IMPLAN Pro: Applying Margins to Retail and Producing Sectors

MARGINING RETAIL SECTORS:

Retail Sectors need to be margined when the item being purchased is unknown. When the product being purchased is unknown, the only part of the Value Chain we can distinguish is the Retail Margin, the remainder of the values have to be leaked from the Model because when we don't know what was purchased, we can't:

• Determine what was produced or where it was produced or its portion of the total final cost, thus
• We can't determine how it was transported, where it was transported from, and what the proportional cost of transport would be, and
• We can't determine where it was wholesaled and what proportion of the sale went to the wholesaler.

Download 2018 Pro Margins here to view Margin values.  

Once you have created your New Activity, create your New Event and select your desired Retail Sector.

Since you selected a Retail Sector, you will be prompted to select either Gross Retail Sales or Gross Retail Margin. By default, Gross Retail Sales will be selected.

Gross Retail Sales: This value reflects the purchaser price ( value is on the Customer's sales receipt).

Gross Retail Margin: This value reflects the Producer Price.

Enter your input value (Industry Sales, Employment, Employee Compensation, or Proprietor Income) into your Event. In this example, $100,000 Industry Sales for Sector 398.

Once the inputs have been entered, the Margins can be viewed.

     Event Options > Edit Event Properties > Margins > Yes 

     Event Options > Edit Event Properties > Margins > Edit

This view displays the total margined value for your retail Sector. The Dollar Value (Output) is $28,200.00 for total Retail Sales, which is less than what we started with in this example. The $28,200 will be applied to the Multipliers.

Note: Any field in this screen can be customized.

MARGINING A PRODUCING SECTOR:

Margining a Producing Industry will only be possible if the product being produced is available for retail sales. Not all Producing Industries will have the ability to be margined.

Once you have created your New Activity, create your New Event and select a producing Industry.

Enter your input value (Industry Sales, Employment, Employee Compensation, or Proprietor Income) into your Event. In this example, $100,000 Industry Sales for Sector 301.

Once the inputs have been entered, the Margins can be applied.

     Event Options > Edit Event Properties > Margins > Yes

     Event Options > Edit Event Properties > Margins > Edit

The Margins screen will populate with the margined portions for the producing Sector's Value Chain: Production, Wholesale, Retail, and Transportation Sectors. These are the values that will be applied to the respective Industry Multipliers.  

Note that the original value entered ($1M) for Electronic computer manufacturing has been reduced to $610,033.60 now that Margins have been applied, as the original $1M has now been split through the Value Chain.

Note the % Local displays LPP at 100%; this is the default setting.

Note: All of the fields in the Margins screen are customizable except Dollar Value. When editing a value, you must select Re-Balance, located at the bottom right corner of the Edit Margin screen. In addition, when re-balanced, the values will be distributed among all of the Margined Sectors. This is unless any of the Fix Row boxes are selected; if selected, the values in those boxes will remain the same when re-balanced.

When margining a Producing Industry, LPP will need to be set to SAM Model Value, as the Value Chain Sectors will not have their Direct Impact in the study region.

     Event Options > Edit Event Properties > Local Purchase Percentage > Set to SAM Model
     Value

Note the % Local field now displays LPP = SAM Model Value and the % values have changed. This reflects the % of local production to meet local demand in the Study Region of the Model. 

NOT APPLYING MARGINS TO A PRODUCING SECTOR:

There are some Producing Sectors where Margining would not be applicable. These Sectors would be the producing Sectors that are not available for Retail Sales and are thus not able to be Margined. When trying to apply Margins to these Sectors, the following message will be generated.