Economic Impact

What is the economic impact to Ponca City of a new contract for an existing company? There are modifiers and impact models, but the fast answer is: it depends. Does the company have to buy new equipment? Add a second shift? Invest in raw materials? There are so many factors; for the company and measuring impact for the community.

Here's how PCDA starts to gauge the impact of a new contract consisting of manufacturing one million widgets.  First, what is the pay for the people making the widgets?  Will additional jobs be added for the contract?  Will the contract continue past this and/or next year?  After that is figured out, staff plugs all the numbers into this handy calculator made specifically for Ponca City.  

For the two jobs this contract will need, with a pay rate of $18.95, which also induces or creates three more jobs in the community, the total impact to payroll of new and induced jobs is over $150,000/year.  The impact to property taxes, retail sales, utilities and sales tax is over $45,000.  That is for two jobs in one year.  For many years the holy grail of economic development was attracting the big company with all the employees to your community (read 300 jobs instead of two).

Times have changed; And quite frankly, big companies don't move with employees anymore.  Big companies don't move.  They downsize; add remote workers or diversify with a smaller location.  This is why a million-count contract is so important to our local manufacturers.  If you know who staff is talking about, good.  Tell them congratulations.  And we look forward to having them at the next Design 2 Part show to find that next new contract.  If your company would like to find their next manufacturing contract, give Laurence a call (580.765.7070) and talk about the BRETS program.