College impact shown to increase personal and provincial prosperity.
A study released this week shows Fanshawe's economic contribution to the communities it serves is approximately $1.6 billion annually, with the biggest influence coming from the impact of graduates' incomes, adding close to $1.4 billion to the region.
Results of the regional economic impact analysis are based on the impact of college operations, the spending of students who relocated to the region and increased productivity of Fanshawe graduates employed in the region. Fanshawe operates campuses in London, St. Thomas, Woodstock and Simcoe.
"The study reveals that Fanshawe's impact on our local economies is significant," says Peter Devlin, Fanshawe College President. "Fanshawe is an economic driver that is reshaping our economy. As Ontario looks for solutions to the skills mismatch and youth unemployment, colleges such as Fanshawe are well positioned to deliver high-quality, high-return programs that will serve labour market needs."
The economic impact report by Economic Modeling Specialists International (EMSI) also shows that graduates receive a return of $3.30 in higher future wages for every one dollar they invested at Fanshawe. Over a working lifetime, this translates into a value of almost $550,000 in higher income compared to someone with a high school diploma or equivalent.
In turn, these increased wages benefit the region through increased consumer spending, a steady supply of qualified, trained workers for employers, increased tax revenue and a reduced demand for government-supported social services.
Fanshawe's $1.6 billion economic impact translates into roughly five per cent of the region's Gross Regional Product (GRP) and a multiplier of 6.5 for every one dollar in government investments that Fanshawe received over the same period.
EMSI, which is world-renowned for its economic analyses of post-secondary education, conducted its assessment of Fanshawe College from December 2013 to April 2014.