For more articles about the history of the crafts industry, visit the CRAFTS INDUSTRY department.

For Barbara's research on the home-business industry, see Home-Business Industry Research and Reports.

 
 

 

 

 

 

 

 

 

 

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The Crafts Industry and 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  

CAMILLE RONAY and her husband Bill publish The Ronay Guide, a calendar of festivals, shows, and other events for Georgia and several other southern states. Camille is also very active in promoting Georgia artists through her Georgia Made/Georgia Grown website. When I learned that Georgia Made Georgia Grown LLC was going to host the 2010 Conference in Savannah, I asked Camille for an update on CODA. She wrote:

"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.

"I have 'studied the studies' myself, trying to find what I need to make Georgia’s research in tune with others. There are many states that have done assessments many ways. Here in Georgia, for instance, we had to change our focus to creative entrepreneurship. In Georgia, our legislators have embraced the concept of entrepreneurship, although there is no clear definition among them of entrepreneurship.

"I’ve found a researcher at the University of Georgia who is very excited about measuring entrepreneurship in Georgia; our issue is how much entrepreneurship we can get funding for. We are meeting now with a state representative who is falling all over himself to make Georgia #1 in technology entrepreneurship. He wants to recruit technology entrepreneurs from all over everywhere. We want to measure what we already have. So this may not be a good fit at all, but we’re trying to see what we can do with this person. (He is a politician above all else, so we are appealing to his women voter concerns.)"

Each year in April, CODA holds an annual conference in a different location, providing an opportunity to network with peers, learning about national trends and issues, and to experience local craft/art projects and venues as well as hearing from national speakers. Each conference host determines a current and relative theme tied to contemporary issues in craft. Sessions are developed around this theme and local/regional and national speakers and presenters are asked to participate.

More information about CODA will be found on this website.

Check the CRAFTS INDUSTRY department for more articles about the history of the crafts industry.

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