The direct impact component consists of labor and material purchases made specifically for the preservation activity. The multiplier effects incorporate what are referred to as indirect and induced economic consequences.
The indirect impact component consists of spending on goods and services by industries that produce the items purchased for the historic preservation activity. The induced impact component focuses on the expenditures made by the households of workers involved either directly or indirectly with the activity.
To illustrate, lumber purchased at a hardware store for historic rehabilitation is a direct impact. The purchases of the mill that produced the lumber are an indirect impact. The household expenditures of the workers at both the mill and the hardware store are induced impacts.
Related Products: 1998-25 Partners in Prosperity: The Economic Benefits of Historic Preservation in New Jersey