Margjning

Hi Steve, Thank you for your post! I was able to replicate your study, and noticed that the Local Purchase Percentage (LPP) for sector 277 was set to the SAM Model Value. This is where IMPLAN estimates the % of direct impact occurring in your study region. Question 1: You are correct. Since you are margining a Producing Sector, the software splits out the margined categories (Wholesale, Transportation, Retail and Production). The margin category gives you the % breakout as to how your $1MM for sector 277 is split for those specific margined category sectors (Wholesale, Transportation, Retail and Production). For example, Sector 395 Wholesale Trade, 21.54% of the $1MM will be applied to that sector as a result of the impact from sector 277. The Margin field is customizable as you can over-ride the % in this field. Since you are referring to a commercial building, more than likely there are not retailers involved, so you will likely want to zero out the Retail component and rebalance the Margins. From here, you have two options, 1. You can assume that the remaining Value Chain components stay in equal proportions to one another in which case you can balance without fixing any additional rows, or 2. you can assume that the retail portion goes entirely to the wholesaler and fix the remaining rows. Question 2: Local Impact is derived by "Dollar Value"/ Deflator then * by % Local. For Example Sector 277 Dollar Value $485,812.00 / Deflator 1.031 = 471204.65 * % Local (1.67) = 7,877.75. We would divide the Deflator because the dollar value entered was a 2015 value and the software is reducing it to a 2013 value. In the Setup Activities screen at the top right you will find a Preview button, This will give you the analyzed impact value of the sectors direct impact. The Preview shows the deflated value, so it won't be the same as your results if you has Dollar Year for View set to 2015, but it will show the breakdown. Question 3: You will not need to do anything with the Edit Impact Margins table as the software when your Activity is Analyzed for sector 277 will split out these sectors for you. The Edit Impact Margins screen provides you with a preview and allows you to make any changes before it is run through the Multipliers. Applying Margins splits the sale across the Value Chain since most purchases to final demand are not made directly from the producing Industry. Thus the final sales price includes the cost of producing the product (in this case HVAC equipment) as well as the cost of transport to wholesale and possibly to the site. Thus the final cost needs to split across all the Industries that add to the cost of the final product (even if they don't technically add value to it). Please let us know if you have any additional questions, Thanks!