traditional and renewable sources of energy.

“Few people today give much thought to the essential role commercial explosives play in our everyday lives,” said IME President Clark Mica. “Throughout our nation’s history, commercial explosives have not only helped build America, they have enabled our modern way of life. Whether it is the car you drive to work, the fuel you use to power your car, the roads you drive on or the mobile phone you use to communicate, explosives make all of these things possible.”

The economic impact study includes the direct contribution, supplier contribution and downstream positive impacts of the entire commercial explosives industry value chain — from manufacturers to distributors to users.

“This report shows the incredible success of the commercial explosives industry,” said Tim O’Brien, president of Detotec North America Inc., and chair of IME’s board of governors. “The commercial explosives industry creates good-paying career opportunities with good benefits while also making a positive economic impact in our local communities.”

The study showed commercial explosives in Utah generated $84.5 million in federal taxes and another $57.3 million in state and local taxes for municipalities in Utah that fund important infrastructure like building roads and schools.

“Our mission is to improve the world we live in through the safe and responsible use of commercial explosives,” said Jason Rawlings, president of Austin Powder Co. and vice chair of IME’s board of governors. “While there are still significant opportunities to grow our workforce, you can’t dispute the overall positive impact our industry has in the U.S.”

Mica concluded: “The impact of commercial explosives cannot be understated. As the first link in many of our nation’s supply chains, commercial explosives truly build America.”

The study was conducted by John Dunham & Associates, an economic research firm, and was commissioned by the Institute of Makers of Explosives.

The Institute of Makers of Explosives says its mission is to promote the safe and secure manufacture, transport, distribution and use of commercial explosives. For more than 100 years, the institute has represented U.S. manufacturers of commercial explosives and other companies that distribute commercial explosives or provide related products and services.

Each year, an average of 3 million metric tons of commercial explosives are consumed in the United States and are essential to energy production, communications, technology manufacturing, highway and building construction, the healthcare delivery system, food and the manufacturing of nearly all metals and mineral products, the institute said.