The Duke University Center on Globalization, Governance & Competitiveness (Duke CGGC) was engaged by the High Point Market Authority (HPMA) to conduct a comprehensive economic and fiscal impact of the High Point Market located in High Point, North Carolina. Duke CGGC researcher Lukas Brun presented at the High Point Market Press Breakfast on October 18, 2013.

1. Lukas Brun & Bill Lester
Center on Globalization, Governance & Competitiveness
Duke University
October 19, 2012

2. Website:http://cggc.duke.edu/

3. ©2013 Duke CGGC
Recent Clients

5. Overview
• Summary of Methods, Key Terms, and Activities Modeled
• Summary Impacts
• Results by Major Activity
• Fiscal Impacts
© 2013 Duke CGGC

6. Methods
• Goal: Calculate the economic activity generated annually by the High Point
Market
– capture all impacts associated with the Market
– activity that would not have occurred ‘but-for’ the Market
• Study area: 75 mile radius from High Point, NC
– includes 22 NC counties and 8 in VA
• Methodology:
– IMPLAN 3.0 (IMpact Analysis for PLANners) software
– Original Survey
• Web-based survey of 1,668 companies conducted July 3-16, 2013.
• Key purposes of the survey:
– Estimate sales figures generated at the Market
– Estimate vendor & visitor spending figures by major category
– Estimate share of companies that manufacture within the study area
– Supplementary data from HPMA and NC Dept. of Commerce
© 2013 Duke CGGC

7. Key Terms
• Direct: Impacts resulting from the increase in final demand in a
given economic sector
• Indirect: Impacts resulting from industry to industry purchasing
(i.e., business to business/supplier relationships)
• Induced: Impacts resulting from increases in household spending
© 2013 Duke CGGC

8. Activities Modeled
• Visitor Spending
• HPMA budgeted expenditures
• Vendor Spending
• Furniture and related sales from the Market
• Rental income from vendor leasing
© 2013 Duke CGGC

9. Total Economic Impact: $5.39 Billion
Category Amount
Visitor Spending $ 604 Million
HPMA Spending $ 8 Million
Vendor Spending $ 452 Million
Furniture Sales $4,229 Million
Vendor Rents* $ 95 Million
Total $ 5.39 Billion
* local portion only
© 2013 Duke CGGC

10. Jobs Created
Category # of Jobs
Visitor Spending 6,189
HPMA 90
Vendor Spending 4,374
Vendor Rents 832
subtotal 11,485
Furniture Sales 26,131
Total 37,616
© 2013 Duke CGGC

11. Fiscal Impact
Type Amount
Federal $327 Million
State of North Carolina $123 Million
Guilford/High Point $25.5 Million
© 2013 Duke CGGC

12. Activity 1: Visitor Spending
• In 2012, the HP Market attracted 150,000 visitors
• GIS analysis of zip codes indicated that 116,000 were non-local
• Resulting in 622,762 visitor days per-year
• Used NC Dept. of Commerce Tourism figures for average visitor spending
© 2013 Duke CGGC
Impact Type Employment Labor Income Value Added Output
Direct Effect 4,040 $109,749,029 $185,402,534 $354,801,848
Indirect Effect 1,026 $43,208,450 $69,970,714 $124,415,437
Induced Effect 1,124 $42,165,380 $75,806,342 $124,927,343
Total Effect 6,189 $195,122,859 $331,179,591 $604,144,628

13. Activity 2: HPMA Budget
• Modeled direct annual spending of the HPMA
• Categorized budget into transportation, parking, marketing and general
organizational services
• Excluded capital expenditures
© 2013 Duke CGGC
Impact Type Employment Labor Income Value Added Output
Direct Effect 63 $1,826,935 $2,741,970 $4,648,565
Indirect Effect 10 $405,625 $676,379 $1,179,450
Induced Effect 17 $618,145 $1,112,560 $1,832,122
Total Effect 90 $2,850,705 $4,530,909 $7,660,138

14. ©2013 Duke CGGC
Activity 3: Vendor Expenses
• Figures obtained directly from survey
– Construction/venue set up $211,186,800
– Photography $39,858,581
– Printed materials $25,568,060
– Other marketing expenses $47,685,725
– Catering $24,006,169
Impact Type Employment Labor Income Value Added Output
Direct Effect 2,808 $100,098,361 $133,432,002 $278,256,098
Indirect Effect 632 $26,534,879 $40,460,372 $69,652,303
Induced Effect 934 $35,006,279 $62,980,188 $103,741,166
Total Effect 4,374 $161,639,519 $236,872,561 $451,649,567

15. Activity 4: Market Sales
• Used survey response data to calculate the total sales garnered from the
market (or within 90 days)
Impact Type Employment Labor Income Value Added Output
Direct Effect 13,920 $630,760,911 $1,111,034,805 $2,680,148,872
Indirect Effect 5,624 $268,274,110 $426,515,902 $816,681,056
Induced Effect 6,587 $247,255,774 $444,259,652 $732,421,143
Total Effect 26,131 $1,146,290,795 $1,981,810,359 $4,229,251,072
© 2013 Duke CGGC

16. Activity 5: Rental Income
• Expert interview with Major Leasing Company Associate who controls 5.4
million sq. ft.
• Total: Calculated as IMPLAN industry impact for Real Estate
Establishments
• Allowed IMPLAN to estimate share of local ownership
Impact Type Employment Labor Income Value Added Output
Direct Effect 630 $6,830,623 $51,166,612 $71,500,257
Indirect Effect 122 $4,050,589 $8,334,727 $14,493,809
Induced Effect 80 $3,013,160 $5,423,373 $8,930,813
Total Effect 832 $13,894,371 $64,924,712 $94,924,879
© 2013 Duke CGGC

17. ©2013 Duke CGGC
North Carolina Fiscal Impact
Type of Tax Amount (2013$)
Sales Taxes $44,031,909
Income Taxes $32,399,763
Dividends $19,537,895
Other Taxes on Production and Imports $15,331,823
Corporate Profits Tax $7,616,622
Social Insurance Taxes $2,398,406
Motor Vehicle License Revenue $1,883,210
Total State Revenue $123,199,628

18. Guilford/High Point Fiscal Impact
• Includes both county and municipal governments
• Excludes impact of furniture sales (Activity 4)
• Modeled impact of 75% (by assumption) of Visitor and Vendor Spending in
Guilford County
• Adjusted sales tax for local portion (2% local / 4.75% state)
Type of Tax Amount (2013$)
Sales Taxes (local portion only) $6,649,286
Property Taxes $17,246,014
Fines and Fees $1,586,886
Other Personal Taxes/License revenue $49,923
Total Guilford County $25,532,109
© 2013 Duke CGGC

19. THANK YOU
Questions?
Lukas Brun
Senior Research Analyst
lukas.brun@duke.edu