The Economic Impact of the Arts in Watauga County, North Carolina



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Source: U.S. Census Bureau






SECTION II
THE ECONOMIC IMPACT OF THE ARTS

IN WATAUGA COUNTY:

ARTIST RESPONSES

February - May 2003

Responses from Watauga County Artists

The research team surveyed artists and arts organizations in Watauga County. The following sections describe the survey instrument and procedure, the respondents' demographic characteristics, and the economic impact of artists and arts organizations in Watauga County.



Survey Instrument and Procedure

A survey was created that asked artists and arts organizations about the type of artistic endeavor they were engaged in, their sources of revenue and expenses, and some demographic questions. An attempt was made to conduct a census survey of all artists and arts organizations in Watauga County. To identify all artists and arts organizations a referral method was employed whereby known artists and arts organizations were asked to identify other artists and arts organizations that they knew. This iterative procedure was pursued for two months until all leads were exhausted. In all, a total of 355 artists and arts organizations were identified in Watauga County. Surveys were sent to all identified artists and arts organizations. Sixty-two surveys were returned, for a response rate of nearly eighteen percent.



Demographic Characteristics of Artists and Arts Organizations

Artists and arts organizations were asked the type of artistic endeavor they were presently engaged in. Many indicated that they were craftspeople (24.59%), followed by those engaged in arts education (14.75%), music (9.02%), festivals (6.56%), writing and performing arts (5.74%) and the folk arts (4.92%) (Table II-1).

Nearly 65% of the sample was forty-six years of age or older (Table II-6). A majority of the respondents were female (60%) (Table II-7). Just over forty-five percent of the sample indicated that they had a graduate degree and eighty-four percent had a bachelor's degree or higher (Table II-8). Respondents indicated they had worked in the arts on average just over twenty-two years (Table II-9).

Economic Impact of Artists and Arts Organizations in Watauga County

The economic impact of artists and arts organizations in Watauga County was computed as the sum of their sales revenue, employee payroll expenses, and sub-contracting expenses.



Sales Revenue. Artists and arts organizations were asked about the sources of their annual sales revenue (see Table II-2). Thirty-two percent of respondents indicated that their revenue was derived from wholesaling within the United States and that their average revenue was $7,925. Less than two percent indicated that their revenue was generated from wholesale exporting and that their average revenue from this source was $200. Another thirty-two percent of respondents indicated that their sales revenue was derived from consignments to galleries and that their average sales were $6,560. Just over fifty-two percent of respondents generated sales through retailing operations, and the average sales for these respondents was $7,500. Respondents also indicated that their revenue was generated by other sources such as consulting, teaching, workshops, etc. (45%). The average sales revenue from these other sources was reported to be $50,322. For those artists and arts organizations who generated their sales revenue from retailing operations, fifty-five percent indicated that sales resulted from their studio, 60% from arts and crafts fairs, 32% from commissions, and 53% from other retail venues (Table II-3).

In order to compute the economic impact of the total sales revenue generated by artists and arts organizations in Watauga County a weighted average procedure was followed. For example, the proportion of the sample engaged in domestic wholesaling operations (32.26%) was multiplied by the total number of artists and arts organizations identified in Watauga County (355 (Table II-2). This result was then multiplied by the average annual sales revenue generated by domestic wholesaling operations as reported by the sample of respondents, $7,925, to arrive at total dollars generated by artists and arts organizations via domestic wholesaling operations, $907,540. This same procedure was followed for international wholesaling operations, retailing operations (which were adjusted for sales to organizations resulting from arts patronage surveyed in Section I), consignment sales, and other sources of sales revenue. Following this procedure, the total sales dollars generated by artists and arts organizations operating in Watauga County was estimated to be $13,962,150, of which 52% of the sales were actually generated within Watauga County (Table II-4). Therefore, the economic impact of sales revenue in Watauga County was estimated to be $7,260,318.



Employee Payroll Expenses. Slightly more than six percent of artists and arts organizations indicated that they had full-time employees working for them thirty-five hours or more per week, and eight percent had part-time employees working for them less than thirty-five hours per week (Table II-5). The average payroll for these employees was reported to be $150,469. Assuming that fourteen percent of all artists and arts organizations had full- or part-time employees working for them, the total economic impact of employee payroll was estimated to be $7,478,309 = (6% + 8%) x (355 artists and organizations) x ($150,469/artist and organizations).

Sub-Contracting Expenses. Artists and arts organizations were asked to indicate the annual amount they spent to sub-contract work. Slightly over eleven percent of respondents indicated that they sub-contracted work, and that they spent an average of $2,614 annually on this work (Table II-5). Assuming that eleven percent of all artists and arts organizations in Watauga County subcontract work, the economic impact of this work was calculated to be $102,076.

Total Economic Impact of Artists and Arts Organizations. The total direct economic impact of the artists and arts organizations was estimated to be the sum of the sales revenue generated by artists and arts organizations within Watauga County, $7,260,318, employee payroll expenses incurred by artists and arts organizations in Watauga County, $7,478,309, and expenses paid to sub-contractors in Watauga County, $102,076. The total economic impact of the artists and arts organizations in Watauga County was estimated to be $14,840,703.

SECTION II
TABLES

TABLE II-1

TYPE OF ARTISTIC ENDEAVOR PRESENTLY ENGAGED IN


Type of

Artistic Endeavor

Response

Percent

Museums

2

1.64%

Performing Groups

7

5.74%

Theatre

3

2.46%

Education

18

14.75%

Festivals

8

6.56%

Architecture

1

0.82%

Designer

1

0.82%

Photographer

3

2.46%

Dance Studio Owner

0

0.00%

Commercial Gallery Owner

2

1.64%

Electronic Media

1

0.82%

Craft Supply

1

0.82%

Announcer

0

0.00%

Publisher

0

0.00%

Free-lance Designer

1

0.82%

Writer

7

5.74%

Craftsperson

37

24.59%

Actor

2

1.64%

Musician

11

9.02%

Art Training

5

4.10%

Craft Training

2

1.64%

Film Producer

1

0.82%

Folk Arts

6

4.92%

Painters

4

3.28%

Other (Artists, etc.)

6

4.92%


TABLE II-2

GROSS ANNUAL SALES REVENUE FROM ARTISTIC ACTIVITIES

(Only Respondents Reporting Sales Revenue)


Source of Revenue

Responses

Average

Wholesale – Within the U.S.

20

$7,925

Wholesale – Export/International

1

$200

Consignment to Galleries

20

$6,560

Retail

33

$27,395

Other (consulting, teaching,

workshops, etc.)



28

$50,322

TABLE II-3

SOURCES OF RETAIL SALES

(Only Respondents Reporting Sales Revenue)


Sources of Retail Sales

Responses

Percent

From Your Studio

19

55%

From Art & Craft Fairs

20

60%

From Commissions

16

32%

Other

18

53%




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