Item 28 - Public Hearing - ZOA No. 20204-01 South Coast Technology Center

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ta www.FinanceDTA.com SECTION II INTRODUCTION Economic Analysis' expenditures patterns. The Electromedical and Electrotherapeutic Apparatus Manufacturing Sector and Surgical and Medical Instrument Manufacturing Sector are the focal IMPLAN sectors analyzed within this Study to determine the indirect and induced economic impacts generated by the Project. C.2 IMPLAN Multipliers Although most economists agree that indirect and induced effects, or "multiplier" effects, exist, most economists also concur that such effects are difficult to measure. Patterns of spending and employment among suppliers and employee households often vary over time and from one region to another. Nevertheless, there are certain input-output models that can be used to estimate indirect and induced effects. In quantifying the indirect and induced economic impacts for the Study, DTA utilized the IMPLAN input-output modeling system, a type of quantitative economic model that provides an approximate measure of the "multiplier effect" of a firm's spending on payroll and the purchasing of goods and services. DTA used the web application of the IMPLAN economic modeling system with economic data from 2022 for the County ("IMPLAN Study Model"). Like similar econometric models, IMPLAN helps calculate the flow of payments for goods and services across different industry sectors and between households and industries. Unlike similar econometric models, e.g., the Regional Input -Output Modeling System ("RIMS III, IMPLAN is the industry standard. RIMS II and IMPLAN both include induced effects, but RIMS II differs from IMPLAN in two ways. Specifically, RIMS II uses a single household type for induced personal consumption and employs the traditional single row/column Type II formulation, whereas IMPLAN uses nine (9) household types and applies a more robust mapping of factor income to household consumption using several submatrices. RIMS II also uses location quotients to regionalize the national technical coefficients, a method that underestimates inter -regional trade and overestimates regional multipliers when cross -hauling is present. The IMPLAN model can be envisioned simply as a large spreadsheet with hundreds of industries (plus the household sector) arrayed across the top as producers and the same industries and households listed down the side as consumers. Each million dollars (output) in spending by any one consumer (i.e., the Project) is allocated across the producing industries from which it buys goods and services. These producing industries, in turn, spend money buying goods and services from their own distinct sets of suppliers. Thus, the IMPLAN multiplier model allows one to gauge the effect on each dollar expended by an industry as it diffuses through a regional economy. Furthermore, it allows one to translate the overall regional impact of spending into jobs and employee South Coast Technology Center Project May 13 2024 Economic Impact Study 9