security monitoring services

I am analyzing the economic impact for a company that is in the business of providing security monitoring services. I have used the sectoral code 387: Investigation and Security Services. The company will have a revenue generating operation in one county and a non-revenue generating operation in another county. For the former, they have provided me with both the revenue figures and direct hiring figures. I used just the revenue figure. In the latter they will just have an office where they will hire 10 employees directly to perhaps monitor their operations.For this one I just used the direct jobs as input. My questions are: 1. For Activity Type, is the Industry Change choice correct for both? 2. Am I inserting the inputs correctly? 3. For employment multipliers should I just look under sector 387 employment multiplier? Thanks! Ali
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  • Hello Ali, 1. Industry Change should be fine for both these Activities. Depending on what the operations of the 'non-revenue site' are you may want to keep the current Sector or you may want to find a Sector that more accurately describes the activity going on in the site. The spending patterns associated to each Sector will be dependent on what that Sector is producing, so if the non-revenue site isn't producing security services you may want to choose a different Sector for this. You can view what a Sector purchases in the Explore> Social Accounts> Balance Sheet (Tab), and select View By: Industry Balance Sheet and the Commodity Demand tab, and what it produces in the Commodity Production tab. You can use key words in the Sector Search to help you identify another Sector if you think this is appropriate. 2. It doesn't sound like you are doing anything wrong. However, when you have more than one factor you can certainly overwrite both Event fields (Industry Sales and Employment) if you would like. In this case, since Employment doesn't drive any economic impacts, you can edit it, or you can just report your Direct jobs instead of the IMPLAN estimated Direct jobs. 3.What specifically are you looking for an Employment Multiplier for? If you have your own Direct Employment probably the best the way to determine the Employment Multiplier is to make sure that it reflects the same definition as IMPLAN jobs and if not to convert it. Then once you have your Direct jobs in the IMPLAN definition, you can calculate an Employment Multiplier for your study by taking total jobs (adjusted for you 'new' Direct number if you need to recalculate, or if you don't enter it into IMPLAN) and dividing it by Direct jobs (Total Employment/Direct Employment). We do caution you however, that many people don't understand the nature of what an Employment Multiplier indicates and it is the most frequently misrepresented or misused by audiences of a study who are not familiar with economics, so we recommend not reporting Employment Multipliers in most circumstances. Please let us know if this addresses your concern or if you have any additional questions.
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  • Thanks. That helps greatly. My client wants to know how direct jobs create indirect and induced jobs, so that is why I am looking for employment multipliers. I am not sure if I understand what you mean when you say that "the best way to determine the Employment multiplier is to make sure that it reflects the same definition as IMPLAN jobs." Can you explain? Thanks!
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  • Hi Ali, We apologize it looks like the link failed. IMPLAN jobs are not FTE equivalents so if the Direct jobs you are given by the company are FTE, you will want to convert these before calculating an Employment Multiplier for your study based on Total Employment/Direct Employment calculation. Here is some information on [url=http://implan.com/v4/index.php?option=com_multicategories&view=article&id=628:628&Itemid=14]converting FTE's [/url]and a [url=http://implan.com/v4/index.php?option=com_docman&task=doc_download&gid=206&Itemid=7]link to download the conversion spreadsheet[/url]. If the jobs you are working with are more of a headcount than FTE's you won't need to do any conversion at all. Please let us know if you have any additional questions. IMPLAN Support Team
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