U of M has $7.3-B impact in province, study shows

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This article was published 20/10/2023 (723 days ago), so information in it may no longer be current.

No one should be surprised that the presence of the University of Manitoba represents a substantial economic impact on the province.

But some heightened appreciation of the province’s largest post-secondary institution might occur with the findings released today in the U of M’s Economic Impact Study, which shows the total economic impact associated with the university is estimated to be $7.3 billion in 2022-23.

In a province with GDP just shy of $80 billion, the university’s contribution is significant.

Produced by R.A Malatest & Associates Ltd. (Malatest), the report uses the latest techniques to factor in complex estimates like the added value of graduates and post-graduates in the workforce — the alumni education premium — and the economic impact in one year of research work that may have been ongoing for years.

The report also produces estimates of salary differentials for graduate and post-graduate degree holders compared to high school grads, which can be as high as more than $57,000 for a male, aged 55-64 with a post-graduate degree.

(Just as eye-opening is the documentation that the alumni education premium for women of that same age cohort and academic status is $20,000 less than for men.)

Michael Benarroch, the president of the U of M, said he believes the report is particularly useful in its ability to show the full impact the U of M has on the province.

“It’s not just detailing the direct impact of the direct government grants and student tuition — the operating side — but the part we found interesting about the way they (Malatest) work was that they are really looking at things more comprehensively,” he said.

Malatest differentiates between the concepts of static and dynamic impacts where the static ones are the institutional, student and visitor spending and the dynamic impacts measures the alumni education premium and research.

“The static contributions are the ones that are on your annual spending reports,” Benarroch said. “The dynamic ones are really about the additional value of the alumni who stay in your location… and the cumulative impact of the research done at the university and how that adds to productivity and GDP within the province.”

Ryan Kuffner, president and CEO of Economic Development Winnipeg, said the U of M provides the province with a research and development ecosystem that helps EDW attract businesses to Manitoba.

“University of Manitoba’s ability to generate impact in the economy through institutional, student, visitor and research spending is a valuable contribution to our community” said Kuffner. “As a private sector-led organization, we know our business community values our locally trained youth and graduate students. Not only do they hire University of Manitoba graduates that allow businesses to grow and thrive, but they support the development of students through work integrated learning, like co-op programs and internships.”

The study did not factor in the spending impact of part-time students — of which there are more than 4,000 — nor did it include any value from the Southwood Circus real estate development that is just getting underway and could eventually turn into a $6 billion development.

Which is to say that although estimates are being made throughout the report, effort was undertaken to not overestimate.

While Benarroch may have his hands full juggling weary funders and rising costs, highlighting the ongoing value of those dynamic impacts is an important element of the report.

For the fiscal year 2022-23, Malatest estimates that the dynamic impact of the alumni education premium was $2.6 billion and for research it was a whopping $2.9 billion.

With about 90 per cent of the post-secondary institutions in the province and about 50 per cent of the total research spending in the province taking place at the U of M, it is clearly Manitoba’s research engine.

“It points to the value of post-secondary education and why we should be investing in it,” Benarroch said. “The same thing with research. I think we sometimes forget that. We don’t talk about that and the important role U of M plays in terms of driving research in the province, research that leads to real economic outcomes.”

Benarroch said regardless of how accurate the numbers are, the study shows the cumulative impact of the research work over time is highly valued.

Among others, but maybe the most important message the study delivers from Benarroch’s point of view, is, “We shouldn’t be under investing in our research in the province.”

But by all accounts, that’s pretty much what is going on.

Benarroch figures out of the more than $200 million worth of research funding the university receives in an average year, only about $30 million of that comes from the province. That’s less than half as much as the province of Saskatchewan invests.

“What this study clearly shows is that there is a payoff, longer term, for our province when we invest those dollars (in research),” he said.

In addition to the economic value of the research, Benarroch argues that mere operation of the labs themselves has ancillary economic values.

“Our training of grad stud is very closely linked to our research enterprise,” he said. “Grad student work in our labs and on research projects and they conduct their own research.”

Benarroch argues that in addition to the academic pursuits of pure research, the actual work being done in the labs is effectively job training.

“We have not done a good enough job at the university explaining that and having people understand that it is actually part of the training. It is education happening in the lab,” he said.

martin.cash@freepress.mb.ca