Study documents UD’s multimillion dollar impact on Delaware

9:10 a.m., Aug. 3, 2004--University of Delaware faculty, staff and students spent approximately $410 million in Delaware in 2003, with an estimated total economic impact of $735 million on the state, according to a newly released study.

Conducted by UD’s Office of Institutional Research and Planning, the study, “The Economic Impact of the University of Delaware on Newark and the State of Delaware,” surveyed thousands of UD students, faculty and staff, as well as 330 local businesses, during October and November 2003.

During the 2002-03 fiscal year, the University purchased $94.9 million worth of products and services through Delaware vendors—a 51 percent increase from 1999, when an earlier economic impact study was conducted. Purchasing in the state accounted for 56 percent of the University’s overall spending during 2002-03, compared to 41 percent of UD’s overall purchasing in 1999.

“When we first did this study in 1999, the results demonstrated the profound impact that the University of Delaware had on the state’s economy,” Michael Middaugh, assistant vice president for institutional research and planning, said. “The new study clearly demonstrates that the University’s economic impact has grown substantially over the past four years.”

The study also found that:

During 2003, UD students, faculty and staff spent in Delaware roughly four times the state’s operating appropriation for the University; and
The “multiplier effect” of spending by students, faculty, staff and the University supported some 8,170 jobs in the state and region. According to federal Bureau of Economic Analysis guidelines, approximately 20 jobs are generated for each $1 million of output.

“The expenditures of students, faculty, staff and the University account for a large part of the economic impact on the state of Delaware,” study author Allison Ohme, UD institutional research analyst, said. “These direct expenditures create a multiplier effect when employees and businesses make purchases after receiving paychecks and profits that result from University spending.”

Excluding spending on University tuition, housing and meals plans, UD students reported spending an average of $1,060 monthly on items ranging from off-campus housing and entertainment to medical and dental care. Estimated annual expenditures by UD’s student population in 2003 totaled $194.4 million—a 36 percent increase since 1999. During fall semester 2003, UD enrollment totaled 21,121 full- and part-time undergraduate and graduate students.

UD faculty and staff household spending in Delaware averages $2,730 a month on purchases, including housing, retail purchases and education. Estimated annual expenditures by Newark campus faculty and staff in 2003 totaled $119.2 million—a 26 percent increase since 1999. UD is the state’s eighth largest employer, with approximately 3,600 faculty and staff members on the Newark campus.

“Many businesses surveyed as part of the study indicated the University and its community are assets to them, and that UD students, faculty and staff are frequent customers and loyal patrons,” Ohme said. “Some businesses also noted that they thrive on the additional business generated by visitors drawn to Newark because of the University and its events.”

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