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Utility Construction Project

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NVEconomist
For a new utility construction project, is it appropriate to include fixed in-house embedded labor as part of industry sales input event in an industry change activity?   There is no industry change since the labor already exist and is being paid on an ongoing basis.
 
In other words,  the utility labor is fixed/embedded and creates no new economic development. Should their cost be included as industry sales input?  I am worried this will overstate employment, labor income, and total output for the construction project.
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    Candi Clouse, PhD

    Hello NV Economist!

    First off, it sounds like you are using our legacy desktop software IMPLAN Pro based on the terminology you used. So this answer is going to follow that.

    You are correct in thinking that including that labor may overstate the impact. In the Industry Change, you can enter a zero for Employment, Employee Compensation, and Proprietor Income. This will eliminate the Direct Effects to these, but will still show a your total Output (Industry Sales).

    If you just want to model the spending on Intermediate Inputs, you might consider using an Industry Spending Pattern Activity. This will model only the spending on Intermediate Inputs as it doesn't include any labor.

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    NVEconomist

    Thank you for the response. I am using sector 52 construction of new power structures. I have some outside the company labor (contractors). Should I include this labor as part of  industry sales? Or should I put this amount as part of employee compensation? Any help would be appreciated.

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    Candi Clouse, PhD

    In IMPLAN, contractors and subcontractors are found in the Direct Effect as proprietors. So in your case, the contractors should be in your direct employment and their income should be in Proprietor Income.

    More details can be found in the article: Construction: Building the Analysis.

     

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    NVEconomist

    Thank you for your help.

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