ABOUT: Economic Impact Report

Summary

The Economic Impact Analysis Report measures how your organization's supplier spending contributes to the economy. Using Tier 1 spend data and the United States Bureau of Economic Analysis' Regional Input-Output Modeling System II model, the report estimates jobs supported, economic output, wages, and other key economic indicators.

Purpose

This article explains what the Economic Impact Analysis Report is, the data required to generate it, and how the results can be used.

What Is an Economic Impact Analysis?

An Economic Impact Analysis evaluates how a project, program, or spending activity affects a regional economy. It helps organizations understand the broader impact of their supplier expenditures by estimating:

• Business activity
• Job creation
• Employee compensation
• Value added to the economy
• Industry competitiveness

Economic Impact Analysis reports support strategic planning and complement other evaluations such as financial feasibility and cost-benefit analysis.

Data Requirements

To generate an Economic Impact Analysis Report, your portal must contain:

• Tier 1 spend data
• Supplier North American Industry Classification System codes
• Supplier location information, including city, state, and postal code

These data elements are required for the Regional Input-Output Modeling System II model to calculate economic impact.

Generate an Economic Impact Analysis Report

Navigation

1. Upload your Tier 1 spend data to your SupplierGateway portal.
2. Navigate to Tier 1 Spend > Tier 1 Dashboard.
3. Select the Economic Impact tab.
4. Apply the desired report filters.
5. Select Generate Report.

Outcome

The Economic Impact Analysis Report is generated using your selected data.

Report Outputs

The report includes the following metrics:

• Jobs Supported
• Total Value Added
• Total Compensation
• Total Output
• Jobs Supported by Diversity Category
• Top 10 Economic Impact by North American Industry Classification System Code
• Economic Impact by Supplier Classification

Using the Results

The Economic Impact Analysis Report can help your organization:

• Demonstrate the economic impact of supplier spending.
• Measure the value of supplier diversity initiatives.
• Communicate results to stakeholders.
• Support annual reporting.
• Establish measurable goals for future supplier diversity and procurement programs.

Economic Impact Menu:

1. ABOUT: Economic Impact Report
2. HOW TO: Generate an Economic Impact Report
3. Economic Impact Report: How are my totals calculated?
4. Economic Impact Report: FAQ