A-B Tech Reports Economic Impact for 2012-13

A-B Tech Community College is responsible for injecting at least $356.7 million into the regional economy.

During the 2012-13 fiscal year the combined impact of payroll, operational and construction expenditures, and the spending habits of students and alumni comprised a significant portion of the WNC economy.

According to a recent economic impact report for fiscal year 2012-13, conducted by EMSI (Economic Modeling Specialists International) for higher education in the state of North Carolina, A-B Tech’s economic impact is part of an estimated $2.2 billion combined annual impact from 11 public higher education institutions in Western North Carolina.

“This study verifies that North Carolina’s 58 community colleges play a significant role in the economy of our state, particularly here in Western North Carolina,” said King. “In collaboration with our regional higher education partners and employers, community colleges prepare thousands of students each year for jobs and careers with businesses and industries throughout the state. These numbers verify that our graduates comprise a significant portion of an educated workforce that fuels the success of many economic sectors, including advanced manufacturing, aviation, brewing, health care, hospitality and technology.”

The study factors in payroll and operations spending, together with construction spending and the spending of students and alumni. The initial spending of the universities, such as payroll and operations spending, or the goods and services to carry out day-to-day operations and research, creates a multiplier effect among other businesses throughout the regional and state economy, reported as additional economic activity in terms of gross regional or state product and the corresponding number of jobs created.

“This report clearly demonstrates that higher education is an investment that pays back dividends to North Carolina and the public,” King said.

Highlights of A-B Tech’s 2012-13 Economic Impact

Operations Spending Impact – $51.7 million
Expenditures to support day-to-day operations of A-B Tech amounted to $37.2 million and $27 million, respectively, and provided approximately $51.7 million in added regional income, which is equivalent to creating 1,717 jobs.

Construction Spending Impact* – $1.2 million
In FY 2012-13, facilities constructed or renovated by A-B Tech generated a short-term infusion of income and jobs, amounting to $1.2 million in added regional income, equivalent to 41 new jobs. Additional spending from the 1/4-cent Buncombe County sales tax for A-B Tech Construction projects in 2012-13 was $1.96 million. *That figure doesn’t reflect the new building projects on campus, which are boosting the college’s economic impact, King said.

Alumni Impact – $296.8 million
An estimated 80% of A-B Tech students remain in the region after graduation, generating an accumulated contribution of $296.8 million in added regional income, the equivalent to creating 6,430 new jobs.

Student Spending Impact – $7.0 million
Approximately 20% of students attending A-B Tech originated from outside the region, and their expenditures added approximately $7.0 million in regional income, which is equivalent to creating 141 new jobs.

To read the full higher education economic impact report for North Carolina, visit the University of North Carolina system news site at www.northcarolina.edu