re: Craftsman's Worth

Its
Importance to the Economy

Featuring CODA’s landmark survey statistics
and an update from Camille Ronay

by Barbara Brabec

IT HAS LONG BEEN KNOWN that America’s handcraft industry was making a significant contribution to the American economy, but there were no statistics to prove it until early 2001, when the Craft Organization Directors Association (CODA) released the results of its landmark study. It confirmed what many industry leaders instinctively knew all along: Craft businesses have long been important to this country’s economy, contributing nearly $14 billion a year (see details below). Although this industry has been hard hit by the current economy, it will bounce back in time, just as it has done after various other recessions in the past.

The first clue about the size of this economy came in 1995 after HandMade in America, a nonprofit organization, made a study of 22 counties in western North Carolina and learned that crafts were contributing $122 million annually to the economy of that part of the state. Later, a similar study in Kentucky revealed that craft artists were contributing more than $52 million to that state’s annual economy. These findings encouraged CODA to do the first major national study on the size and scope of the crafts industry.

Over 84,000 surveys were mailed directly to craftspeople who earned all or part of their living from the sale of handmade products, and CODA released the results of its study of 7,500 completed surveys on April 1 at the CODA 2001 Conference in Asheville, NC. Here are some of the surprising facts and figures that were released at that time:

There were then 106,000-126,000 craftspeople working in the United States.

These business owners (79 percent of whom were homebased) were generating sales of between $12.3 to $13.8 billion per year.

The average gross sales/revenue per craftsperson was $76,025.

Income from craft activities comprised 47 percent of household income on average, and 22 percent of craft households were deriving all of their income from craft.

Retail sales accounted for 52.9 percent of annual sales, with just over one-half of these sales being made at craft fairs.

The average craftsperson derived 27 percent of annual sales from wholesale, and 11.2 percent from consignment to galleries.

There have been no new craft industry surveys by anyone since 2001 to tell us how the above facts and figures have changed through the years, but at least the 2001 CODA statistics proved to business and government leaders that craft was a viable and sustainable industry worthy of investment and support. The survey also drew attention to the important relationship between crafts and cultural tourism. States that were armed with accurate statistics could then partner with economic development agencies to encourage growth and development of this important sector of home-based businesses.

Basically, the CODA study findings validated the crafts industry as a vibrant and growing network of small American businesses while drawing added attention to small and homebased businesses in general.

October 2009 Update on CODA

“CODA doesn’t have the money do to another craft study, although it is very much needed. They have, however, hired an MIT graduate to do a study to see what kind of information has already been collected by various Creative Economies/Economic Impact assessments. This person wants to study the studies, then report on what’s out there.