15 MB - Great Lakes Maritime Research Institute

Definitions used in this report:Measures• Gross Output represents the value of local production required to sustainactivities.• Value Added is a measure of the impacting industry’s contribution to thelocal community; it includes wages, rents, interest and profits.• Employment estimates are in terms of jobs, not in terms of full­timeequivalent employees. Hence, these may be temporary, part time or shortterm jobs.Effects• Direct – Initial new spending in the study area resulting from the project• Indirect – The additional inter­industry spending from the direct impact• Induced – The impact of additional household expenditure resulting fromthe direct and indirect impact.Inputs provided for modeling the impact of the Great Lakes Biodiesel PlantBBER modeled key assumptions to estimated expenditures for the proposed plant.ConstructionMaterials: For the construction impact, BBER estimates the construction periodis 18 months. Construction costs are estimated to be $20,654,014 for Year 1and $10,327,007 in Year 2. For these dollars, percent of the total cost formaterials, and the percent the eight­state region could supply of products andservices for the project.Labor: Costs for the 18 month timeline. IMPLAN model’s estimates of wagerates and output per workers are used for labor costs.OperationsFor the operations impact, BBER provided estimates for such components asstaffing and labor cost per year. BBER also projected the annual total output ofthe plant.Industry sector adjustmentsNAICS industry sector 311225 Fats and Oils Refining and Blending (IMPLANsector 54) was used to model the potential Great Lakes Biodiesel Plant.Production functions addressed in the gross absorption tables for the industrialsectors of the input­output modeling were adjusted to reflect estimates for theGreat Lakes Biodiesel Plant construction and operations demand changes.Benchmark (economic base) and impact (additional plant) models wereconstructed for the regional eight­state economy.29