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By Michael Souza
PBN Staff Writer
WOONSOCKET – CVS Caremark Corp. has released an economic impact study of its contribution to the economy of Rhode Island, the company's national headquarters.
Conducted by PricewaterhouseCoopers LLP, the study found that its Rhode Island operations contributed more than $1.2 billion to the state’s gross domestic product in 2010, approximately 12,000 jobs, $831 million in labor income, and $116 million in state and local taxes.
Over the next 10 years, the study found that CVS’ contribution to Rhode Island’s GDP is projected to be approximately $16.6 billion, assuming its growth matches the average annual growth for the national economy, which is projected by the Congressional Budget Office to be 4.7 percent. If its growth over the next 10 years matches its historical pattern, its contribution over that period would increase to approximately $35 billion.
“We are committed to Rhode Island and are proud to be a part of this community where we put down roots at our founding in 1963,” said CVS President and CEO Larry J. Merlo. “The results of this study are further evidence that as we have grown as a company, we have also helped Rhode Island to grow.”
CVS maintains its corporate headquarters in Rhode Island, including its customer support center, finance center and marketing center.
The company also maintains two distribution facilities with more than 800,000 square feet of distribution space, a customer care call center and 58 CVS/pharmacy stores in Rhode Island.
CVS said it directly generated more than 6,000 jobs in 2010 in Rhode Island, including officers and executives of the company, pharmacists and health care professionals, finance and sales professionals, technology and information systems professionals, and front store associates.
The economic impact of CVS was measured using four metrics: employment, labor income, taxes and value added. For each of these measures, the direct, indirect and induced impacts are calculated to quantify CVS’ total contribution.