Constructor - September/October 2016 - 19

Building the Economy THE TRUE VALUE OF MEASURING ECONOMIC IMPACT BY BENJAMIN J. CONNORS, ESQ. PRESIDENT, GENERAL BUILDING CONTRACTORS ASSOCIATION IT'S NO SECRET THAT contractors tend to be busier in strong economic times and that construction slows when the economy goes through a downturn. This long-observed correlation between the economy and construction leaves aside the causative factors commercial contractors and their associations should be touting. Contractors don't just build buildings and infrastructure, they build economies. When the General Building Contractors Association (GBCA), the Philadelphia chapter of the AGC, commissioned a study to measure the true economic impact of commercial construction, we uncovered a number of positive compounding effects commercial construction had over a three-year period of time in the greater Philadelphia region and the state of Pennsylvania. GBCA's study uncovered three key areas in which investment in commercial construction helps to grow local economies in excess of the initial direct investment: * Overall economic impact - the measurement of the spillover effects of direct construction expenditures in the market. * Local and state tax revenues - generated directly through capital activities and indirectly via spending by vendors and employees. * Employment - direct, indirect and induced jobs created by construction expenditures. The study found that from January 2013 until December 2015 there was nearly $7.4 billion in new construction and major renovation expenditures in Philadelphia @Constr uctor Ma g County and the surrounding four counties, of which $3.9 billion took place in the city of Philadelphia. These investments in commercial construction resulted in a positive economic impact that far exceeded the initial expenditures. During the same time period the $3.9 billion invested in Philadelphia and the $7.4 billion invested in the five-county region resulted in a number of positive economic outcomes. * An estimated economic impact of $6.5 billion in the city of Philadelphia and $13.6 billion in the five-county Philadelphia region. * An estimated $107 million in business, wage and sales taxes generated for the city of Philadelphia and $331 million in taxes generated for the commonwealth of Pennsylvania. * Each year over the three-year period, an estimated 27,700 direct, indirect and induced jobs were supported in the fivecounty region. * Those jobs earned their employees an estimated $5.6 billion in wages and benefits. These figures tell an important story for those in the construction industry: We don't just build buildings, we build economies. An investment in construction results in a positive economic ripple effect that not only benefits the initial investors and the region's capital building stock, but also increases local wages earned and spent and tax dollars collected, thereby increasing the resources local governments have to reinvest in their regions. Not to mention the direct, indirect and induced benefit to the three most important factors for strengthening an economy: jobs, jobs and jobs. Commercial construction should be seen as an industry that must be nurtured in order to help the local, state and national economies to flourish. While taking this deep dive into the economics of our region was not a quick or easy undertaking, being able to support our narrative as a regional economic driver with data has made it well worth the effort. For us, working with the right partners has been crucial. We sourced data from Reed Construction Data, an information service provider to the construction industry, and then worked with Econsult Solutions, a consulting service specializing in real estate, economic development and other areas, to analyze the information and produce the in-depth report. This comprehensive report verified the value of the construction industry to the market and economy as a whole in our region. I strongly encourage other AGC chapters to pursue this type of economic research in their own markets. Even with a constant finger on the pulse of the industry, governmental access and support from labor, having the data to prove the industry's value - particularly the implications for tax revenues, the local economy and job growth - helps reinforce all of the day-to-day activities and conversations of the association. ◆ S E P T E MB E R / O C T O B E R 2 0 1 6 | www.constructormagazine.com 19 http://www.constructormagazine.com/

Table of Contents for the Digital Edition of Constructor - September/October 2016

Editor’s Note
President’s Message
CEO’s Letter
Cybercrime: Why You’re Almost Certainly at Risk
Building the Economy: The True Value of Measuring Economic Impact
All Eyes on November
Constructing an Experience: New Demands in Retail Design
Simonson Says
Knocking Green Standards Out of the Park
Managing the Risks of Green Building
Construction Leadership Council: A Launch Pad for Careers and Industry Leadership
AGC in Action
Member and Chapter News
Legislative and Regulatory News
Technology Toolbox
2016 Professional Services Guide
Products & Services Marketplace
Index to Advertisers
Final Inspection
Constructor - September/October 2016 - cover1
Constructor - September/October 2016 - cover2
Constructor - September/October 2016 - 3
Constructor - September/October 2016 - 4
Constructor - September/October 2016 - 5
Constructor - September/October 2016 - 6
Constructor - September/October 2016 - 7
Constructor - September/October 2016 - 8
Constructor - September/October 2016 - Editor’s Note
Constructor - September/October 2016 - 10
Constructor - September/October 2016 - President’s Message
Constructor - September/October 2016 - 12
Constructor - September/October 2016 - CEO’s Letter
Constructor - September/October 2016 - Cybercrime: Why You’re Almost Certainly at Risk
Constructor - September/October 2016 - 15
Constructor - September/October 2016 - 16
Constructor - September/October 2016 - 17
Constructor - September/October 2016 - 18
Constructor - September/October 2016 - Building the Economy: The True Value of Measuring Economic Impact
Constructor - September/October 2016 - All Eyes on November
Constructor - September/October 2016 - 21
Constructor - September/October 2016 - 22
Constructor - September/October 2016 - 23
Constructor - September/October 2016 - 24
Constructor - September/October 2016 - 25
Constructor - September/October 2016 - Constructing an Experience: New Demands in Retail Design
Constructor - September/October 2016 - 27
Constructor - September/October 2016 - 28
Constructor - September/October 2016 - 29
Constructor - September/October 2016 - 30
Constructor - September/October 2016 - 31
Constructor - September/October 2016 - 32
Constructor - September/October 2016 - 33
Constructor - September/October 2016 - 34
Constructor - September/October 2016 - Simonson Says
Constructor - September/October 2016 - Knocking Green Standards Out of the Park
Constructor - September/October 2016 - 37
Constructor - September/October 2016 - Managing the Risks of Green Building
Constructor - September/October 2016 - 39
Constructor - September/October 2016 - 40
Constructor - September/October 2016 - 41
Constructor - September/October 2016 - Construction Leadership Council: A Launch Pad for Careers and Industry Leadership
Constructor - September/October 2016 - 43
Constructor - September/October 2016 - 44
Constructor - September/October 2016 - 45
Constructor - September/October 2016 - 46
Constructor - September/October 2016 - AGC in Action
Constructor - September/October 2016 - 48
Constructor - September/October 2016 - 49
Constructor - September/October 2016 - 50
Constructor - September/October 2016 - Member and Chapter News
Constructor - September/October 2016 - 52
Constructor - September/October 2016 - 53
Constructor - September/October 2016 - 54
Constructor - September/October 2016 - 55
Constructor - September/October 2016 - 56
Constructor - September/October 2016 - Legislative and Regulatory News
Constructor - September/October 2016 - 58
Constructor - September/October 2016 - Technology Toolbox
Constructor - September/October 2016 - 60
Constructor - September/October 2016 - 2016 Professional Services Guide
Constructor - September/October 2016 - 62
Constructor - September/October 2016 - 63
Constructor - September/October 2016 - 64
Constructor - September/October 2016 - 65
Constructor - September/October 2016 - 66
Constructor - September/October 2016 - 67
Constructor - September/October 2016 - 68
Constructor - September/October 2016 - 69
Constructor - September/October 2016 - 70
Constructor - September/October 2016 - Products & Services Marketplace
Constructor - September/October 2016 - 72
Constructor - September/October 2016 - 73
Constructor - September/October 2016 - Index to Advertisers
Constructor - September/October 2016 - 75
Constructor - September/October 2016 - 76
Constructor - September/October 2016 - 77
Constructor - September/October 2016 - Final Inspection
Constructor - September/October 2016 - cover3
Constructor - September/October 2016 - cover4
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