Economic Impact Analysis
Marquette Advisors has worked with numerous governmental and private entities to provide estimates of the direct economic impact of individual businesses and entire industries on local and regional economies, including jobs created, wages and direct expenditures, tax revenue generated and tourism impact among many others.
We estimate employment generated by the facilities including both full and part time employees, as well as review information for comparable facilities, adjusted to reflect the unique attributes of the subject facility and its expected performance.
We estimate total wages paid to employees, based upon ranges of salaries and hourly wage rates by position.
We estimate the likely amount of expenditures on advertising to attract local and/or out-of-state patrons.
We prepare an estimate total visitation of these audiences and evaluate the potential impact of off-site spending at area businesses (gas stations, restaurants, hotels) as relevant, based on the customer and local business supply profile.
We estimate the amount of revenue generated for local, state and federal government, including taxes, payments in lieu of taxes, reimbursement for services received and other forms of revenue as relevant.
Indirect and Induced Impacts (“Multiplier” Effect)
The concepts of indirect and induced impact are among the most widely used and poorly understood tools in economic analysis. Fundamentally, they are based upon an extension of the direct expenditures, or loss thereof, by a business such as a casino, airport, plant or other business enterprise.
For estimates of indirect and induced impact, we use the IMPLAN (IMpact Analysis for PLANing) economic model originally developed for the USDA Forest Service in cooperation with the Federal Emergency Management Agency and the USDI Bureau of Land Management. The IMPLAN model has been in use since 1979. The IMPLAN model accounts closely follow the accounting conventions used in the "Input-Output Study of the U.S. Economy" by the Bureau of Economic Analysis and the rectangular format recommended by the United Nations.
Induced impact calculated by the IMPLAN model reflects changes in spending from households as income/population increases or decreases due to changes in production, effectively measuring the impact of wages paid as they cycle through the economy. Indirect impact calculated by the IMPLAN model reflects changes in inter-industry purchases, effectively measuring the impact of expenditures for other goods and services by the business or industry as they too cycle through the economy. A variety of levels of impact can be calculated: output - equivalent to GDP, employment, and earnings - equivalent to personal income.