Can Your Organization Measure its Impact on the Economy?
For the last several months, TPMA’s Research Team has been working on an Economic Impact Study for Indiana State University (ISU), the state’s fourth-largest public university, serving nearly 14,000 students.
The study examined ISU’s impact on job creation and economic growth throughout the state of Indiana and in the University’s seven-county service area in Indiana and Illinois. Statewide, Indiana State’s total 2015 impact resulted in 4,537 jobs with earnings of $172 million and total economic output of $411 million dollars. Within its seven-county service area, ISU generated more than $334 million in economic impact and created or supported four percent of all jobs in the area.
TPMA’s Director of Research, Brian Points, presented the findings to the University’s Board of Trustees in May 2017 and a final report will be issued this month. ISU will share the data with legislators, faculty, staff, students and the community to show the positive financial and economic impact the university has on the local community and the state.
“Once a dollar is spent within a regional economy, that dollar could be spent numerous more times before it exits that region — such is the case with ISU, each dollar paid out to residents and local businesses is used by those parties to buy other goods and services within the ISU service area,” said Points. “This demonstrates the economic phenomenon of ‘ripple effects.’”
Points noted the estimates are conservative and that only purchases that occur within the examined seven-county region count towards that area’s economic impact analysis. The study analyzed 25,000 procurement categories which addressed potential duplications and “leakage” (or money that is spent by ISU or its employees outside of the service area).
Accompanying the analysis are TPMA’s recommendations for how the university can increase economic development in the region, such as renovation of Indiana State’s Hulman Center. The center, a 10,200-seat multi-purpose arena opened in 1973, generated roughly $17 million in annual State impact, according to a separate analysis TPMA completed in 2014.
If your organization seeks greater evidence of the impact of your activities, or for more information on this story, contact Brian Points at firstname.lastname@example.org or 208/596-5809