Special Industry Definitions

INTRODUCTION

Certain IMPLAN Industries require additional explanation, either because they are not NAICS based or they have special properties. This article includes special Industry descriptions for construction, owner-occupied dwellings, government enterprises, Commodity-only sectors, and administrative government. Understanding the unique aspects of these Industries will be helpful when modeling impacts and picking an Industry.

CONSTRUCTION

IMPLAN construction Industries are classified by structure type (Census definitions) rather than NAICS codes. For this reason, there is no correspondence between the NAICS 6-digit codes and IMPLAN Industries. When using the NAICS to IMPLAN Industries bridge or in-app NAICS lookup, construction Industries will not be present. There is a separate IMPLAN Construction Industry file that includes U.S. Census Bureau’s definitions to help users make an appropriate selection.

IMPLAN’s Intermediate Input spending patterns - and thus our Industry Scheme - are sourced from the Bureau of Economic Analysis (BEA) Benchmark I-O model. The IMPLAN Industries for construction match those that the BEA has produced in their I-O tables. IMPLAN gathers construction Output data from the U.S. Census, which is then matched to the BEA’s I-O table of Industry level Intermediate Input spending. Due to the use of these sources, our construction Industries are based on Census structure types rather than NAICS codes. For most analyses this is preferable to trying to figure out how much of the various contractors’ revenue (by NAICS code) go into constructing each structure. Because of this, construction activities like land clearing, plumbing, HVAC, etc. are not individual Industries in IMPLAN; rather, these activities are captured in the Construction Industries. Using Census structure types allows us to define Industries by the type of structure being built instead of by the type of construction activity being done.

Learn more about analyzing the effects of construction activity in the article Construction: Building the Analysis.

OWNER-OCCUPIED DWELLINGS

The owner-occupied dwelling Industry estimates what owner/occupants would pay in rent if they rented rather than owned their homes. The owner-occupied dwellings Industry is included in the database to ensure consistency in the flow of funds. It captures the expenses of home ownership such as repair and maintenance construction, various closing costs, and other expenditures related to the upkeep of the space in the same way expenses are captured for rental properties.

The Industry's sole product (Output) is ownership and is purchased entirely by personal consumption expenditures (household spending). Interest payments and mortgage payments are a transfer from Households and are not included as part of the production function for this Industry.

There is no Employment or Employee Compensation for this Industry. Taxes on production for this Industry are largely made up of property taxes paid by the homeowner, while Other Property Income is the difference between the rental value of the home and the costs of home ownership.

Learn more in the article Housing: Owning, Buying, Selling and Renting.

GOVERNMENT ENTERPRISES

These Industries represent government agencies that cover a substantial portion of their operating costs by selling goods and services to the public. They operate much like private sector firms, hiring labor and purchasing other inputs to produce goods that are sold through markets. Other Federal\State\Local government enterprises (i.e., those other than postal, electric utility, and transportation services) include things such as government-owned and operated liquor stores, airports, sewer and sanitation services, gas, and water supply.¹ This differs from Administrative Government Industries (components of consumption - i.e., final demand), because Administrative Government Industries do not respond to local market demands.

COMMODITIES ONLY

There are certain Commodities which are not produced intentionally by any U.S. Industry. Therefore, no Industry exists for these Commodities in IMPLAN. They are included in the Industry set as “Commodity only” Industries - numerical placeholders for the actual Commodities 3517-3520 listed below.

• Used and secondhand goods are goods that are traded but were not produced during the current year. While used goods are not part of the current-period gross output of the economy, they are part of the supply available for consumption. They come from capital, government institutions, and households.
• Scrap consists of Commodities that are cast off as part of a production process and then resold. Examples include sales of used aluminum cans to recyclers and sales of scrapped vehicles to metal recyclers.
• Rest of world adjustment: As described by the BEA, "the rest-of-the-world adjustment to final uses consists of values for exports and imports that have offsetting adjustments to personal consumption expenditures (PCE) and government… This adjustment is required in order to conform the Commodity treatment of the I-O Use table to the expenditure concepts used for final uses in the National Income and Product Accounts (NIPAs). This is accomplished by making offsetting adjustments between PCE and gross exports and between Federal Government nondefense purchases and exports and imports…For example, foreigners traveling in the United States consume goods and services, such as accommodations, that are included in the source data for PCE. In order to put the PCE estimate on a NIPA basis, an adjustment is made to account for these purchases."²
• Non-comparable foreign imports are goods that are not available anywhere in the nation. They consist of three types of services: (1) services that are produced and consumed abroad, such as airport expenditures by U.S. airlines in foreign countries; (2) service imports that are unique, such as payments for the rights to patents, copyrights, or industrial processes; and (3) service imports that cannot be identified by type, such as payments by U.S. companies to their foreign affiliates for an undefined basket of services.

ADMINISTRATIVE GOVERNMENT PAYROLL 

Administrative government activities (e.g., legislatures, police protection) are not subject to local market forces (i.e., not driven by local demand); as such, they are held exogenous to the multiplier model.

The administrative government payroll Industries represent only the payroll/value added of government Employment. This is necessary because, while the Commodity purchases of these government Institutions are already represented in the SAM, these Industries are included as a bookkeeping element to account for these institutions' payrolls. By definition, these Industries have no Intermediate Inputs and thus will not generate Indirect Effects. For these Industries, Employee Compensation or Employment should be used as Event values; not the operational value of the government as an Output value.

Government Institutions in IMPLAN do not have Industry designations. As Institutions, governments will purchase goods and services required to operate, including the purchase of labor from the administrative government payroll only Industries. Institutions can be modeled using an Institutional Spending Pattern Event. For details on how to edit and use these, visit Institutional Spending Pattern Events. The following government Institutional spending patterns are available.

• Federal Government
  • NonDefense
  • Defense
  • Investment
• State/Local Government
  • Other
  • Education
  • Hospital and Health
  • Investment

RELATED ARTICLES

IMPLAN Industry Schemes

Industry Scheme

Data Sources for Select Industries: Farm, Construction, Railroad, and Government

Downloads