Monroe Community College Program Based Economic Impact Analysis, January 2015
APPLIED INTEGRATED TECHNOLOGY/MECHATRONICS PROGRAM
TABLE F1: Simulated Economic Impact of MCC’s Applied Integrated Technology/Mechatronics Program Field Value ($K) Total Economic Impact in 2014 $933 Initial Effect $602 Direct Effect $78 Indirect Effect $15 Induced Effect $237 TABLE F2: Metrics per Worker for MCC’s Applied Inte- grated Technology/Mechatronics Program Field Value Number of Completers in Workforce in 2014 20 Annual Economic Impact Per Completer $45,600 Estimated Lifetime Earnings Per Completer $727,600
MCC is developing an Applied Integrated Technology/ Mechatronics program which is scheduled to launch in the fall of 2016. Due to the fact that no completers are currently active in the workforce, EMSI was not able to use our standard methodology to estimate the economic impact of this program. However, we were able to simulate the economic impact of the program based on data from MCC indicating that the program is likely to produce roughly 20 completers per year, split evenly between associate’s degrees and postsec- ondary vocational certificates. Rather than providing the economic impact of the program in 2014, these data should be viewed as the economic impact of the program after its first full academic year. The data in Table F2 are particularly helpful for this program, as they indicate the economic impact per completer that can be expected as the program is scaled up in future years. After the first full academic year, MCC’s Applied Integrated Technology/Mechatronics program is expected to generate an estimated $933 thousand in added income to the regional economy. This figure represents the increased wages to be collected by former students as a direct result of their educa- tion, the increased output of businesses that employ these students, and the multiplier effects that occur as both parties spend money at other businesses. After the first full academic year, EMSI estimates that there will be 20 MCC completers in the work- force who will have achieved some credential in this field (either a postsecondary vocational award or an associate’s degree). 2 Whether employed in their field or in another field, these students will generate an annual economic impact of $45,600 per person. An average MCC completer in this program will collect a present value of $727,600 in future earnings as a result of this education. 2 To determine regional attrition and employment rates for this pro- gram, EMSI averaged the rates for the original six Phase II programs analyzed in this report.
FIGURE G1: Lifetime Earnings Curve of Applied Inte- grated Technology/Mechatronics Completers compared to Control Group
Earnings for CIP 14.4201
Earnings for Control Group
$80 $60 $70 $50 $40 $30 $20 $10 $0
Average Annual Earnings ($K)
MONROE COMMUN I T Y COL L EGE | ECONOM I C MODE L I NG S P EC I A L I S T S I NT L .
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