The University of Rochester engaged ESI to evaluate the institution’s comprehensive economic and social impact on the regional, state, and national economies. As the largest private employer in the Rochester region and a major academic medical center, the University sought a rigorous analysis that quantified the scale of its contributions through operations, capital investments, research activities, and the broader impacts generated by students, visitors, patients, and alumni.
The study aimed to articulate the University’s role as an anchor institution and economic engine while providing decision-makers with a data-driven understanding of how the institution strengthens economic vitality and community development. The analysis also sought to capture the University’s broader contributions to workforce development, innovation, and public health across Rochester, Monroe County, the Finger Lakes region, and New York State.
The study evaluated several primary drivers of economic impact, including the University’s annual operating expenditures, capital investments, ancillary spending by students, visitors, and patients, and the long-term earnings premium associated with University alumni. These components together provided a complete picture of the institution’s direct, indirect, and induced economic effects. The modeling process tracked how the University’s expenditures circulate through the economy, generating additional employment, labor income, and tax revenue.
The analysis demonstrated that the University of Rochester serves as a powerful economic driver and community anchor. Through its combined academic and health system activities, the institution supports a wide range of economic activity across the region. Its investments in research infrastructure, healthcare facilities, and academic programs contribute to regional innovation, workforce development, and improved access to healthcare.
The University’s capital investments alone generated substantial economic activity. In FY2024, consolidated capital spending totaled approximately $383 million, supporting extensive economic ripple effects throughout the regional supply chain.
ESI found that University capital investments generate significant regional economic activity. For example, these investments support approximately 3,000 jobs statewide, generate $608 million in total economic output across New York State, and produce $219 million in employee compensation annually. The analysis provides the University with a framework for demonstrating its long-term value as an anchor institution and for guiding future investments in research, healthcare, and campus development.
