your market's economic impact
TRANSCRIPT
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 Rapids1. 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 MSAFinal Demand Multiplier
Output Earnings EmploymentFood services 1.4001 0.4240 17.5069Wholesale trade 1.2885 0.4041 6.0673Retail trade 1.3020 0.4237 13.6186Real estate 1.2160 0.1063 3.7544Construction 1.3875 0.4736 9.6282
1. 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
FY12Shed A Shed C Wintershed Kiosks Total
Stalls 108 66 58 4 236Days/week (Jan-March) 3 3 3 3Days/week (April-Dec) 3 3 3 3Average sales $850 $700 $900 $1,500
VacancyJan-Mar 50% 60% 10% 25%Apr-Jun 25% 30% 25% 20%Jul-Sep 10% 20% 35% 10%Oct-Dec 25% 30% 25% 20%
SalesJan-Mar 1,790,100$ 720,720$ 1,832,220$ 175,500$ $4,518,540Apr-Jun 2,685,150$ 1,261,260$ 1,526,850$ 187,200$ $5,660,460Jul-Sep 3,222,180$ 1,441,440$ 1,323,270$ 210,600$ $6,197,490Oct-Dec 2,685,150$ 1,261,260$ 1,526,850$ 187,200$ $5,660,460Total 10,382,580$ 4,684,680$ 6,209,190$ 760,500$ $22,036,950
Post Construction Sales Estimate
Post ConstructionShed A&D Shed C Wintershed Kiosks Total
Stalls 156 66 52 4 278Days/week (Jan-March) 3 3 3 3Days/week (April-Dec) 3 3 3 3Average daily sales $850 $700 $1,100 $2,200
VacancyJan-Mar 60% 40% 5% 20%Apr-Jun 30% 25% 15% 15%Jul-Sep 15% 20% 20% 5%Oct-Dec 30% 25% 15% 15%
SalesJan-Mar 2,068,560$ 1,081,080$ 2,119,260$ 274,560$ $5,543,460Apr-Jun 3,619,980$ 1,351,350$ 1,896,180$ 291,720$ $7,159,230Jul-Sep 4,395,690$ 1,441,440$ 1,784,640$ 326,040$ $7,947,810Oct-Dec 3,619,980$ 1,351,350$ 1,896,180$ 291,720$ $7,159,230Total 13,704,210$ 5,225,220$ 7,696,260$ 1,184,040$ $27,809,730
Storefront sales estimated at $2.3 millionTotal increase: $8.1 million
Source of Sales, Final Demand
Source of Sales
Food Service 10% $2,203,695 13% $3,919,465
Retail 85% $18,731,408 83% $25,024,276
Wholesale 5% $1,101,848 4% $1,205,989
Total 100% $22,036,950 100% $30,149,730
2012 Sales Post Construction
FY2012
Sales
Food service $2,203,695 1.4001 $3,085,393 0.4240 $934,367 17.5069 38.6
Retail $18,731,408 1.3020 $24,388,293 0.4237 $7,936,497 13.6186 255.1
Wholesale $1,101,848 1.2885 $1,419,731 0.4041 $445,257 6.0673 6.7
Total $22,036,950 $28,893,416 $9,316,121 300.4
Post Construction
Sales
Food service $3,919,465 1.4001 $5,487,643 0.4240 $1,661,853 17.5069 68.6
Retail $25,024,276 1.3020 $32,581,607 0.4237 $10,602,786 13.6186 340.8
Wholesale $1,205,989 1.2885 $1,553,917 0.4041 $487,340 6.0673 7.3
Total $30,149,730 $39,623,167 $12,751,979 416.7
Difference $8,112,780 $10,729,751 $3,435,858 116.4
Final Demand
Output Earnings Employment
Final Demand
Output Earnings Employment
Impact of Local Production
Industry Output Earnings Employment Earnings Employment
Vegetables 1.3727 0.2525 11.9091 1.5395 1.2362
Fruit 1.3286 0.2895 14.4871 1.4118 1.1578
Nursery 1.2622 0.3249 13.5085 1.2679 1.1647
Cattle 1.1418 0.1925 7.7308 1.726 1.4606
Bread 1.6078 0.4157 11.809 1.7717 1.3915
Other food 1.6215 0.3029 7.5342 2.1353 1.7499
Final Demand Direct Effect
Current Vendor Categories
Number of vendors used as proxy for sales
Estimate of Local Production
Impact of Local ProductionFY2012
Sales
Vegetables $4,376,295 1.3727 $6,007,340 0.2525 $1,105,014 11.9091 52.1
Fruit $2,917,530 1.3286 $3,876,230 0.2895 $844,625 14.4871 42.3
Nursery $439,387 1.2622 $554,594 0.3249 $142,757 13.5085 5.9
Cattle $135,196 1.1418 $154,360 0.1925 $26,025 7.7308 1.0
Bread $770,617 1.6078 $1,238,998 0.4157 $320,346 11.809 9.1
Other food $419,108 1.6215 $679,584 0.3029 $126,948 7.5342 3.2
Total $9,058,133 $12,511,107 $2,565,715 113.6
Post Construction
Sales
Vegetables $5,987,403 1.3727 $8,218,909 0.2525 $1,511,819 11.9091 71.3
Fruit $3,991,602 1.3286 $5,303,243 0.2895 $1,155,569 14.4871 57.8
Nursery $601,145 1.2622 $758,765 0.3249 $195,312 13.5085 8.1
Cattle $184,968 1.1418 $211,187 0.1925 $35,606 7.7308 1.4
Bread $1,054,316 1.6078 $1,695,129 0.4157 $438,279 11.809 12.5
Other food $573,400 1.6215 $929,768 0.3029 $173,683 7.5342 4.3
Total $12,392,834 $17,117,000 $3,510,268 155.5
Difference $3,334,701 $4,605,894 $944,554 41.8
Final Demand
Output Earnings Employment
Final Demand
Output Earnings Employment
Impact of Construction & Operations
Value
Construction $13,319,300 1.3890 $18,500,508 0.4723 $6,290,705 9.6888 129.0
Real estate $1,051,518 1.1872 $1,248,362 0.1885 $198,211 8.5552 9.0
Total $14,370,818 $19,748,869 $6,488,916 138.0
Final Demand
Output Earnings Employment
Total Economic Impact
RPM Total Impact post construction
Output (millions)
Earnings (millions)
Jobs10 year impact
(millions)
Market sales $39.6 $12.8 416.7 $454.2
Farmer sales $17.1 $3.5 155.5 $196.2
Market management $1.2 $0.2 9.0 $14.3
Construction $18.5 $6.3 0.0 $212.1
Total $76.5 $22.8 581.2 $876.9
Change due to master plan
Output (millions)
Earnings (millions)
Jobs10 year impact
(millions)
Market sales $10.7 $3.4 116.4 $107.3
Farmer sales $4.6 $0.9 41.8 $46.1
Market management $0.5 $0.1 3.9 $5.4
Construction $18.5 $6.3 129.0 $18.5
Total $34.4 $10.8 291.1 $177.2
Farmers’ Market Federation of New York Conference
Your Market’s Economic Impact
Ted Spitzer, President
www.marketventuresinc.com
(207) 321-2016