Flagship Service
Independent Economic Impact Analysis
Quantify the employment, output, and fiscal effects of projects, policies, and investments — with transparent methods and defensible findings.
Discuss Your ProjectHow economic impacts add up
A project does not affect the economy once — it sets off three rounds of activity. A credible impact analysis measures each round separately, then reports the total with the composition made clear. Totals that do not distinguish direct from ripple effects invite challenge; ours do.
Direct impacts
The first round of activity: the project's own spending, jobs, and payroll. A new facility hiring 200 workers and purchasing $15 million in local construction services generates direct employment and output effects measured at the site itself.
Indirect impacts
The supply-chain response. When the project buys materials, equipment, and business services, its suppliers ramp up production and hiring — and their suppliers do the same. We trace these inter-industry purchases through the regional input-output structure.
Induced impacts
The household-spending response. Workers at the project and its suppliers spend their wages on housing, groceries, healthcare, and services, supporting additional jobs in the local consumer economy. Induced effects depend on where workers live and how much of each paycheck is spent locally.
What we measure
Every study reports a standard set of economic measures, each defined precisely and estimated for the direct, indirect, and induced components.
Employment
Jobs supported, reported in full-time and part-time terms and, where relevant, job-years for temporary construction-phase activity.
Labor income
Wages, salaries, and benefits earned by workers in supported jobs — the portion of impact that flows directly to households.
Output
The total value of production generated, including the project's own sales and the production of suppliers. Output is the broadest measure and includes intermediate transactions, so it exceeds GDP.
Value added (GDP)
The project's contribution to gross regional product — output net of intermediate inputs. This is the measure comparable to GDP and the most defensible headline figure for public audiences.
Fiscal effects
Where appropriate, state and local tax revenue generated: income, sales, property, and business taxes attributable to the activity, reported by level of government.
Geographic scope
Impact figures are only meaningful relative to a defined study region. We select the geography deliberately — a county, metropolitan area, multi-county region, or state — based on where the project's workers live, where its suppliers operate, and which audience the findings must serve.
The choice matters: a larger region captures more supply-chain and household-spending effects, while a smaller region shows what stays closest to home. Where the audience spans both — say, a city council and a state agency — we report results at multiple geographic levels so each reader sees the figures relevant to them.
Typical study regions
- City or county — for permitting, local incentives, and council presentations
- Metropolitan statistical area — for regional development and media communications
- Multi-county labor market — where workers commute across county lines
- Statewide — for legislation, state incentives, and regulatory filings
Methodology
Our impact analyses follow a transparent, reproducible process built on regional input-output modeling — the standard framework used by government agencies, universities, and courts. Every step is documented so the findings can withstand scrutiny from opposing experts, agency reviewers, and the public.
- 1
Define the scope
We fix the counterfactual — what would happen without the project — the study period, and the geographic footprint. Scope decisions drive every downstream number, so we document them explicitly.
- 2
Assemble project data
We build the direct-input profile from client records, budgets, engineering estimates, and operating plans: capital spending by category, employment and payroll by occupation, and ongoing operating expenditures.
- 3
Model the regional economy
Direct inputs are mapped to industries and run through an input-output model of the study region, producing indirect and induced multipliers for output, employment, labor income, and value added.
- 4
Stress-test the findings
We vary the assumptions that matter most — local capture rates, wage levels, construction timelines, operating intensity — and report conservative, base, and upside scenarios rather than a single point estimate.
- 5
Deliver the report
Findings are presented in a written report with exhibits, an appendix documenting every data source and assumption, and — where needed — testimony or presentation support.
Data sources
Findings are only as credible as their inputs. We combine project-specific data with authoritative public statistics, and every figure in the report is traceable to a source.
- Client project data: budgets, payrolls, construction schedules, operating plans
- U.S. Bureau of Economic Analysis regional accounts and input-output benchmarks
- U.S. Bureau of Labor Statistics employment and wage data (QCEW, OES)
- U.S. Census Bureau population, commuting, and business-pattern data
- IMPLAN or RIMS II regional input-output multipliers
- State and local tax and budget publications for fiscal analysis
Assumptions & sensitivity analysis
Every impact estimate rests on assumptions: how much spending is captured locally, what workers are paid, how quickly construction proceeds, how the project ramps up. We state each assumption explicitly, justify it with evidence, and then test it.
Rather than a single headline number, clients receive a range — conservative, base, and upside scenarios — showing how the findings respond to the assumptions that matter most. If a conclusion holds under conservative assumptions, it is far harder to challenge in a hearing, negotiation, or courtroom.
What you receive
The deliverable is not a single number — it is a complete, review-ready package. Reports are written for the audience that will use them: boards and investors, permitting agencies, incentive negotiations, or the litigation record.
- Direct, indirect, and induced estimates of employment, labor income, output, and value added (GDP)
- Fiscal-impact analysis of state and local tax revenue, where appropriate
- Multiplier tables with documented model inputs, assumptions, and data sources
- Sensitivity analysis across conservative, base, and upside scenarios
- A written report with exhibits suitable for boards, agencies, investors, or filings
- An assumptions appendix detailed enough for independent review or cross-examination
- Presentation or testimony support for hearings, boards, and public meetings
Common questions we answer
- How many jobs does this project support, directly and through the supply chain?
- What does this investment add to regional GDP and tax revenue?
- How do the economic effects compare with the public cost or incentive package?
- What happens to the findings if key assumptions change?
Who it's for
Developers & businesses
Document the local or regional effect of a new facility, expansion, or investment for permitting, incentives, or stakeholder communications.
Municipalities & agencies
Measure fiscal and employment effects of infrastructure, tax incentives, regulations, and economic development programs.
Nonprofits & institutions
Quantify and communicate the value of programs, facilities, and research initiatives to funders, boards, and the public.
Attorneys & litigators
Enter defensible impact figures into the record with transparent methodology and fully sourced assumptions.
Applications
Economic impact analysis is used across sectors and decision contexts. Representative applications include:
- Project-level economic contribution studies
- Industry and cluster impact analysis
- Tourism, hospitality, and event impact estimates
- Higher-education and hospital contribution studies
- Public-policy and program evaluation
Frequently asked questions
- What does an economic impact analysis measure?
- It measures how a project, policy, or event affects the economy — typically through direct spending and employment, indirect effects on suppliers, and induced effects from household spending. The result is a complete picture of output, jobs, labor income, value added, and fiscal contributions.
- What is the difference between output and value added?
- Output is the total value of production and counts intermediate transactions — a supplier's sale to the project and the project's own sale both appear. Value added strips out those intermediate purchases and equals the contribution to GDP. We report both, but recommend value added as the headline figure because it avoids double counting.
- How is this different from an economic contribution study?
- Contribution studies describe the scale of an existing activity in the economy. Impact analysis estimates the change caused by a specific project or policy relative to a counterfactual. Both use input-output models, but the framing differs — and for net-new projects, the impact framing is the more rigorous one.
- What geographic area should the analysis cover?
- The study region should match where the economic effects actually occur — typically a metropolitan area, county, or state. A larger region captures more supply-chain activity but dilutes local relevance. We select the geography based on commuting patterns, supplier locations, and the audience for the findings, and we can report results at multiple levels.
- What industries do you cover?
- We have applied these methods to real estate developments, infrastructure projects, healthcare and education institutions, manufacturing expansions, tourism and hospitality, energy and utilities, and technology commercialization.
- How long does a typical engagement take?
- Most project-level impact analyses are completed within three to five weeks, depending on data availability and scope. Expedited timelines are available for deadlines or pending filings.
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- Philadelphia, PA | Serving Clients Nationwide
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