Dr. Paul Koch, professor emeritus in Olivet Nazarene University’s McGraw School of Business, is currently conducting an intense and comprehensive study of the economic impact of Olivet’s presence in Kankakee County. IMPLAN is the software tool making this possible.
IMPLAN is the leading provider of economic impact data and analytical applications for researchers, policy makers, decision makers, advocates, business leaders, governments and more. Originally created by academics for the U.S. Forest Service, IMPLAN has been redefining the field of economics for over 40 years.
Dr. Koch is defining parameters and gathering data about expenditures by Olivet faculty and staff members for goods and services in the community and the direct and indirect effects on the local economy. IMPLAN builds the model, and Dr. Koch inputs the data. IMPLAN adds data gathered from 19 different governmental sources, including the U.S. Department of Labor and Department of Commerce.
Early findings based on 2023 census data show that Olivet’s presence continues to make a significant impact in Kankakee County. One key area of measurement is the induced effect, which captures what happens when Olivet employees — as well as the businesses that supply the University and their suppliers — spend their earnings in the local economy. This spending flows through households and businesses, fueling activity across many industries.
This study is already showing that in 2023 alone, this type of economic ripple effect brought an estimated $21.2 million in value to Kankakee County.
“The key theme is value added,” Dr. Koch says. “We are looking for the local multiplier effect. For every dollar spent by those employed by Olivet, directly and indirectly, what is the resulting additional amount of economic activity, production of goods and services? The IMPLAN software is helping us discover that information.”
This is the third economic study Dr. Koch has done for Olivet. The first was in 2000 and was part of a capital campaign to raise funds for the Admissions Center and Weber Center on Olivet’s campus. The second was in 2015, coinciding with Olivet’s 75th anniversary of locating in Kankakee County.
Olivet is extending an invitation to alumni, family and friends to partner with the University in creating a “redeeming abundance” for a new generation of transformational leaders. Learn more about Olivet’s Strength and Hope Campaign and find opportunities to give at olivet.edu/giving/strength-and-hope-campaign/
Read the entire “Doing Something Good Together” issue here.
