Transportation equipment purchases


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    IMPLAN Support
    Hi Alex, When you say: "those categories seem to be more appropriate to the setting up of factories rather than purchases that would be made under a standard public procurement process without explicit guarantee of local sourcing (much less manufacture)." Is your concern that the purchases will come through a wholesaler not from the producing Industry, or that the procurement process will somehow change the costs? A couple of notes: All Industries listed in the Sectoring scheme are based on the operations involved in producing the product. So whenever you choose a Sector you are choosing to say "I'm anticipating some local production of this Sector" and in turn that local production will make purchases, so none of the spending patterns will be investment spending patterns for setting up a plant if you are choosing from the standard Industry list. That said, your point about procurement is extremely valid. Ideally you would be able to get exactly where these items were purchase from and only take into account values spent locally, acknowledging that the remainder of the investment value was spent, but it was outside the local economy. Alternatively sometimes people are able to determine from public records what a typically local purchasing vs. import purchasing spending pattern is by commodity type based on historical purchasing records. However, if neither of these are available to you you can choose the producing Sector (as long as you don't believe there are wholesale or transport Margins built into your cost) and use the Local Purchase Percentage field to use the regional availability of that type of production to determine the likelihood it will be purchased locally, or you can determine to go for the conservative route and assume none of those capital purchases are local. If you choose to Model through the producing Sector based on the Sector Search feature you look to have the right Sectors (362 and 345) for the producing Sectors for these items. Hopefully this helps --Implan Support Staff
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