INTRODUCTION
The Customize Region menu is used for adding an Industry that doesn't exist in the Region, editing an existing Industry in the Region, editing an Industry’s Byproduct Coefficients or Commodity Demand, or adjusting the Regional Purchase Coefficient (RPC) for a Commodity produced in the Region. Customization can be done on Combined Regions, but they must be Combined prior to Customization. RPC Customizations are allowed on Regions built with Industry Detail or Production Customizations. However, any Region built with Customized RPCs can not be further adjusted.
This feature is currently unavailable when creating a project with any Custom Aggregation Scheme (2-Digit NAICS, 3-Digit NAICS, or user-defined).
ACCESSING CUSTOMIZE REGION
Find the Customize Region menu by clicking the View Region Details button or the name of the Region itself.
The option to Customize Region is available from the More Options icon within the Region Details.
Clicking Customize Region will take users to the Customize dashboards, where they must select Customize Industry Details, Customize Production, or Customize Model RPC. If a user elects to customize all three, the order of operations is Industry Details, then Production, and lastly, Model RPC.
CUSTOMIZE INDUSTRY DETAILS
To customize an Industry, select an Industry by clicking the Industry from the list on the left-hand side or by searching for the Industry in the search field for the Industry code or description.
For each Industry that exists in the Region, there will be information about how that Industry operated in that Region for a given year. This is known as the Industry’s Leontief Production Function (LPF) or Output Equation.
The Customize window will display the Industry’s LPF in Total values on the left and Per Worker values on the right. The values include an Industry’s Output, Employee Compensation (EC), Proprietor Income (PI), Other Property Income (OPI), and Taxes on Production and Imports, Net of Subsidies (TOPI). It also displays the Total Value Added (EC + PI + OPI + TOPI) and Total Intermediate Inputs (Output - Value Added).
The Total Employment for that Industry at the top is used to calculate the per worker values on the right. For example, if Total Output is $1,000,000 and Total employment for the Industry is 10, then the Output per worker value is $100,000 ($1,000,000 / 10).
All of these values, Totals and Per Worker, are editable by the user. Adjusting any of the Industry Totals or Per Worker values will change the LPF of the Industry. Any adjustments to existing Industries or adding new Industries that did not previously exist, will affect the regional economy as IMPLAN will need to rebuild the Social Accounting Matrix (SAM) for the Customized Region. This process will recalculate the supply and demand of all Commodities and their Regional Purchase Coefficients (RPC) for the Customized Region, affecting all rounds of spending. This process is not always the recommended approach. In some instances, it may be preferable to utilize the Industry Impact Analysis (Detailed) Event Type instead.
HOW TO CUSTOMIZE INDUSTRY DETAILS
When using the Industry Details Customization to edit an existing Industry, users must first select which values to hold constant (Totals or Per Worker) by clicking the Lock icon next to the option. All of these values, Totals and Per Worker, are editable by overwriting the existing value. Note that negative values can only be entered for PI, OPI, and TOPI. Click Apply National ratios to utilize the national Per Worker values for any existing Industry to recalculate the Region’s Industry Totals.
If the user needs to adjust the Total Employment values, this must be done prior to making edits to the LPF. If the Total values on the left are locked and Employment is adjusted, IMPLAN will recalculate the Per Worker values on the right (Total/ Adjusted Employment = Per Worker). Alternatively, if the user locks the Per Worker ratios on the right and Employment is adjusted, IMPLAN will recalculate the Total values on the left (Per Worker * Adjusted Employment = Total). The Adjusted Total Employment value will automatically split across Wage & Salary Employees and Proprietors utilizing the Regional distribution for that Industry.
In addition to adding a new Industry, users also have the option to remove any Industry from the Region by selecting Zero out Industry under the More Options icon.
Alternatively, users can toggle to the Percentage of Output option to adjust the existing Industry. This option allows users to utilize a percentage to apportion Output to the five components (EC, PI, OPI, TOPI, and II).
In the example below, the Total Employment for Industry 10 was adjusted to 800 and Total values were locked, so IMPLAN divided the Industry Totals by the new Employment to recalculate the Per Worker values on the right.
Select Reset under the More Options icon to restore the original values.
When using the Industry Details Customization to add a new Industry, users must first select which values to hold constant (Totals or Per Worker) by clicking the Lock icon next to the option. Total Employment should only be added after the Industry Totals or Per Worker values are entered.
All of the values, Totals and Per Worker, are editable by typing or pasting in a new value. Note that negative values can only be entered for PI, OPI, and TOPI. Click Apply National ratios to utilize the national Per Worker values to add a new Industry. Otherwise, IMPLAN suggests entering the known operations of the new Industry or business to fill in the LPF or utilize Industry Per Worker values from a suitable proxy region. IMPLAN does not recommend utilizing the Industry Totals from another proxy region, as the Total Employment and Output levels will not likely be identical.
The last step is to add Total Employment at the top for the new Industry. IMPLAN will then calculate either the Total or Per Worker estimates based on the Total Employment number entered by the user.
If the Total or Per Worker values are unknown for the new Industry, users can toggle to the Percentage of Output option. This option allows users to enter a Total Employment and Total Output for the new Industry, then utilize a percentage to apportion Output to the five components (EC, PI, OPI, TOPI, and II).
Once edits have been made to an Industry, the Industry will be marked in the Industry list. The Industry list filter allows users to filter by edited or unedited Industries. If the user needs to customize more than one Industry, they must be done prior to clicking complete.
Save changes by clicking Complete Customization in the bottom left corner of the screen. Be sure to give the Customized Region a new name based on the edits made.
Once the customization is complete, the Customized Region will appear in the Selected Region field and display its build progress. Once the build is complete, an in-app notification will appear, and the View Region Details will become available. Customized Regions are marked with the Customized Region icon and appear in the user’s Combined & Customized View.
These Regions can be used across multiple Projects once created.
CUSTOMIZE PRODUCTION
To customize an Industry’s Production, select an Industry by clicking the Industry from the list on the left-hand side or by searching for the Industry in the search field for the Industry code or description.
For each Industry that exists in the Region, there will be information about how that Industry purchased (Commodity Demand) and produced (Commodity Production) Commodities in that Region for a given year. This feature allows users to Customize either or both Commodity Demand and Commodity Production for a given Industry.
The Industry’s Commodity Demand is a list of Commodities required by the Industry in order to produce their own product(s), also known as its Intermediate Inputs. The Commodity Demand table represents a proportion of the Total Industry Output (TIO) spent on each Commodity purchased, or its Gross Absorption. The Total Gross Absorption is equal to the sum of all Intermediate Inputs.
This customization allows users to edit the Commodity Demand list by adding or deleting Commodities and/or adjusting the Gross Absorption of any Commodity. However, this feature will not allow users to exceed or decrease the Total Gross Absorption for the Industry. If a user would like to adjust the Total Gross Absorption for the Industry, it must be done prior. This can be accomplished by editing the Industry’s Value Added components through the Industry Details Customization discussed above.
The Industry's Commodity Production is the Total Industry Output (TIO) value of each product produced. The proportion of TIO that comes from the production of each Commodity is known as a Byproduct Coefficient. The sum of each Industry’s Byproduct Coefficients should always sum to 100%, which is equal to TIO.
This customization allows users to edit the Commodity Production list by adding or deleting Commodities and/or adjusting the Byproduct Coefficient of any Commodity. However, this feature will not allow users to complete the Customization unless the sum of Byproduct Coefficients is 100%, which is equal to TIO.
HOW TO CUSTOMIZE INDUSTRY PRODUCTION
When using the Industry Production Customization, be sure to make any necessary customizations to Industry Details first. Additionally, any necessary changes to a Regional Purchase Coefficient (RPC) in the Region should be done last, following Industry Details and Industry Production.
Commodity Demand
In the example below, the Commodity Demand was customized for Industry 13 - Poultry and egg production to remove any energy purchases. Edits can be made by selecting the Commodities from the list, clicking on More Options and selecting Delete. Alternatively, users can add a Commodity or type in a value to overwrite any Gross Absorption coefficient for a given Commodity.
The Commodity Demand Customization will not allow users to exceed or decrease the Total Gross Absorption for the Industry. Before Completing the Customization, users must select Normalize under the More Options icon. Normalization rebalances the coefficients so the remaining list of Commodities sums to 100% of the Total Gross Absorption, in this example 88.15%. Click Reset under More Options to restore the original values.
Commodity Production
Toggle to Commodity Production to edit the Commodities produced by a given Industry. In the example below, the Commodity Production was customized for Industry 13 - Poultry and egg production to remove byproducts. Edits can be made by selecting the Commodities from the list, clicking on More Options and selecting Delete. Alternatively, users can add a Commodity or type in a value to overwrite the byproduct coefficient for any Commodity.
The Commodity Production Customization will not allow users to complete the Customization unless the sum of Byproduct Coefficients is 100%, which is equal to TIO. Before Completing the Customization, users must select Normalize under the More Options icon. Normalization rebalances the coefficients so the remaining list of Commodities sums to 100%. Click Reset under More Options to restore the original values.
Once edits have been made to an Industry, the Industry will be marked in the Industry list. The Industry list filter allows users to filter by edited or unedited Industries. If the user needs to customize more than one Industry, they must be done prior to clicking complete.
Save changes by clicking Complete Customization in the bottom right corner of the screen. Be sure to give the Customized Region a new name based on the edits made.
Once the customization is complete, the Customized Region will appear in the Selected Region field and display its build progress. Once the build is complete, View Region Details will appear. Customized Regions are marked with the Customized Region icon and appear in the user’s Combined & Customized View.
These Regions can be used across multiple Projects once created.
CUSTOMIZE REGIONAL PURCHASE COEFFICIENTS (RPCS)
To customize a Regional Purchase Coefficient (RPC), select a Commodity by clicking the Commodity from the list on the left-hand side or by searching in the search field for the Commodity code or description.
For each Commodity, there will be information about its supply and demand in that Region for a given year. The Commodity Supply is the total Output of a Commodity produced within the Region by all producing Industries and/or Institutions. The Commodity Demand, also referred to as Gross Commodity Demand, is the total Output of a Commodity that is purchased by all Industries and/or Institutions within a Region.
The total Commodity Supply in a Region is either used/consumed locally or exported to other domestic or foreign markets. The Commodity Supply that stays within the Region is referred to as the Local Use of Local Supply (LULS). The total Commodity Demand in a Region is either met through the local supply or by importing from domestic and foreign markets.
The Regional Purchase Coefficient (RPC) is the percent of Total Demand that is met by Local Supply for a given Commodity in the Region. The RPC is the value used when LPP is set to the Social Accounting Matrix (SAM) Model Value. In more detail, it is the proportion of the Total Gross Demand for a Commodity from all users in the Region, that is supplied by producers located within the Region.
Local Use of Local Supply / Total Gross Commodity Demand = RPC
The Regional Supply Coefficient (RSC) indicates the proportion of Local Supply of a Commodity that goes to meet local Demand. It is also known as the Local Use Ratio, calculated by dividing Local Use of Local Supply by Total Local Commodity Supply.
Local Use of Local Supply / Total Commodity Supply = RSC
The Customize RPC window will display all of these values to a user. Adjusting any Commodity’s RPC value will change the total local supply available (LULS) for all demanders within the Region (Industry or Institution). At this point in time, users can not adjust the RPC that is applied to each locally demanding Industry or Institution.
Any adjustments to existing RPCs will affect the regional economy as IMPLAN will need to rebuild the Social Accounting Matrix (SAM) for the Customized Region. This process will recalculate all Regional Purchase Coefficients (RPC) for the Customized Region, affecting all rounds of spending. This will ultimately change the Type I and Type SAM multipliers of the Customized Region. However, these adjustments will not be reflected in the Region’s Commodity Trade Data. Therefore, any Regions linked via a Multi-Regional Input-Output (MRIO) analysis will not be adjusted to the new (increased or reduced) exported supply.
This process is not always the recommended approach. In some instances, it may be preferable to utilize the Industry Impact Analysis Event Type instead to affect only the first-round of purchases made by an Industry through customizations to the Local Purchase Percentage.
To view the RPC and RSC for a given Commodity in a Region, explore the Commodity Summary Dashboard under Social Account Reports in the Region Details.
HOW TO CUSTOMIZE REGIONAL PURCHASE COEFFICIENTS (RPCS)
When using the RPC Customization, there are three editable fields available for users: Local Use of Local Supply, Regional Supply Coefficient, and Regional Purchase Coefficient. Users may enter a value in any of the three fields and IMPLAN will calculate the remaining values. Note, that the total Local Use of Local Supply can not exceed the total domestic Commodity Supply or demand. This value is provided in the Maximum LULS field (rounded to the second decimal, but users can expand past the second decimal by clicking on the field).
In the example below, Industry 67 - Malt Manufacturing was added to the Alaskan regional economy in Data Year 2022. Even though a local supply was created for the Industry’s Commodities, the RPC values have not been adjusted to reflect the new supply available to local Industries and Institutions.
Therefore, to adjust the RPC value, the Local Use of Local Supply was set to the Maximum LULS value by clicking the SET LULS TO MAXIMUM LULS VALUE button. Users may also type in a LULS value anywhere from 0 up to the maximum LULS value, adjust the RPC percentage, or adjust the RSC percentage. Click Reset to restore the original values.
Once edits have been made to an RPC, the Commodity will be marked in the Commodity list. The Commodity list filter allows users to filter by edited or unedited Commodity. If the user needs to customize more than one RPC, they must be done prior to clicking complete. A Region with Customized RPCs can not be further adjusted.
Save changes by clicking Complete Customization in the bottom left corner of the screen. Be sure to give the Customized Region a new name based on the edits made.
Once the customization is complete, the Customized Region will appear in the Selected Region field and display its build progress. Once the build is complete, an in-app notification will appear, and the View Region Details will become available. Customized Regions are marked with the Customized Region icon and appear in the user’s Combined & Customized View.
These Regions can be used across multiple Projects once created.
RELATED TOPICS
Adding an Industry by Customizing a Region
Written August 30, 2023
Updated July 2, 2024