A new study by Summit Consulting and the W.E. Upjohn Institute for Employment Research finds that the MEP program, of which DVIRC is a part, generates a substantial economic and financial return. The study found a return on investment of nearly $13.6:1 for the $146 million invested by the federal government in fiscal year (FY) 2020.
Using the national REMI® model, along with the results from the FY 2020 NIST MEP client impact survey conducted by Fors Marsh, LLC., the team finds that economic returns remain robust. The study uses a conservative approach in estimating the broader economic impacts of the program by examining the competitive interactions between firms. NIST MEP contracted with Summit and Upjohn to create a study to estimate the broader national impacts of the MEP program. The results of the study are available here (https://research.upjohn.org/reports/254/).
A positive return on investment
The study reports that the $146 million invested in MEP during FY 2020 generated nearly a 13.6:1 increase in federal personal income tax ($1.99 billion/$146 million federal investment). The study only looks at personal income tax and not business taxes. In addition, the analysis provides a conservative estimate of broader impacts as they are based only on completed surveys.
The MEP program generates additional jobs for the U.S.
The study finds that total employment in the U.S. is more than 252,000 higher because of MEP Center projects. This estimate includes both direct jobs generated by MEP projects as well as jobs generated among suppliers and households. This supports both additional manufacturing jobs critical to U.S. supply chains and jobs outside the manufacturing sector.
Other positive impacts of the MEP program
The study examines additional areas of economic impact generated by the MEP program. It finds personal income is $15.5 billion higher and gross domestic product is $20.9 billion larger. This translates into an increase of $1.99 billion in personal income tax revenue to the federal government.