Local Purchase % for residential construction

Good morning - I am modeling the impacts for residential construction. I have data for two variables: Labor ($4.5 million) and Materials ($3.9 million). My question: How do I adjust the Local Purchase Percentage for materials ONLY. My current steps: 1. I set up an Industry Change Activity with Level 1.0. 2. New Event is 37. 3. Total Industry Sales is $8.4 million (Labor + Materials) 4. Employee Compensation is $4.5 million (override the Implan's default values) 5. Adjust the Employment by dividing Employee Compensation by Output per Worker (From the Customize -> Study Area Data window. The Local Purchase Percentage for labor is about 98% (based on Implan data). The Local Purchase Percentage for materials is about 70% (based on client input). Is the best approach to create two separate Events? Event 1 - Compensation 1. New Event is 37. 2. Total Industry Sales is $4.5 million (Labor only) 3. Employee Compensation is $4.5 million (override the Implan's default values) 4. Adjust the Employment by dividing Employee Compensation by Output per Worker (From the Customize -> Study Area Data window. 5. LPP is the default. Event 2 - Materials 1. New Event is 37. 2. Total Industry Sales is $3.9 million (Materials only) 3. Employee Compensation is $0 (override the Implan's default values) 4. Employment is 0. 5. LPP is 70% Also, please note the links in Implan to previous posts about Capital Expenditures or Parts-by-Analysis are broken. Thanks.
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  • Hello Dennis, You do not want to set the Local Purchase Percentage of the Industry Change Event to SAM Model Value because that would imply that imply 70% of the construction was occurring in the Study Area region (the 98% indicates not the material purchase ratio but the rate at which demand for Sector 37 is met by suppliers of residential construction). You can use the Analysis By Parts methodology to split out operational spending patterns from compensation by importing Sector 37's Industry Spending Pattern. http://implan.com/index.php?option=com_content&view=article&id=730:case-study-analysis-by-parts&catid=264:KB43 - we apologize for the broken link.. You can make changes to this spending pattern, if you know them. This link may also be of benefit: https://implan.com/index.php?option=com_content&view=article&id=252 Please note that there is no reason to use the Analysis By Parts methodology unless you have specific items in the spending pattern you want to change or that you know what that commodity's exact Local Purchase Percentage is.
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