Direct construction effects


1 comment

  • Avatar
    IMPLAN Forum
    Hi Steve, We apologize for delayed response. The Direct construction impacts are the cost of the building less land costs and any fixtures that are not integral to the structure, basically as you have described. All the value of the building should be in the region, and the non-local purchases will be accounted for by the Regional Purchasing Coefficients in the Industry Spending Pattern. Even though these inputs came from outside the study area, they now make up part of the value of the structure. Likewise Employment is defined 'at the site' so you will want to count all the Employment in the Direct. You will similarly want to report all Labor Income as direct; however, you will want to use an adjusted Labor Income value when setting up the Labor Income Change to account for resident workers only. For those that do not live locally, you could simply exclude their wages (conservative estimate) or model just their per diem expenditures on food, lodging, etc. Many people do report the Direct, but you certainly do not have to. Often with an Analysis-by-Parts methodology we recommend telling a story rather than just using a table of results. In a story format you can describe what the analysis really means - for example, "In county A we build a building that has a total structural cost of $1,000,000. The construction of the building required 35 workers, 18 of whom are residents of county A (assuming you have this kind of information, as IMPLAN won't be able to tell you this). The construction resulted in a total payroll of $470,000 and approximately 25% of this went to local workers. As a result of local input purchases and the spending of Labor Income, this project supported an additional 10 jobs and $500,000 of Labor Income in county A. Please let us know if you have any additional questions.
    Comment actions Permalink

Please sign in to leave a comment.