COVID-19 has the world turned upside down. IMPLAN is no different as we have moved to working remotely instead of heading into the office. As the leader in economic impact modeling data and software, we are being continually asked how to model the economic impacts of COVID-19. Unfortunately, the answer isn’t easy, and with things changing so quickly, it won’t fully be known until the pandemic is under control. No model can predict all of the wide-ranging, short- and long-term impacts of such a far-reaching phenomenon as the COVID-19 pandemic, but here are some ways you can examine what is happening in the U.S. and your community.
News coverage around COVID-19 is unavoidable. The worldwide pandemic has upset lives globally and dominated everyone’s attention for weeks. With the situation seemingly changing every hour, experts across industries have come forward with predictions about all aspects of life including from healthcare, personal finance, the economy, and more. Due to the interconnectedness of our economy, a disruption to any industry has ripple effects throughout other industries and geographies. Foreign travel was one of the first industries to be clearly impacted by the emergence of the coronavirus in China, and impact analyses can demonstrate the reach of those affected by this economic turmoil.
Miami is expecting an economic impact of $854 million from a major event this February, but the source of that economic boom may surprise you. For the last 79 years, the Miami International Boat Show has welcomed boating enthusiasts from around the world for an annual exhibition of watersport technology, products, and recreation. According to a recent study, the economic impact felt in South Florida nearly doubles the contribution expected from the Super Bowl 54.
When conducting any economic impact study, defining where an impact is felt is critical. Whether analyzing the nationwide impact of an industry or the contribution that business makes in a specific zip code, IMPLAN’s economic data and modeling provide the insight you are seeking. Data is available for all geographic regions across the U.S. including all 435 congressional districts. This means that economic impact analyses can be run in any congressional district nationwide. Advocacy groups and leaders are utilizing this data to bolster their advocacy efforts, communicate their value to elected officials, and influence legislation.
Decision makers and business leaders are constantly looking for new ways to make their organizations smarter. Economic insight is key to achieving financial goals. IMPLAN has the technology you need in order to unlock economic opportunity.
So, what is IMPLAN? IMPLAN is a platform that combines a set of extensive databases, economic factors, multipliers, and demographic statistics with a highly refined, customizable modeling system. Together, our application and robust data allows you to:
- Gain insight into an industry's contributions to a region
- Quantify the impact of a shock to an economy
- Examine the effects of an existing or emerging business
- Model the economic impacts of changes to business operations
- Study events specific to the economy of a region’s economy, and more.
IMPLAN data is aggregated from multiple sources and is compiled into a 546-sector scheme and framework. The data sources include the Bureau of Labor Statistics, U.S. Census Bureau, Bureau of Economic Analysis, and more. Non-disclosures exist within these data sources, so our team fills in the gaps left by non-disclosures. Beyond reconciling data sources and filling in for non-disclosures, we add additional value by estimating finer geographic scales—calculating more granular data based on what is existing—and providing inter-county trade flow data.
The data and platform have the ability to perform a number of detailed analyses and provide solutions to an ever-increasing amount of questions. How can IMPLAN provide economic insight for you? Start with a question that you want answered.
The terms “economic impact” and “economic contribution” are often used interchangeably. However, the results they provide differ significantly. Impact analyses predict economic shifts based on change in an industry. Contribution analyses model the effects supported by an existing business or industry in a defined area. Industry contribution analyses are particularly important to groups like trade organizations or businesses that would like to determine their overall economic contribution at their current production rate.
Contribution analysis is a modeling method used to estimate the value of a sector or group of sectors in a region at their current levels of production. Naturally, it is a valuable and useful tool for groups like industry associations and government entities that are evaluating the value of an industry to their community.
Regulatory standards, depending on your reading of the latest IRS Tranches and guidance, have either changed or come into clearer focus when it comes to what the CDFI Fund identifies as a "successful" Opportunity Zone (OZ) project. Regardless of your reading of IRS's latest missives, there are a few tactics worth highlighting that will ensure that the economic impact analyses describing the significance of your projects and the potential economic significance of your program (or portfolios) will stand ready for review when the time comes to evaluate their contribution to the economic well-being of your service area.
There’s never an easy path to affecting policy change whether we’re talking on the national, state, or local level. But among the tools available to give clarity to the conversation, economic contribution and economic impact analyses rank among the most widely used.