3-09 B VIEW - Mobile Chamber of Commerce

Economic Impact of Jobs Created in 2008-09
2,859 1 +
New Jobs Created
2008-09
The table above illustrates the ripple
effect of direct jobs created with the
assistance of the Mobile Area Chamber of
Commerce and its Partners for Growth
investors. The impact of the 2,859 jobs
announced in 2008 and 2009 to date,
generates an additional 1,800-plus jobs. The
impact is calculated with the IMPLAN input/
output economic model reflecting Mobile’s
economy. Payroll earnings start at
EARNINGS
$111.6 million and jump to more than
$181.6 million with both direct and indirect
jobs factored in. When a job is added to the
local market, it creates additional work
among the companies that serve that
company as well as those in the service
industry, and jobs are added to fill increased
demand.
The Job Multiplier: A
The jobs created spur additional
growth of local and regional
suppliers as well as positions
in the service industry.
With additional employment
and income, these workers
also contribute to state and
local tax revenues.
933
Additional Jobs
By Industry2
(indirect)
880
Additional Jobs
By Service 3
(induced)
8 9.09 | The Business View | MoBiLE AREA ChAMBER of CoMMERCE
1 - Direct impact: impact generated directly from jobs created
2 - Indirect impact: the changes in employment, income and
business sales in various industry sectors supplying goods
and services to the companies that expanded
3 - Induced impact: captures the ripple effect of increased
household and/or institutional income
When Mobile’s economic development
team – led by the Mobile Area Chamber of
Commerce and funded by Partners for
Growth (PFG) investors – is successful in
recruiting new jobs to the area, there’s a
ripple effect felt throughout the economy,
according to a report published by the
Economic Strategy Center, a division of
National Community Development Services.
The jobs created spur additional growth
of local and regional suppliers as well as
positions in the service industry. With
additional employment and income, these
workers also contribute to state and local
tax revenues.
Since the latest PFG campaign,
supported by 200 public and private
investors, including the city of Mobile and
Mobile County, was conducted last year,
there is evidence that the investment made
is paying off locally.
Program results to date facilitated the
attraction and expansion of 11 companies,
bringing 2,859 new direct jobs with an
annual payroll of $111.6 million to the
=
4,672
Total Jobs Generated
2008-09
$111,635,854 + $41,308,622 + $28,644,207 = $181,608,683
aerospace, biodiesel, steel manufacturing,
maritime, industrial gases and customer
contact industries. Companies making
headlines included Atlantic Marine, Austal,
C&G Boat Works, Ryla Inc., Silver Ships
and SSAB Alabama.
Using the regional-specific impact
analysis model, IMPLAN input/output,
the report shows these initial jobs are
responsible for generating another 1,813
indirect jobs – turning 2,859 to 4,672 new
jobs in the area. The indirect jobs bring an
additional $69.9 million payroll, and the
$111.6 million increases 60 percent to
$181.6 million.
Indirect jobs are divided into two
categories: those that provide goods and
services to expanding companies such as
security, vending, janitorial supplies, or
subcontractors, known as indirect, and
those in the retail and service industry
including restaurants, movie theaters and
dry cleaners, labeled induced jobs since
they come as a result of additional
spending in the community.