Michael Heberling served as the president of the Baker College Center for Graduate Studies from June 1998 until December 2014. Before coming to Baker, Dr. Heberling was a Senior Policy and Business Analyst for four years with the Anteon Corporation in Dayton, Ohio. He is a retired Air Force Lieutenant Colonel with over 1,500 hours flying time in the B-52 bomber. His last Air Force assignment was as the chair of the graduate acquisition management department at the Air Force Institute of Technology at Wright-Patterson AFB. His education includes a B.S. degree from Cornell University, an M.S. degree from the University of Northern Colorado, and a PhD from Michigan State University in Production and Operations Management. His publications include 13 refereed journal articles, four books and book chapters, 21 conference proceedings, plus 26 magazine and trade articles.
Ph.D - Production and Operations Management - 1991, Michigan State University
Purchases by American businesses and governments: Types and dollar magnitudes by industries. (Volumes I and II)
UMI AAT 9134128
This research estimated the total dollar magnitude spent for purchases by American businesses and governments for the year 1982. In addition, this research established the inter-industry relationships of purchases (materials and supplies, energy, resales, buildings and equipment, and other items) to revenues and other cost elements, such as wages and salaries. The estimate for total business and government purchases in 1982 came to $4.2 trillion. To put this figure in context, gross national product (GNP) in 1982 was \$3.0 trillion.
The dollar magnitude of purchases were researched in 11 industries: agriculture, mineral, construction, manufacturing, transportation, communication, utilities, wholesale, retail, service, and governments (financial institutions were excluded). Data on revenues, purchases, plus wages and salaries were collected for each industry. By simultaneously collecting these three pieces of information, the probability of "double-counting" purchases was minimized.
The primary sources of information were government documents and 1982 economic census. Private sources were used to supplement missing government data.
Materials and supplies, and resale purchases collectively accounted for 75% of all the business and government purchases. In relation to all industry revenues, purchases accounted for 61% of the expenditures. At 20%, wages and salaries were a distant second. Purchases exceeded wages and salaries in 10 of the 11 industries. The only exception was the service industry. The most purchase intensive industries in terms of a purchase/wages and salaries dollar ratio were: utilities (12.0-to-1), wholesale trade (11.2-to-1), and agriculture (8.5-to-1).
The dollar magnitude of purchases were highly concentrated by commodity and within industries. In manufacturing, just four 4-digit Standard Industrial Classification (SIC) industries accounted for 25% of all the manufacturing purchases: (1) petroleum refining, (2) motor vehicles, (3) meat packing plants, and (4) steel mills. At the 2-digit SIC level, four industries accounted for 50% of all the manufacturing purchases: (1) food, (2) petroleum, (3) motor vehicles, and (4) chemicals.
This research showed that business (non-capital) purchases made up the largest single category of spending in the U.S. economy, exceeding personal consumption purchases by over $1 trillion. Business purchases accounted for approximately 41\% of the total business/economic activity, while personal consumption accounted for only 22%.