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Updated 05/22/2015 6 Primary sector companies add value to a good or service which they then export outside the region, bringing new wealth into the community. These businesses can be located anywhere in the country, and sometimes anywhere in the world. A local equipment manufacturer, for example, manufacturers its products in Fargo Moorhead and then sells them around the United States and to foreign countries. Sales of these products are used to pay workers in Fargo Moorhead and fund investments in buildings and equipment. Workers spend their salaries on housing, groceries, healthcare, education and other services. The dollars drawn into the community through the sale of construction and farm equipment is circulated through a variety of sectors in the economy. GFMEDC Survey Post 2009 Flood Event In the relatively recent flood events in prior years, businesses were negatively affected in many ways: flood damage to facilities or equipment; temporary loss of workers whose homes or property were subject to flood damage, or who felt the duty to assist in the community flood- fighting efforts; temporary disruption to shipments, customers, etc. due to road blockages or detours to accommodate flood-fighting efforts; and the mayor’s request that “non-essential” businesses cease operations during the height of the flood-fighting efforts. After the 2009 flood event, GFMEDC administered a survey to select primary sector businesses asking the following question: “If this region was devastated by severe flooding, do you anticipate your business would (circle all that apply): a. Move out of the country b. Close down completely c. Lose sales to foreign competitors d. Lose production to foreign facilities” Of the primary sector business surveyed, seven responded yes to one or more scenarios and were willing to provide detailed financial information. This group included five manufacturers, one life science company and one back office operation. The GFMEDC evaluated the impact of these seven companies using an economic impact analysis model developed by Impact DataSource of Austin, Texas. (An explanation of the model’s methodology can be found in Appendix B.) In the event that these seven companies were negatively impacted in the ways listed above, it would translate to an economic impact of:  3,727 direct and indirect jobs lost  $180,306,366 in lost wages per year  $1,250,121,054 of lost revenue per year Regional Economic Development (RED) Case Study - 2010 The GFMEDC also commissioned Impact DataSource, working in conjunction with URS Corp., a provider of engineering, construction and technical services for public agencies and private sector companies, to conduct a Regional Economic Development Study for the Fargo Moorhead Metro