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Construction of New Manufacturing Facilities

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JLK5505

On the creation of an Industry Output impact in the "51 - Construction of New Manufacturing Facilities" sector am I to understand that this is the correct impact and sector to choose if I want to run an impact on the construction of a new $4,000,000 manufacturing facility, even if the facility contains offices as well (but they pertain to the future manufacturer's business)?

Also, is this the only thing that I need to input (the dollars) or do I need to tweak it if certain operations of the construction will not be performed in region?

Let's say that materials are being brought in from out of region, does the model account for some percentage of "51 - Construction of New Manufacturing Facilities" to be supplied from out-of-region or is it assuming all parts of the process are in-region?

 

Thank you in advance.

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    maria_lucas

    Hello,

    If the facility being constructed is predominantly for manufacturing operations, then the Construction of New Manufacturing structures industry is appropriate. Any manufacturing facility will have some office area, so office areas should be accounted for in this industry's production function.  

    You only need to input the total construction cost dollars in an Industry Output Event (in the construction of new manufacturing industry). More detailed data can be incorporated if there is something unique/uncommon about the structure type. In IMPLAN, construction is assumed to take place locally, but IMPLAN does account for the construction industry sourcing supplies/materials from out-of-region (each Intermediate Input is purchased at the regional rate indicated by IMPLAN's Regional Purchasing Coefficients (RPC)). You can find the list of Intermediate Input purchases the Construction of New Manufacturing industry makes and the corresponding RPCs Behind the "i" in Social Accounts > Balance Sheets > Industry Balance Sheet > Commodity Demand (filter by Industry 51, see RPC column).

    So to be more specific, the construction cost dollars used as your input should be the total cost of construction performed in the region. IMPLAN will take care of estimating from where the construction business will source inputs.

    Find more construction analysis details here: https://implanhelp.zendesk.com/hc/en-us/articles/115009510907-Common-Construction-Analysis-Questions

    Thank you,

    Maria

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