pipeline project

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    IMPLAN Support
    Hello Sunny,   Thank you for your forum post.   For measuring the impact of the construction of the pipeline, we recommend using Sector 58: Construction of other new nonresidential structures- which includes: reservoirs, pump stations, and water pipeline construction and pipeline construction other than sewer and water.   We certainly encourage you to customize this Sector based on the information that has been provided to you. In your first paragraph you mention having Employee Compensation (EC) and an Employee estimate. If that is related to the construction of the pipeline; you can over -ride IMPLAN's estimates. We recommend entering your Employee Compensation value first and then editing the Employment number. This bases the Output estimate on your provided Employee Compensation value; EC tends to be a better predictor of Output since Employment counts can include part-time and seasonal workers in addition to full-time workers.   Labor Income is spent at the point of residence. If you know that 50% of your construction employees live outside the region, you will need to account for this by altering your Employee Compensation value. You can find information about this process at the link below. Note that you will want to use this method after you've used your full Employee Compensation value to estimate Output (discussed in the paragraph above).   http://support.implan.com/index.php?option=com_content&view=article&id=254:254&catid=230:230   Also, if the construction firm is utilizing only employees (i.e., no contractors), you will want to zero out Proprietor Income.   For measuring the impact of the operations of the pipeline, sector 413 is the correct choice. However, if your budget only includes the cost of intermediate expenditures for the operations of the pipeline, you will need to estimate Output using the Study Area Data ratio of Output to IE. You can find this by navigating to Social Accounts > Balance Sheets > View By: Industry Balance Sheet > Select your sector > Commodity Demand Tab. The Total Commodity Demand Gross Absorption percentage is the percent of Total Output that goes to Intermediate Expenditures.   Finally, taxes are not spent through the IMPLAN Model but rather set aside and reported in the Direct Tax Results tab. You can export the tax results to Excel and over-ride the tax information with the information you were provided. You will need to shift the other types of Taxes on Production and Imports (TOPI) to compensate for your changes. For example, if your Property Tax value is higher than IMPLAN's, you will need to reduce the values of the other TOPI types (Sales, Motor Vehicle Licenses, etc.) accordingly so that the sum of them all still equals the total Direct TOPI. Regards, IMPLAN Staff
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    sunny
    Thank you very much for the detailed explanation and help. One more clarification please if we have 1500 employees for a period of 15 months and the construction takes place in 5 counties how do we conclude. The peak employment at all given times is supposed to be 1500. Thanks,
  • Avatar
    IMPLAN Support
    Hello Sunny, If you would like to capture the impact of the construction in the 5 counties, you will want to build a model that aggregates the 5 counties together. Then impact the construction sector using your Employee Compensation and Employment values; we suggest starting by entering Employee Compensation first (as described in the previous post). Note that IMPLAN does view Employment as a head count (full time, part time and seasonal workers) rather than a Full Time Equivalency (FTE). If your employment value is an FTE, you can use the converter spreadsheet linked to below to convert your value to a headcount. http://support.implan.com/index.php?view=document&alias=4-536-fte-a-employment-compensation-conversion-table&category_slug=536&layout=default&option=com_docman&Itemid=1764 Regards, IMPLAN Staff
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    sunny
    Thank you once again for your valuable help and time. 1) We are running individual county impact. The indirect and induced seems to be very high in the construction sector? 2) The property taxes is the new tax dollars to the individual counties, is it correct to run govt services sector to see the impact as the tax dollars are coming from property bought and easement payments. We are not running the impact anywhere else so we are not double counting. Thanks once again
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    IMPLAN Support
    Thank you for your forum post. 1. If you could provide me with additional information as to which Values (Employment, Output, Value Added) look high, the regions you are impacting, and the specific sectors, I can take a further look into this. You can view the commodity demand table for the construction sector that you are impacting to view the percentage of its expenditures that are being produced locally. This may clarify why those values are higher than you anticipated. The Regional Absorption column will tell you the % of what is being produced in the study region. Explore > Social Accounts > Balance Sheets > Industry Balance Sheets > Select your Sector > Commodity Demand 2. In regards to modeling property taxes, do you know how this will be spent and if it will be spent in your study region? If those taxes collected from the county will not be spent in the county, then there is no local impact to measure. If you do know which county they will be spent in, you could build a model using that study region to evaluate the impacts. Ideally, the best way to model this impact is to impact the appropriate sector, assuming you know how the tax revenue is being spent. However if you do not know, you could use a general government spending pattern: Institution Spending Pattern. Activity Option > Import > Institution Spending Pattern: Choose the best option that fits your situation: State/Local government Non Education, State/Local government Education, State/Local government Investment, etc. Regards, IMPLAN Staff
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    sunny
    I am inputting the employment number and the construction labor values. As we know that the materials are coming from outside the area so we are not inputting the construction material cost at all but only considering the employment and construction labor costs. For 239 jobs inputted with $64,322,273 labor costs is giving Employment 239.0 317.7 421.8 978.5 So is it a good idea to consider labor income change to see the impact rather then using Construction sector. The study area is Nueces county, TX. Thanks
  • Avatar
    IMPLAN Support
    Hi Sunny! Thank you for your follow up post and the additional information. It is a good idea to consider the Labor Income Change rather than doing an Industry Change. Since the construction material will not be purchased in Nueces County, there will not be an impact. Although, for your Labor Income Change, do you know if the Employees are living in Nueces County, TX or are they living outside of the county? If they are living outside of the county, then they will not be spending their earnings in the region. There will not be an impact associated with their earnings, unless you have their per diem expenditures. Please let us know if you have any additional questions!
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    sunny
    Good Evening! How do we report the results when we run the labor income changes which outputs only induced impact? Do we add the direct employment and labor income values to the respective direct impact fields? Do we make any changes to the output and value added? Thanks,
  • Avatar
    IMPLAN Support
    Hello Sunny, You will need to add your direct values. As you know employment and Labor Income, you can add those as you've suggested. Since your labor income change is related to your construction impact, your Output and Value Added will equal the Output and Value Added associated to the construction. You can calculate these values using the information found in the Balance Sheets: Explore > Social Accounts > Balance Sheets > View By: Industry Balance Sheet > Select your construction sector > Select the Value Added tab. This tab details the split of Output into the parts of Value Added. If you divide your known Employment Compensation by the Employee Compensation percentage presented in the tab, you will arrive at your Construction Direct Output. You can then multiply that number by the Total Value Added percentage to arrive at your Direct Value Added. Regards, IMPLAN Staff

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