Study Shows Campus Generates Nearly $2 Billion in Annual Economic Activity

Chapel on the UMass Amherst campus
Monday, June 2, 2014

A new study released today by the UMass Donahue Institute highlighting the role that the UMass system and its five campuses play in boosting the economy of the state shows that the UMass Amherst flagship campus contributed $1.932 billion in economic activity to the Massachusetts economy last year and supports nearly 9,000 external jobs, the most among UMass campuses.

The report indicates that UMass Amherst is a key economic driver in western Massachusetts and the Commonwealth as a whole, directly or indirectly affecting every person in the state. In fiscal year 2013, UMass Amherst generated an eight-fold return on the state’s total $241 million investment into the campus through local operating expenditures of the campus, one-time major construction expenditures and the spending of the campus’ 5,159 full- and part-time faculty and staff and 24,871 undergraduate and graduate students.

In total, the report calculates that the state’s $519 million investment in the five-campus University of Massachusetts system contributed $6.1 billion to the Massachusetts economy last year, or $12 in economic output for every dollar in state money that UMass received. Statewide, spending tied to UMass system employees, operations, research, students and construction was responsible for over 45,000 jobs.

Much of the UMass Amherst spending flows beyond the campus to a variety of suppliers of goods and services, generating significant benefits for the Massachusetts economy. A notable share makes its way to employees in the form of salaries and wages, which is then circulated into the Massachusetts economy through typical household spending. At the same time, the significant amount of money the campus’ students directly spend off-campus generates additional economic activity for the region.

The Donahue Institute report finds that the spending of the UMass Amherst campus, its employees and students helped to support an additional 8,957 jobs in the Commonwealth throughout fiscal year 2013, which is the largest external labor force braced by any UMass campus.

The full report from the UMass Donahue Institute, University of Massachusetts Economic Contribution Analysis FY 2013, can be found online at www.donahue.umassp.edu.