Goodwill Industries Operating in California

Elliott D. Pollack & Company

Goodwill IndustriesGoodwill IndustriesOperating in CaliforniaOperating in CaliforniaEconomic and Fiscal Impact

2012Presented By:

Elliott D. Pollack & company

March 20th, 20131


(1) Impact of Jobs Placement

(2) Impact of Operations

(3) Impact of Capital Improvements

Goodwill ModelGoodwill Model

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(1) ECONOMIC IMPACT

(2) FISCAL IMPACT

What is “impact analysis”?What is “impact analysis”?

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(1) Economic activity (output) = gross

receipts for goods or services generated in the

economy.

(2) Employment = part time and full time jobs

(3) Earnings (wages) = total wage & salary

payments including benefits

Economic ImpactsModels produce values for three economic measures:

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(1) Direct

(2) Indirect

(3) Induced

Multiplier Effects:

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DIRECT:

Jobs held by employees of the industry

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Direct activity creates

ripple effects

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INDIRECT:Jobs created in industries that

provide goods & services to the industry.

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INDUCED:Jobs created by the spending of the wages of direct & indirect employees.

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Fiscal Impact

Taxes derived from employees such as:

Employee Sales Tax

Income Taxes

Unemployment Taxes

Gas Taxes

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Community PlacementsCommunity Placements

Putting People to Work11


Community Placement SummaryCommunity Placement Summary

• The 13 Goodwill Industries organizations operating in California placed a total of 14,215 job seekers into jobs in 2012.

• The average hourly wage per placement was $10.75, working an average of 33 hours per week for 4 months.

• The ripple effect of those jobs throughout the economy generated an additional 1,235 jobs for a total of 15,450 jobs with total wages of $154.3 million and a total economic impact of $401.4 million.

• The fiscal impact generated by the placements was $11.7 million for the State of California.

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Goodwill IndustriesGoodwill IndustriesOperating in CaliforniaOperating in California

The 13 Goodwill organizations operating in California placed 14,215 people into jobs in 2012 (excluding placements within local Goodwills).

For perspective, this figure represents 5.7% of California’s statewide 2012 job growth.

Note: Estimated retention was at least 3 months.

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Top 10Top 10Community Placement Inputs Community Placement Inputs

Goodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

Industry JobsHourly

RateHours/

WeekMonths

EmployedRetail Trade 3,026 $9.10 30 5

Administrative Support Services 2,134 $11.29 33 4

Warehousing & Storage 1,938 $9.27 15 3Construction, Maintenance & Repair 858 $13.15 37 4Waste Management and Remediation Services 704 $12.16 27 4

Food Services & Drinking Places 617 $8.49 31 5

Food, Beverage & Tobacco 553 $8.90 32 3

Repair & Maintenance 512 $12.33 35 3

Nursing & Residential Care 430 $11.07 33 4

Personal & Laundry Services 392 $12.63 33 3

NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates.Source: Elliott D. Pollack & Company; IMPLAN

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Community Placement Inputs Community Placement Inputs Goodwill Industries Operating in California Goodwill Industries Operating in California

OrganizationDirect Jobs

(Placements)Weighted Avg.

Hourly WageWeighted Avg.

Hours per weekWeighted Avg.

Mos. EmployedGoodwill Industries of Greater East Bay 856 $11.33 32 7

Goodwill Industries of Orange County 1,119 $7.53 31 8

Goodwill Industries of Redwood Empire 187 $11.10 31 3

Goodwill Industries of Sacramento Valley 28 $10.86 35 5

Goodwill Industries of San Diego County 2,955 $11.19 34 3Goodwill Industries of San Francisco, San Mateo & Marin counties 375 $12.99 30 7

Goodwill Industries of San Joaquin Valley 123 $9.07 28 7Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 889 $11.56 33 4

Goodwill Industries of Silicon Valley 140 $12.16 33 5

Goodwill Industries of South Central California 9 $14.37 40 3

Goodwill Industries of Southern California 6,939 $10.71 33 3Goodwill Industries of Southern Los Angeles County 172 $16.12 40 12Goodwill Industries of Ventura & Santa Barbara Counties 423 $9.58 40 5

Total 14,215 $10.75 33 4


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Impact of Community PlacementsImpact of Community Placements Goodwill Industries Operating in California Goodwill Industries Operating in California

OrganizationDirect Jobs

(Placements) Total JobsTotal

WagesEconomic

Output ($mil)Fiscal Impact

($mil)Goodwill Industries of Greater East Bay 856 973 $14.9 $38.0 $1.15Goodwill Industries of Orange County 1,119 1,233 $14.6 $38.0 $1.33Goodwill Industries of Redwood Empire 187 198 $1.5 $3.7 $0.12Goodwill Industries of Sacramento Valley 28 32 $0.5 $1.3 $0.03Goodwill Industries of San Diego County 2,955 3,192 $27.7 $79.0 $1.99Goodwill Industries of San Francisco, San Mateo & Marin counties 375 437 $8.0 $19.9 $0.62Goodwill Industries of San Joaquin Valley 123 137 $1.7 $4.4 $0.15Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 889 993 $12.5 $34.2 $0.91Goodwill Industries of Silicon Valley 140 154 $1.8 $4.6 $0.14Goodwill Industries of South Central California 9 9 $0.1 $0.0 $0.01Goodwill Industries of Southern California 6,939 7,375 $55.3 $139.8 $4.08Goodwill Industries of Southern Los Angeles County 172 243 $9.5 $21.9 $0.75Goodwill Industries of Ventura & Santa Barbara Counties 423 474 $6.2 $16.6 $0.46Total 14,215 15,450 $154.3 $401.4 $11.7


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Annual Direct Community PlacementsAnnual Direct Community Placements Goodwill Industries Operating in California Goodwill Industries Operating in California

Organization 2009 2010 2011 2012Goodwill Industries of Greater East Bay 448 565 801 856

Goodwill Industries of Orange County 192 211 277 1,119

Goodwill Industries of Redwood Empire 284 242 207 187

Goodwill Industries of Sacramento Valley 52 110 25 28

Goodwill Industries of San Diego County 1,970 2,066 2,699 2,955Goodwill Industries of San Francisco, San Mateo & Marin counties 557 577 360 375

Goodwill Industries of San Joaquin Valley 343 178 92 123Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 471 1,349 1,071 889

Goodwill Industries of Silicon Valley 120 68 76 140

Goodwill Industries of South Central California 24 36 17 9

Goodwill Industries of Southern California 3,882 7,163 9,061 6,939

Goodwill Industries of Southern Los Angeles County 109 185 241 172

Goodwill Industries of Ventura & Santa Barbara Counties 159 239 403 423

Total 8,611 12,989 15,330 14,215


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Community Placement SummaryCommunity Placement SummaryGoodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

2009 2010 2011 2012

Total placements 8,611 12,989 15,330 14,215

Total jobs 9,225 14,272 17,654 15,450

Total wages ($mil) $96.7 $154.1 $263.7 $154.3

Economic output ($mil) $259.0 $417.2 $675.3 $401.4

Fiscal impact ($mil) $6.9 $12.2 $18.8 $11.7


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Economic Impact Economic Impact of Community Placements of Community Placements

20122012

Impact Type Jobs Wages ($mil)Economic

Output ($mil)

Direct 14,215 $87.3 $202.1

Indirect 509 $29.8 $89.4

Induced 727 $37.1 $109.9

Total 15,450 $154.3 $401.4


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Fiscal Impact Fiscal Impact of Community Placements of Community Placements

20122012

Secondary Impact from Employees

Impact Type Employees

Sales TaxIncome

TaxUnemployment Insurance Tax Gas Tax

Total Revenues

Direct Revenues $4,227,900 $479,700 $1,109,900 $679,200 $6,546,700

Indirect Revenues $841,000 $1,328,000 $121,500 $71,400 $2,371,900

Induced Revenues $1,101,900 $1,427,200 $174,400 $104,400 $2,807,900

Total Revenues $6,220,800 $3,244,900 $1,405,600 $855,000 $11,726,300

NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates.Source: Elliott D. Pollack & Company; IMPLAN 20


Goodwill OperationsGoodwill Operations

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Operations Impact SummaryOperations Impact Summary

• The Goodwill organizations operating in California employed 13,453 people in 2012.

• The ripple effect of those jobs throughout the economy generated an additional 2,590 jobs for a total of 16,043 jobs with total wages of $366.5 million and a total economic impact of $854.7 million.

• The fiscal impact generated by California Goodwill operations in 2012 was $30.5 million.

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Top 10 Top 10 Community Operations Inputs Community Operations Inputs

Goodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

Operation Industry Jobs Hourly Rate Hours/weekMonths

EmployedUsed Clothing and Merchandise Store 8,342 $9.80 33 10Administrative, business, and management services 2,525 $16.24 38 9Supply Chain 1,383 $9.74 32 11

Individual and Family Services 686 $11.64 29 11

E-Commerce 151 $11.37 34 12Janitorial Services 122 $11.23 30 8

Self Help Organisations 83 $17.51 33 11Security Services 45 $14.61 29 11Commercial Services- misc. manufacturing 40 $11.14 35 12Commercial Services- repair & maintenance 38 $14.53 39 11


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Impact of OperationsImpact of Operations Goodwill Industries Operating in California Goodwill Industries Operating in California

Organization Direct Jobs Total JobsTotal

WagesEconomic

Output ($mil)Fiscal Impact

($mil)Goodwill Industries of Greater East Bay 1,077 1,244 $24.5 $57.3 $2.01Goodwill Industries of Orange County 1,039 1,380 $46.9 $108.9 $3.76Goodwill Industries of Redwood Empire 365 452 $12.3 $28.8 $0.91Goodwill Industries of Sacramento Valley 2,230 2,575 $49.4 $114.6 $4.82Goodwill Industries of San Diego County 1,379 1,577 $29.1 $68.9 $2.59Goodwill Industries of San Francisco, San Mateo & Marin counties 1,013 1,340 $44.4 $103.8 $3.47Goodwill Industries of San Joaquin Valley 299 381 $12.0 $28.8 $1.00Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 587 683 $13.4 $31.0 $1.03Goodwill Industries of Silicon Valley 624 787 $23.0 $54.4 $1.93Goodwill Industries of South Central California 232 276 $6.4 $15.2 $0.55Goodwill Industries of Southern California 3,865 4,414 $77.2 $178.3 $6.14Goodwill Industries of Southern Los Angeles County 360 458 $14.2 $32.9 $1.21Goodwill Industries of Ventura & Santa Barbara Counties 383 479 $14.1 $32.7 $1.10Total 13,453 16,043 $366.5 $854.7 $30.5


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Economic Impact of OperationsEconomic Impact of Operations20122012

Impact Type JobsWages

($mil)

Economic Output

($mil)

Direct 13,453 $224.7 $454.7

Indirect 860 $53.5 $138.7

Induced 1,730 $88.3 $261.3

Total 16,043 $366.5 $854.7


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Fiscal Impact of OperationsFiscal Impact of Operations20122012


Impact Type

Employees Spending Sales Tax

Income Tax

Unemployment Insurance Tax Gas Tax

Total Revenues

Direct Revenues $10,479,100 $3,928,100 $2,667,800 $1,614,200 $19,532,100

Indirect Revenues

$1,469,700 $2,536,100 $205,000 $123,900 $4,334,700

Induced Revenues

$2,601,800 $3,371,000 $411,600 $249,200 $6,663,600

Total Revenues $14,550,600 $9,835,200 $3,283,900 $1,987,300 $30,500,400


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Operations SummaryOperations SummaryGoodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

2009 2010 2011 2012

Direct employees 9,539 8,847 9,880 13,453

Total jobs 10,894 10,951 12,610 16,043

Total wages ($mil) $233.7 $292.1 $313.9 $366.5

Economic output ($mil) $582.7 $664.5 $781.5 $854.7

Fiscal impact ($mil) $16.3 $22.7 $24.1 $30.5


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Capital ImprovementsCapital Improvements

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Capital Improvements byCapital Improvements byGoodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

• The total dollar value of capital improvements made in California in 2012 was $18.7 million.

• The construction generated 154 direct jobs and 275 total jobs with wages of $17.1million in 2012.

• The total economic impact of construction in 2012 was $38.7 million.

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Impact of ConstructionImpact of ConstructionGoodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

OrganizationValue of

ConstructionDirect Jobs

Total Jobs

Total Wages

Economic Output

($mil)

Fiscal Impact ($mil)

Goodwill Industries of Greater East Bay $1,084,651 9 16 $1.0 $2.2 $0.16

Goodwill Industries of Redwood Empire $168,695 1 2 $0.2 $0.3 $.01

Goodwill Industries of Sacramento Valley $3,749,048 31 55 $3.4 $7.8 $0.28

Goodwill Industries of San Diego County $6,684,920 55 98 $6.1 $13.8 $0.5Goodwill Industries of San Francisco, San Mateo & Marin counties $783,630 6 12 $0.7 $1.6 $0.12Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo $3,275,145 27 48 $3.0 $6.8 $0.24

Goodwill Industries of Silicon Valley $2,998,000 25 44 $2.7 $6.2 $0.22

Total $18,744,089 154 275 $17.1 $38.7 $1.4


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Economic Impact of Construction Economic Impact of Construction 20122012

Impact Type JobsWages

($mil)

Economic Output

($mil)

Direct 154 $10.3 $18.7

Indirect 40 $2.7 $7.8

Induced 81 $4.1 $12.2

Total 275 $17.1 $38.7


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Fiscal Impact of ConstructionFiscal Impact of Construction20122012


Impact Type

Employees Spending Sales

Tax Income TaxUnemployment Insurance Tax Gas Tax

Total Revenues

Direct Revenues $277,300 $525,100 $36,800 $22,300 $861,530

Indirect Revenues $71,800 $135,300 $9,600 $5,800 $222,520

Induced Revenues $121,400 $157,300 $19,200 $11,600 $309,513

Total Revenues $470,500 $817,700 $65,700 $39,700 $1,393,563


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Impact of ConstructionImpact of ConstructionGoodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

2011 - 2012 2011 - 2012

2011 2012

Direct Jobs 31 154

Total Jobs 65 275

Total Wages ($mil) $3.9 $17.1

Economic Output ($mil) $10.3 $38.7

Fiscal Impact ($mil) $0.4 $1.4


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Total Impact Total Impact Goodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

2012 2012

Placements Operations Construction TOTAL

Direct Jobs 14,215 13,453 154 27,822

Total Jobs 15,450 16,043 275 31,768

Total Wages ($mil) $154.3 $366.5 $17.1 $537.9

Economic Output ($mil) $401.4 $854.7 $38.7 $1,294.8

Fiscal Impact ($mil) $11.7 $30.5 $1.4 $43.8


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Total Impact Total Impact Goodwill Industries Operating in CaliforniaGoodwill Industries Operating in California

2009 - 2012 2009 - 2012

2009 2010 2011 2012

Direct Jobs 18,150 22,153 25,241 27,822

Total Jobs 20,119 25,424 30,319 31,768

Total Wages ($mil) $330.4 $429.5 $580.5 $537.9

Economic Output ($mil) $841.7 $1,044.3 $1,464.3 $1,294.8

Fiscal Impact ($mil) $23.2 $33.6 $43.2 $43.8

*2009 and 2010 do not include the impact from construction. In addition, in some cases, changes were made to overall methodology and standards in the 2012 model.


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ELLIOTT D. POLLACK & Company

7505 East Sixth Avenue, Suite 100 Scottsdale, Arizona 85251480-423-9200 P 480-423-5942 F www.arizonaeconomy.com

Economic and Real Estate Consulting

WWW.ARIZONAECONOMY.COM

INFO @ EDPCO.COM

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Documents

Goodwill Industries Operating in California