THE PERRYMAN GROUP. The Economic Benefits of the Precision Dance Industry Inspired by the Kilgore College Rangerettes

Transcription

1 The Economic Benefits of the Precision Dance Industry Inspired by the Kilgore College Rangerettes THE PERRYMAN GROUP 510 N. Valley Mills Dr. Suite 300 Waco, TX ph fax January 2014

2 Table of Contents Introduction... 1 The Kilgore College Rangerettes... 2 Economic Benefits of the Precision Dance Industry... 4 Conclusion... 7 APPENDIX: Detailed Sectoral Results... 8 w w w. p e r r y m a n g r o u p. c o m

3 Introduction For almost 75 years, the Kilgore College Rangerettes have been changing the way Americans experience football games and other events. What are now cornerstones of halftime shows across the country precision dance and drill teams owe much to the innovative Rangerettes program. These teams are an important aspect of team spirit and fan entertainment. Even beyond the entertainment provided by these groups, they also lead to notable gains in business activity. The Perryman Group (TPG) quantified the economic benefits of the drill team and precision dance industry inspired by the Kilgore College Rangerettes. This report presents findings from TPG s analysis. 1 P a g e w w w. p e r r y m a n g r o u p. c o m

4 The Kilgore College Rangerettes Dr. B.E. Masters, Dean of Kilgore College, hired Miss Gussie Nell Davis in 1939 to form an organization to attract more women to the college and equalize the male/female student ratio. Other goals were to provide entertainment during football game halftimes in order to keep more people in the stands. Miss Davis created the Kilgore College Rangerettes, the first group of its kind in the world. The debut performance by the group was in 1940, and Miss Davis continued to lead the group until her retirement in The Rangerettes inspired the precision dance and drill teams now common in high schools, colleges, and professional organizations across the United States (and, in fact, around the globe) and spawned a major industry in the process. 2 P a g e w w w. p e r r y m a n g r o u p. c o m

5 Performances by the Rangerettes include appearances at major football bowl games across the nation, including the New Year's Cotton Bowl Classic in Dallas each year since In addition, the group has performed at Presidential inauguration events, international festivals, and many other high-profile venues. Team members have been featured in major magazines, television shows, and more. 3 P a g e w w w. p e r r y m a n g r o u p. c o m

6 Economic Benefits of the Precision Dance Industry Hundreds of high schools and colleges across the nation, as well as most professional sports franchises, have precision dance/drill teams. These teams not only boost spirit, but also lead to significant economic benefits. Attending competitions leads to tourism, hiring directors and choreographers generates jobs, and purchasing needed uniforms and other gear enhances spending. Performances can also increase attendance at sporting events. The total economic benefits of the precision dance/drill team industry inspired by the Rangerettes include an estimated $8.3 billion in total spending and $4.0 billion in output (gross product) each year, as well as more than 50,700 permanent jobs in the United States. Because they are more numerous, elementary and secondary schools account for the largest component of these gains in US business activity, with $3.9 billion in total spending and $1.9 billion in output (gross product) each year as well as 23,600 jobs. (See the table below and the Appendix to this report for additional detail.) These results are based on utilization of information 4 P a g e w w w. p e r r y m a n g r o u p. c o m

7 from a variety of sources to estimate the overall size of the industry and the related direct spending. The Perryman Group s impact assessment system was then used to quantify the associated multiplier effects. In this way, the total economic benefits stemming from the precision dance industry were determined (the methodology is described in more detail on page 6). The Economic Benefits of Precision Dance Teams: Gains in US Business Activity (Monetary Values in Millions of Constant 2013 Dollars) ECONOMIC BENEFITS Elementary and Secondary Schools* Colleges and Universities* Professional TOTAL Total Expenditures $3,876.2 $2,564.8 $1,890.7 $8,331.8 Gross Product $1,868.9 $1,236.6 $911.6 $4,017.2 Personal Income $1,151.2 $761.7 $561.5 $2,474.5 Retail Sales $564.7 $373.7 $275.5 $1,213.9 Employment (Permanent Jobs) * NOTE: Includes both public and private schools. SOURCE: The Perryman Group 23,602 15,617 11,512 50,731 5 P a g e w w w. p e r r y m a n g r o u p. c o m

8 Measuring Economic Impacts Any economic stimulus (such as direct spending, investments, or corporate activity) generates multiplier effects throughout the economy. In this instance, the precision dance team industry inspired by the Kilgore College Rangerettes contributes to attendance and tourism, jobs for instructors and other personnel, and purchases of costumes and other necessary items. While an extensive industry data base is not available, it was possible to generate reasonable estimates of direct spending based on (1) school budget information from several states, (2) university and college outlays in various categories related to athletic and performance programs, (3) information provided by several professional sports franchises, and (4) various sets of information on the magnitude of each sector that permitted reasonable extrapolation. Outlays were allocated to major categories of outlays (such as costumes, travel, tourism, and training). Once the direct stimulus was quantified, the associated multiplier effects were measured. The Perryman Group s input-output assessment model (the US Multi- Regional Impact Assessment System) was developed by the firm over 30 years ago and has been consistently maintained and updated since that time. It has been used in hundreds of analyses for clients ranging from major corporations to government agencies. The system uses a variety of data (from surveys, industry information, and other sources) to describe the various goods and services (known as resources or inputs) required to produce another good/service. This process allows for estimation of the total economic impact (including multiplier effects) of the precision dance team industry. The submodel used in the current analysis reflects the specific industrial composition and characteristics of the US economy. These total economic effects are quantified for key measures of business activity: Total expenditures (or total spending) measure the dollars changing hands as a result of the economic stimulus. Gross product (or output) is production of goods and services that will come about in each area as a result of the activity. This measure is parallel to the gross domestic product numbers commonly reported by various media outlets and is a subset of total expenditures. Personal income is dollars that end up in the hands of people in the area; the vast majority of this aggregate derives from the earnings of employees, but payments such as interest and rents are also included. Job gains are expressed as permanent jobs since the industry will have ongoing annual effects. Monetary values were quantified on a constant (2013) basis. 6 P a g e w w w. p e r r y m a n g r o u p. c o m

9 Conclusion The Kilgore College Rangerettes have developed an outstanding reputation and strong tradition for almost 75 years. They also contributed to the birth of the drill team and precision dance industry. The Perryman Group estimates that this industry as a whole generates a sizable economic stimulus of an estimated $8.3 billion in total expenditures and $4.0 billion in gross product each year, as well as more than 50,700 permanent jobs across the nation. The Rangerettes have benefitted thousands of young women who have been a part of the team over the years, helping them to develop poise and confidence in addition to their dance skills. They have also encouraged attendance at Kilgore College and at the events where they have performed. For the Kilgore area, they have enhanced the visibility and positively contributed to national and international perceptions of the city. Of far more lasting significance, they have been the incubator for the development of a major industry that has positively influenced countless lives and careers and brought economic benefits to communities throughout the world. 7 P a g e w w w. p e r r y m a n g r o u p. c o m

10 APPENDIX: Detailed Sectoral Results 8 P a g e w w w. p e r r y m a n g r o u p. c o m

11 The Estimated Annual Impact Associated with Public and Private Elementary and Secondary School Precision Dance Teams on Business Activity in the United States Sector Total Expenditures Gross Product Personal Income Employment (2013 Dollars) (2013 Dollars) (2013 Dollars) (Permanent Jobs) Agriculture $69,825,183 $20,460,529 $13,218, Mining $42,922,571 $10,113,931 $5,720, Construction $78,652,636 $42,411,914 $34,950, Nondurable Durable Transportation and Utilities $765,305,249 $259,792,323 $134,372,862 2,723 $100,491,375 $37,518,132 $24,526, $317,556,111 $140,583,627 $83,996, Information $115,339,294 $66,774,862 $33,494, Wholesale Trade $102,997,322 $69,764,761 $40,226, Retail Trade $564,733,321 $420,131,211 $243,632,373 7,338 Finance, Insurance, and Real Estate $457,595,328 $126,560,299 $49,126, Business Services $170,315,646 $102,105,985 $83,292, Health Services $95,099,695 $66,604,071 $56,314, Other Services $995,411,005 $506,126,090 $348,365,161 8,185 TOTAL $3,876,244,737 $1,868,947,735 $1,151,236,186 23,602 Source: US Multi-Regional Impact Assessment System, The Perryman Group 9 P a g e w w w. p e r r y m a n g r o u p. c o m

12 The Estimated Annual Impact Associated with Public and Private College and University Precision Dance Teams on Business Activity in the United States Sector Total Expenditures Gross Product Personal Income Employment (2013 Dollars) (2013 Dollars) (2013 Dollars) (Permanent Jobs) Agriculture $46,201,591 $13,538,225 $8,746, Mining $28,400,801 $6,692,137 $3,785, Construction $52,042,498 $28,062,911 $23,125, Nondurable Durable Transportation and Utilities $506,383,499 $171,898,136 $88,911,189 $66,492,650 $24,824,818 $16,228,359 $210,119,001 $93,020,699 $55,578,339 1,802 Information $76,317,150 $44,183,269 $22,162, Wholesale Trade $68,150,773 $46,161,612 $26,617, Retail Trade $373,670,030 $277,990,401 $161,205,497 4,855 Finance, Insurance, and Real Estate $302,779,477 $83,741,810 $32,505,636 Business Services $112,693,638 $67,560,997 $55,112, Health Services $62,925,109 $44,070,261 $37,261, Other Services $658,638,769 $334,891,079 $230,504,585 5,416 TOTAL $2,564,814,986 $1,236,636,354 $761,744,426 15,617 Source: US Multi-Regional Impact Assessment System, The Perryman Group 10 P a g e w w w. p e r r y m a n g r o u p. c o m

13 The Estimated Annual Impact Associated with Professional Sports Franchise Precision Dance Teams on Business Activity in the United States Sector Total Expenditures Gross Product Personal Income Employment (2013 Dollars) (2013 Dollars) (2013 Dollars) (Permanent Jobs) Agriculture $34,058,907 $9,980,114 $6,447, Mining $20,936,514 $4,933,312 $2,790, Construction $38,364,709 $20,687,428 $17,047, Nondurable Durable Transportation and Utilities $373,295,987 $126,719,935 $65,543,586 1,328 $49,017,078 $18,300,369 $11,963, $154,895,608 $68,573,035 $40,971, Information $56,259,506 $32,571,040 $16,337, Wholesale Trade $50,239,413 $34,029,435 $19,621, Retail Trade $275,462,219 $204,929,073 $118,837,532 3,579 Finance, Insurance, and Real Estate $223,203,094 $61,732,821 $23,962, Business Services $83,075,540 $49,804,643 $40,627, Health Services $46,387,157 $32,487,733 $27,468, Other Services $485,535,587 $246,875,137 $169,923,461 3,993 TOTAL $1,890,731,321 $911,624,074 $561,543,056 11,512 Source: US Multi-Regional Impact Assessment System, The Perryman Group 11 P a g e w w w. p e r r y m a n g r o u p. c o m

14 The Estimated Total Annual Impact Associated with Precision Dance Teams on Business Activity in the United States Sector Total Expenditures Gross Product Personal Income Employment (2013 Dollars) (2013 Dollars) (2013 Dollars) (Permanent Jobs) Agriculture $150,085,682 $43,978,868 $28,411, Mining $92,259,886 $21,739,380 $12,295, Construction $169,059,844 $91,162,252 $75,123,369 1,030 Nondurable Durable Transportation and Utilities $1,644,984,735 $558,410,394 $288,827,637 5,854 $216,001,103 $80,643,319 $52,717, $682,570,721 $302,177,361 $180,546,010 2,076 Information $247,915,950 $143,529,171 $71,995,217 1,082 Wholesale Trade $221,387,508 $149,955,808 $86,465, Retail Trade $1,213,865,571 $903,050,685 $523,675,402 15,772 Finance, Insurance, and Real Estate $983,577,899 $272,034,929 $105,594,427 1,074 Business Services $366,084,824 $219,471,625 $179,032,612 2,117 Health Services $204,411,960 $143,162,065 $121,044,855 1,943 Other Services $2,139,585,361 $1,087,892,306 $748,793,207 17,594 TOTAL $8,331,791,044 $4,017,208,163 $2,474,523,668 50,731 Source: US Multi-Regional Impact Assessment System, The Perryman Group 12 P a g e w w w. p e r r y m a n g r o u p. c o m