2014 ACPSA Tables

2014 ACPSA Tables (zip file)

ACPSA Table 1. Production of Commodities by Industry

The first of the ACPSA tables reports arts and cultural commodities (rows) produced by arts and cultural industries (columns)—Table 1 is akin  to the BEA's "make" table, which is generated from the input-output accounting system.[1]

Table 1 shows, for example, that the U.S. economy produced $1.1 trillion in arts and cultural commodities in 2012. [2]  Of that amount, $571.1 billion was in core arts and cultural production, and $561.2 billion was in supporting production.

Table 1, from left to right, illustrates the production by industry of specific ACPSA commodities. In 2012, for example, the U.S. produced $11.6 billion in interior design services. From left to right, the columns in Table 1 show that $10.6 billion of that output was produced by the interior design services industry.

Remaining interior design work was done by architectural services firms ($939 million); graphic design firms ($29 million); landscape architectural design services companies ($7 million); retail stores ($5 million); and other, non-ACPSA industries ($3 million).

ACPSA Table 2. Output and Value Added by Industry

The BEA defines gross output of an industry as the market value of goods and services produced by an industry, including commodity taxes (e.g., excise and sales taxes). "Intermediate consumption" refers to an industry's use of goods and services, such as energy and material costs, used to produce an industry's commodities. Value added measures the contribution of the industry's labor and capital to its gross output, and is equal to industry output minus intermediate consumption. Value added is an industry's GDP.

Table 2 features six major columns showing industry gross output, intermediate consumption, and value added. The first three columns measure these values for the industry, while the last three relate specifically to ACPSA production by that industry.

To illustrate, in 2012, the construction industry generated $105 billion in output. Of that amount, $53.1 billion was intermediate consumption, resulting in value added of $52.2 billion.

However, ACPSA construction is restricted to the building of new arts and cultural structures. In 2012, for instance, approximately 20 percent of gross output and value added by construction was arts and cultural.

For other industries producing arts and cultural commodities, the share of output allotted specifically to the ACPSA is much higher. In 2012, virtually all (96 percent) gross output and value added by the performing arts industry was ACPSA production.

Table 2 also provides a summary of arts and cultural production/value added relative to all U.S. economic production. For example, arts and cultural value added by all industries summed to $698.7 billion in 2012. Alternatively, value added by all U.S. industries, arts and cultural and all others, was $16.2 trillion—a figure analogous to U.S. GDP.[3]

ACPSA Table 3. Supply and Consumption of Commodities

Table 3 measures the supply of arts and cultural commodities, including U.S. imports, and consumption of ACPSA goods and services, including U.S. exports. Unlike ACPSA tables 1 and 2, the supply and consumption of commodities is measured in purchasers' value.

To illustrate, in 2012, domestic production of arts and cultural services totaled $1.1 trillion (measured in producers' prices). In that year, however, the U.S. imported $34.7 billion in arts and cultural commodities (which adds to the supply of commodities), and added $2.4 billion to inventories (which subtracts from supply).  

For a number of arts and cultural commodities, the supply necessarily includes wholesale and retail trade margins. Sound recording commodities such as music recordings and books on tape, for instance, are supplied via wholesale and retail trade. In 2012, wholesale and retail trade margins composed $46.5 billion and $68.4 billion, respectively, of ACPSA commodities supplied.[4]

How the supply of those commodities was consumed is also reported in Table 3. In 2012, for example, businesses and government purchased $489.3 billion (42 percent of all art and culture supplied) as intermediate inputs to their production. The remaining

supply of arts and cultural commodities was consumed as investment, or by U.S. consumers (i.e., personal consumption expenditures), government, or foreigners (as exports) .[5]

Supply and Consumption of Arts and Cultural Commodities, 2012 (in millions)
Supply
  Domestic production (producers' prices)

$1,132,254

  Imports

$34,688

  Change in inventories1

$2,444

Total supply (purchasers' value)

$1,164,498

Wholesale and retail trade margins of total supply
  Wholesale trade margins

$46,528

  Retail trade margins

$68,412

Consumption
Intermediate:

$489,270

    Private

$467,900

    Government

$21,370

  Final demand

$675,228

    Personal consumption expenditures

$368,182

    Gross private fixed investment

$105,470

    Government

$141,635

    Exports

$59,941

Total consumption

$1,164,498

1 Adding to inventories (i.e., positive change in inventories) reduces supply.
Source: Arts and Cultural Production Satellite Account (ACPSA), U.S. Bureau of Economic Analysis

ACPSA Table 4. Employment and Compensation of Employees by Industry

The first two columns in Table 4 measure total employment and compensation by arts and cultural industries;[6] the last two columns relate to employment and compensation tied to ACPSA production by those industries.[7] In 2012, for example, the advertising services industry employed 377,200 workers who were compensated $32.5 billion.

However, only a fraction of services offered by the advertising industry is included in the ACPSA—namely, the ACPSA captures creative advertising content that excludes public relations, media-buying agents, material distribution (e.g., coupons and fliers), and sign-painting. In 2012, the advertising services industry's production of creative content employed 133,500 workers who earned $11.5 billion in compensation.

In 2012, the production of ACPSA commodities employed 4.7 million workers and generated $334.9 billion in compensation.

ACPSA Table 5. Employment by Industry

Table 5 also reports ACPSA employment by industry. However, Table 5 adds industry employment multipliers to arrive at "total ACPSA-related employment." These industry multipliers estimate the outcome on employment resulting from a change in demand.

Changes in the demand for arts and culture can result from: increased (or decreased) government spending on the arts and culture; a successful advertising campaign aimed at the arts; or changes in exports of ACPSA commodities. If demand for the arts increases, then arts and cultural industries purchase more from their suppliers. The suppliers, in turn, hire more workers to meet this demand, resulting in a multiplier effect.

To illustrate, in 2012, 100,100 workers were employed by the performing arts industry to produce arts and cultural goods and services.[8] In Table 5, these performing arts employees are labeled "direct ACPSA employment." The total industry employment multiplier for the performing arts industry is 1.35, which measures the change in total employment resulting from a change in the demand for the performing arts.

In other words, for every 100 jobs created from new demand for the performing arts, an additional 35 positions are also created.

Table 6. Output by Commodity

Multipliers are also the subject of Table 6. Here, however, "total commodity output" multipliers measure the effect on production for every $1 change in the demand for arts and cultural commodities.

Based on 2012 estimates, the total commodity output multipliers reported in Table 6 show that every $1 increase in the demand for performing arts commodities (including theater, opera, and dance performances) increases the production of all commodities by a factor of $1.76.


              


[1] See NEA Guide to the U.S. Arts and Cultural Production Satellite Account, Part I, Section 2, "The Inner Workings of the ACPSA: I-O accounts," available online at the NEA's ACPSA arts data profile page.

[2] Table 1 commodities are measured in producers' prices.

[3] Because the BEA's official estimates of GDP are revised frequently, they differ from estimates of total value added reported in ACPSA Table 2.

[4] A commodity's trade margin is the difference between the selling price of the commodity and cost-of-goods sold, or the amount paid by the wholesaler or retailer to acquire the commodity.

[5] Gross private fixed investment is defined as expenditures on capital goods to be used on productive activities in the U.S. economy.

[6] Following from the BEA's accounting methodology, the ACPSA includes sole proprietors (self-employed workers), who are often excluded from other federal government counts of employment by industry.

[7] Compensation includes wages and salaries plus non-cash benefits such as employer contributions to pension funds and health insurance.

[8] The performing arts industry comprises theater companies; opera companies; dance troupes; symphony orchestras and chamber groups; other music groups and artists (e.g., rock, jazz, and country bands and artists); circuses; and other performing arts groups such as magic acts and ice-skating shows.