Using Procurement Data for Economic Impact Analysi

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    IMPLAN Support
    Hello Dave, If you know the industries the company is purchasing from are local to your study region, you can impact those industries using a standard Industry Change Activity and selecting the appropriate industry sectors for your events. Are these suppliers wholesalers or retailers? If yes, then you would want to impact the wholesale sector (395) or the appropriate retail sector (396 - 407). If any of the purchases are from industries outside the study region, then the impact created from the production of those purchases takes place outside of your region; therefore, you would not want to include those purchases as part of your analysis. Regards, IMPLAN Staff
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    dave.wong
    Hi, Thanks for your answer. I have shared further details of the analysis I’m trying to perform and have a few additional questions - The company (revenue >$ 1 bn) spends $300 million on suppliers in the following industries – chemicals ($100 mm), packaging ($100 mm) & marketing services ($100 mm). All suppliers are local to the study region and include a combination of wholesalers and retailers ($200 mm wholesale purchase & $100 mm retail purchase) 1. Can you please provide detailed instructions to run this scenario using the standard Industry Change Activities? 2. Also, once we get the results (output, employment, value added, labor income), what is the best way to interpret the results? Is this the economic impact of the company’s spend in the region? Or the total economic impact of these suppliers in the region? Thanks, Dave
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    IMPLAN Support
    Hello Dave, If you know that your company is purchasing through retail and wholesale suppliers and you know the specific goods being purchased from the wholesalers and the retailers, then you can margin the producers of those goods to capture the impacts of local production, transportation, wholesale, and retail associated to the purchase of those goods. You can find more information about margining when the item being purchased is known at the appropriate link below. Applying Margins to Retail and Producing Sectors http://support.implan.com/index.php?option=com_content&view=article&id=451 Margining: When the Item Being Purchased is Known http://support.implan.com/index.php?option=com_content&view=article&id=203 Note that to margin the producing sector you will need to know the production sector for the goods being purchased. You can use the Sector Search tool to search by keyword or NAICS code. If you do not know the specific good being purchased, then you will want to ensure that you properly impact the wholesale sector or the appropriate retail sector. Margining: When the Item Being Purchased is Unknown http://support.implan.com/index.php?option=com_content&view=article&id=226 For marketing services, are you referring to purchasing advertising services from an advertising firm? If so, you would want to impact sector 457 Advertising Services and not a wholesaler or retailer. Finally, your results will reflect the impact of the company's spend (on the three categories of goods and services presented above) on the local region. Regards, IMPLAN Staff
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