Industry spending pattern
I am working on an analysis in which a company is spending $X to implement a new program, and they want to know the impact of this spending on the local economy. I only have data on the total amount being spent. I do not have a budget or detailed breakdown of the spending. Would it be appropriate to use the activity type of industry spending pattern or should I use another activity type?
Thanks!
Steve
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It all really depends on what is meant by "implementing a new program". Is the spending relevant to equipment investment or construction? Or is this spending reflective of the cost of inputs and/or labor? How and on what the money is spent determines how to apply the value to the model. Without that information, it's impossible to accurately impact the model.
The industry spending patterns represent annual input purchases required by the selected industry. They do not include capital purchases or labor payments.
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