Economic Impact Study Pennsylvania Recycling Industry. Solid Waste and Recycling Fund Advisory Committee Meeting September 22, 2016
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1 Economic Impact Study Pennsylvania Recycling Industry Solid Waste and Recycling Fund Advisory Committee Meeting September 22,
2 INTRODUCTION Economic Impact Study Previous Studies Project Timeline Study Features 2
3 Economic Impact Study Measures or estimates the change in economic activity in a specified region, caused by a specific business, organization, policy, program, project, activity, or other economic event Study region can be a neighborhood, town, city, county, statistical area, state, country, continent, or the entire globe Measures changes in business revenue, business profits, personal wages, and/or jobs Sources of economic impacts - Direct - Indirect - Induced Methodologies I/O (input/ output) - RIMS II - EMSI - IMPLAN 3
4 Previous Studies/Reports Value Added to Recyclable Materials in the Northeast - US Dept. of Commerce (1994) Recommendations to the EPA for Conducting a Study of the U.S. Recycling and Reuse Industries - Northeast Recycling Council (NERC) (1997) Recycling Economic Information Study - NERC (2000) US Recycling Economic Information Study - Phase II of 2000 NERC Report (2001) Recycling Economic Information Study Update - NERC (2009) The Economic Impacts of the Municipal Waste Collection, Transportation, Recycling, and Disposal Industry in PA - Pennsylvania Waste Industry Association (PWIA) (2003) Economic Impact Study - US-Based Scrap Recycling Industry - Institute of Scrap Recycling Industries - (ISRI) (2013) 4
5 Project Timeline September November Preliminary discussions with DEP and RMC Board November December RMC formulates the RFP, develops selection process, releases RFP January March Receive and review responses, interviews, and selects firm - IHS Markit March - May 2016 Refines project work scope and timeline, develops contract, negotiates IP ownership, and executes contract in accordance with procurement process May 2016 Project Kickoff 5
6 Project Timeline (cont.) June October 2016 Input data gathering of various state and national data inputs, such as DEP, SRI, IMPLAN model structuring. October 2016 Finalize modeling, review and validate output data, begin draft report preparation. November - December 2016 Final Report preparation (mutually developed narrative) 6
7 Study Features Research Approach Macro (top down)/ Micro (bottom up) IHS Markit Resources IHS US Regional Service Assets Business Market Insight and other proprietary databases U.S. Census Economic Data Hoover s Directory NAICS Code database RMC Resources Knowledge of and access to DEP and other databases Robust verification process Professional markets development field experience Understanding of PA and transportation networks 7
8 Study Features Study Boundaries Align NAICS Codes to Recycling Industry Classifications Identified to Date image courtesy of IHS Markit 8
9 Study Features Study Boundaries RECYCLING INDUSTRIES (Supply Side) Government Staffed Residential Collection Private Staffed Recycling Collection Compost/Organics Processor Materials Recovery Facilities Recyclables Material Wholesalers Plastics Reclaimers RECYCLING RELIANT INDUSTRIES (Demand Side) Glass Container Manufacturing Plants Glass Product Producers Nonferrous Secondary Smelting and Refining Mills Nonferrous Product Producers Nonferrous Foundries Paper and Paperboard Mills/Deinked Market Pulp Producers Paper-based Product Manufacturers Pavement Mix Producers (asphalt and aggregate) Plastics Product Manufacturers Rubber Product Manufacturers Steel Mills Iron and Steel Foundries Other Recycling Processors/Manufacturers REUSE AND REMANUFACTURING Computer and Electronic Appliance Demanufacturers Motor Vehicle Parts (used) Retail Used Merchandise Sales Tire Retreaders Wood Reuse Materials Exchange Services Other Reuse * Not included - Activities involving waste to energy or use of recovered materials as fuel and entities involved in non business activities such education and advocacy that do not directly support or add value to the recovered materials or used products 9
10 Study features Study Boundaries The Flow of Economic Impact and Contributions to the Recycling Industry image courtesy of IHS Markit 10
11 Study Features Methodology image courtesy of IHS Markit 11
12 Study Features Modeling IMPLAN (IMpact analysis for PLANning) MIG, Inc. (formerly Minnesota IMPLAN Group) responsible for production of model data and software Created in 1970 s through collaboration between the U.S. Forest Service, FEMA, and University of Minnesota to assess impacts of land management options In 1988, offered IMPLAN software and data to non-forest Service users - Improved versions created since Utilizes a social accounting system that describes transactions that occur between producers, and intermediate, and final consumers Includes multipliers to describe secondary impacts 12
13 Study features Key IMPLAN Outputs 13
14 Study features Key Metrics Assessed Employment - Includes wage, salary, and self-employment jobs Value Added (Contribution to Pennsylvania Gross State Product) - Definition: an industry s or an establishment s total output less the cost of intermediate inputs - Further divided into labor income, other property taxes and indirect business taxes Labor Income - Captures all forms of employment income, including wages and benefits, employer-paid payroll taxes, unemployment taxes, and Proprietor income Government Revenue - Includes taxes and other related revenues on Federal, State and Local levels 14
15 Thank you 15
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