Armstrong’s Economic Impact Tops $200 Million
(July 12, 2012) Armstrong generated $209 million in economic activity for the region during fiscal year 2011 (July 1, 2010-June 30, 2011), according to a study conducted for the Board of Regents by the Selig Center for Economic Growth in the University of Georgia's Terry College of Business.
Armstrong’s initial spending of $82.3 million for payroll and goods and services, coupled with student spending of $90.5 million, generated an additional $35.9 million of re-spending in the community, for a total economic impact of $209 million. Re-spending accounts for the multiplier effect of those dollars as they are spent again in local businesses in the community.
The study also shows that while Armstrong created 515 full- and part-time jobs on campus, the institution generates a total of 2,074 jobs in the community due to university-related spending on goods, services and payroll. In addition to spending-related effects, the university contributes to the social fabric of the community through an array of cultural offerings in arts, music and theatre, in addition to lectures, conferences and presentations.
Construction projects on the Armstrong campus had an additional impact of $7.8 million above the $208 million. The construction projects alone supported an additional 70 jobs in the region.
The results of the study, announced by the Board of Regents of the University System of Georgia (USG), state that Georgia’s public university system had a $13.2 billion economic impact on the state’s economy. The 35 institutions in the USG generated 3.4 percent of the state’s total number of jobs during fiscal year 2011. Researchers found that, on average, for every dollar of initial spending by an institution, an additional 39 cents was generated for the local economy. In similar fashion, for each job created on campus there are 1.9 off-campus jobs that exist because of spending related to the institution.
“Although the university system's long-term impact on the state and local communities is more difficult to quantify than year to year spending impacts, it is arguably more important because of the substantial contribution to regional economic development through educating the workforce of today and the leaders of tomorrow," said Michael Toma, professor of economics at Armstrong and director of the university’s Center for Regional Analysis.