ADIR has just made public the results of a study on the contribution of the industrial sector to the local economy : its impact in terms of production, but also consumption and public spending generated thanks to industrial activity.
Evaluating the socio-economic footprint of an economic activity on a territory involves calculating and adding up the direct economic impacts, indirect and induced wealth that it produces and distributes through its purchases, through consumption linked to the direct and indirect employment that it generates and through the taxes that it pays to the public administration and that the latter spends. This study is the first of its kind in Reunion. It was carried out as part of the ADIR Industry Observatory by the Reunion firm Utopies, specialized in the field of sustainable development assessments and strategies. The calculation applies the Local Footrprint tool designed by Utopies which makes it possible to assess the impact of an economic activity on the local economic fabric.. The data for this study comes from INSEE statistics.
Reunion industry in 2018
The study provides key figures for the Reunion industrial sector in 2018 : 6,300 companies, 24,400 direct jobs, 1,9 billion euros of purchases in France, 27% of which from Reunion suppliers (or 513 million euros). The Reunion industry paid 728 million euros in wages that year. She paid 845 million in taxes. The added value it generated amounts to one billion euros. From there, the Local Footprint model estimates indirect jobs for suppliers, then the jobs induced by the consumption of the direct and indirect employees concerned, to which it also adds the jobs induced by public administration expenditure corresponding to the taxes paid. Total “employment supported” by Reunion industry : 57 600 (24,440 direct jobs + 10,100 indirect jobs + 11,100 jobs induced by consumption + 12,000 jobs induced by taxes). The same approach applied to the total wealth generated by Reunion industry results in an amount of 2,62 billion euros.
A key sector for the economic sustainability of Reunion Island
“This study also makes it possible to observe the industrial fabric of the Island in order to understand its production capacity. The results provide data justifying the importance of this sector for the economic sustainability of the island.. In a social context where the expectations of the population are high, it is essential for Reunion’s industry to continue to develop local employment and to justify its contribution” explains ADIR in the summary presentation of this study, to be found on the ADIR website (www.adir.re).
Utopias : evaluate to evolve
Utopies is the reference firm in France for socio-economic impact studies. Its Local Footprint methodology is based on the macroeconomic concepts of Input-Output tables and on spatial economic algorithms which highlight the interactions between economic actors..
