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BATAVIA – An extensive new economic impact study shows the growing positive economic impact that operations conducted by U.S. Department of Energy’s Fermi National Accelerator Laboratory have on local economies.
For the study, which assessed economic data from fiscal 2022, Fermilab consulted with other DOE laboratories and experts from Idaho National Laboratory to develop an economic modeling program using input-output analysis. This approach captures highly accurate data to show how Fermilab’s economic activity in fiscal 2022 will lead to further activity and illustrates the full extent of economic benefits of laboratory operations, according to a news release from Fermilab.
The study shows Fermilab spending in fiscal 2022 contributed $1.6 billion in economic output and supported 7,242 jobs in Illinois and South Dakota, as well as sparking further business-to-business and consumer spending within the states’ economies, according to the release.
Fermi Research Alliance manages and operates Fermilab on behalf of the U.S. Department of Energy. Fermilab is America’s premier particle physics and accelerator laboratory, used by scientists from around the world to research the fundamental building blocks of the universe.
According to the study, in fiscal 2022 the laboratory’s investments in scientific research and spending on operations added nearly $1.3 billion to Illinois’ economic output and increased the total household income by $529 million.
The laboratory also accounted for the creation and sustainment of more than 5,000 Illinois jobs, including more than 1,900 employees at the Fermilab site in Batavia and more than 3,000 more employed to support Fermilab operations and employees, according to the study cited in the release.
Illinois businesses received 33% of the $286 million in new subcontract awards, and Fermilab’s total economic output in Illinois increased by 188%, driven largely by the Fermilab’s over 50% increase in procurement spending, according to the release.
The state of South Dakota also benefitted from laboratory investment during fiscal 2022 as excavation and engineering activities expanded caverns at the Sanford Underground Research Facility (SURF) in Lead, South Dakota.
The 7-story tall caverns, completed in January 2024, will eventually hold massive particle detectors for the Long Baseline Neutrino Facility/Deep Underground Neutrino Experiment (LBNF/DUNE) project at SURF. The detectors will be part of an experiment to study neutrinos, particles which may hold the key to understanding why matter exists in the universe.
LBNF/DUNE was the Department of Energy’s largest capital asset project in fiscal 20222, when the laboratory spent $150 million creating the world-class facility.
The ripple effect of Fermilab’s spending generated $275 million in total economic output in South Dakota in fiscal 2022, created or sustained 1,500 jobs, and increased the state’s household income by $98 million, according to the study.
Of these jobs, about 1,000 were directly connected to project operations, over 200 were indirect jobs created or sustained through subcontractors, and over 300 were induced by spending from project employees.
While the LBNF/DUNE excavation occurred in South Dakota, the study points out many of the staff supporting the project in fiscal 2022 were subcontractors and/or worked remotely from Illinois.
Fermilab also attracted more than 5,600 visiting professionals to its sites in Illinois and South Dakota in fiscal 2022, including scientists, engineers, computing professionals, students, researchers and businesspeople, according to the study.
Based on survey responses, the lab in Batavia saw an average of 170 visitors per week, each staying in the area an average of six days and spending an average of $223.54 per day. South Dakota operations attracted more than 600 visiting professionals from outside the state in fiscal 2022, who spent an average of $172.56 per day.
The study also showed that outside of Illinois and South Dakota, businesses and subcontractors across the country received an estimated total of $268 million in Fermilab procurement spending in fiscal 2022. To see a breakdown of how that spending was spread across other states, view the interactive map on the Fermilab website.
According to the study, 16% of the lab’s procurement spending went to small and disadvantaged businesses, 12% went to woman-owned businesses, 9% went to Historically Underutilized Business Zone businesses, and 5% went to veteran-owned small businesses.
Fermilab’s flagship projects LBNF/DUNE and the related Proton Improvement Plan-II are expected to be completed in fiscal 2028. When completed, the new PIP-II particle accelerator will provide an initial stream of protons to the LBNF beam line that will in turn generate the high-intensity beam of neutrinos sent to the DUNE particle detectors.
From start to completion, the spending on the PIP-II project is expected to generate $1.26 billion in total economic output in Illinois, contribute an average of $70.7 million to the gross state product per year, and create or sustain 466 jobs annually.
Construction-related spending for the LBNF/DUNE project is expected to generate $542.9 million per year in total economic output in South Dakota from fiscal 2025 to fiscal 2028 and create or sustain 3,129 jobs per year. The projects are expected to have a positive impact on local economies through fiscal 2030, according to the study.