Case Study:

Input-Output Economic Impact Modeling

Industry Trade Association
State of Michigan



Our Role

  • Policy Research and Analysis
  • Primary and Secondary Market Research
  • Economic Impact Assessment


As the global demand for renewable energy continues to increase, the infrastructure necessary for new energy markets will require the manufacture of devices and components that harness renewable resources or make energy utilization more efficient. An industry trade association called upon The Hill Group to quantify the economic impact of Michigan’s new energy manufacturing.


The Hill Group selected new energy devices and components based on current levels of activity in Michigan and preliminary evaluation of future importance and significance. Shifts in demand and estimates of supply for each device were used to calculate direct, indirect, and induced economic impacts including total economic output, jobs supported, and tax revenues.

The Hill Group study revealed that Michigan, unrivaled in its manufacturing prowess, could leverage its existing core of manufacturers, highly-skilled workforce, and strong industrial supply chains to emerge as a premier location for the manufacture of new energy devices and their components. Through the development of an agglomeration economy, similar to automobile manufacturing, the state’s production and intellectual assets could make Michigan the future hub of new energy manufacturing.


Behind the Scenes

The Hill Group utilized input-output analysis to estimate the economic impact of the state’s manufacturing activities for new energy devices within the advanced energy storage, biomass, solar, and wind subsectors. Demand for these subsectors was forecasted to grow significantly, both nationally and statewide.