This study, conducted by Oxford Economics, evaluates the total contribution Reckitt’s United States operations made to the U.S. economy in 2023. Sophisticated economic modelling has been used to assess the impact of our operations, our procurement from U.S. suppliers, and payment of wages to American workers (including those in our U.S. supply chain). Our contribution is evaluated using three key metrics: gross domestic product (GDP), jobs and tax revenues.
Highlights
$4.6 billion
contribution to U.S. GDP*
27,600
jobs supported throughout the U.S. economy*
50 states
economic footprint in all U.S. states*
The Economic Impact of Reckitt in the U.S.
Hear Oxford Economics’ view on how Reckitt supports the U.S. economy.
Reckitt US InfographicCase studies
As a global leader in health and hygiene, Reckitt played a crucial role in responding to the public health challenges during the COVID-19 pandemic through our disinfectant Powerbrand, Lysol. At the start of the crisis, production of Lysol rapidly scaled up to meet the surge in demand – a 50% increase in sales in Q1 2020 compared to the previous year.1
Lysol’s range of disinfectant products proved highly effective against COVID-19, with Lysol Disinfectant Spray and Lysol Disinfectant Max Cover Mist becoming the first products approved by the U.S. Environmental Protection Agency (EPA) to kill the virus on surfaces.2 As well as providing disinfection solutions, Lysol took steps to help reduce the spread of COVID-19 by educating people nationwide on better hygiene.
To support safe school reopenings, Lysol partnered with the CDC Foundation to distribute “Welcome Back Packs” to 14,000 Title 1 elementary schools, providing educational materials and posters that encouraged healthy habits like regular handwashing – an empirically proven method of reducing the risk of catching COVID-19.3
Our Powerbrand also donated disinfecting wipes to 9,000 Title 1 elementary schools and provided virtual “Welcome Back Packs” to all 33,000 Title 1 schools across the U.S.
References
1 Kevin Stankiewicz, “CEO of Lysol maker says sales are still up as a result of coronavirus pandemic”, CNBC, July 2020, Accessed June 2024
2 Gisela Crespo, and Alicia Lee, “EPA approves two Lysol products to effectively kill novel coronavirus on surfaces”, CNN, July 2020, Accessed June 2024
3 Sarah Beale, et al, “Hand Hygiene Practices and the Risk of Human Coronavirus Infections in a U.K. Community Cohort”, Wellcome Open Research 98, no.5 (2020), accessed June 2024
In February 2022, there was an infant formula shortage across the U.S.
As supplies dwindled, out-of-stock rates surged to an estimated 74%, leaving parents struggling to secure essential infant formula.4 Through our Mead Johnson Nutrition business unit we took immediate action to help address this public health crisis. We implemented a plan to rapidly increase production and accelerate distribution, all while maintaining the highest standards of product safety and quality.
Mead Johnson Nutrition operated its manufacturing facilities 24/7, streamlined its product portfolio to maximize production capacity and ensured trucks were on standby to dispatch formula as soon as it passed quality checks. Together, these efforts reduced time to market by 40% to ensure our products reached families in need.
Alongside these measures, Mead Johnson Nutrition worked closely with the U.S. federal government to secure approvals for importing base formula powder from its facilities in Singapore and Mexico, which was then blended and packaged in the U.S.
By May 2022, we were supplying 30% more formula compared to the same period the previous year and feeding more than half of all formula-fed infants in the country. For families facing economic hardship and participating in the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), Mead Johnson provided formula for four in 10 infants.5
Our swift response played a key role in closing the national supply gap, with out-of-stock rates falling to 12.5%, nearing pre-shortage levels by November 20226 – helping to ensure that families across the U.S. once again had reliable access to the formula they depend on.
References
4 Bloomberg, “One in Five US States Is 90% Out of Baby Formula”, 2022, accessed June 2024
5 Reckitt, “Spotlight on US efforts”, accessed June 2024
6 The 19th, “The 19th Explains: Why baby formula is still hard to find months after the shortage”, 2022, accessed June 2024
As the climate crisis has escalated in recent years, a rising number of Americans have been affected by natural disasters, meaning that the American Red Cross services have become increasingly important. In 2023 alone, there were a record-breaking 28 natural disasters – across 46 states –where costs reached or exceeded $1 billion. This is more than double the frequency – on average 12 per year – in the 20 years between 2003 and 2022.
The American Red Cross – which Reckitt has partnered with since 2022 – provides vital relief services to communities affected by disasters big and small, including home fires, hurricanes, floods, and countless other crises. The Red Cross responds to about 65,000 disasters across the country each year and provides comfort and care to affected families more than 175 times a day.7
Hurricane damage in Fort Myers Beach.
©Scott Dalton/American Red Cross
Reckitt’s work as a Red Cross Disaster Responder member is bolstering the efforts of the most comprehensive disaster relief provider in the country. Reckitt’s support earned it the Red Cross of New Jersey’s “Outstanding Partner” award in April 2024, where Reckitt is headquartered in the U.S.
Disaster Responder members provide financial support to the Red Cross, enabling the organization to train volunteers, maintain its vehicles, update its systems, and stock its warehouses, which in turn facilitates immediate aid to those in need. According to Red Cross estimates, Reckitt’s financial aid in the 2023 financial year could have provided as many as 12,500 meals, 9,300 clean up kits, 23 nights of shelter for 150 people, or other vital disaster relief.8
Additionally, Reckitt has provided access to health, hygiene, and nutrition products to people affected by disaster through in-kind donations. For example, in 2023 Reckitt donated 164 pallets of Woolite laundry detergent pods, which were distributed to those affected by home fires and other local disasters in New Jersey, as well as 1,500 cases of infant formula to support relief efforts associated with the wildfires in Maui, Hawaii.
References
7 American Red Cross, "Disaster Relief," accessed May 2024
8 American Red Cross, “Disaster Responder Impact Report – Reckitt FY23”, 2023, accessed May 2024
* Economic impact analysis produced by Oxford Economics based on 2023 data