IAM of Spartanburg Phase 1

 Construction Phase:

• Job Creation:
  • Construction of the four modular homes will generate employment opportunities for contractors, builders, electricians, plumbers, and HVAC specialists.
  • Indirectly, jobs will be created in related industries such as material suppliers and equipment rental.
• Estimated Construction Spending:
  • Total construction cost: $1.45 million (including materials, labor, and site preparation).
  • Labor costs account for approximately 40-50% of this total, resulting in direct wage contributions of $580,000–$725,000.

 Indirect Impact:

• Contractors' and suppliers' spending in the local economy will support businesses such as restaurants, gas stations, and retail stores.
• Local transportation services and utility providers will benefit from increased demand during construction.

1. Induced Impact:
   • Wages earned by construction workers and contractors will be spent on household expenses, further stimulating local economic activity.
   • Residents will contribute to ongoing economic activity by purchasing goods and services locally.

 Job Creation and Operations:

• Ongoing operational roles, including property management, maintenance, and support services, will create 2–5 permanent jobs.
• Residents' healthcare, food, and transportation demands will support local service providers.

1. Resident Spending:
   • The eight units will house approximately 16–20 residents, with average annual Spending per resident estimated at $15,000–$20,000 for local goods and services.
   • Total annual Spending from residents is projected to be $240,000–$400,000.

 Reduced Public Assistance Costs:

• The project may reduce the need for government assistance programs, such as emergency shelters or healthcare subsidies for unhoused individuals, by providing affordable housing.

1. Health Outcomes:
   • Improved living conditions and access to health-supportive services will likely lead to better health outcomes for residents, reducing public healthcare costs.

Based on standard economic multipliers for housing construction and operations:

Construction Phase Impact:

• Direct Spending: $1.45 million.
• Multiplier Effect (1.5): $2.18 million in total economic activity generated during construction.

1. Ongoing Annual Impact:
   • Resident Spending: $240,000–$400,000 annually.
   • Operations and Management (estimated): $150,000 annually.
   • Multiplier Effect (1.4): $546,000–$770,000 in annual economic activity.

1. Five-Year Impact Estimate:
   • Construction Impact: $2.18 million.
   • Ongoing Operations and Resident Spending: $2.73–$3.85 million.
   • Total Five-Year Economic Impact: $4.91–$6.03 million.

 The IAM of Spartanburg Phase 1 project is projected to generate nearly $5–$6 million in economic impact over five years, contributing to job creation, local business growth, and improved quality of life for residents. These benefits demonstrate the project's transformative potential, making it a valuable investment for the Spartanburg community and a model for future developments.