Utah-MEP Economic Impact Report

The 1,733 jobs reported were equivalent to $585.5 million in output. This added to the $0.2 million of output reported by companies only reporting output and an additional $62.2 million in output reported by companies that could not be explained by their reported jobs, resulting in a total $647.8 million in direct effects for output shown in Table 5.

Table 5 shows the total economic impact of UTAH-MEP work with CMEs/ORBs in 2022. UTAH-MEP activity directly supported 2,036 jobs that would not have otherwise existed, and indirectly supported an additional 2,685 jobs. These jobs generated $295 million in total labor income. The total increase in output with the multiplying effect associated with this activity was $1,163 million.

* CMEs/ORBs reported 1,733 additional or retained jobs. The additional 303 jobs are associated with additional or retained sales (output) that could not be explained by the jobs reported.

Tax Impacts

IMPLAN® models the results of various tax impacts. The indirect business taxes, reported earlier, consist primarily of excise and sales taxes paid by individuals to businesses. However, the additional local, state, and federal tax generated by the UTAH-MEP’s activities is also interesting to note.

The additional federal tax collected in 2022 is over $59.9 million, and the additional state and local tax collected is $30.8 million (Figure 9). The total tax revenue, found in the same way as the output and employment numbers, totals $90.8 million. It is important to note that these numbers include the indirect business taxes previously reported. For a more detailed breakdown of the tax revenue for 2022, see Table 6.

$30,847,580 $59,918,135

Top Industries Affected Breakdown

In order to provide a more detailed look at the impact of UTAH-MEP’s work, we have broken out the total impacts by top industries affected (Table 7). The top industries were sorted by the total effect on employment. It should be noted that the information in Table 7 is the total effect, which would include the indirect effects of business-to-business purchases as well as the induced effect of additional demand from both increased employee compensation and proprietor income. In 2022, the top industries affected were measuring and controlling device manufacturing and ice cream and frozen dessert manufacturing.

7. 2022 Top Industries Affected by UTAH-MEP

Rural/Urban Breakdown

We have also broken out results into rural and urban impact. Summaries of the 2022 impacts of UTAH-MEP in rural and urban areas are in Tables 8 and 9. Total employment effect was 846 jobs in rural areas and 3,875 jobs in urban areas. Total output effect was $194.4 million in rural areas and $968.4 million in urban areas. Overall, both the direct and total employment impacts of UTAH-MEP programs on urban areas are larger than for rural areas of Utah, and the same applies to output impacts. Considering that the 2010 Census showed Utah is the eighth most urban state, the level of activity in rural areas is impressive.

Figure 10 shows the relative additional and retained jobs reported by CMEs/ORBs in rural and urban areas. For a more detailed look at impacts by county, see Appendix A.

Manufacturing Investment Benefits

As stated in Section 4, Data Description and Survey Methodology, UTAH-MEP also helps firms implement long-term investments or change practices to avoid unnecessary investments. These activities do not lend themselves to short-term economic impact analysis but can have a significant long-term effect on firm activity. Table 10 shows the investments made as a result of working with UTAH-MEP, according to survey results from 2022.

The investment benefits were smaller for rural areas compared to urban, considering each investment category alone and the sum of all investments. Plant equipment was the largest area for both rural and urban areas.

To calculate any long-term economic impacts of these additional benefits, we would need to conduct further survey work over a period of time.