Adjusting Industry Spending Patterns


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    IMPLAN Support
    Hi Danny, We did some testing here and there is nothing wrong with Indirect results you are getting based on the assumed relationships of the model. The reason that the Indirect seems so large is because your edited Labor Income is so low in comparison to the average. This indicates to us, sort of the same problems you are alluding to that either [ol] [li]The default average for Intermediate Expenditures ratio is obviously quite different than the warehouse/wholesaler you are dealing with. One would presume with the huge output to compensation ratio that the profits are correspondingly large which would reduce the Indirect. To solve this you would need to edit the Study Area Data to reflect these altered relationships.[/li] [li]You are working with a high value, low Gross Margin category of goods, not reflected by the average Gross Margin/Gross Sales relationship. In other words IMPLAN's estimation of a 18.6% of gross sales being kept for operational cost is too large a percentage. If this is the case, this is much easier to fix. You can just specify a much smaller Gross Margin amount and then select "Gross Margin" in the Event.[/li] [li]or if this is a new age broker -e.g., Amazon, who only need telephones and internet and do not actually handle goods, this increases the output per worker ratio. But since you described them as owning a trucking fleet, this may not be the case.[/li] [/ol] Either way you can do an Analysis-by-Parts method to remove purchases that you don't want, but your county appears to represent a small town economy where there is very little opportunity to modify RPCs as they are uniformly very low, as are the individual absorption coefficients. Thus removing these items which will have low local purchasing rate anyway may not be that beneficial. If you do choose this route, after you have removed the items you would like to have removed from the spending pattern you will want to normalize the remaining Events (Events Options> Change All> Normalize Events)and then enter Activity Level as the value of the goods and services budget. Please let us know if you have any additional questions.
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