INCOME LEVELS FOR CRAFT HOUSEHOLDS ARE HIGHER THAN THE NATIONAL AVERAGE
The survey found that the median* (midpoint of report figures) household income for families who derive part of their income from craft is $50,000, which is significantly higher than the median national household income for 1999 ($40,800) reported by the U.S. Census Bureau.

*Note: In the rest of this article, we refer to the average (or mean). We did not include other median figures, simply to keep the information as straightforward as possible. However, since the U.S. Census Bureau refers to the median household income (which is the midpoint of all U.S. households), it's important to compare median figures in this case. The average household income for families who derive part of their income from craft is even higher than the median, at $65,208. Average crafts-related income ($32,624) is also higher than the median ($22,000).

In general, working craftspeople contribute about half of their families' total household income. Approximately 22 percent reported that craft income was their only source of household income.

Household income varies by craft medium (see Table 6). For example, the highest average income was for glass, at $38,237, and the lowest was organic materials at $21,271.

Gross sales vary greatly by craft medium (see Table 9). For example, glass is the craft medium with the highest average sales ($111,051), and paper is the lowest ($37,529).

CRAFTSPEOPLE WHO HAVE EMPLOYEES GENERALLY HAVE HIGHER INCOMES THAN THOSE WITH NO EMPLOYEES
Most respondents (87.2 percent) report that they do not employ any full-time employees; almost 80 percent do not employ part-time employees. However, 20 percent report at least one part-time employee with some payroll expense. Craftspeople with employees employ an average of 4.39 full-time employees and 2.24 part-time employees. The average total gross payroll expenditure for craft artists who have employees is $56,041.

It is interesting to note that respondents who have paid employees generally have higher overall incomes than the craft artists who work alone, and craft-related income provided a greater part of their household income. For respondents with paid employees, the average household income was $87,992 (vs. $65,208 overall). These respondents reported an average annual household income derived from craft-related activities of $58,417 (vs. $32,624 overall). The percentage of total household income from craft income was 74 percent (vs. 47 percent overall). Of this group, approximately 45 percent reported that craft income was the only source of household income (vs. 22 percent overall). See "Notes on Terms Used."

WHILE RETAIL SHOWS ARE THE MOST POPULAR SELLING VENUE, MORE REVENUE IS GENERATED FROM WHOLESALE MARKETS
The most popular method of marketing or distributing crafts is through direct retail, accounting for 53 percent of annual craft sales (see Table 8). Wholesaling in the United States accounts for 27 percent of annual sales. Consignment to galleries is 11.2 percent, or the third most common method. Wholesaling outside the United States is very small, only .47 percent of total distribution.

Direct retail sales take place in a variety of venues (see Table 10). Craft fairs are the largest source of retail sales, representing 51.8 percent of total sales. Studio retail sales account for 27 percent, and commission sales for 14.8 percent.

Wholesale distribution within the United States provides an average of $73,373 of sales/revenue per year, and retail distribution provides $35,126. The average annual sales/revenue produced per typical craftsperson is $76,025.

The data (in Table 8) also provides some interesting comparisons. For example, even though there are more people selling their work at retail craft fairs (57.8 percent for retail vs. 27 percent for wholesale), more sales are generated through wholesale sales (52.4 percent, estimated at $4.2 billion to $5 billion, for wholesale vs. 38.7 percent, estimated at $3.1 billion to $3.7 billion, for retail.)

STAYING CLOSE TO HOME
According to the survey, 60 percent of gross annual sales/revenue is generated within the maker's home state, and 39 percent outside the state.

DIRECT IMPACT VS. ESTIMATES
The direct economic impact of craftspeople in the United States (not including craft shops and galleries) in 1999 is estimated to be between $8.1 billion and $9.6 billion (see "Methods for Estimating Craft Population"). Direct impact is based on the average annual gross sales/revenue generated by the professional craft population in the United States, as reported in this study. This figure does not include a multiplier effect that would inflate the final number. Nor does it include the economic impact of craft schools, publications, or other venues.

Researchers did not include shops and galleries in the study group, and did not solicit annual sales figures from these retail outlets. However, respondents reported wholesale sales ($4.2 to $5 billion) within the United States, which allowed researchers to estimate the value of those goods at retail. Research of industry standards indicates that most U.S. craft retailers mark up craft products 100 percent; therefore the "real" economic impact of the wholesale sector would include an additional $4.2 billion "retail markup," resulting in a total impact of crafts distributed by wholesalers of $8.4 billion. As such, the final estimate of annual economic impact would range from $12.3 billion to $13.8 billion.

Copyright© 2001

MAY 2001: TABLE OF CONTENTS