Certain IMPLAN Sectors require additional explanation, either because they are not NAICS based or they have special properties. Below are the special Sector descriptions (sector numbers are based on the 536 sector scheme for 2013 and later IMPLAN data sets)1.
SECTORS 52-64: CONSTRUCTION
IMPLAN construction Sectors are classified by structure type (Census definitions) rather than NAICs codes. For this reason, Sector searches for construction will not pull up corresponding IMPLAN Sectors. Thus, when working with Construction Sectors, the Construction Codes for 536 Sectors spreadsheet on the IMPLAN website can be helpful.
SECTOR 441: OWNER-OCCUPIED DWELLINGS
IMPLAN Sectors 1-517 are private Sectors that directly correspond to the NAICS codes, with the exception of construction (see above) and Sector 441- Imputed rental activity for owner-occupied dwellings. This Sector estimates what owner/occupants would pay in rent if they rented rather than owned their homes. This Sector creates an industry out of owning a home, and its production function represents repair and maintenance of that home. The Sector’s sole product (Output) is ownership and is purchased entirely by personal consumption expenditures (i.e., the household Sector).
There is no Employment or Employee Compensation for this industry. Taxes on production for this Sector are largely made up of property taxes paid by the homeowner, while Other Property Income is the difference between the rental value of the home and the costs of home ownership. Interest payments and mortgage payments are a transfer in the SAM and are not part of the production function for this Sector.
Sector 441 is included in the database to insure consistency in the flow of funds. It captures the expenses of home ownership such as repair and maintenance construction, various closing costs, and other expenditures related to the upkeep of the space in the same way expenses are captured for rental properties.
SECTOR 517: PRIVATE HOUSEHOLDS
While not a true special Sector, there are often many questions regarding what Sector 517 produces. This sector covers live-in household staff: maids, butlers, chauffeurs, etc. If there is ever any question about what is covered by any of the “non-special” sectors, the user can use the sector definitions found in the Sector Search feature located in the Help menu of the desktop software (IMPLAN Pro) or within the event window in IMPLAN Online. Sort by clicking the the “NAICS Code” field header and scroll down to the IMPLAN sector of interest.
SECTORS 518-526: GOVERNMENT ENTERPRISES
IMPLAN Sectors 518-526 represent government agencies that cover a substantial portion of their operating costs by selling goods and services to the public. They operate much like private sector firms, hiring labor and purchasing other inputs to produce goods that are sold through markets. Other Federal\State\Local government enterprises (i.e., those other than postal, electric utility, and transportation services) include things such as government owned and operated liquor stores, airports, sewer and sanitation services, gas, and water supply2. This differs from Administrative Government sectors (components of consumption – i.e., final demand), because administrative do not respond to local market demands.
SECTORS 527-530: COMMODITY ONLY SECTORS
IMPLAN Sectors 527-530 are commodities not produced intentionally by any US industry:
- Scrap consists of commodities that are cast off as part of a production process and then resold. Examples include sales of used aluminum cans to recyclers and sales of scrapped vehicles to metal recyclers.
- Used and secondhand goods are goods that are traded but were not produced during the current year. While used goods are not part of the current-period gross output of the economy, they are part of the supply available for consumption. They come from capital, government institutions, and households.
- Rest of world adjustment “The rest-of-the-world adjustment to final uses consists of values for exports and imports that have offsetting adjustments to personal consumption expenditures (PCE) and government… This adjustment is required in order to conform the commodity treatment of the I-O use table to the expenditure concepts used for final uses in the NIPAs. This is accomplished by making offsetting adjustments between PCE and gross exports and between Federal Government nondefense purchases and exports and imports…For example, foreigners traveling in the United States consume goods and services, such as accommodations, that are included in the source data for PCE. In order to put the PCE estimate on a NIPA basis, an adjustment is made to account for these purchases.”3
- Non-comparable foreign imports are goods that are not available anywhere in the nation. They consist of three types of services: (1) services that are produced and consumed abroad, such as airport expenditures by U.S. airlines in foreign countries; (2) service imports that are unique, such as payments for the rights to patents, copyrights, or industrial processes; and (3) service imports that cannot be identified by type, such as payments by U.S. companies to their foreign affiliates for an undefined basket of services.
SECTORS 531-536: ADMINISTRATIVE PAYROLL SECTORS
Administrative government activities (e.g., legislatures, police protection) are not subject to local market forces (i.e., not driven by local demand); as such, they are held exogenous to the multiplier model.
IMPLAN Sectors 531-536 represent the payroll/value added of these administrative government Sectors. This is necessary because, while the commodity purchases of these government institutions are already represented in the SAM, there is no payroll commodity; thus, these four Sectors are included as a bookkeeping element to account for these institutions’ payrolls. By definition, these Sectors have no intermediate purchases and thus will not generate indirect effects. For these sectors, Employee Compensation or Employment should be used as Event values; entering the operational value of the government as an Industry Sales value will greatly overestimate the impact. When modeling government programs or budgets, you will need to import the appropriate spending pattern(s) associated to the budget activity. For public education budgets, the private educations Sectors (472-474) can often be used as adequate proxies as an alternative to importing the spending pattern.
NON-SECTORS: GOVERNMENT INSTITUTIONS
Government Institutions in IMPLAN do not have Sector designations. Instead these spending patterns are found in the Setup Activities screen by selecting Activity Options>Import>Institutions Spending Pattern in IMPLAN Pro or by selecting Import>Institutions Spending Pattern from the Activities page in IMPLAN Online. The following governmental spending patterns are available.
- Federal Non-Defense: Spending pattern for all other government institutional activities.
- Federal Defense: Spending pattern for the Department of Defense.
- Federal Investment: Includes construction, equipment purchases, and other capital outlays. The U.S. total federal investment data comes from NIPA. This data is broken out with two additional data sets: a) the Annual Census of Construction and b) latest BEA BM-IO.
- State/Local Government Non-Education: Parks & recreation, Health, Hospitals, Police, Judicial and legal, Financial administrative, Highways, Public welfare, Fire protection, Natural resources, Corrections, Libraries, Social insurance.
- State/Local Education: Elementary and Secondary instruction, Elementary and Secondary non-instruction, Higher Education instruction, Higher Education non-instruction.
- State/Local Investment: Come from the Census of State & Local Government Finances. These figures are adjusted so that the sum of states = the U.S. NIPA total State/Local Government Investment. The breakout of this figure comes from a) Annual Census of Construction and b) latest BEA BM I-O.
1 The IMPLAN Sectors discussed in this document correspond to IMPLAN’s 536 Sectoring scheme, in place since 2013. A bridge from the older 440 Sectoring scheme to the 536 Sectoring scheme can be found in the downloads section of this website.
2 Post exchanges are a type of store operated at U.S. Army bases by the Army and Air Force Exchange Service. Post exchanges provide merchandise and services to military families and generate income for military programs that provide social services, recreation, sports, and entertainment.
3 Horowitz, Karen and Planting, Mark. Concepts and Methods of the U.S. Input-Output Accounts, United States Bureau of Economic Analysis, April 2009, pp. 7-9 to 7-11.