This calculator estimates the economic impacts generated by marina operations in seven different regions of the US. The impacts are estimated using economic multipliers generated with an IMPLAN input-output model for each region (IMPLAN Group, LLC). Multipliers are mathematical calculations used to estimate the additional economic activity or impacts that occur as a marina’s revenues and earnings ripple through a regional economy. In basic terms, for the marine industry to provide a service to consumers, it must purchase products (ie. Docks, lines) and services (ie. Insurance) from other companies. Each of these vendors must also buy goods and services. This cycle continues until all the money is leaked from the region’s economy.
There are three types of effects measured with a multiplier: the direct, the indirect, and the induced effects.
- Direct effects take place only in the industry immediately affected: if a marina lays-off 5 employees, the marine industry loses 5 employees.
- Indirect effects concern inter-industry transactions: if a marina closes it will no longer need locally produced materials or services. This will affect all of their suppliers, possibly resulting in a further loss of a few more jobs.
- Induced effects measure the effects of the changes in household income: laid-off employees of a marina and its suppliers may reduce what they spend in restaurants and shops since they are no longer employed. These changes affect the related industries.
The economic impact equals the direct + indirect + induced effects.
The IMPLAN model for this calculator uses 2013 data – most derived from the US Department of Commerce’s System of National Accounts and Regional Economic Information System.
However, the marina sector in IMPLAN was modified based on the results from a national survey conducted by the Association of Marina Industries, whereby 43 marinas from 15 states submitted their 2014 income statements.