United Technologies Corporation (UTC), an innovator and manufacturer of gas turbines and engines, was trying to better understand the economic contributions of the ongoing operations of its Pratt & Whitney facilities in Connecticut.
Started before World War Two, Pratt & Whitney has grown to become one of the world’s leading producers of aircraft engines, with nearly $13 billion in 2008 sales. Today 11,200, nearly one third of Pratt & Whitney’s global workforce, are employed in the company’s three Connecticut facilities. These facilities comprise the center of a dynamic and globally competitive industrial cluster in the state of Connecticut.
The analysis was developed from a counterfactual approach that uses an input-output model to create hypothetical state economies absent the activities of Pratt & Whitney. With the information, Pratt & Whitney will be able to communicate its effects on the Connecticut economy.
CERC conducted an economic impact analysis using an economic input-output model to evaluate the contributions that Pratt & Whitney had on Connecticut’s economy. The impact analysis consisted of first examining the region and ensuring that the economic model was consistent with the regional data and other economic information regarding the region. Once calibrated, the model provided a baseline for the regional and state economies. The baseline data was used to examine activities of Pratt &Whitney such as jobs, employee compensation, annual purchases of goods and services, exports of goods and services, payroll taxes and other business taxes, and local property taxes. The deliverables included:
- Executive Summary outlining key findings
- Comprehensive Technical Report
- PowerPoint presentation summarizing the study and its findings
The economic-impact analysis enabled Pratt & Whitney to better understand the contributions its facilities make to the Connecticut economy. Pratt & Whitney has been able to use the information to communicate the impacts to various stakeholders throughout the corporation and state.