IMPLAN Blog

“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 educational landscape in the United States is changing rapidly, and for many small colleges and universities, the outlook is bleak. While large institutions may thrive, smaller liberal arts colleges have been facing mounting challenges that are pushing many toward closure. Over the last few decades, these colleges have played a pivotal role in fostering economic growth and stability in the small towns and cities where they are located. However, shifting demographics, rising operational costs, and other factors have combined to create a climate in which many schools are struggling to survive. What happens to the local economy when these institutions shut their doors?

As the 2024 election looms, one of the most debated policy proposals is the "No Tax on Tips" plan championed by former President Donald Trump and Vice President Kamala Harris. This initiative, which aims to eliminate federal income tax on tip income, is designed to bolster the take-home pay of millions of American workers in the service industry. While the plan promises immediate benefits for tipped workers, its broader economic implications raise questions about long-term impacts on the U.S. economy. 

We’re thrilled to announce the latest additions to IMPLAN’s Quick Start Guides: the University Impacts Guide and the Simplified Tourism Impacts Guide. Like our other Quick Start Guides, these new guides are designed to make economic analysis accessible to everyone, regardless of their background in economics. By following a series of on-screen prompts, users can easily analyze the impacts of various economic events and projects.

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.

The United States made a significant commitment during COP28 (The 2023 United Nations Climate Change Conference or Conference of the Parties of the UNFCCC) late last year by endorsing the declaration to triple its nuclear energy capacity by 2050. This ambitious goal aligns with the U.S. Department of Energy's (DOE) projections for reaching net-zero emissions in the next 26 years.

A key strategy to achieve this goal involves converting existing coal power plants to advanced nuclear plants. The DOE has identified 315 coal power plant sites as suitable for such conversions, including 125 recently retired plants. This approach could significantly cut construction costs, address job security for the current energy workforce, and advance environmental justice.

A new class of obesity medications known as GLP-1s has taken the U.S. by storm, with 10 million Americans having already taken the medications and 5 million still currently using them. 

GLP-1s work by decreasing appetite and can reduce calorie intake by 20% to 30% daily, according to findings from a Morgan Stanley research survey. Consumers in the survey reported reduced food consumption in many food categories, with the differences being most notable for snacks, confections, carbonated and sugary drinks, and alcohol. 

California's Senate Bill No. 525 (SB 525) is making waves in the healthcare industry. This landmark legislation proposes to raise the minimum wage for healthcare workers from $15.50 per hour to $25 per hour, a move aimed at addressing staffing shortages and reducing long wait times. The bill promises to improve patient health outcomes and enhance the quality of life for healthcare workers. While the benefits are clear, the implications for the home health service industry, in particular, are profound.

In the realm of economic analysis, understanding the full scope and implications of a firm's activities, an industry's growth, or the repercussions of a significant event is paramount. Economic impact studies serve as invaluable tools for unraveling these complexities, shedding light on the multifaceted effects that reverberate through economies. Today, we’re exploring why leveraging IMPLAN Cloud on a national scale is indispensable for informed decision-making.

As the 2024 hurricane season approaches, forecasts predict an unprecedented number of named storms. A research team led by University of Pennsylvania climate scientist Michael Mann predicted a range of 27 to 39 named storms, with a best guess of 33 – and the economic ramifications could be substantial. The following analysis uses IMPLAN to explore the potential impacts of U.S. storms on the U.S. GDP and employment landscape, considering both the damage costs and the economic stimulus provided by recovery efforts.