Economic Impact Study and Community Development
Forward Analytics is the premier marketing research supplier of economic impact research and a community development and benefits study. Our economic impact research and development study incorporates both a linear cash flow model and the Minnesota Input Output (IMPLAN) model.
Our Economic Impact study is an analytical tool used to assess and quantify the measurable public costs and community benefits of a specific project, business or development plan. The tool's very useful for local and regional leaders, providing them important information for better decision-making about their community's economic future. Forward Analytics has analyzed the economic impact of dozens of clients including, hospitals and health systems, higher education institutions, special events and sports, arts and entertainment facilities, cultural districts, manufacturers, service businesses, as well as development projects and the impact of government policies. Forward Analytics conducts economic impact modeling at local, regional, and statewide scales.
Economic Impact research is primarily about solving questions (equations) that factor large datasets with multivariate attributes and inter-dependent relationships. Forward Analytics' consultants can solve complex questions and provide your organization with the critical information it needs to judge the economic effect of development, policies, or sustained operations on a given population.
The Linear Cash Flow Model for an Economic Impact Study
The linear cash flow model measures the impact of money brought into the economy from outside sources. This "fresh dollar" approach represents a true expansion of the economy, and does not track dollars that already exist within the region. The linear cash flow model also takes into account the re-spending of money within the economy as a result of what professional economists term "the multiplier effect". The multiplier effect measures the circulation of dollars originally attributable to business or institution, and tracks their spending by successive recipients until the funds eventually leak out of the economy. The local (city/county/state) level analyses will be built as a unique spreadsheet set, reflecting local economic characteristics and tax rates. The models will calculate both direct and indirect (multiplier effect) economic impacts.
The IMPLAN (Minnesota Input Output) Model
The IMPLAN economic impact modeling system provides the tools, data, and outstanding support to do in-depth examinations of national, state, county or multi-county regions. Over 1,000 public and private institutions including the Corps of Engineers, Federal Reserve Bank, Ohio State University, and Bristol-Myers Squibb Co., use IMPLAN.
Forward Analytics uses Input/Output Analysis (I/O) to measure the direct and indirect economic impacts of a well-established organization or a new development plan. Input/Output analysis is an interactive program that shows how each part of the regional economy is connected to every other. I/O uses input/output accounts, which provide an accounting of the monetary flows from and to (outlays and outputs) industries located in a defined area. An I/O analysis provides a means of examining relationships within an economy, both between businesses, organizations or special projects and the final consumers. Understanding how economic sectors are interconnected provides insight into potential economic and community development opportunities.
What will the true benefits be if Company X locates to our community? How many jobs will be created, and what other business activity may develop as a result? What will the impact on personal income, retail sales, and tax collections be? Will the benefits generated justify the incentives and abatements offered? The answers to these and other questions can be estimated with Economic Impact Research.
Example of Economic Impact Analysis & Modeling
Forward Analytics recently completed an economic impact and community development study for a major national event. The event draws close to a million attendees and has an annual operating budget of $20 million dollars. The community appreciates the event's value, however, an empirical understanding of this relationship is needed to grow the event and continue to attract top brand sponsors.
Forward Analytics was able to show all the interdependencies and impacts of the event. For instance, one particular relationship the event wanted to measure was the impact to and from the local government. The municipality supplies dozens of security officers and daily waste disposal trucks. In our report, we demonstrated how the overall taxation and dollar migration into the area offset the costs of these community services.
This is just one example of how an economic development study and our input-output modeling research can quantify your organization's direct and indirect economic impact on a given region or shareholder. To unlock your market potential please contact one of our marketing research consultants at 412-207-2114.
We have completed Economic Impact studies
at the local and state level for industries such as:
Museums & the Arts
Special Events & Festivals
Urban Cultural Districts
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