Seems your cherry picking, too. Ok, let's say they are way off and it only takes 18 years to break even. That would be a good deal?
Yes. There are multitudes of factors not taken into consideration/reported by the naysayers. Perhaps this will shed some light.Quantifying Project Flying
Eagle’s potential economic
impacts in Wisconsin
Prepared by EY Quantitative Economics
and Statistics (QUEST)
Confidential
July 2017
Executive summary
EY was retained by a Fortune 50 global manufacturer (the “Company”) who is currently conducting a site
selection search for their proposed investment within the United States. Wisconsin has been identified as
a potential location for this proposed investment, which will be referred to throughout this report as “Project
Flying Eagle” or the “Project”.
As part of the engagement, EY has been commissioned to estimate the potential economic impacts in
Wisconsin that would result from the construction and operations of a proposed generation 10.5 LCD
fabrication facility, related Liquid Crystal Module (LCM) assembly and final TV assembly operations (Fab
818). This analysis estimated economic and tax effects related to: (1) temporary impacts related to Project
development (capital expenditures) and (2) the ongoing annual impacts from Project operations. Table ES-
1 summarizes the estimated economic and tax impacts.
One-time impacts from capital expenditures:
The proposed construction of a new Fab 818 facility in
Wisconsin will generate economic impacts over the anticipated four-year construction period. These
impacts result from spending on construction services and Wisconsin-sourced materials and equipment.
These impacts are described as “one-time” because they do not recur.
•
The Project will require an estimated $10.00 billion of capital investment to construct and equip the
facility.
•
Of this, an estimated $5.70 billion will be for construction and equipment sourced from within
Wisconsin (direct economic output). This direct spending, along with the related indirect and
induced economic activity will support an average of
16,205 construction and related jobs in
Wisconsin
over the 4-year construction period (direct, indirect, and induced effects).
•
Project capital investment will support a one-time shock of
$9.34 billion in sales for Wisconsin
businesses (total economic output over four years).
•
The anticipated $5.57 billion of direct construction expenditures will account for 60% of the
estimated total business sales shock. This spending will support an average of 10,145 direct jobs
on-site during each year of construction.
1
•
Over the period, direct employees at construction contractors and Wisconsin equipment
manufacturers will earn an estimated
$2.44 billion in direct labor income.
•
Capital investments will generate nearly $500 million in state and local tax revenues for
Wisconsin governments.
Of this total, an estimated $154 million will be state and local sales taxes
on construction materials.
2
Ongoing operating impacts:
The Project’s operations will support jobs and incomes in Wisconsin on an
ongoing basis. The estimated impacts reflect the anticipated annual operations of the Fab 818 facility, once
fully-operational (stabilized operations).
3
•
The project will directly employ 13,000 workers in Wisconsin, once fully operational.
•
Project employees will earn an average of $73,500 in total compensation, including
estimated wages, overtime, and benefits.
4
Base wages will average $53,875
EY | ii
•
The Fab 818 facility’s operations will support over 35,245 jobs throughout Wisconsin
. This
includes jobs at Project Flying Eagle as well as jobs related to Project suppliers (indirect jobs) and
businesses that sell to Project and supplier employees (induced jobs).
•
The estimated indirect employment impacts include 400 jobs at a glass manufacturer that
would be co-located with the Project.
•
Based on current information, the Project will result in a 2.7x multiplier on direct
employment.
This multiplier can be interpreted as: for every 10 direct jobs, 17 additional jobs will
be supported elsewhere in the state through indirect and induced economic activity – 27 jobs total.
5
•
The total (direct, indirect, and induced) impact on
state economic output will be an estimated
$11.11 billion, nearly half of which (47%) will be state GDP ($5.22 billion).
•
Fab 818 facility operations
will support an estimated $181 million in state and local tax
revenues
annually through indirect and induced economic activity and taxes paid by Project
employees on their incomes, purchases, and property.
