Middle Tennessee‘s 20 colleges and universities make up one of the region‘s most important economic sectors, enrolling nearly 100,000 students, employing 75,000 people and generating a $5.5 billion economic impact, according to a new report released today.
The study, conducted by the Business and Economic Research Center (BERC) at the Jennings A. Jones College of Business at Middle Tennessee State University and funded by the Nashville Area Chamber of Commerce, demonstrates the significant role that higher education plays in the regional economy through direct expenditures, workplace preparedness and enhancing the appeal of the area to current and new business and industry.
“It is well known that the Nashville area‘s colleges and universities add a vibrant and unique element to our community, bringing students, faculty and staff from around the world,” said Bob Fisher, president of Belmont University and immediate past chairman of the Nashville Area Chamber of Commerce. “Now we can quantify the impact, and work together with business and government leaders to enhance Middle Tennessee‘s already strong position as a center for innovation and learning.”
The BERC study was commissioned by the presidents and chancellors of Middle Tennessee‘s colleges and universities, who meet on a regular basis to discuss issues of mutual concern. In addition to estimating the economic impact of higher education institutions on the regional economy, it also analyzes the value of higher education using econometric models, compares skilled labor supply and demand conditions, and compares the region with the peer areas.
Using the most recent data, the BERC study found that Middle Tennessee‘s colleges and universities were responsible for:
• $5.469 billion in business revenue for higher education institutions
• 75,178 employees earning $1.724 billion in annual personal income
• 98,931 students with an annual business revenue impact of $1.5 billion
• 17,000 annual graduates, 60 percent of whom remain in the region
• 234,322 alumni working in the region
• 553,926 annual visitors with an annual business revenue impact of $72.5 million
• $134 million in charitable contributions (excluding charitable health care services provided by academic medical centers)
In addition, a comparison with regional peer cities found that Middle Tennessee ranks first among in diversity of educational opportunity and as the fourth-largest provider of educational services.
“Nashville‘s higher education sector is a growing and important ‘industry,‘” said Gordon Gee, chancellor of Vanderbilt University. “We are constructing new buildings, creating new programs, adapting to the needs of the local and national economies and, most importantly, educating the leaders who will contribute to our region‘s future success.”
“It has long been understood that higher education was important for individual success,” said Nashville Mayor Bill Purcell. “What this report shows is just how important higher education is for the success of a city. Nashville has moved beyond its reputation as the ‘Athens of the South‘ to rank among the top cities in providing diverse educational opportunities. The contributions of our colleges and universities make a huge difference in our economy, in our workforce and in our quality of life.”
The genesis of the Middle Tennessee higher education economic impact study can be traced to the Nashville Area Chamber‘s annual InterCity Visit, which took a delegation of business and community leaders to Boston in 2005. Boston had conducted similar higher education impact studies and the city used the data as a tool to generate further economic development.
“This is the most comprehensive study yet of the impact that Middle Tennessee‘s colleges and universities have on our local economy,” said Murat Arik, associate director of the Business and Economic Research Center at MTSU and the project director for the study. “If anything, these data understate the true scope of their importance as a source of jobs and business activity, as well as positive contributors to our quality of life. What is clear, though, is that higher education ranks among the leading ‘industries‘ in this region, and it will be an essential element of our continued growth.”
“The impact study provides tangible proof of the economic significance of the higher education industry in Nashville. Higher education stimulates business development and prepares tomorrow‘s workforce leaders. Middle Tennessee higher education also develops diversity and culture in ways that few communities can claim,” said Ralph Schulz, president and CEO of the Nashville Area Chamber of Commerce.
In 2006, the Nashville Area Chamber of Commerce also helped facilitate economic impact studies for the music industry (research conducted by Belmont University) and the health care industry (conducted by Middle Tennessee State University and commissioned by Chamber affiliate, the Nashville Health Care Council).
To view or download a copy of the full Middle Tennessee higher education impact study, visit the EDUCATION home page of the Nashville Area Chamber of Commerce web site at www.nashvillechamber.com.
Media contact: Elizabeth Latt, (615) 322-NEWS
elizabeth.p.latt@vanderbilt.edu