A recent study by the Economic Modeling Specialists International (EMSI), renowned for economic analyses of post-secondary education, pegs Fanshawe College's economic impact to London and surrounding area at $1.6 billion, equal to 5.6 per cent of the region's Gross Regional Product.
"The results are outstanding," says Fanshawe President, Peter Devlin, noting how the College's contribution continues to grow as it celebrates its 50th anniversary. "The report quantifies Fanshawe's impact on the region's strength and stability as well as contributions made to the prosperity of its communities."
The biggest impact came from the increased earning power and productivity of Fanshawe graduates who were active in the workforce during the 2014/15 analysis; that alone accounts for $1.4 billion. The other two factors – the cost of college operations and the spending of roughly 9,000 students who relocated to the region to attend school during the 2014/15 year – account for $185.4 million and $57.5 million, respectively.
The report, which also measured the College's impact on personal and provincial prosperity, suggests that a Fanshawe education pays major dividends.
For every dollar a student spends on a Fanshawe education, the student receives a cumulative $3.80 in higher future wages, or a 14.8 per cent return on investment. Over a working lifetime, that translates into $537,600 in higher income, compared to someone with a high school diploma.
That higher income also benefits the public sector, namely through increased tax revenue and reductions in income assistance, healthcare services and crime. According to the report, the Ontario government receives a 22.7 per cent return ($8.10 for every dollar spent) on public money invested in the College.
"Fanshawe is a key economic driver," says Kapil Lakhotia, President and CEO, London Economic Development Corporation. "As it celebrates a half century of excellence, these results show the College continuing to make a significant economic impact in London, its surrounding areas and the province."
EMSI is a leading provider of socioeconomic impact and strategic planning tools to community and technical colleges in the United States and Canada.
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