Measuring the Impact of Capital Investment
Hello,
When given an amount of capital investment without specific uses such as: 1M to construction and 500K to equipment for a project in a specific sector. Is there a way to figure out where the capex will be used based on industry patterns or is it necessary to know how much money might go to furniture versus machinery?
Thank you,
Aymie
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Hi Aymie! Thank you for your forum post. While it would certainly be ideal if you new what the Capital Expenditures were spent on; we do have a Capital Spending Pattern in which you can use. These spending patterns are called FFE (Furniture, Fixture and Equipment) you can either use the Investment only Spending Pattern or the Investment with Structure spending pattern. The Investment only spending pattern can be found in your Model, Activity Options > Import > From Another Model > redirect your navigation bar to IMPLAN > Utilities. This Spending Pattern is titled "Investment Patterns for BEA Industry. This Spending Pattern is helpful if you know what is being purchased. The Investment with Structure spending Pattern includes not only the FFE splits based on construction type but also includes a split of total cost to include the primary structure types. You can download this from the following link: http://implan.com/index.php?view=download&alias=7-investment-with-structures-536sector&category_slug=536&option=com_docman&Itemid=1764. You would then enter your Capital Expenditure value in the Activity Level field. Typically, Capital equipment is not produced in the study region, this would not have an impact on the region. The Capital Spending Pattern does import already with the LPP set to SAM. This will tell you the % of what is produced locally. I hope that this helps! Thanks
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