Event Title
Local Economic Impact of State Farm’s 1,600 Position Relocation
Graduation Year
2015
Location
Center for Natural Sciences, Illinois Wesleyan University
Start Date
18-4-2015 2:00 PM
End Date
18-4-2015 3:00 PM
Description
The presence of State Farm Insurance is a vital aspect of the Bloomington-Normal economy, so the announcement of the relocation of 1,600 local positions to an Atlanta hub has been a major cause for concern in the community. In this project I aim to quantify the local economic impact of this elimination and compare it to a shock of similar magnitude represented by a decrease in Mitsubishi’s local operations in 2004. IMPLAN multiplier analysis is used to obtain estimations of primary and secondary impacts of both shocks. IMPLAN’s calculations are based on input-output tables, which is necessary to prevent underestimating the impact by excluding economic losses realized in a “chain reaction” to an economic shock. It is found that, although State Farm’s closure results in losses among several sectors, the community should experience a smoother recovery than after the closure of Mitsubishi’s second production shift a decade ago.
Local Economic Impact of State Farm’s 1,600 Position Relocation
Center for Natural Sciences, Illinois Wesleyan University
The presence of State Farm Insurance is a vital aspect of the Bloomington-Normal economy, so the announcement of the relocation of 1,600 local positions to an Atlanta hub has been a major cause for concern in the community. In this project I aim to quantify the local economic impact of this elimination and compare it to a shock of similar magnitude represented by a decrease in Mitsubishi’s local operations in 2004. IMPLAN multiplier analysis is used to obtain estimations of primary and secondary impacts of both shocks. IMPLAN’s calculations are based on input-output tables, which is necessary to prevent underestimating the impact by excluding economic losses realized in a “chain reaction” to an economic shock. It is found that, although State Farm’s closure results in losses among several sectors, the community should experience a smoother recovery than after the closure of Mitsubishi’s second production shift a decade ago.