The impact of purchasing and construction

Brown University spent more than $327.5 million in fiscal year 2011 on purchases of goods and services and on construction, of which more than $159 million was paid to Rhode Island vendors and contractors.

Brown’s spending on goods, services and construction generates business for Rhode Island companies and jobs for Rhode Island residents. As shown in Table 3, Appleseed estimates that University spending on goods, services and construction directly supported about 1,050 full-time-equivalent jobs with Rhode Island companies in fiscal year 2011 — 740 in Providence and another 310 at companies elsewhere in the state.

 

Table 2: Brown University spending on goods,
services and construction (millions of $) by location of vendor, FY 2011

 

Total spending

Paid to Providence Companies

Paid to other RI companies

Total RI

 

 

$ % $ % $ %

Goods & services

$196.105 $48.315 24.6% $19.735 10.1% $68.050 34.7%

Construction

$131.457 $64.750 49.2% $26.457 20.1% $91.207 69.3%

Total

$327.562 $113.065 34.5% $46.192 14.1% $159.257 48.6%

Purchasing

In fiscal year 2011, Brown spent $196.1 million on purchases of goods and services (other than construction). Purchases from Rhode Island companies totaled more than $68 million — nearly 35 percent of all University spending on supplies and services. Businesses based in Providence accounted for about 71 percent of all in-state purchasing.

Appleseed estimates that in fiscal year 2011, Brown's purchases of goods and services directly supported approximately 240 FTE jobs in Providence, and 105 FTE jobs elsewhere in Rhode Island.

Construction

Brown spent $131.5 million in fiscal year 2011 on construction and renovation of University facilities. Of this total $64.75 million was paid to Providence-based contractors, and $26.457 million to contractors based elsewhere in Rhode Island. Appleseed estimates that in 2011 University construction directly generated 500 full-time-equivalent jobs with Providence contractors in construction and related industries, and 205 FTE jobs with contractors located elsewhere in Rhode Island.

 

Table 3: Direct jobs created from purchasing and construction, fiscal year 2011

 

Providence

Rest of Rhode Island

Total RI

Purchasing

240 FTE

105 FTE

345 FTE

Construction

500 FTE

205 FTE

705 FTE

TOTAL

740 FTE

310 FTE

1,050 FTE

In addition to creating business and employment opportunities for Rhode Island contractors and construction workers, Brown’s investments in new and renovated facilities contribute to the revitalization of the state’s economy by enhancing the University’s ability to fulfill its mission of education and research. Several projects completed  in fiscal year 2011 provide examples.

In the fall of 2011 the Warren Alpert Medical School moved into a new Medical Education Building — a 134,000 square-foot former manufacturing building located in the city’s historic Jewelry District, between Brown’s main campus and the Medical School’s principal teaching hospitals. The $45 million building includes lecture halls, the School’s library, lab space and offices.
The University renovated 74,000 square feet of space in its existing Metcalf Complex to provide a new home for the Department of Cognitive, Linguistic, and Psychological Sciences and the Department of Psychology. The $42 million renovation created new classrooms, research space, offices and meeting rooms.
In 2011 the University completed the Perry and Marty Granoff Center for the Creative Arts, a new 35,000 square-foot building that includes a recital hall, a recording studio, a multi-media lab and artists’ studios. The $35 million building is designed to encourage and facilitate collaboration across disciplines.