The University of Louisiana at Lafayette is a significant force in the economies of Lafayette, Acadiana and Louisiana. Its spending impact alone on Louisiana is $755 million annually, with $726 million of that amount impacting the Acadiana economy. More than 7,780 non-university jobs have been created and are supported by university spending. In addition, the university reported $51 million in external research funding from state, federal, private and self-generated funds in 2008. Every dollar of state funding invested in UL Lafayette generates more than an $8 return.
In addition to its spending, UL Lafayette influences the economy through its research and economic development centers. The impacts of these economic development centers included $1.2 billion in increased revenues for clients, $1.8 billion in retained revenues for clients, more than $101 million in savings for clients, more than $56 million in increased investments by clients and about $28 million in cost avoidance (money that companies did not have to spend as a result of economic centers' assistance). Jobs created and retained by Louisiana businesses served by UL Lafayette's economic development centers totaled 22,790.
Agencies housed at the University Research Park employ more than 400 people. Their total payroll exceeds $26 million.
These numbers are part of an economic impact study released by the University of Louisiana System Thursday. The report includes economic impacts of the system's eight universities.
“ UL Lafayette's presence is felt in many sectors of the local, regional and state economies,” said UL Lafayette President Joseph Savoie. “Its financial influence has value and that worth can be calculated.”
In terms of economic development centers, the university is unique in that it is home to two centers with statewide responsibilities - the Manufacturing Extension Partnership of Louisiana (MEPoL) and the Procurement Technical Assistance Center (PTAC).
“ PTAC and MEPoL combined with other UL Lafayette centers such as the Enterprise Center of Louisiana, the Center for Business and Information Technologies and the Small Business Development Center produced a combined impact of $1.2 billion in increased revenue and $1.8 billion in retained revenue for clients,” said UL Lafayette President Joseph Savoie.
The university employs nearly 2,100 men and women. “If it were a private business, it would be the largest private employer in Lafayette Parish,” said Savoie. “If UL Lafayette were a city, it would rank as the 17th largest in Louisiana.”
More than 16,000 students come to campus each semester and the university has awarded more than 100,000 degrees since it was established in 1898. About $1.3 billion was added to Louisiana's economy by UL Lafayette graduates over the past 10 years due to degree attainment.
The mere existence of the university creates major spending in area businesses and as a result creates thousands of jobs. For every person the university employs, nearly four additional individuals in the community have jobs as a direct result of the university's spending.
“ Spending impact reflects the direct and indirect income created by the multiplication of money in circulation,” said Dr. Joby John, dean of UL Lafayette's B.I. Moody III College of Business and Administration and project management leader of the UL Lafayette study. “When we spend money, the recipient of that money spends it again, and so on, causing a ripple effect.”
For example: When a UL Lafayette employee spends her earnings on home improvements, the contractor she hired spends his earnings on dinner at a restaurant. The restaurant owner turns around and spends some of her income on some new restaurant furniture or personal clothing. The furniture company or the clothing retailer then proceeds to spend their earnings on other goods and services and thus money multiplies.
“ Economists rely on established models, called multipliers, to calculate the effect of spending on the economy,” said John.
A total breakdown of the overall spending impact of UL Lafayette includes:
o Student spending, $287 million impact
o Faculty and staff spending, $150 million impact
o Visitor spending, $125 million impact
o Operating expenditures, $72 million impact
o Capital outlay and construction, $47 million impact
o Health insurance payments, $32 million impact
o Retiree spending, $23 million impact
o Affiliated organizations like the Foundation and Alumni Association, $19 million impact.
“The university is essentially a city within a city,” said Savoie. “Just through its day-to-day operations, it keeps large amounts of money moving and that flow of currency is essential for a healthy economy.”
In addition to economic impact, the university greatly enhances quality of life in the region. Many individuals and businesses locate in the area because they want to live in a university town.
“ The quality of life in Lafayette and Acadiana is enhanced by the cultural, athletic and intellectual offerings of the university,” said Savoie. “UL Lafayette makes this an interesting and vibrant place to live.”