Thursday, February 25, 2016
MMC Adds $74.5 Million To Area Economy In 2014-15
Press release
Martin Methodist College has a $74.5 million economic impact on five counties in south central Tennessee according to a recent economic impact study.
“We all take for granted Martin Methodist’s educational and cultural impact on our region,” commented Dr. Ted Brown, Martin Methodist College president, “but this study clearly indicates that the College is also a powerful economic force in the region.” The economic impact study was conducted by Dr. Fred Martin, an educational consultant and expert in assessing economic impact. Looking at the financial data for 2014-2015, he projected that the College contributed more than $74.5 million to the region’s economy.
The study focused on three major areas of the College’s economic impact: Local business volume generated by College expenditures ($35.9 million); local full-time jobs created and sustained by Martin Methodist’s presence (2,528 jobs, including the College’s own 223 full-time jobs counted over the same period); and individual income generated by College expenditures (at least $38.7 million).
The counties most economically benefited by the College’s operation include Giles, Lawrence, Lincoln, Marshall, and Maury. On average, approximately 85 percent of the College’s expenditures are made in those counties.
Dr. Martin said his analysis was based on the Caffrey Model which was developed in 1968 and regarded as a standard by the American Council on Education. “The Caffrey Model is considered more sophisticated and more reliable than some other models that simply apply a single economic impact multiplier,” Martin explained.
Martin, who has conducted similar economic studies at numerous public and private colleges and universities, said he wasn’t surprised to find proof that Martin Methodist is a major economic force in the region. “Colleges and universities often fuel the economy in the communities where they operate. This study is just an indicator of what kind of an economic engine Martin Methodist College is in the region,” he said, adding that communities with institutions of higher learning often fare better in slower economic times because of their stability. “Education is always needed,” he said. “Colleges and universities are usually more economically stable because they maintain a relatively constant enrollment. People are willing to sacrifice for education because they see it paying off in the long term.”
President Brown also stated that he regularly tells people the College is an “appreciating asset” in the area in terms of graduates produced and services and facilities provided to the region, but he is pleased to have specific data to share about the College being a tremendous economic asset as well.
“We didn’t factor in the intrinsic value that results from the improved productivity and quality of life achieved through increased education, nor did we include the direct impact of having citizens, leaders and educated persons available for employees and organizations,” he said. “That sort of indirect economic impact cannot be forgotten. Companies simply wouldn’t locate here if they couldn’t find the human resources they needed or the opportunities for personal growth that the College offers this region.”
The College’s Martin 2020 Plan includes a number of bold initiatives that reach into the south central Tennessee region, not only with educational and cultural programs, but also with economic development and workforce development support. Martin Methodist was among the early adopters of Governor Haslam’s Drive to 55 initiative, attempting to increase the percentage of Tennesseans with some kind of post-secondary educational credential to 55 percent by 2025. The average among the counties of south central Tennessee is currently around 17 percent.
“Martin Methodist College has a central role to play in preparing our region’s workforce for tomorrow’s jobs,” said President Brown. “We are launching new programs, including the MBA degree that is already underway; and we have a new campus at Northfield in Spring Hill. As this study indicates, all of these new and heightened activities will also serve to expand the College’s economic impact across south central Tennessee.”
Martin Methodist College, founded in 1870, is a private, liberal arts college affiliated with the United Methodist Church. Martin Methodist offers baccalaureate degrees in 39 programs of study that include English, religious studies, music and dramatic arts, mathematics and natural sciences to business, social sciences, education, criminal justice, and nursing.
