2006 Impacts of Michigan’s Small Business and Technology Development Centers April 13, 2007.
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Transcript of 2006 Impacts of Michigan’s Small Business and Technology Development Centers April 13, 2007.
2006 Impacts of Michigan’s Small Business and Technology
Development Centers
April 13, 2007
REGION HOST ADMINISTRATOR
1 1st Step, Inc.
2 Northwest Michigan Council of Governments
3 Alpena Community College
4 Mid Michigan Community College
5 Delta College Corporate Services: Saginaw Center
6 University of Michigan-Flint
7 Grand Valley State University
8 Lansing Community College
9 Eastern Michigan University
10 Macomb County Department of Planning & Economic Development
11 Kalamazoo College
12 Washtenaw Community College
2006 Unemployment Rates by County
MichiganU.S.
6.91%4.9%
Source: CEA calculations of Bureau of Labor Statistics LAU Series
2006 Unemployment Rates by SBTDC Region
MichiganU.S.
6.91%4.9%
Source: CEA calculations of Bureau of Labor Statistics LAU Series
Direct EffectsType I
MultiplierInduced Effects
Type II Multiplier
Ag, Forestry, Fish & Hunting 1.197 0.215 1.412Mining 1.326 0.779 2.105Utilities 1.946 1.911 3.858Construction 1.367 0.675 2.042Manufacturing 2.205 1.539 3.744Wholesale Trade 1.403 0.901 2.305Transportation & Warehousing 1.335 0.728 2.063Retail trade 1.162 0.352 1.514Information 1.704 1.011 2.716Finance & insurance 1.406 0.832 2.237Real estate & rental 1.691 0.829 2.521Professional- scientific & tech svcs 1.368 0.910 2.278Management of companies 1.480 1.430 2.910Administrative & waste services 1.153 0.385 1.537Educational svcs 1.126 0.303 1.429Health & social services 1.205 0.520 1.724Arts- entertainment & recreation 1.187 0.314 1.501Accomodation & food services 1.123 0.220 1.343Other services 1.164 0.332 1.497Government 1.085 0.573 1.658
Industry Multipliers
How Industries Impact Employment
Relative Growth of Total Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Relative Growth of Total Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 0.4%Region 2 3.4%Region 3 1.0%Region 4 0.7%Region 5 -1.3%Region 6 -2.9%Region 7 2.9%Region 8 1.8%Region 9 -0.5%Region 10 -0.7%Region 11 -0.5%Region 12 -0.3%State 0.1%
Employment Growth by Region
Relative Growth of Agricultural Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 -7.4%Region 2 -8.4%Region 3 -6.7%Region 4 -7.3%Region 5 -8.1%Region 6 -7.5%Region 7 -3.8%Region 8 -6.6%Region 9 -10.0%Region 10 -7.9%Region 11 -5.4%Region 12 -7.5%State -6.8%
Employment Growth by Region
Relative Growth of Agricultural Services Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 4.6%Region 2 2.4%Region 3 0.3%Region 4 5.0%Region 5 5.0%Region 6 8.0%Region 7 4.3%Region 8 7.1%Region 9 3.0%Region 10 0.2%Region 11 1.2%Region 12 9.6%State 4.1%
Employment Growth by Region
Relative Growth of Mining Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 -3.7%Region 2 3.0%Region 3 -0.8%Region 4 -10.6%Region 5 -15.9%Region 6 -15.8%Region 7 -19.7%Region 8 -15.6%Region 9 -14.6%Region 10 -11.9%Region 11 -17.7%Region 12 -15.6%State -8.8%
Employment Growth by Region
Relative Growth of Construction Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 5.5%Region 2 7.6%Region 3 4.4%Region 4 4.3%Region 5 3.9%Region 6 0.0%Region 7 -0.9%Region 8 4.1%Region 9 -4.1%Region 10 3.4%Region 11 -0.9%Region 12 0.9%State 0.3%
Employment Growth by Region
Relative Growth of Manufacturing Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 -2.1%Region 2 1.7%Region 3 -0.5%Region 4 -1.9%Region 5 -8.1%Region 6 -10.2%Region 7 -0.2%Region 8 -3.9%Region 9 -4.8%Region 10 -2.9%Region 11 -4.6%Region 12 -5.4%State -3.9%
Employment Growth by Region
Relative Growth of Transportation, Communications and Public Utilities Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 0.3%Region 2 1.8%Region 3 4.4%Region 4 -3.6%Region 5 -1.6%Region 6 -3.3%Region 7 0.9%Region 8 2.6%Region 9 -2.0%Region 10 -1.0%Region 11 0.8%Region 12 -4.9%State -1.1%
Employment Growth by Region
Relative Growth of Retail Trade Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 -2.8%Region 2 3.3%Region 3 2.0%Region 4 -0.4%Region 5 -2.0%Region 6 -2.0%Region 7 1.5%Region 8 0.4%Region 9 -3.6%Region 10 -1.3%Region 11 0.1%Region 12 -1.7%State -1.4%
Employment Growth by Region
Relative Growth of Wholesale Trade Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 -3.1%Region 2 -4.2%Region 3 -0.4%Region 4 -4.3%Region 5 1.8%Region 6 -19.0%Region 7 3.7%Region 8 8.6%Region 9 3.3%Region 10 -2.1%Region 11 -0.9%Region 12 3.1%State 1.5%
Employment Growth by Region
Relative Growth of Financial Services Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 0.1%Region 2 2.2%Region 3 -4.9%Region 4 0.2%Region 5 0.7%Region 6 -1.8%Region 7 -2.0%Region 8 2.0%Region 9 0.7%Region 10 2.3%Region 11 -4.2%Region 12 -1.2%State 0.0%
Employment Growth by Region
Relative Growth of Services Employment:
2001 – 2006 SBTDC Region to State Total
Region’s Growth Exceeds the State
Region’s Growth Less than State
Source: CEA Calculations and Woods and Poole
Region 1 3.4%Region 2 6.2%Region 3 1.9%Region 4 4.2%Region 5 1.3%Region 6 0.3%Region 7 8.9%Region 8 4.8%Region 9 3.5%Region 10 1.8%Region 11 4.4%Region 12 1.9%State 3.8%
Employment Growth by Region
Percent of Business Establishments Employing Less than 20 Workers
93.44% - 97.14%
90.30% - 92.61%
87.95% - 90.12%
85.41% - 87.67%
80.77% - 84.86%
Source: CEA Calculations and U.S. Census County Business Patterns 2002
Percent of Business Establishments Employing Less than 20 Workers
89.05% - 91.00%
86.57% - 89.04%
85.32% - 86.56%
82.30% - 85.31%
82.29%
Source: CEA Calculations and U.S. Census County Business Patterns 2002
Proportion of State Establishments with More than 1000 Employees
19.11% - 28.44%
6.22% - 6.67%
3.11% - 4.89%
1.33% - 2.67%
0.00% - 0.89%
Source: CEA Calculations and U.S. Census County Business Patterns 2002
Proportion of State Establishments with More than 1000 Employees
12.23% - 49.32%
9.51% - 12.22%
6.80% - 9.50%
1.37% - 6.79%
0.00% - 1.36%
Source: CEA Calculations and U.S. Census County Business Patterns 2002
Employment Muliplier
2.45
Number of Distinct Clients
Direct Jobs Created In Region
Additional Jobs Created In Region
Additional Jobs Created In Rest Of
State
Net Impact On State
Employment
Region 1 679 99 34 6 138 Region 2 221 76 60 19 154 Region 3 278 57 15 6 78 Region 4 315 79 24 26 129 Region 5 394 127 50 25 202 Region 6 515 587 378 302 1,267 Region 7 651 162 134 28 324 Region 8 872 160 79 25 264 Region 9 1106 269 174 39 482 Region 10 727 2,028 3,524 495 6,047 Region 11 615 79 44 12 135 Region 12 423 131 69 32 232 State Total 6,796 3,854 4,585 1,014 9,452
Source: Regional Economic Modeling Inc.
MI-SBTDC 2006:Jobs Creation
Number of Distinct Clients
Direct Sales Growth In
Region
Additional Sales Growth In
Rest Of StateNet Impact On
State
Units $ Mil. (2006) $ Mil. (2006) $ Mil. (2006)
Region 1 679 9.10 0.76 9.85 Region 2 221 18.47 1.18 19.65 Region 3 278 3.88 0.57 4.44 Region 4 315 10.24 3.09 13.33 Region 5 394 14.69 3.47 18.16 Region 6 515 175.57 47.51 223.09 Region 7 651 29.28 2.72 32.01 Region 8 872 24.81 1.41 26.21 Region 9 1106 56.29 4.12 60.41 Region 10 727 1,262.13 21.09 1,283.22 Region 11 615 10.17 1.37 11.53 Region 12 423 25.03 3.37 28.41 State Total 6,796 1,639.65 90.67 1,730.32
Source: Regional Economic Modeling Inc.
MI-SBTDC 2006:Sales Generation
State Tax Per Direct Sales
0.04
State Tax Per Direct Job
16,466
Source: Regional Economic Modeling Inc.
Number of Distinct Clients
Total State Tax
Revenue
Total Federal Tax
Revenue
Total State and Federal
Tax Revenue
Units $ Mil. (2006) $ Mil. (2006) $ Mil. (2006)
Region 1 679 0.45 0.83 1.28 Region 2 221 0.77 1.37 2.14 Region 3 278 0.21 0.50 0.71 Region 4 315 0.55 1.00 1.55 Region 5 394 1.14 1.59 2.73 Region 6 515 7.69 12.84 20.53 Region 7 651 1.67 3.60 5.27 Region 8 872 1.12 2.18 3.29 Region 9 1106 2.47 4.91 7.37 Region 10 727 45.66 84.93 130.59 Region 11 615 0.58 1.24 1.81 Region 12 423 1.16 2.25 3.41 State Total 6,796 63.45 117.22 180.68
MI-SBTDC 2006:Tax Generation
MI-SBTDC 2006 3-Year Projection:Jobs Creation
Source: Regional Economic Modeling Inc.
Number of Distinct Clients
Direct Jobs Created In Region
Additional Jobs Created In Region
Additional Jobs Created In Rest Of
State
Net Impact On State
Employment
Region 1 679 99 38 6 142 Region 2 221 76 67 20 163 Region 3 278 57 17 7 81 Region 4 315 79 28 27 134 Region 5 394 127 53 27 208 Region 6 515 587 415 331 1,333 Region 7 651 162 140 28 330 Region 8 872 160 87 26 273 Region 9 1106 269 182 42 492 Region 10 727 2,028 3,716 546 6,289 Region 11 615 79 46 12 137 Region 12 423 131 76 33 240 State Total 6,796 3,854 4,865 1,103 9,822
MI-SBTDC 2006 3-Year Projection:Sales Generation
Source: Regional Economic Modeling Inc.
Number of Distinct Clients
Direct Sales Growth In
Region
Additional Sales Growth In
Rest Of StateNet Impact On
State
Units $ Mil. (2006) $ Mil. (2006) $ Mil. (2006)
Region 1 679 28.39 2.46 30.85 Region 2 221 58.81 4.06 62.87 Region 3 278 12.07 2.23 14.30 Region 4 315 31.99 10.26 42.25 Region 5 394 45.29 11.25 56.54 Region 6 515 553.15 154.83 707.99 Region 7 651 90.91 9.11 100.02 Region 8 872 77.90 5.06 82.96 Region 9 1106 173.08 12.75 185.82 Region 10 727 3,998.68 68.37 4,067.05 Region 11 615 31.53 4.68 36.21 Region 12 423 78.06 11.53 89.59 State Total 6,796 5,179.86 296.59 5,476.45
MI-SBTDC 2006 3-Year Projection:Tax Generation
Source: Regional Economic Modeling Inc.
Number of Distinct Clients
Total State Tax
Revenue
Total Federal Tax
Revenue
Total State and Federal
Tax Revenue
Units $ Mil. (2006) $ Mil. (2006) $ Mil. (2006)
Region 1 679 1.56 2.99 4.55 Region 2 221 2.63 4.91 7.54 Region 3 278 0.77 1.87 2.64 Region 4 315 1.88 3.53 5.41 Region 5 394 3.05 5.65 8.71 Region 6 515 25.62 44.56 70.18 Region 7 651 5.49 13.45 18.94 Region 8 872 3.75 8.47 12.22 Region 9 1106 7.99 16.81 24.80 Region 10 727 147.40 288.45 435.85 Region 11 615 1.90 4.22 6.12 Region 12 423 3.84 7.96 11.79 State Total 6,796 205.89 402.86 608.75
Source: MI-SBTDC
MI-SPTDC 2006 Budget: Revenue Sources
MI-SBTDC Cash
Satellite Cash Match In-Kind Total Budget
(2006 $) (2006 $) (2006 $) (2006 $)
Region 1 120,000 78,228 41,772 240,000 Region 2 120,000 131,965 12,500 264,465 Region 3 115,000 32,281 40,327 187,608 Region 4 130,000 67,818 86,644 284,462 Region 5 140,000 162,890 94,394 397,284 Region 6 144,000 117,180 98,366 359,546 Region 7 155,000 326,489 158,538 640,027 Region 8 158,001 149,800 115,000 422,801 Region 9 445,000 440,440 212,893 1,098,333 Region 10 164,000 389,232 - 553,232 Region 11 165,000 85,000 80,461 330,461 Region 12 165,350 146,456 140,601 452,407 Totals 2,021,351 2,127,779 1,081,496 5,230,626
Sources: MI-SBTDC, Regional Economic Modeling Inc.
MI-SPTDC 2006 Rate of Return from Budget Sources*
Total Budget
One-Year Total State Tax Revenue
Three-Year Total State Tax Revenue
Discounted Three-Year Total
State Tax Revenue
One-Year Rate of Return
Three-Year Discounted
Rate of Return
(2006 $) (2006 $) (2006 $) (2006 $) Percent Percent
Region 1 240,000 447,000 1,562,700 1,436,026 5.5 5.0Region 2 264,465 770,200 2,630,500 2,419,831 8.9 8.1Region 3 187,608 213,500 771,500 707,951 3.1 2.8Region 4 284,462 548,000 1,883,000 1,731,776 5.6 5.1Region 5 397,284 1,136,000 3,052,900 2,836,334 6.7 6.1Region 6 359,546 7,685,000 25,622,000 23,595,783 70.3 64.6Region 7 640,027 1,672,000 5,490,000 5,059,339 7.6 6.9Region 8 422,801 1,118,000 3,748,000 3,450,685 7.9 7.2Region 9 1,098,333 2,465,000 7,994,000 7,370,913 6.3 5.7Region 10 553,232 45,660,000 147,400,000 135,937,958 265.4 244.7Region 11 330,461 578,000 1,899,500 1,750,425 4.7 4.3Region 12 452,407 1,160,000 3,837,000 3,534,695 7.5 6.8Totals 5,230,626 63,452,700 205,891,100 189,831,716 38.4 35.3
Overall 1-Year IRR
38.4%
Overall 3-Year IRR
35.3%
* Current prime rate of 8.25% applied to discounting
• PowerPoint presentation can be downloaded at,www.cea.msu.edu
• For further information, contactSteven R. Miller 88 Agriculture Hall Michigan State University East Lansing, MI 48824 (517) 355-2153 [email protected]