Machinery & Equipment Purchase and Installation
How do you account for the purchase and installation of machinery & equipment during the construction of a manufacturing facility using the Canadian (Ontario) dataset? Which sector best represents this event? We wish to understand the labor, wage and output impact of this event.
For the purpose of our exercise, machinery and equipment specifically refers to processing equipment, clean room, new sterilization and mixing equipment.
Thank you!
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IMPLAN SupportHello. Thank you for your question. As we understand it, you are trying to model the installation of the equipment, not the impact of manufacturing the equipment, itself. In a relatively small study area, the latter event is likely to be leakage, but that depends on where it is purchased and where it was manufactured For modeling the purchase of the equipment (if you believe it was bought or produced locally): If the equipment is purchased locally, it may not have been manufactured locally, in which case you should apply margins and zero out the producer margin (and probably the retail margin since it was likely purchased from a wholesaler). See here for instructions on margining: http://implan.com/index.php?option=com_content&view=article&id=161:161&catid=324:all-about-margins and http://implan.com/index.php?option=com_content&view=article&id=160:160&catid=324:all-about-margins For modeling the installation of the equipment: The first question is whether the company doing the installation is local? If not then the installation value, i.e. the impact of the service of installing the equipment, is probably leakage. If so, the easiest way to determine the sector they fall under might be to do a search of the company's name + the phrase NAICS code, or you might see if there is any indication of with or without installation when you do a keyword search on the type of equipment being installed. Depending on what the equipment is, it may be installed by the vendor, in which case that value is also leaked. Assuming that it is local or you want to model it as potentially local: - Create an Activity and Event for the installation. - Do an Industry Sales event with the value as the total payment made for installation services. - Unfortunately there is not clear sector for this in the model. We have attached a bridge between 2012 NAICS and the 103 Canada model sectors for you to find the best match. - The model will estimate jobs, labor income, value added, and output for you based on the sector and Industry Sales values you enter. [attachment=625]Bridge_Can103to2012Naics.xlsx[/attachment]0
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