indirect construction benefits from jobs gain
I am looking at the impact of increasing employment in various sectors by 1000. First, I am creating new broad sectors. For example - Aerospace & Defense is an aggregation of 5 sectors (aircraft mfg, aircraft engine & parts mfg, other aircraft parts & auxiliary equipment mfg, guided missile & space vehicle mfg, propulsion units & parts for space vehicles & guided missile mfg). I then increase employment in this broad sector by 1,000. The results show no gain in construction. I understand that this is because of the backward linkage thing rather than having forward linkages. However, I know that if 1000 new jobs were created, there would be some impact on new housing and/or multi-family housing construction. What do I do to incorporate this into the results?
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Hello Georganna, New construction by definition is a final demand and thus it is no a part of any operational spending pattern. In order to estimate construction impacts you would need to know what kind of facilities were being built (Sector), what the value of the building would be (Industry Sales) and the year of construction. You should see some impacts to Maintenance & Repair Construction Sectors as a result of operations. The operational spending patterns that are impacted when you affect a Sector look at purchases that used year over year, or absorbed into the value of production, thus and form of Capital Expenditure is removed from the spending patterns as these are one-time or periodic purchases that don't repeat in year-over-year fashion and thus don't have the same level of predictability. If you don't have any raw numbers for construction costs but anticipate construction one suggestion might be to see if you can find data on construction of similar facilities in your region that have happened in the past, you could use the cost of those construction projects (with Event Year = to the year of the earlier construction; i.e. if the previous facility as built in 2008 and cost $5.2MM your Event Year would be 2008) to make estimations of the current value of projects. We just recommend documenting any assumptions or methods of estimation that you use. If you don't have anything historically that you feel is comparable, you could also investigate known facility construction in other areas that would map more closely to your projected facility, for this though, you would want to take into consideration differences in total costs between the region where you sample facility is being built and your Study Area. One other options, since you are working with Employment, if you have a general type of construction that you are interested in, you may be able to find an Employment to square footage calculator for different types of facilities, we know they exist for retail and a few other types of facilities, but we aren't sure if ones exist for your specific Industries of interest. If it does it may also offer the cost per square footage on the types of buildings you are interested in, or you may be able to do some additional research to make the bridge between square footage and cost. Here is one example of a sample square footage we found online: http://www.usgbc.org/Docs/Archive/General/Docs4111.pdf Hopefully this helps --Implan Support Staff
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