Purdue’s economic impact in Indiana totals more than $2.1 billion

With almost 17,000 employees and more than 40,000 students, that Purdue’s West Lafayette campus has a sizeable effect on the local and state economies is no surprise. But just how sizeable the effect is might be surprising – more than $2.1 billion.

According to the latest briefing by the Office of Institutional Research, Assessment and Effectiveness (OIRAE), Purdue’s role as an employer and educator translated to 22 percent of all economic activity in the Greater Lafayette Area in fiscal year 2016.

A public forum on the report will be held at 11 a.m. Wednesday, January 17, in Rawls Hall, Room 2082.

OIRAE used a common economic software model to calculate Purdue’s initial economic impact, from University spending on a construction project, for example, and its multiplier impact (or ripple effect), which includes direct, indirect and induced impact, things like spending by a contractor with suppliers or employees eating at local restaurants and shopping at local stores.

According to the briefing, Purdue’s multiplier is 1.3, meaning that for every dollar Purdue spends an additional 30 cents is created for the state.

To start, Purdue spent $1.16 billion in fiscal year 2016 on compensation and benefits – categories range from salaries to scholarships. It also spent an additional $377 million on supplies and services. And, of course, the 40,000 students spend a significant amount of money on housing, food, transportation, books and other things. Their spending totals $443.2 million.

Purdue’s economic activity also created an additional 9,855 jobs. The extra job creation comes from businesses like construction, hospitality and food service – all industries that support the Purdue community. In total, Purdue’s job creation totals 26,753, including Purdue’s West Lafayette campus employees.

Finally, Purdue’s compensation and spending also equal money generated for taxes, income, sales and others. Tippecanoe County receives $42.8 million, Indiana receives $37.3 million and the federal government receives $95 million.

Purdue’s research and entrepreneurial activities, such as startups founded at Purdue, are not included in the economic analysis.

To read December’s briefing visit: http://www.purdue.edu/oirae/documents/OIRAE_Briefings/Economic_Impact_Jan_2018.pdf

Writer: Kirsten Gibson, technology writer, Information Technology at Purdue (ITaP), 765-494-8190, gibson33@purdue.edu

Last updated: January 12, 2018