Economic Contribution Assessment

What we do

We undertake economic impact assessments for clients who need to understand the direct, indirect, and induced economic impacts of an industry or an investment at a national, state or regional level. Our analysts prepare their analysis using NineSquared’s Regional Input Output (IO) Model, which captures and models interdependencies between different sectors of the economy enabling direct, indirect, and induced impacts of an investment to be estimated. ECA can inform economic development strategies, investment priorities, policy formulations, funding options, and the likelihood of community support. 

• Direct Impact – A direct impact refers to the immediate economic benefits generated by the entity, such as employment, wages, and output. For instance, a manufacturing plant’s direct impact includes the jobs created, salaries paid, and goods produced.
• Indirect Impact – Indirect impacts are secondary effects on the economy arising from an entity’s supply chain activities. These can be understood as business-to-business transactions that occur as suppliers of goods and services to the primary entity increase their own production and employment to meet demand. For example, a building company’s indirect impact might include the economic activities of suppliers providing materials and services required for construction.
• Induced Impact – Beyond direct and indirect impacts are tertiary effects, which encompass the economic activity generated by spending of wages earned directly and indirectly from the entity. This includes the additional consumption by employees on goods and services such as housing, food, and entertainment, which stimulates further economic activity.

Trusted by clients from diverse sectors, our analysis can be presented as a discrete report to understand local, regional or national impacts and inform decisions, or incorporated into environmental impact assessments as part of the major project approval process.