SAM Local Purchase Percentage


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    IMPLAN Support
    [attachment=648]h7b5661e.xls[/attachment] Hi Joe, Thank you for your post! The Local Purchase Percentage (LPP) is tricky especially when it comes to a Construction impact. However, the LPP value is where the Direct impact is taking place. For example, since the Construction project is taking place in Williamson County, IL; the LPP should be set to 100%. This is unless not all of the impact is occurring in this region. Is it a case where the impact is on the Williamson and Jackson County boarder? Setting LPP to SAM, IMPLAN is deciding the % of where the impact is taking place. An LPP of 38.05% means that % of the project is taking place is Williamson County. The rest of the Direct impact is happening in another county so the impacts are being leaked out of the Model. In almost every instance the construction of the entire building is within your Study Area region. Thus Local Purchase Percentage for your Event should be 100%. The ability to purchase local materials for construction is determined by the RPC and is not reflected in the Event screen. These values can be viewed at the Explore> Social Accounts> Balance Sheet (Tab), and select View By: Industry Balance Sheet and the Commodity Demand tab> Regional Absorption column. Are also including Jackson in your Model because this is where the Construction workers live and are commuting from into Williamson County? In your aggregate Model for both Williamson and Jackson; I do recommend setting the LPP to 100% because the construction site is within the combined region just as it is in the single region. Another option is that if you wanted to see the impacts in your Direct Construction region on the rest of the state, you can build an MRIO. Getting Started with MRIO: Considerations of MRIO: A suggestion in regards to your Sector. The Sector you chose, 449 Architectural, engineering and related services is the operations Sector. For most construction Sectors Architectural engineering is one of the largest purchase items (as seen in the earlier referenced balance sheet). If you are using both as an Event each; you would double-counting the value to that Sector's operations.I have included the Construction Sector List to assist you in locating the appropriate Construction Sector.[url=][/url] The one other thing I wanted to mention off-hand is to be careful about reporting jobs. The jobs associated to the project are supported not created in that they are short-term temp jobs, and in your case mostly non-local sustained jobs. LPP lower in the combined region because these ratios are developed based on supply to meet demand. The combined region has more demand for architectural engineering but slightly less supply to meet demand.
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