Results
It is estimated that the presence of Virginia Tech increases total NRRV economic output by nearly $1.3 billion and value-added by about $586 million. (Total value-added is total revenue used to pay for interest, taxes, wages, salaries, and profits, and does not include payments for products used in the production of other goods. A region's value added is analogous to a nation's Gross Domestic Product.)
The university and its associates generate about 25 percent of Montgomery County's 47,800 full-time equivalent jobs and produce more than 15,000 jobs in the NRRV (approximately 6.5 percent of NRRV employment). Virginia Tech increases total personal income by almost $460 million in the NRRV and more than $409 million in Montgomery County. Further, the university contributes to the average annual personal income of each Montgomery County household by more than $13,000 ($3,300 in the NRRV) and average value-added per household by more than $16,600 ($4,200 in the NRRV).
| Total Output ($M) | Personal Income ($M) | Value -Added ($M) | Employment (FTE) | |||||
|---|---|---|---|---|---|---|---|---|
| CNTY | NRRV | CNTY | NRRV | CNTY | NRRV | CNTY | NRRV | |
| Virginia Tech and Affiliates | 897.2 | 938.0 | 347.96 | 364.4 | 371.96 | 399.2 | 8,714 | 10,427 |
| Student Spending | ||||||||
| Undergraduate | 63.7 | 93.2 | 11.7 | 29.1 | 28.5 | 48.4 | 642 | 1,355 |
| Graduate | 40.7 | 52.5 | 7.8 | 12.1 | 19.2 | 19.2 | 424 | 538 |
| Total, Student Spending | 104.4 | 145.7 | 19.5 | 41.2 | 47.7 | 67.6 | 1,066 | 1,893 |
| Faculty and Staff | 142.2 | 162.3 | 30.9 | 40.0 | 83.9 | 97.6 | 1,597 | 1,869 |
| Visitors | ||||||||
| Athletic Visitors | 11.7 | 9.7 | 3.8 | 3.4 | 6.1 | 5.3 | 268 | 203 |
| Conference Visitors | 6.6 | 13.7 | 2.1 | 4.6 | 3.4 | 7.1 | 148 | 279 |
| Misc. Student Visitors | 10.7 | 12.9 | 3.5 | 4.4 | 5.6 | 6.9 | 226 | 249 |
| Move-In | 3.6 | 3.8 | 1.4 | 1.5 | 2.3 | 2.4 | 90 | 87 |
| Total, Visitors | 32.6 | 40.1 | 10.8 | 13.9 | 17.4 | 21.7 | 732 | 817.5 |
| Overall Total | $1,176.4 | $1,286.1 | $409.2 | $459.5 | $521.0 | $586.1 | 12,110 | 15,007 |
These results demonstrate the importance of Virginia Tech in the economies of Montgomery County and the New River/Roanoke Valleys. All residents of the study areas are affected by Virginia Tech's presence through increased income, regional product, employment, and trade.
This study conceptually separated the university from the study areas in order to model the university's effects. However, Virginia Tech is more properly thought of as a part of Montgomery County and the NRRV. Each economic transaction that makes up the university's impact required a buyer and a seller, both of which benefit from the transaction. Thus, whenever the study regions receive benefits from Virginia Tech, Virginia Tech receives benefits from the study regions. This complementary relationship underscores the need for mutual understanding and concern between members of the university community and the institutions and residents of the NRRV and Montgomery County.
Copies of the full report can be downloaded or obtained from the Office of University Relations, 540-231-5396.