Industry Events

INTRODUCTION

There are four Industry Event Types in IMPLAN: Output, Employment, Employee Compensation, and Proprietor Income. Each of them operates in the same manner. This article will walk you through an example of each type of Industry Event.

Event Type	Industry (Output, Employment, Employment Compensation, Proprietor Income)
Event Use	Analyzing a change in an Industry’s production
Event Specification ”WHO”	Industry 1-546 experiencing change in demand/production
Event Value “WHAT”	1 or more:      Output      Employment      Employee Compensation      Proprietor Income

INDUSTRY EVENTS

IMPLAN can be accessed via app.IMPLAN.com. Once you are logged in, you will be directed to the IMPLAN dashboard. From the dashboard you can navigate to the Regions, Impacts, or Projects screen. 

Once you have chosen your Region and named your new Project, you will be directed to the Impacts screen. From here, click on Add New Event to create your first Industry Event. In this set of examples, 2018 Nevada data is utilized.

Industry Output

The first type of Event is Industry Output. In IMPLAN, Output represents the value of Industry production. For service Industries, Output equals sales. For  manufacturing firms, Output equals sales +/- the change in inventory. For retailers and wholesalers, Output equals their gross margin or Marginal Revenue (not gross sales) and does not include the value of goods sold. By default, the Event Value of an Industry Output Event with a retail or wholesale Industry specified is interpreted as Total Revenue. Learn more about retail and wholesale margins in the article Retail and Wholesale: Industry Margins.

In this example using an Industry Output Event, we are told a cheese manufacturing firm will have $1M in new production. We will give our new Event a Title, select the Type as Industry Output, the Specification is 82 - Cheese manufacturing, and the Value is $1,000,000. Check out the article Picking an Industry for assistance in choosing the appropriate IMPLAN Industry.

Perhaps we are also told that this cheese company will pay $250,000 of that $1M in production in Employee Compensation. We can click on the menu button to enter additional information for Employment, Employee Compensation, and Proprietor Income.

Clicking on Close will collapse the Advanced Menu.

IMPLAN will always prioritize the Event Values in the following order:

1. Output
2. Employee Compensation
3. Proprietor Income
4. Employment

Therefore, if this Event had instead been entered as an Industry Employee Compensation Event with a Value of $250,000 and an Output Value of $1,000,000 entered in the Advanced Menu, the Event would still produce the same Impact Results. 

Industry Employment

Sometimes, we are only given an Employment figure. In this example, we are told there will be 100 new employees in a new sawmill. We will give our new Event a Title, select Industry Employment as the Type, select Industry 267 - Sawmill, woodworking, and paper machinery as the Specification, and type the Value of 100. 

Industry Employee Compensation

If Output is unknown, but you do know the Employee Compensation associated with a new project, an Industry Employee Compensation Event is appropriate. Employee Compensation is the total payroll cost of wage and salary employees to the employer. This includes wages and salaries, all benefits and payroll taxes.  It is also referred to as fully-loaded payroll.

In this example, we are told there will be $5M in new Employee Compensation at a crane manufacturing facility. We will give our new Event a Title, select Industry Employee Compensation as the Type, select Industry 289 - Overhead cranes, hoists, and monorail systems manufacturing as the Specification, and enter $5,000,000 as the Value. If you know more information, utilize the Advanced Menu to add in other known Values.

Industry Proprietor Income

The final type of Industry Event is Industry Proprietor Income. Proprietor Income consists of payments received by self-employed individuals and unincorporated business owners. More specifically, it represents the current-production income of sole proprietorships, partnerships, and tax-exempt cooperatives.

In this example, we are told there will be $2M in new Proprietor Income at a packaging machinery manufacturing plant. We will give our new Event a Title, select Industry Proprietor Income as the Type, select Industry 293 - Packaging machinery manufacturing as the Specification, and enter the Value of $2,000,000. If you know more information, utilize the Advanced Menu to add in other known Values.

Now that you have your Events, ensure that all are highlighted in teal by clicking on them individually or checking Select All Events at the top of the screen. Now the Events can be dragged into your Group on the right.

You will know when the Events have populated in the Group when the number in the upper right of the Group box equals the number of Events.

Now click Run in the bottom right of the Impacts Screen.

When the analysis is finished, you are ready to check out your Results. For more information on how to interpret them, check out the article Industry Impacts: Direct, Indirect, and Induced Effects.

In this example, we included four Events, so the default on the Results screen will include all four. If you want to look at the impacts for just one Event, click on Filters and search for the Event Name that you want to see.

RELATED ARTICLES

Explaining Event Types

Industry Impacts: Direct, Indirect, and Induced Effects

Picking an Industry

Running Your First New Business Impact

Written July 6, 2020