One company, 2 industries

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    IMPLAN Forum
    Hi! Thank you for your forum Post! Great catch that you could run into double-counting here. Could you provide us with some additional details about what you are doing including: 1. The NAICS of IMPLAN Sectors that are involved. 2. We presume both of these firms are in the same Study Area? 3. It sounds like the output of the first firm is an input to production of the second firm, is that correct? 4. Is you starting value the Industry Sales of both organizations? Thank you for your time, this information will help us to better assist you in determining if you need to use an Analysis-by-Parts technique to split out the Sectors.
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    IMPLAN women
    Thanks for your help. To answer your questions: 1. The NAICS of IMPLAN Sectors that are involved. 166 & 161 2. We presume both of these firms are in the same Study Area? The two sites would be located adjacent to each other 3. It sounds like the output of the first firm is an input to production of the second firm, is that correct? Yes - exactly the problem. 4. Is you starting value the Industry Sales of both organizations? Actually, all we know is employment and wages.
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    IMPLAN Forum
    Hi! Thank you for the additional information, this is helpful in providing you with additional direction. Since your impact is occurring within the same region; we recommend doing an Analysis By Parts. As this will allow you to remove certain commodities in the spending pattern that would be duplicated in the other Sector. Here is the article on ABP for IMPLAN Pro: http://implan.com/index.php?option=com_content&task=article.edit&id=359 As an additional thought, since your starting value is Wages (Labor Income Change Activity Type), this will need to be a fully loaded payroll value (salary, benefits, taxes, etc). For the Industry Spending Pattern Activity Type- this value will need to be Industry Sales/Output or a budgetary value. If you do not have this particular value, you can run an Industry Change Activity to obtain the Output value. You wouldn't need to analyze the Industry Change, you can do this by just using the Event as a means to estimate Industry Sales. You can either use just the Employment value, just the Wage value, both Employment and Wage value as is or use a weighted value of Employment and Wages to enter both into the Event. Then your Direct Output value can be used for your ABP in the Industry Spending Pattern Activity. As a reminder, IMPLAN views Employment as a head count which rolls up Full Time, Part Time and Seasonal workers; this is not an FTE. Thanks!
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    IMPLAN women
    Thanks so much for your response. We are with you so far, but still not sure how to ensure in our analysis that the inputs for sector 161 go straight into sector 166 as inputs. The example only talks about one sector and we need to model our analysis between the two sectors with the first (161) being the only supplier to the second (166). Thanks!
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    IMPLAN Forum
    Hello! We aren't sure if this will address your concern but if you are running the analysis on both Industries the purpose of doing the Analysis-by-Parts is to not have Sector 166 purchase any production of 161, because the full value of 161 is already accounted for in that portion of the analysis. Thus forcing 166 to not purchase 161 avoids the double-counting that will occur if you don't make the modification. If the concern is that only a portion of the Output of 161 is actually fed into 166 then you can proportionally split that production (i.e. if 60% of 161's production is sold to 166 and the 40% is exported) and you want the 60% accounted for as part of the production of 166 instead of 161 you could split the results on a 60:40 basis and add the appropriate portion to the Indirect and Induced Effects of 166 leaving the remainder in 161. Thanks!
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