Economic Impact Analysis
An economic impact analysis examines the effect of a policy, project, or event on the local economy. An economic impact will quantify the economic value to a local, regional, and state economy, including value of production, jobs by sector, jobs by income level, and ax revenue generated. A properly designed economic impact will educate others not only of the impact of a project, but also the opportunity it represents.
An economic impact analysis may cover the following areas:
- Project Construction
- Ongoing Operations
- Impact on Economic Development
An economic impact may include the following areas of analysis:
- Jobs, wages, income, spending, and output
- Jobs and income supported by suppliers
- Proposed expansion construction activity
- Supporting infrastructure construction
- Housing supported by employees
- Resulting retail development to support employees
- Detailed breakdown of tax revenue by source: (sales, property, income, etc)
> State vs. local tax revenue
- Indirect taxes generated from employee spending
Social / Strategic
- How the Project affects community image and quality of life?
- How the Project will support broader economic development goals for the region?
- How the Project supports the recruitment and retention of young professionals?
Research / Entrepreneurial effects
- How the Project affects new business creation?
- How the Project supports commercialization and new technology creation?
Value of an Economic Impact Study
A study will aid in external public relations efforts by providing tangible and comprehensive data on jobs, income, and taxes created by a project. Studies are typically used to support:
- Media relations
- Legislative relations
- Public relations
- Community education
- Executive speaking engagements