Customize Region Menu

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, 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 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 section, where they must select Customize Industry Details or Customize 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 most of the Industry’s LPF on the left: Total Industry’s Output, Total Employee Compensation (EC), Total Proprietor Income (PI), Total Other Property Income (OPI), and Total Taxes on Production and Imports, Net of Subsidies (TOPI). The only missing component is the Industry’s Total Intermediate Input value. 

The Total Employment for that Industry at the top is used to calculate the per worker values. The Output, EC, PI, OPI, and TOPI per worker (/w) values will be displayed on the right. 

All of these values are editable. 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, be sure to make Employment value changes first, then work from top to bottom. If the Total values on the left are provided, IMPLAN will then calculate the per worker ratios on the right. Alternatively, if user values are entered in the per worker ratios on the right IMPLAN will then calculate the Total values on the left. The Employment value will be automatically split across Wage & Salary Employees and Proprietors utilizing the national distribution for the added or new Industry. Negative values can only be entered for PI, OPI, and TOPI. 

In the example below, the Total Employment was adjusted to 2,000 so IMPLAN divided the existing Industry Totals by the new Employment to recalculate the Per Worker values. Utilize the locking feature to either adjust the Totals or per worker values. Click Reset 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 should 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.

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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 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. 

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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 2021. 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. 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.

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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 January 19, 2024