An economic impact study quantitatively estimates the economic benefits a particular industry or corporate entity brings to the surrounding communities, regions, and markets. Arizona State University Seidman Research Institute researchers use the most extensive range of economic modeling in the State of Arizona. They produce REMI, IMPLAN™ and CGE impact analyses at a national, state, county, or zip code level for single- and multi-year time horizons. The IMPLAN™ model, an input-output model based on federal government data, was used to quantify the economic impact. Four types of economic impacts attributable to Plexus Worldwide – direct, indirect, induced, and distribution channel – were quantified:
- Direct impact measures Plexus jobs, labor income, and gross domestic product (“GDP”).
- Indirect impact measures the jobs, labor income, and GDP occurring throughout Plexus Worldwide’s operational supply chain.
- Induced impact measures the jobs, labor income, and GDP resulting from household spending of labor income earned either directly or indirectly from Plexus spending.
- Distribution channel impact measures the jobs, labor income and GDP attributable to the distribution of Plexus products.
Policy makers and the public are rightly often skeptical about economic impact claims made by businesses. For Plexus, having credible analysis conducted by the Seidman Research Institute clearly demonstrates the impact our products and services add to income, output, and employment in their economy and communities.
At Plexus we understand that corporate philanthropy gives momentum to community civic engagement. Strategic philanthropy can lead to financial gain for not only companies but the community, too. Economists have found a connection between social impact investing and financial prosperity. Philanthropy provides communities the resources they need to thrive.
An economic impact study should be performed based upon factors, not timing. Socio-economic impact is a predictor of long term business success. At Plexus performing an economic impact study is a part of our legacy journey from reducing cost to capturing new opportunities. Four reasons to conduct an economic impact study are 1) maintaining license to operate, 2) improving the business enabling environment, 3) strengthening value chains and 4) fueling product service and innovation.