Unlocking the Power of Economic Impact Analysis at Karp Strategies

What we do

At Karp Strategies, we understand that economic development is about people, communities, and creating sustainable growth. Our clients come to us with questions such as: What is the contribution of a certain business or an industry to a region’s economy? What are the characteristics of the jobs created or supported in different sectors as a result of an investment or a policy change? What are the potential supply chain and value chain dynamics of a certain facility? How does an increase in resident population or workforce size impact household spending in a region? These are complex challenges that require a nuanced understanding of the local economy and a clear-eyed view of the trade-offs and risks involved.

That's where our Economic Impact Assessment services come in. Using input-output modeling (I-O) tools like IMPLAN, Lightcast, RIMS II, and JEDI, we help our clients map out the ripple effects of their investments and initiatives across sectors, industries, and communities. Our goal is not just to measure the economic impacts but to help our clients design strategies that align with their values and priorities. We choose the most appropriate tool, or combination of tools, for our client’s needs based on their industry and reporting requirements. Then, work closely with them to evaluate the potential benefits and costs of different projects or initiatives, estimate their return on investment, and identify potential risks and trade-offs.

We also know that hard data only takes you so far—our assessments always include thorough quantitative and qualitative methodologies. For example, we might use IMPLAN to execute our quantitative analysis, while our qualitative study relies on a review of stakeholder interviews and other forms of desktop research. In alignment with our core tenets as a firm, we examine every project from a holistic perspective incorporating data, people, and places. Our rigorous and transparent analysis enables our clients to engage with stakeholders and partners, communicate their value proposition, and ultimately, build a strong case for their economic development strategies.

But we don't stop there. Our approach to economic impact assessment is grounded in our commitment to grassroots economic empowerment. We believe that data and analysis are only valuable if they can be translated into meaningful action—and that communities should be central to and involved in that action. That's why we work with our clients to identify ways to involve stakeholders in the decision-making process and to ensure that the benefits of economic growth are shared widely and equitably. Our economic impact assessments are an essential component of building broader community, economic, and workforce strategy and planning that help our clients build more resilient, sustainable, and inclusive economies.

Economic Impact Assessments in Action:

Below are some examples of the economic impact assessments we’ve conducted for clients ranging from private-sector developers specializing in large-scale mixed-use projects to offshore wind developers and manufacturers seeking to embed a new industry into an existing ecosystem. Karp Strategies’ analyses inform our clients’ strategic decision-making processes—grounded in data and informed by conversations with those most affected by the project at hand.

Tackling the economic impacts of various developments: affordable and market-rate housing, commercial retail space, and/or outdoor public amenities. Developers in New York City engage Karp Strategies to execute economic impact assessments to estimate the direct, indirect, and induced impacts a new development will have on jobs, labor income, and tax revenues during the construction process, as well as the project’s longer-term operations phase. This has allowed them to quantify and communicate the positive economic effects of their developments to decision-makers, internal stakeholders, and the broader community. By presenting a comprehensive analysis of the potential benefits and costs of a project, Karp Strategies helps developers build a strong case for their investments and address concerns from community members and elected officials.

Leveraging workforce and fiscal impact analyses to understand New York City life science hiring trends and industry gaps. Karp Strategies was hired to conduct an analysis of the life science sector in New York City and recommend ways to optimize workforce development and community investment. Through a series of mixed methods analysis that included economic and fiscal impacts assessment, expert interviews, and desktop research, we quantified the contributions of the life science industry to New York City’s economy and mapped the key characteristics of the current life science workforce. Karp Strategies then compiled a comprehensive key findings and recommendations report that identified potential opportunities for advancing equitable access to future life science jobs and strategies for filling existing industry gaps through future investments. Click here to learn more about this project.

Planning for the growth of offshore wind—a nascent industry. Karp Strategies is dedicated to the development of the clean energy industry as a key means to create thriving economies and a sustainable future. That involves helping developers and original equipment manufacturers (OEMs) craft informed and impactful workforce development and supply chain strategies. As part of several teams vying for NYSERDA’s third solicitation, Karp Strategies developed projections for the economic and workforce development impacts of the proposed projects—including estimates for the number of projected jobs, Minority- and/or Women-owned businesses who may participate, and jobs accessible to those residing in designated disadvantaged communities. Our quantitative assessments, coupled with our additional economic and stakeholder research and strategy, directly informed our clients’ New York Jobs and Workforce Plans and OEMs’ Supply Chain Investment Plan(s).

Karp Strategies approaches each unique context to deliver content expertise, produce a strong and focused product, and employ stellar project management throughout our work to unlock the full power of economic impact assessments. If your investment, project, or advocacy requires a formalized analysis of overall economic impact, please do reach out to us at info@karpstrategies.com and tell us more.

Healthier Natural Waterfronts Reflect Community Well-Being

Proposed wetland restoration for Middletown, CT. Rendering courtesy of Cooper Robertson.

Waterfront ecosystems serve many essential environmental functions and benefit people and communities. For example, wetlands can help filter pollution from stormwater runoff, improve water quality, reduce erosion, and provide habitat and food for diverse species. As climate change makes some regions wetter and warmer, wetlands can also help mitigate tidal and rain-based flooding. Many studies show that increasing public access to water bodies and healthy waterfront ecosystems can provide mental and physical health benefits, such as reduced stress and improved concentration and memory. However, there are many societal barriers limiting equitable access to healthy waterfronts, such as zoning, structural racism, and misconceptions about designing for flood risk mitigation. Here are a few ways urban planners can help drive more equitable access and protect and restore healthy waterfront ecosystems.

Waterfront Access for Community Well-Being

Public waterfront access directly correlates to public health and well-being, especially in urban areas, including decreasing climate risks. Recent case studies in Amsterdam and Barcelona revealed that climate resilience and promoting social equity were the most valued aspects of public water spaces (by those attending the public workshops hosted for the study). These benefits depend on public awareness of waterfront access and increase as more people utilize them. Similarly, as more people access the waterfront and recognize its value, there is potential for public programming aimed at ecological remediation and education efforts.

Waterfront Alliance's WEDG Standard for Resilient, Sustainable, and Accessible Waterfront Development

The Waterfront Alliance’s Waterfront Edge Design Guidelines (WEDG) certification provide guidance for equitable and environmentally friendly design along waterfronts, including public waterfront access and a unique category for natural resources. The goal for WEDG is to help reduce citywide flood and environmental risks, as well as drive economic value. It grants credit to redevelopment projects that plan to minimize impacts and improve biodiversity, with an emphasis on avoiding impacts to existing natural resources (i.e. preservation), as well as habitat restoration.

Community-Driven Solutions

Green engineering along the waterfront and public waterfront access are examples of mechanisms that foster the positive correlation between ecological health and communal well-being. This relationship is self-sustaining in that as an ecosystem grows and becomes more vibrant, it attracts engineering mechanisms and public efforts that will help it grow more so, thus attracting even more buy-in.

Especially in urban areas, waterfront access has not always been available to historically marginalized communities. Environmental racism negatively impacted community health and hampered preservation. Increased access to waterfronts is especially beneficial to marginalized communities through mitigating urban heat effects and flooding from extreme rainfall. It's important to make every effort to restore waterfront habitat, no matter how polluted the surrounding area is, because realistically, most urban waterfronts are highly contaminated.

Both the mechanisms of public waterfront access and green engineering should serve the natural and built ecosystems surrounding a site so ecological and human communities can flourish alongside each other. To this end, incorporating green engineering in waterfront designs should also lean on equitable community engagement. This approach is meant to ensure stakeholder input into a project’s vision, design, and implementation to create a welcoming and equitable waterfront for all.

Register for the Waterfront Conference on May 8 in New York City to learn more about equitable access at our waterfronts and creating a healthier environment.

Invest in Port Infrastructure to Invest in Our Economy

Port infrastructure in the New York Harbor. Photo by David Henry.

Ports—when you hear this word, what comes to mind? Our guess is you’re thinking ‘Ships?’ or maybe ‘Cranes that look like giraffe skeletons, but made industrial?’. You may not be thinking about how important ports are to keeping our economy running.

But ports and maritime infrastructure form the backbone of the U.S. economy, keeping the flow of goods moving to meet our everyday needs. The nation’s 328 coastal and inland ports support almost 31 million jobs and 26% of the GDP, according to 2018 statistics from the American Society of Civil Engineers (ASCE). The pandemic highlighted just how much this infrastructure impacts our lives, as the delivery of everything from cars to bananas to clothes to medicine to food to computers was affected by supply chain strain at the ports.

In recent years, ports have adopted a new role as vital links in the emerging offshore wind industry. As more developers win offshore lease areas and move into staging and constructing wind farms, our outdated port infrastructure—and lack of available funding for capital upgrades—create major barriers to accommodating industry supply chains and project development. Most of the nation’s ports are at least a century old, and owners struggle to modernize existing infrastructure in order to keep pace with and accommodate today’s larger vessels. Decades of federal, state, and local disinvestment have likewise delayed repairs and maintenance, compounding the deterioration. Indeed, despite ports’ importance, a $12 billion funding gap existed (as of 2018) to fix waterside infrastructure over the next decade, with billions more needed for landside upgrades.

Ports will need to modernize to accommodate the larger vessels that transport major turbine components to offshore lease areas, as well as the larger cranes needed for component assembly and placement of ships. In short: crumbling wharf infrastructure will not only impede business as usual, but delay and hinder the offshore wind industry’s ability to deliver clean energy to millions.

In promising news, the Biden Administration’s 2021 passage of the Infrastructure and Jobs Act will invest $17 billion in port infrastructure. Additionally, the US Department of Transportation’s Maritime Administration released a funding opportunity in February 2023 that makes over $662 million of federal funding available for port infrastructure modernization.

While these injections of funding will be helpful, they are not enough. According to the ASCE’s 2021 Infrastructure Failure to Act Report, the projected gap between port infrastructure needs and available investment will reach more than $2.6 trillion by 2029 and more than $5.6 trillion by 2039. The report also states that an increased investment of $281 billion a year would eliminate the potential economic burden caused by port degradation, including job and GDP loss, which could exceed $10.3 trillion by 2039. This level of investment will be difficult to attain without additional interventions like state funding programs, incentivized private sector investment, and government prioritization of port infrastructure spending across federal, state, and local levels.

These ports and their accompanying maritime infrastructure have long been a staple of America’s economy. To leverage further opportunities for economic development with the advent of offshore wind in the US, ports need the appropriate federal funding to modernize and continue to grow our jobs and GDP.

Want to learn more about ports, offshore wind, and all things maritime?

The Karp Strategies team has a passion for and expertise about ports after our years of experience working on ports and with port authorities from New Jersey to Massachusetts to Maine. After her urban planning degree, CEO and Managing Principal Rebecca Karp worked at the Port Authority of New York and New Jersey (PANYNJ) both in policy and operational roles. Mike Deveney, our Data Compliance and Contract Administrator, joined Karp Strategies in 2021 after over thirty years of experience in operations, maintenance, security, and administration with PANYNJ.

We’ll be talking about exactly these issues and experiences at the Waterfront Alliance’s Waterfront Conference on May 8 in New York City! Join Rebecca, Maki Onodera (Jacobs), Stephen Famularo (WSP), and Patricia Gaynor (MARAD) as they speak on the panel, “Addressing Decades of Deterioration: Deferred Wharf and Pier Maintenance.” The discussion will explore how the public and private sectors must rise to the challenge of revitalizing our port infrastructure to support the regional economy.

Register for the Waterfront Conference below to attend this panel or others on waterfronts and climate resilience.

Register here:

https://www.eventbrite.com/e/2023-waterfront-conference-the-implementation-challenge-tickets-506542741977