ASU’s Economic Impact Exceeds $208 Million Annually
October 06, 2010
Additionally, ASU graduates throughout the state are responsible for another $484 million impact on the Texas workforce.
Those are the primary findings of an economic impact study conducted by Dr. Bradley T. Ewing, the Rawls Professor of Operations Management in Texas Tech University’s Rawls College of Business. The study, conducted on behalf of the Texas Tech University System, was based on 2009 economic data, which took into account ongoing operations, payroll, student spending and visitor-related expenditures.
When those factors are combined, Ewing said, “Angelo State University is a powerful and substantial economic force in the city of San Angelo, Tom Green County and beyond.”
“In all, the direct and secondary economic impacts associated with the Angelo State University enterprise account for 3.6 percent of total employed persons and more than 2.8 percent of total personal income in the county,” said Ewing. “Moreover, the amount of total output that arises as a result of Angelo State University amounts to nearly 5 percent of Tom Green County’s Gross Regional Product.”
ASU President Joseph C. Rallo said, “Without a doubt, Angelo State remains a prime engine for economic development in the Concho Valley and beyond. As we move toward our enrollment goal of 10,000 by 2020, our economic impact will certainly grow, but at the same time we will also be looking at ways we can partner with the area business community to stimulate even greater growth. Of the city’s top four major employers, ASU has the most aggressive growth goals and the university might well move up in the local rankings by 2020.”
The economic study documented a primary ASU impact of $93.6 million in university expenditures for ongoing operations and salaries for 767 employees. Those expenditures had a secondary impact of $25.9 million, including the equivalent of 305 local jobs with a household income of $15.1 million. Spending by ASU students, including primary and secondary effects, totaled $74.7 million, providing the equivalent of 828 local jobs and a household income of $20.4 million. The total impact of visitor-related spending was put at $14.2 million, including household income of $4.5 million sustaining 190 jobs.
“While ASU employed 767 employees in 2009,” Rallo said, “the overall economic impact of the university created another 1,322 jobs for Tom Green County.”
As a follow up to the study, Ewing estimated the total economic impact of ASU enrollment at 10,000 in 2020. His projections, based on 2009 dollars, placed ASU’s potential economic impact at $326 million and nearly 3,300 jobs, including both university positions and those generated in the county by ASU’s economic ripple effect.
“The figures demonstrate the importance of growth not only to Angelo State University,” said Rallo, “but also to San Angelo and Tom Green County. Every citizen in the Concho Valley has a stake in our growth.”
Additionally, the study examined the impact of ASU beyond the Concho Valley through university graduates. Overall, ASU has some 27,000 graduates. Ewing projected that ASU graduates living in Texas contributed the equivalent of $484 million annually to the state workforce.
Support for the ASU study and comparable economic impact studies for other components of the Texas Tech University System was provided by the TTUS Office of the Chancellor; TTU Division of Enrollment Management and Student Affairs; TTU Office of Research Services; Texas Tech University Health Sciences Center; Angelo State University; City of San Angelo; and San Angelo Development Corporation.