A study by Houston-based energy analyst firm IHS found the U.S. shale boom is boosting profits at supply chain companies and creating thousands of new jobs not directly tied to oil and gas production.
The study found that companies working in industries like steel making, tool manufacturing, water supply and sand supply have seen profits spike as domestic exploration and production activities increase.
While companies operating in states with a large upstream presence benefited the most companies operating in states outside of major shale formations have also seen profits rise.
IHS said the shale sector will account for 757,000 jobs in 2015, up from 524,000 in 2012.
The boom in domestic drilling is also helping local economies.
The report estimated that increased business for supply chain companies will pump more than $16 billion into government coffers next year, up from $13 billion in 2012.
“The growth in unconventional production has become an important source of economic activity for these industries at a time when many of their other primary markets were experiencing decline as a result of the Great Recession,” managing director of consulting for IHS Economics and Country Risk Brendan O’Neil said.
Earlier this month, industry trade group American Petroleum Institute reported that oil and gas companies currently employ about 30,000 supply vendors across the country.