Farmers’ Market Federation of New York Conference Your Market’s Economic Impact March 7, 2013
Presentation Topics 1.Market benefits 2.Economic impact
4. Strengthens and celebrates the local food system 3. Creates hundreds of jobs and substantial economic impact Market Benefits Grand Rapids 1. Sparks redevelopment and downtown renewal 2. Supports entrepreneurship and innovation 6. Brings diverse people together in active public spaces 5. Promotes public health Downtown Market
Rochester Public Market Master Plan New open Shed D Winterization of Shed C Redevelopment of Shed B (Wintershed) Creation of pedestrian-friendly plaza Construction of new storefront building
Economic Impact Economic impacts – Direct benefits of increased sales – Indirect benefits that flow from increased purchases – Induced benefits to household incomes and consumption Assumptions – All master plan elements completed as proposed – Impacts begin when construction completed – Impact of proposed master plan changes, not impact of the Market as it is today – Study limited to city-owned and operated facilities, not adjacent businesses Methods – RIMS II Multipliers from U.S. Bureau of Economic Analysis (BEA), input-output multipliers that account for the input and output structure of more than 500 U.S. industries – Five county Rochester Metropolitan Statistical Area (MSA) – Livingston, Monroe, Ontario, Orleans and Wayne Counties
RIMS II Multipliers for Rochester MSA Final Demand Multiplier OutputEarningsEmployment Food services Wholesale trade Retail trade Real estate Construction Output = total dollar change in output that occurs in all industries in the regional economy for each additional dollar of output delivered to final demand by the industry sector corresponding to the row entry (e.g., Food services) $1.00 of new sales in Food Services creates $1.40 in new economic output 2.Earnings = total dollar change in earnings of households employed by all industries in the regional economy for each additional dollar of output delivered to final demand by the industry sector corresponding to the row entry $1.00 of new sales in Food Services accounts for $0.42 in earnings among all households 3.Employment = total change in number of jobs that occurs in all industries in the regional economy for each additional one million dollars of output delivered to final demand by the industry corresponding to the row entry $1 million of new sales of Food Services creates 17.5 new jobs in the region
Current Sales Estimate
Post Construction Sales Estimate Storefront sales estimated at $2.3 million Total increase: $8.1 million
Source of Sales, Final Demand
Impact of Local Production
Current Vendor Categories Number of vendors used as proxy for sales
Estimate of Local Production
Impact of Local Production
Impact of Construction & Operations
Total Economic Impact
Farmers’ Market Federation of New York Conference Your Market’s Economic Impact Ted Spitzer, President (207)