I am working on a county level impact analysis for a client who is the only employer in a their industry in the County (as confirmed by IMPLAN's employment numbers in the sector). We have a large amount of data and are able to categorize most indirect spending with a high level of certainty. When we run the IMPLAN impacts of the industry overall to cross check with the analysis we run based on our data, I am seeing indirect spending back into the same industry category as our client. I understand from other forum topics that this represents spending into their own company for operations. We have a complete budget and a variety of expenditure information form our client and I want to compare this indirect spending estimate to the information that we have been provided. It looks to me like the impact of indirect spending into the industry might correspond to the spending to purchase their own labor for operations. What categories of spending and output would be included in this indirect component? If we calculate the impacts of wages and salaries to the facility, would that appropriately capture the indirect spending back into their own company? I understand that employee compensation is typically considered to produce induced effects, but it seems like that might be what is being captured here as an indirect effect as well. Thank You
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