UMass System Generates $6.2 Billion in Economic Activity

Marty Meehan, left, appears with Greater Haverhill Foundation manager Ronald Trombley when UMass Lowell announced its participation in the new Harbor Place project in downtown Haverhill.

The University of Massachusetts was responsible for $6.2 billion in economic activity in Massachusetts last year – a record high – and helped to support more than 43,000 jobs statewide, President Marty Meehan said Monday.

The economic impact generated by the five-campus UMass system translates into a 10-to-1 return on investment for state government when total state funding for the University is considered, according to an analysis by the UMass Donahue Institute, which conducts economic and public policy research.

“UMass educates more students than any college or university in the Commonwealth and is one of the state’s three largest research universities, but it also has a profound impact on the Massachusetts economy based on the scope and reach of its operations,” Meehan said. “UMass is a vital economic engine for the Commonwealth,” he added, “and its impact is felt in every community and by virtually every family across Massachusetts.”

Major drivers of economic impact are student, faculty and staff spending; construction projects; and the University’s purchasing the goods and services required for its activities. The study measured spending and its “ripple effect” in determining the $6.2 billion impact estimate. UMass Lowell, which will soon have a presence in downtown Haverhill, contributed $921.9 million to the local economy, the report said.

UMass Lowell employs 1,509 regular faculty and staff and creates another 4,618 outside jobs, according to the study.

Victor Woolridge, chairman of the UMass board of trustees, said the report illustrates that “UMass truly is here for a reason, and that reason is to serve the entire Commonwealth. The importance of generating an economic impact on the scale that we do – and having it distributed in every corner of the state – cannot be overstated.”

Business community leaders described UMass as a key economic asset for the state and its regions.

“As the state’s leading association of Massachusetts employers, we are impressed by the substantial economic impact that UMass has on the Commonwealth and all of its diverse regions. Our members benefit greatly from the University’s production of talent, conduct of research, and provision of services to communities, as well as its extensive purchase of goods and services from Massachusetts businesses,” said Rick Lord, president and chief executive officer of Associated Industries of Massachusetts.