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KC Economic Impact of Associations

 
KC Economic Impact Study

In 1992, two large and nationally recognized associations decided to move their headquarters from Kansas City. This prompted the creation of KCSAE's Associations for Kansas City Task Force. The mission of the group was to increase the overall awareness of the association industry, and to influence community leaders to take a more proactive approach in the recruitment and retention of associations in Kansas City. In 1995, the task force received a grant from ASAE to fund this study. A summary of the results follows

In 1995, 62 KCSAE member associations produced $431 million of total income, of which

  • $360 million was spent on purchases from other businesses $61 million was paid to a total of 2,199 employees
  • $10 million was paid in taxes or retained within the associations.

In 1995, 42 KCSAE member associations had over 141,000 visitors to the greater Kansas City metropolitan area, using approximately 26,000 hotel room nights. The Mid-America Regional Council (MARC) then estimated the total economic impact using the task force's research and reported that the combined local spending of associations and their visitors

  • created an increase of $169 million in the output of goods and services for area businesses generated 2,370 new jobs in the area economy.
  • created an increase in personal disposable income for area workers of $143 million.

Associations with Headquarters in the Kansas City Metropolitan Area (1995)


 

 

Missouri Counties

Kansas Counties

Scope of Association

Clay

Jackson

Platte

Johnson

Wyandotte

Total

National

2

28

11

21

0

62

Regional

2

13

0

2

0

17

State/Local

1

33

0

7

2

43


 

Totals

5

74

11

30

2

122

Total Economic Impact of Associations on the Kansas City Metropolitan

Real Gross Average Annual Impact of:

Total Regional Product
(1995 $)

Real Disposable Employment

Personal Income
(1995 $)


 

Spending by Associations

$159.1 million

4,262

$136.2 million

Spending by Visitors

$10.3 million

307

$7.1 million


 

Total Economic Impact

$169.4 million

4,569

$143.3 million


Based on the results of this study, the income multiplier for associations is 2.35, which means that for every dollar of payroll paid to workers in associations, another $1.35 of real disposable personal income is created elsewhere in the economy. The employment multiplier is 2.08, which means that for every job created in the association community, another 1.08 jobs are created elsewhere in the economy.