The world economy experienced drastic changes in 2020 as a direct result of the coronavirus pandemic. In order to address these drastic economic changes in our data, IMPLAN has released its second ever quarterly data set. The Evolving Economy - COVID Q3-2020 data captures the initial stages of the economic recovery in 2020. This data set, which is equipped to perform all forms of impact analysis modeling, is available now in the IMPLAN application.
Our webinar, The Economic Impact of a New Business Location, walked through the process for modeling the economic impact of a new business location. In the presentation, considerations for the construction and operations impacts were covered and examined in the context of the Lowe’s Design Center Tower project. If you missed the live presentation, you can watch the recording here. The discussion generated a number of questions highlighting important points about running these analyses. Check out what our economists had to say below:
2020 has been an incredibly challenging year for most of the world with seemingly very few bright spots to focus on. The emergence of COVID-19 has dramatically altered the way we live, perhaps permanently. Coronavirus-motivated mask mandates, regional shutdowns, capacity restrictions, and social distancing brought about economic uncertainty. The most commonly cited hope for a return to normalcy has been the widespread availability of a vaccine. Due to the fast-tracking of vaccine trials and significant government support, several effective vaccines appear to be on the horizon as we head into 2021.
The public health benefit is straight-forward, however the economy is a very important concern to many. Anticipating the vast impact across the economy is incredibly difficult due to the unpredictability of consumer confidence in the midst of the pandemic. Despite this unpredictability, the sizable economic impact of investment in the vaccine manufacturing process can be readily estimated with Input-Output Analysis. Using publicly available data to define input values, IMPLAN has performed an analysis of the effect of the Federal government’s spending on vaccine manufacturing.
The coronavirus epidemic has reset the way we understand and examine the economy. With major changes to employment levels and household spending, plus stimulus checks, increased unemployment benefits, and PPP loans, it is crucial that economic data is updated during this time. With that in mind, IMPLAN is proud to announce the release of ground-breaking data and economic impact models for the COVID-19 era: Evolving Economy - COVID Q2-2020.
The most granular employment insight IMPLAN has ever assembled and organized by occupation and core competency is now available for purchase inside the IMPLAN application. Our occupation data shows estimates of employment, wages, hours, and core competencies for 823 different occupations. What you find in the data and how can it be leveraged in your own studies can be a game-changer.
Across the country, the service industry has felt the consequences of the coronavirus more severely than most. Through the beginning of May, more than 8 million restaurant jobs were lost. While cities and regions of all sizes have felt the strain, social distancing and business restrictions have affected small businesses in towns reliant on tourism spending particularly harshly. One of these towns is Asheville, North Carolina. Asheville, a city located in the Blue Ridge Mountains of western North Carolina, is known for its beautiful mountain views, tourist attractions, and incredibly robust brewery scene.
According to IMPLAN data, the food service industry supports over 18,000 jobs, making it the largest employment sector in the Asheville MSA. When COVID-19 hit and businesses began closing up shop for indeterminate periods of time, it left many uncertain of how they could continue operating. Gathering restrictions and event cancellations posed a unique threat to the more than 100 food trucks that operate in and around Asheville.
If you review the results of an IMPLAN economic impact study, you will not find GDP listed in the results. Naturally the question arises, "What is the GDP?" Within IMPLAN results, that value is actually demonstrated in multiple ways.
Gross Domestic Product (GDP) is defined as the total market value of all final goods and services produced within a region in a given period of time (usually a quarter or year). GDP is the sum of value added at every stage of production (the intermediate stages) for all final goods and services produced within a region in a given period of time. In other words, GDP is the wealth created by industry activity.
“How can $1 of spending support more than $1 in the local economy?”
We get questions like this about economic impact analyses all the time. The answer is very straightforward. The results of an input-output (I-O) analysis are broken down into direct, indirect, and induced effects. The combination of these overarching economic effects often total greater than the initial economic input. Each level of effects captures a different portion of the complete economic portrait. In order to understand the totality of an impact, you must conceptualize how each value is defined and what they represent.
The foundation upon which IMPLAN economic impact analyses are built is the input-output (I-O) model, and the basis for I-O models are multipliers. Multipliers are rates of change that describe how a given change in a particular industry generates impacts in the overall economy (e.g. for every dollar spent in the economy an additional $0.25 of economic activity is generated locally, implying a multiplier of 1.25). What multipliers represent and how they are calculated can vary significantly.
IMPLAN is a platform that combines a set of extensive databases, economic factors, multipliers, and demographic statistics with a highly refined, customizable modeling system. The foundation upon which economic impact analyses are built is the input-output (I-O) model. Understanding I-O analysis and the assumptions they employ are crucial to properly performing and reporting your own analysis.