Town Gauges Economic Impact of Novartis 8/13/07

The flu vaccine facility under construction by Novartis Vaccines & Diagnostics is projected to generate more than $150 million annually for the Holly Springs economy beginning in 2010, economic forecast models show.

Every time Novartis issues a paycheck or purchases goods and services, those dollars circulate through the economy in various ways. The Town's Economic Development Department impact analysis uses common software models to calculate this financial effect on the community.

See the analysis.

The models used for the analysis were the IMPLAN Economic Modeling System and a fiscal impact analysis called the Goodman Model that was developed by the Institute for Economic Advancement at the University of Arkansas at Little Rock.

The IMPLAN Model automatically collects data from sources such as the U.S. Bureau of Economic Analysis and the U.S. Bureau of Labor Statistics. It also uses data specific to Holly Springs, including employee commuting patterns and area demographics. Results are tailored for a large bio-manufacturing facility.

The Goodman Model differs by allowing the Town to gather and input its own data and base assumptions on knowledge of the project. Both models provide insight into the impact that the project will have on Holly Springs and the surrounding area.

Results reflect a "multiplier effect” as money generated from Novartis re-circulates until it eventually leaks out to other places.

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Town of Holly Springs - PO Box 8 - 128 South Main Street - Holly Springs, NC 27540 - (919) 552-6221 - Holly.Springs@hollyspringsnc.us