Economic Analysis Services

The Economic Development Department at the RPCGB has four different types of economic analysis services: economic impact modeling, specialized studies, feasibility studies, and economic reports. Each service provides member governments with a report containing an in-depth analysis of relevant data and economic conditions on their project and/or region.

  1. Economic Impact Modeling

The RPCGB provides free economic modeling services for member governments seeking information on how new or existing projects and services impact their local economies. Using IMPLAN economic modeling software, the RPCGB generates a detailed economic impact report on the impact of your project in your community.

If you are interested in learning more about this program please contact Allie Haynes, Economic Development Specialist, at ahaynes@rpcgb.org. You can also refer to the “Economic Impact Modeling Information Sheet” and FAQs below.

FAQs: Economic Impact Modeling

  • An economic impact report uses quantitative economic analysis to examine the effect of a project or service—this is called an “event” in IMPLAN—on the economy in a specified area. Examples of “events” that RPCGB can model include construction projects—such as infrastructure expansion or rehabilitation—new and pre-existing private investment projects, and special events—such as a large sporting event or concerts.  

    Using an economic modeling software called IMPLAN, the analysis forecasts how the event impacts the local economy through different economic indicators like output, employment, tax revenue, and labor income.  

  • Economic analyses, or economic modeling, allows decision-makers to understand and predict the economic behaviors and outcomes that arise from specified economic activities. Governments can discover the ripple effects of potential and pre-existing projects within their community, as well as identify the existing conditions of their local economy. We can model a number of different things but the most common analyses we do are for new construction, new and existing business operations, tourism, population growth, and fiscal spending policy changes.

    Models attempt to represent real-world conditions but often are unable to fully capture every detail and nuance that exists in communities’ complex economic systems. Therefore, while models provide useful insights into potential impacts of economic activities, they are built from assumptions and may create results that are conflicting or confusing. As long as governments remain aware of the limitations of economic modeling, they can effectively and objectively use the results of economic analysis to plan and prioritize projects for their community. 

  • Input-Output (I-O) modeling is based on the work of Nobel Prize winner Wassily Leontief. The foundational concept is that all industries, households, and government in the economy are connected through buy-sell relationships, therefore a given economic activity supports a ripple of additional economic activity throughout the economy. IMPLAN is an I-O modeling system that uses annual, regional data to map these buy-sell relationships so users can predict how specific economic changes will impact a given regional economy or estimate the effect of past or existing economic activity.

    Source: https://support.implan.com/hc/en-us/articles/360038285254-How-IMPLAN-Works  

 

2. Specialized Studies

The RPCGB will conduct specialized studies to help meet the needs of your community. These specialized studies include market assessments, feasibility studies, and economic reports. These services are free for member governments. If you are interested in the RPCGB conducting a specialized study for your project or community please contact Allie Haynes, Economic Development Specialist, at ahaynes@rpcgb.org.

Market Assessments

Market assessments develop a comprehensive understanding of local markets using the current demographics, financial, and economic conditions of a community. This knowledge can aid decision-makers determine how to plan and prioritize projects for short- and long-term economic growth.

Market assessments conducted by the RPCGB Economic Development Team contain five sections that draw from a variety of demographic and economic data sources to provide meaningful insight into your community’s market.

Components of a Market Assesment

  • Consumer Profile — This section focuses on local market conditions and characteristics, defines the local market geography, and analyzes the market area’s demographic and socioeconomic trends.

  • Employment Profile — This section analyzes the existing employment base of the market area by primary industry and by industry sector. This section will also provide an assessment of the existing businesses and the residential labor characteristics of the area.

  • Market Profile — This section examines the local retail and business characteristics, including a market potential analysis.

  • Segmentation Profile and Innovation Index — This section outlines market research data to identify consumer behavior, residential lifestyles, and prevalent target market demographic profiles to help guide private investment, developing, and zoning decisions.

Past Assessments

 

3. Feasibility Studies

A feasibility study is a way to evaluate whether a project could be successful. It evaluates the practicality of your project in order to judge whether or not you can move forward. Typically, a feasibility study contains four elements to judge a project’s feasibility:

  • Technical Feasibility—A technical feasibility study reviews the technical resources available for your project. This study determines if you have the right equipment, enough equipment, and the right technical knowledge to complete your objectives.

  • Financial Feasibility—Financial feasibility describes whether or not your project is fiscally viable. A financial feasibility report includes a cost/benefit analysis of the project. It also forecasts an expected return on investment (ROI), as well as outlines any financial risks. The goal at the end of the financial feasibility study is to understand the economic benefits the project will drive.

  • Market Feasibility—The market feasibility study is an evaluation of how a project might perform in the market. This part of the report includes a market analysis, market competition breakdown, and sales projections.

  • Operational Feasibility—An operational feasibility study evaluates whether or not your organization is able to complete this project. This includes staffing requirements, organizational structure, and any applicable legal requirements.

Source: https://asana.com/resources/feasibility-study

 

4. Economic Reports

Using in-house and external data sources, the RPCGB Economic Development Department can write economic reports on a variety of different topics.

Most recently, we have completed the Pandemic Analysis Report (PAR) for our six-county region. This report is culmination of demographics, consumer spending, and market data and research on the impact of the COVID-19 pandemic on the Greater Birmingham region. The PAR was commissioned by the Economic Development Administration (EDA) as a requirement for CARES Act funding allocations the RPCGB received in 2020.