Report Outlines Benefits of Faraday Proposal
Our community has much to gain in the proposal to bring Faraday Future to Apex Industrial Park in North Las Vegas.
As the Legislature gears up to consider the deal, a recently released report from Applied Economics shows the value of bringing Faraday, an automotive manufacturer and technology company, to our region.
Released Monday, a new report estimates the Faraday proposal will have an $87.5 billion economic impact and help facilitate 4,500 direct jobs in southern Nevada over the next 20 years. The economic impact report further says that the Faraday project will lead to at least 4,000 construction jobs in Clark County in addition to up to 9,000 indirect jobs created by all the economic activity of the Faraday project.
Over the next 20 years, the report estimates that Faraday could generate up to $767.1 million revenues in Nevada above and beyond the $215.9 million in proposed abatements and reimbursements for the company. Included in that number is about $260 million in additional revenues for Nevada schools.
All told, that’s about a 3.5-to-1 return on investment for the State of Nevada.
Our board of community and business leaders endorsed the Faraday proposal on Monday because of the value and potential economic return on a project like this. Much of that value is quantified in the Applied Economics report, but some of the expected return goes beyond the capability of economic models to track and predict.
As UNLV Economics Professor Alan Schlottmann notes in an addendum to the report, Faraday’s development could well serve as a “technological anchor” tenant for Apex. That means we can potentially see a much greater economic impact over time as other businesses open at Apex because of Faraday’s operations there.
The report explains further the sum impact toward our region’s economic diversification efforts:
The company would not only create new primary jobs and payroll in an export industry where most of the sales are outside Nevada, but would also create additional demand for other local businesses based on supplier purchases and employee spending. The number of direct jobs created by Faraday Future would increase manufacturing employment in the county by more than 20 percent.
The report goes on the say that “attracting this size of manufacturer to Southern Nevada will seed additional related economic development activity locally and throughout the region.”
We have already seen a boost to Nevada’s economic development efforts from the Tesla deal that was announced in 2014. Now, as we close out 2015, Nevada stands poised to again benefit from another major announcement.