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.  

This summer, the US Energy Information Administration (EIA) projects that residential customers will see their monthly electricity bills average $173 from June to August, up from last summer's $168. This 3% increase is due to households consuming an additional 30 kilowatt hours of energy each month compared to last year. Some estimates predict an even sharper rise, with costs expected to be 8% higher from June to September compared to the previous year.

The Energy Hardship Report by the Center for Energy Poverty and Climate and the National Energy Assistance Directors Association revealed that in March, 34.3% of households reported forgoing basic necessities to cover their energy bills at least once in the past year. To understand the impact of rising cooling costs, we assume that 34.3% of American households, or nearly 44 million households, will reduce non-electricity spending by 3% from June to August.

We're thrilled to announce a significant enhancement to our International Product – an expansion that opens up a world of possibilities for economic analysis. With the addition of 10 new countries to our database, we're now covering a total of 76 countries, empowering users with broader insights and deeper understanding across diverse economies.

When you’re delving into economic analysis, you'll often encounter North American Industry Classification System (NAICS) codes. NAICS codes (pronounced like “snakes” without the “s”) are essential for categorizing businesses and understanding economic data. 

In today’s blog, we’ll break down what NAICS codes are, how they correspond with IMPLAN sectors, and why they matter for your economic impact analysis.

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 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. 

It’s important to keep an eye on economic diversity, especially in times of economic uncertainty and when supply and demand are shifting. The Shannon-Weaver index is a powerful tool for measuring how evenly or unevenly the employment in any region is distributed among its industries. In today’s blog, we’re exploring how the S-W index works in IMPLAN and what it means for your economic impact studies.

Over the years, IMPLAN has gained the trust of users by providing valid and reliable data and analytics. In this blog post, we’re exploring the history of IMPLAN and of input-output models to show you how we’ve come to be relied on as a credible source for so many researchers and decision makers. 

If you’ve logged into IMPLAN Cloud in the last month, you may have noticed that the app has undergone a makeover! While we frequently make updates and improvements to IMPLAN Cloud, we’re particularly excited about this batch of changes to our user interface. Our Product Development team has been hard at work making it easier than ever to perform economic impact analysis, and we’re so excited to show you what’s new in the IMPLAN Cloud application.

It’s important to keep an eye on economic diversity, especially in times of economic uncertainty and when supply and demand are shifting. The Shannon-Weaver index is a powerful tool for measuring how evenly or unevenly the employment in any region is distributed among its industries. In today’s blog, we’re exploring how the S-W index works in IMPLAN and what it means for your economic impact studies.