There is a well known software package that city and county development teams rely on. It is called IMPLAN. By constructing Social Accounts that describe the structure and function of a specific economy, IMPLAN can create a localized model to investigate the consequences of projected economic transactions in a community. Used by over 2,000 public and private institutions, IMPLAN is the most widely employed and accepted regional economic analysis software for predicting economic effect.
IMPLAN tracks dollars spent by a company, say the James River Valley Library, in a geographic area, say Stutsman County, on consumers, other businesses, and governments. If the dollars are spent elsewhere, they are not included, that’s called leakage. The system tracks a total of 436 sectors worldwide. There are 136 sectors represented in Stutsman County. The construction project and the daily operations of the library positively affect 104 of these sectors, over 76% of Stutsman County businesses
The direct effect of dollars spent in the community; paying for supplies, utilities, repairs, and local products, is tracked and forecasted. Remember, it does not consider $’s sent out of Stutsman County.
It measures the indirect effect of dollars paid to other businesses, and their use of the dollars in paying for supplies, utilities, repairs, local products, but not $’s leaving Stutsman County.
The induced effect of dollars is measured. These are $’s spent from salaries by the families of the employees of James River Valley Library and indirect businesses , on food, supplies, repairs, local products, but not $’s leaving Stutsman County.
The $’s spent by the operations of JRVL and the new construction project move rapidly through retail stores, repair services, food and drink establishments, insurance carriers, automotive sales, repair shops, electronic and appliance stores, hospitals, clinics, accounting.
Lance Brower, an expert in this field, forecasted the effect of:
1) Building the new library based on the current estimated construction budget.
2) The operations of the existing James River Valley Library using the current 2013 planned expenses.
1) The construction of the new library will return $1.38 for every $1.00 spent. This does not take into account $ spent on steel from Fargo, or sub-contractors from Grand Forks.
2) The day to day operation of JRVL currently returns $1.40 for every $1.00 spent. This does not include $ spent on materials bought in Fargo, Chicago or New York.
The library not only plays a crucial role in the education, information, and entertainment infrastructure of Stutsman County, it is a very good financial investment.
Contact Lance Brower at email@example.com or 701-658-9020.