1.What Value Is Entered for Industry Sales of a Construction Impact?
For the new construction sectors, Output is the total value of the structures being built, but does not include items that are not integral to the structure itself. So the Industry Sales value includes the total construction budget (payroll + non-payroll) plus any profits and indirect business taxes (i.e., taxes on production) paid by the construction firm.
This forum discussion addresses the difference between output and budget.
2. How Do I See What Soft Costs are Included in the Construction Sectors?
You can view the current spending pattern of the construction sector you are working with in the Explore>Social Accounts Balance Sheet Tab (IMPLAN Pro) or in the Model Overview under the Social Accounts button and the Balance Sheets tab (IMPLAN-Online). You will select your industry from the drop down menu and then click on the 'Commodity demand' tab to see how much of each of these items the construction spending pattern purchases. Gross Absorption represents the total amount of each commodity that is required for production, while the Regional Absorption shows the amount of that commodity that will be purchased locally when an analysis is run.
And How Can These Be Modified if They Don't Match My Specific Project?
If you would like to modify this to match your data you can do so by importing the spending pattern Activity and modifying the Event coefficients to match your known values. This method is part of the larger category of Analysis-by-Parts.
It is important to note that changing coefficients can change many aspects of the Analysis-by-Parts methodology. If you would like to use this methodology, we can certainly help provide some additional helpful hints. Please call your Customer Success Manager or Email us.
3. How Do I Model the Impact of Fees and Tax Revenues Paid by a Construction Project?
Fees, permits and taxes do not contribute directly to impacts in the model, but you can choose to create separate Activities and Events to examine impacts associated to new government revenues.
Here are a couple of cautions to keep in mind when considering modeling the impacts of government spending.
- The Federal government is not likely to change its spending behavior as a result of local economic activity.
- Locally collected federal tax dollars are unlikely to return to the region from which they are collected.
- State and Local taxes can be run through the State/Local Government Non-Education Spending Pattern. This can be found at:
- IMPLAN Pro: Activity Options > Import > Institution Spending Pattern
- IMPLAN-Online: Import> Institution Spending Pattern
- Fees and permits are revenue to local government, which can be modelled through the State & Local Government Non-Education Spending Pattern.
- It is also important to keep in mind that depending on the definition of your region, not all collected state or county taxes may return to your region.
4. How Should Jobs Associated to Multi-year Construction Impacts be Reported?
We recommend that you divide the impact over the number of years of the project and report the average jobs per year.
For example, if a construction site generates 85 jobs across 3 years, then the report would state the supported jobs as 85/3 or 28 jobs per year. This is because the jobs on the construction site are not cumulative, in the same way that an employee working a job for 3 years is not viewed as 3 jobs.
We also recommend considering construction jobs as supported instead of created since construction jobs are typically site-to-site and the jobs on the site are constantly changing based on the state of the construction project.
Suppose you are investigating the impacts of a new sports event center like a new football stadium. It is important to distinguish the construction impacts of the stadium ("one-time" impacts) from the operations impacts ("on-going" impacts). Construction impacts arise from the activity of building the stadium, and occur only while the project is being built. These impacts essentially end when the project is complete. For example, job impacts associated with a construction of a site are not "permanent", because these jobs only exist while the project is underway. Even if a construction projects lasts several years, these positions have a clear termination point.
In contrast, operating the built facility is presumed to be "on-going", and the impacts are usually described on an annual basis. For our stadium example, the annual impacts would result from the operating budget expenditures to run the stadium, as well as, on- and off-site expenditures of visitors to the events. An analyst reporting the impacts of projects like this should refrain from combining the construction and operations impacts into a single impact estimate; it just makes more sense to keep the two kinds of impacts separate.