Southwest Tennessee Community College Economic Impact
Southwest promotes economic growth in the Mid-South in a variety of ways. The college is an employer and buyer of goods and services, and the living expenses of students benefit local businesses. In addition, Southwest is a primary source of education to the Mid-South residents and a supplier of trained workers to regional industries.
Southwest is an important employer in the Mid-South and a large-scale buyer of goods and services.
- In FY 2016-17, the college employed 1,126 full-time and part-time faculty and staff. Of these, 93% lived in the Mid-South.
- Total payroll at Southwest was $41.4 million, much of which was spent in the region for groceries, rent, dining out, clothing, and other household expenses.
- Southwest spent $39.6 million to cover its expenses for facilities, professional services, and supplies, making it a large scale buyer of goods and services.
- Southwest added $70.2 million in income to the region during the analysis year as a result of its day-to-day operations. This figure represents the college’s payroll, the multiplier effects generated by the spending of the college and its employees, and a downward adjustment to account for funding that the college received from state and local sources.
- The $70.2 million in added income is equivalent to supporting 1,529 jobs.
Student Spending Impact
- Around 4% of credit students originated from outside the region, some of whom relocated to the Mid-South to attend Southwest. In addition, a number of in-region students would have left the area for other educational opportunities if not for the existence of Southwest.
- These relocating and retained Southwest students spent $17.2 million on groceries, rent accommodation transportation, and more.
- This student spending generated $11.2 million in added income in the regional economy, enough to support 297 jobs.
The education and training Southwest provides for regional residents results in the greatest impact.
- In Fiscal Year 2016-2017, past and present Southwest students generated $45.1 million in added income for the region, enough to support 632 jobs.
- The $45.1 million in student spending represents students’ higher earnings, increased output of the businesses that employed the students, and the multiplier effects that occurred as students and their employers spent money at other businesses.
- Southwest added $126.6 million in income to the local business community, approximately 0.2% of the gross regional product of the Mid-South. This figure is the sum of the operations, student and alumni spending impact.
- By comparison, this contribution is larger than the entire Agriculture, Forestry, Fishing, & Hunting industry in the region.
- Overall, the $126.6 million impact supports 2,457 jobs, impacts that would not have been generated without the college’s presence.