This tutorial explains how to run an Input-Output scenario in Analyst. Scenarios are run for “what if?” situations, such as business expansion or a company closing down. The I-O model takes what we know (like the number of jobs being lost or gained), and shows the ripple effects on other industries in the region. In this tutorial, we’ll look at the impact of adding 300 jobs to the Petrochemical Manufacturing industry in Houston, TX. This would be applicable if we knew that a certain company was planning on adding 300 jobs, and we’ll find out what other impact that would have on the Houston economy.
- Start by clicking into The Input-Output Model from the home page
- Click Input-Output Scenario
- Under “Select a Region” enter the region you’d like to use and select it from the list. We’ll use Houston-The Woodlands-Sugar Land, TX MSA for this example.
- IMPORTANT: Input-Output scenarios are extremely dependent on the correct region being used. I-O situations require that a functional economic area be used when modeling changes to an economy. MSAs are typically good proxies for these regions.
- Under “Add 6-digit Industries to Scenario” enter the industry you’d like to change. We’ll put in Petrochemical Manufacturing (325110) for this example.
- You’ll see your selected industry appear below, along with a drop down menu to adjust Jobs, Earnings, or Sales figures. We’ll adjust jobs in this case, so in the box marked “Change” we’ll enter 300. To model job loss, simply add a “-“ before the number.
- Click Run.
Now we can see the results of adding 300 jobs in Petrochemical Manufacturing to the Houston MSA. A total change in earnings of over $2M, 2,789 total jobs added to the economy, with an average earnings per job of over $72k. These changes are the results of different multipliers, seen beneath the totals.
We can also click Show Job Distribution at the bottom to see more detail on which industries, occupations, or demographics will add those jobs in the region.
- What is a multiplier?
- How to run more complex input-output scenarios (coming soon)
- How to connect a business to a NAICS code
- What is a functional economic area? (coming soon)