mgm construction overview: spending, …...2019/10/01 · •urban casino in the middle of downtown...
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MGM Construction Overview: Spending, Employment, and
Economic Impacts
Presented by Rod Motamedi, MBASenior Research Manager, Economic and Public Policy
ResearchUMass Donahue Institute
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Property Background
• Construction period was March 2015 through August 2018
• First integrated resort casino in the Commonwealth
• Urban casino in the middle of downtown
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The Data
• MGM provided us the data at the conclusion of each contract. In some cases, the data was in draft form.
• Contract summaries included– Worker hours, wages, ZIP, and limited
demographics
– Company ZIP, total contract value, subcontractors, and payment schedule
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Construction Components
• Hotel/Podium/Armory
• Enabling
• Garage
• Daycare and Church
• Offsite improvements
• Signage
• 95 and 101 State Street and 99 Union projects
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$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
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Construction Spending by Quarter
Enabling Garage Hotel/Podium/Armory
95/101 State and 99 Union All Else Monthly Average
Total: $573 million
Monthly Avg.: $12.7 million
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Hotel/Podium/Armory
70%
Garage13%
Enabling9%
95/101 State and 99 Union
4%
All Else4% Spending by Component
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City Contract Value ($M)Agawam $6.90 Chicopee $46.48 Holyoke $7.06 Ludlow $28.41 Springfield $83.96 West Springfield $2.67 Total $175.47
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Did Not Meet Diversity Criteria
64.5%
Woman Owned21.7%
Minority Owned7.4%
Veteran Owned6.4% Spending by Diversity Criteria
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Workers and Wages
We estimate there were about 4,250 workers who worked 2.6 million hours over 16 quarters and were compensated $173 million.
FTEs: 1,251
Avg. Hours/Worker: 612 (approx. 15 weeks @ 40 hrs./week)
Avg. Hourly Comp/Worker: $66
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H&SC Summary Hours and Compensation
Geography Average HoursAverage
CompensationSpringfield 806 $45,212
Surrounding Communities 769 $47,640
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Workers by H&SC
Town/City WorkersAgawam 54Chicopee 185
East Longmeadow 44Holyoke 81
Longmeadow 8Ludlow 125
Springfield 509West Springfield 84
Wilbraham 30Total 1,120
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Race/Ethnicity of Workers
Hispanic44%
White/ Other35%
Black19%
All Else2%
SPRINGFIELD POPULATION
Hispanic34%
White/ Other38%
Black27%
All Else1%
SPRINGFIELD WORKERS
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Gender of Workers
Female13%
Male87%
SPRINGFIELD WORKERSFemale
7%
Male93%
MA WORKERS
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Veteran Status
No89%
Yes11%
SPRINGFIELD WORKERS
No94%
Yes6%
MA WORKERS
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Key Concepts for Economic Impacts
• How do economic models work? What are their structure and methods?
• What are the key results and how are they defined:
– Employment
– Output
– Value Added
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Summary of Employment Impacts
Total Employment 2015 2016 2017 2018 2019 Avg.Direct 189 697 1,629 447 1 593Business to Business (Indirect) 40 85 145 10 5 57Total Induced 133 446 1,000 338 83 400
Consumption-Based Induced 77 255 560 134 32 212Other Induced 56 191 440 204 51 188
Total 362 1,229 2,774 795 89 1,050
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New Economic Activity ($M)
Economic Activity
Total (Output) Net New (Value Added)Annual Avg. Cum. Annual Avg. Cum.
Metro Boston $52 $259 $32 $158 Southeast $9 $47 $6 $28
Pioneer Valley $82 $409 $49 $246 Central $23 $115 $14 $69
Berkshires $2 $12 $2 $8 Cape and
Islands $1 $6 $1 $4 MA $170 $849 $102 $512
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Timeline of Upcoming Products
PPC Operating ReportDecember 2019
MGM Construction ReportSeptember 2019
MGM Lottery Report December 2019
MGM New Employee Survey Report Spring 2020
MGM Springfield Real Estate ReportSeptember 2019
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Thank you!
For more information, contact:
Dr. Mark MelnikDirector, Economic and Public Policy Research
University of Massachusetts Donahue Institute
www.donahue.umassp.edu
www.umass.edu/seigma