Community advocates have long known how public markets become the heart and soul of a place, a spot where people naturally interact, where social and economic activities thrive. We also know that markets yield concrete economic benefits, both direct (new jobs created, profits for business owners, sales and real estate tax revenues) and indirect (stimulating nearby development, enhancing a local park or business district, preserving farmland). But how can markets prove tangible evidence of these valuable economic impacts?

PPS has studied this subject and offers the following resources to help you better make the case for markets by measuring their effect on the local economy.

One time-proven way to gauge the effect of a market is to conduct an economic impact study, which gauges the positive influence on local communities in quantifiable terms. Comprehensive economic impact analysis, however, is expensive and beyond the means of most public markets. Thankfully, two tools are now available to help you complete an impact analysis.

Estimating the Economic Impact of Public Markets

Prepared for PPS by Econsult Corporation, this tool estimates the overall economic impact of a market. The process is relatively straightforward and does not involve extensive data collection, but it is important to read the report carefully so that you understand how to use the data provided to estimate the impact of your market.

PPS asked Econsult to create a typology of public markets which takes into account their diversity and the diversity of the communities they serve. This typology was designed especially for estimating the potential indirect and induced expenditures of specific types of public markets.

As part of the development of this tool, Econsult, in conjunction with PPS, analyzed data on the sales at vendors in seven public markets in communities across the country. (Some of this information was very difficult to collect from vendors, so there are some gaps in the data.) These markets differed in terms of scale, mix of vendors, and the local economies in which they are situated (i.e., large city, small city, or small town). Thanks to the Ford Foundation for funding this effort.

The Sticky Economics Evaluation Device (SEED)

SEED is a web-based tool that provides a straightforward mechanism for collecting data about farmers markets from customer surveys and counts, and then uses the data to estimate direct and indirect economic impacts using a standard "multiplier" -- that is, the potential indirect and induced expenditures of specific public markets. The website also provides useful information about economic impact studies.

Send us your results! We want to hear from you about your experience with these findings! Email us at publicmarkets@pps.org.

Please note, these tools provide only estimates, and are subject to testing in the field--so let us know your results and suggestions for improvements. We hope they will provide some useful data that market organizers and sponsors can use to build greater partnerships with their local communities--and your help will allow us to sharpen them.

Recent Studies of Market Impacts

The economic benefits of markets, long discussed anecdotally, have been the subject of numerous studies in the past few years. Here are some highlights from these studies on the direct and indirect economic impacts of public markets and farmers markets:

• In a 2002 survey of over 800 customers from a variety of indoor and open-air markets around the country, PPS discovered that 60 percent of market shoppers also visited nearby stores on the same day; of those, 60 percent said that they visited those other stores only on days that they visit the market.
• A 2006 study on farmers markets in the Canadian province of Ontario confirms these findings, showing that an overwhelming majority of farmers market customers also patronize at least one other nearby store on their way to or from the market, with many visiting two or more stores in the same trip.
• Finally, a recent study conducted by Iowa State University for the Iowa Farmers' Market Association reports that farmers markets in the state contributed up to $20 million in sales to the economy and created another $12 million in direct and indirect economic activity.

Naturally, as the scale of the market increases, so do the economic benefits. Two recent studies of large indoor market halls, one in the US and one in the UK, highlight these substantial direct and indirect economic impacts:

• Pike Place Market in Seattle conducted an economic impact study to generate greater support for an upcoming market maintenance bond issue. The market is estimated to have generated nearly $87 million in gross revenue in 2002, which translates to almost $4 million in taxes for the city, county and state. Jobs in the market that year ranged seasonally from 1,500 in winter to about 2,400 in peak season.
• A 2006 report from the New Economics Foundation in London on the economic benefits of the indoor/outdoor Queens Market found that every £10 ($19) spent at the market generates an additional £25 ($48) in economic activity. This compares with only an additional £14 ($26.50) generated by a traditional supermarket. It also revealed that the local public market creates twice as many jobs per square foot of retail space as nearby supermarkets do.