new industry

Thank you for your reply.

When using the Industry Impact Analysis (Detailed) the revenue from selling the product should be put under Proprietor Income? I used output for revenue in ABP.

Hello!

If the data you have is revenue made from selling the product, you can input that as Output in an IIA Event for that Industry in the 'Total Output' box (while leaving all other boxes blank, allowing IMPLAN to estimate those values). 

Thanks for your reply.

My inputs are:

1. Cost of the project (I used the 'Intermediate Inputs' box) 

2. Employee Compensation.

3. Potential revenue from selling product

In one scenario my revenue from selling the product cannot cover my costs so when I use the 'Total Output' box I receive this error:

"The values you've provided in the production function may result in other components of the equation being negative. If your intention is to have unprovided data be negative, please proceed. Otherwise, please adjust the values provided."

So it makes sense to me to use the 'Proprietor Income' box as the total output is defined as the sum of II + EC + PI + OPI + TOPI. Please correct me if I'm wrong. Thanks.

When you say "Cost of the project" what project are you speaking of? Intermediate Inputs are purchases of non-durable goods and services that are used to produce other goods and services rather than for final consumption. So those wouldn't necessarily be project costs. Are you trying to estimate the Impact of construction of a new building? If so, those project costs would need to be ran through a construction Industry in an Event separate from the operations (potential revenue).

I'm trying to estimate the impact of producing a new product. It will be a new industry and I need to modify the Spending Pattern.

I know my annual fixed and variable costs of production (machinery, warehouse, feedstock, etc).

I also know the potential revenue from selling the product. My problem is that it is not clear where to input these values.

Thank you so much for taking the time to help me.

Ahh I see!

So you should indeed follow the steps taken in this article Adding Brand New Industries - as Dr. Clouse recommended above. Those costs of production (Intermediate Inputs) would need to be scaled up to reflect the potential revenue that you intend to model, so if you are inputting a year's worth of sales you will also need to be inputting a year's worth of Intermediate Inputs. That value can be put into the Intermediate Input box within your Industry Impact Analysis Event, and you have the ability to modify the Spending Pattern there as well. The potential revenue can simply be classified as Output within the Event, and you can specify any of the other values that are known. If the values are unknown, you can leave them blank (not zero) to allow IMPLAN to estimate.

Let me know if you have any further questions!

Michael Nealy