Estimating the Economic Impact of Air Cargo Operations at Airports, Part 1: User’s Guidebook and Part 2: Research Report (2014) / Chapter Skim
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Part 1: User's Guidebook
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Page CONTENTS Part 1: User's Guidebook 1 SECTION I – INTRODUCTION AND PURPOSE .................................................... 1-1 1.1 Introduction ..........................................................................................................
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Table 15. Air Cargo Screening Inputs for I-O Models .............................................................
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Table 49. Economic Impacts of Jet Fuel Price Inreases (10, 20, and 30 percent)
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1 SECTION I – INTRODUCTION AND PURPOSE 1.1 Introduction Air cargo services occupy a special place in modern supply chains, carrying the most valuable, most perishable, and most urgent shipments across the nation and the world. From necessities such as pharmaceuticals to luxuries such as exotic flowers, air cargo services shrink time and space to link customers to distance sources quickly, efficiently, and reliably.
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This Guidebook and the companion project report were therefore commissioned by the Airport Cooperative Reproach Program to fill the need for economic impact estimation tools that public and private practitioners can apply to the air cargo industry. 1.2 Purpose of This Guidebook This Guidebook was developed to assist airport authorities, air cargo operators, and public sector planners in establishing the value of air cargo facilities and operations to their communities and regions.
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Part of the air cargo industry's success can be attributed to the growth of internet and web applications, which have driven supply chains to new levels of efficiency. This is not only due to the speed of communication, but also to more efficient inventory management and lower net production and delivery costs.
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• Air freight forwarders and 3PLs -- provide consignment, transportation handling, documentation services to shippers and consigners, as well as value-added logistics, transportation, and trade services. The largest are global companies that also offer truck, maritime steamship, barge, and rail services.
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This justification is especially poignant for overseas trade where the only alternative mode of freight shipment is water transportation, which is the most inexpensive and slowest freight transport mode. When compared to exports and domestic activities, exports represent the highest share of air cargo activity.
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respectively as a result of international monetary standards. This creates shortfalls in outbound shipments to Asia and inbound product from Europe.
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facilities, landside parking and queuing, and roadway geometry. The latter two elements are important to ensure that the airport functions efficiently as an intermodal facility.
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1.4 The Economic Impact of Air Cargo The economies involved with air cargo operations, not unlike any facility, industry, or event can affect the local economy in many ways. The most common measures of "economic impact" are the jobs created, the total revenues brought to local businesses, and contributions to the gross domestic product ("GDP")
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This cycle of direct, indirect, and induced spending does not go on forever. It continues until the spending eventually leaks out of the economy as a result of taxes, savings, or purchases of non-locally produced goods and services or "imports".
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George Bush Intercontinental Airport (IAH) , JFK International Airport (JFK)
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2 SECTION II – ASSESSING THE ECONOMIC IMPACT OF AIR CARGO 2.1 Introduction The key participants in the air cargo industry include air carriers, airports, and freight forwarders or third-party logistics providers (3PLs)
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impact study differs from a financial feasibility study, which focuses on return of public investment, some results of economic impact studies feed readily into such financial feasibility analyses and typically are more readily understood and communicated to the public. One of the examples of the economic impact study is the contribution of civil aviation made to the U.S.
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The advantages of using an input-output model are: (1) Its structure is relatively straightforward (2)
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CGE Model. Computable General Equilibrium (CGE)
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analysis. This results since the I-O models reveal average direct and indirect relationships among industrial sectors.
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Given the lack of data, one approach is to utilize the linkage of interdependence between businesses, industries and clusters. One tool common with cluster analysis is to study the Location Quotient (LQ)
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2.3.2 Air Cargo Data Bases This section focuses on the data coverage and recognized data gaps of four publicly available air cargo datasets, including the CFS, T100, Merchandise Imports/Exports, and FAF. It further provides a description of the coverage and gaps for these datasets that may impact and assessment.
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Table 1. Characteristics of the CFS, T100, Import/Export, and FAF Datasets Main Category Detailed Category CFS T100 Import/Export FAF Air cargo data Weight Yes Yes Yes Yes Value Yes No Yes Yes Detailed commodity 2 digit No 10-digit harmonized system Same as CFS Low-value/ weight goods <100 lbs.
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The Merchandise Import/Export Dataset Census Bureau's Merchandise Import/Export dataset contains information that can be used to fill the first two gaps in the CFS related to international trade. The air cargo data available from the Import/Export dataset include values and weights of the international shipments at the detailed 10-digit commodity level.
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The FAF dataset has made significant improvement in data coverage for air cargo and overcomes shortcomings reported in the other three datasets. Nevertheless, data gaps still exist in the FAF as part of inheritance from the CFS, and some of the data gaps -- especially in the coverage of air express data -- have impacts on air cargo.
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The Transearch Dataset. The Transearch dataset is a database that provides OriginDestination flows for truck, rail, water and air.
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• "There is little experience to draw upon, and therefore virtually no standard practices that can be applied, or modified, for a particular airport. Any survey designed to capture air cargo data is likely breaking new ground." • "To date, the most common survey method for air cargo is similar to stakeholder interviews.
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introduce the purpose of an impact analysis, the importance of the survey information, along with networking to meet individuals who will assist in providing the necessary data. Small incentives, such as coffee shop gift cards or airport club passes, may encourage survey responses from private industry participants.
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which can be obtained from the airport security manager. Access control records may provide estimates of cargo vehicle movements.
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information provided as Business Sensitive and/or Confidential. Be prepared to discuss how you will use and protect the data, especially from their competitors.
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The freight forwarders could also be asked to rank why their customers choose air transportation rather than other modes to ship cargo. This may include survey decision parameters such as time to market, frequency of service, reliability of service, value of time relative to other modes, security, ability to track/trace air shipments.
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The initial survey questions for shippers should include the following: • Total numbers of employees within the specific economic region • Company/industry NAICS code • Annual air cargo handled in area, by: o Weight and/or monetary value o Cargo-only airlines vs. passenger belly cargo o Inbound/outbound o Domestic/international • Air cargo value as percent of total cargo value handled in area • Top five commodity codes shipped by their business • Estimates of company shipping reactions (change in volume)
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2.4 Estimating Demand Elasticity – Security Screening and Fuel Cost Impacts The role of air cargo in the nation's supply chain has continued to expand in recent years, with system revenue freight ton miles expanding from 7.0 billion in 1996 to nearly 29 billion in 2011 (BTS 2011)
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Air Cargo Price Elasticity of Demand Model Data collected in support of the air cargo price elasticity of demand model will capture numerous variables, utilizing data obtained from a number of sources. Leading data sources which should be used include: the Bureau of Economic Analysis (BEA)
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Estimating the Compliance Costs Associated with the TSA 100 Percent Screening Rule To determine the economic impacts of reduced air cargo operations on local regions, it is necessary to determine the screening costs associated with the 100 percent screening rule. Two sources of information are useful in assessing these costs: the regulatory evaluation of the 100 screening rule carried out by the Transportation Security Administration (TSA)
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Figure 1. TSA Estimated Total Costs of Complying with the 100 Percent Screening Rule The results of this graph suggest strong incentives for airlines with small cargo operations to seek third-party screeners who can take advantage of economies of scale to reduce the screening price.
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To determine the percentage increase in air cargo prices resulting from the added screening costs, the average revenue per pound of air freight in the US was calculated using financial data and traffic statistics published by the BTS. Using freight weight and revenue data the average revenue per pound of air cargo transported by U.S.
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Estimate Regional Economic Impacts From an economic perspective, there are three effects that will be captured in the I-O models applied to airport studies: • The reduced demand for air cargo reveals a contraction in the industries engaged in air cargo operations • Increased output by air transportation operations engaged in air cargo screening activities • Increased output for air transportation companies due to overhead expenses applied to air cargo screening costs (this third impact may serve to counterbalance the first effect) Table 3, presents the air cargo inputs required for the I-O models to effectively assess impacts.
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2.4.2 Demand Elasticity Models for Fuel Cost Impacts To model the price elasticity of air cargo demand with respect to jet fuel prices a stepwise regression approach should be used to target variables that had a statistically significant impact on air cargo demand. The use of this approach is effective since you have a choice of predictive variables (e.g.
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or negative correlation, respectively, with air cargo demand. Of the three non-flag variables, only the jet fuel variable was negative in sign as expected.
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2.5 Simplified Economic Impact Analysis Model To determine the contribution of additional air cargo freight activity at a given airport on the total economic output in the market area influenced by that airport, there are several decisions must be make in structuring a model. Decisions will involve several characteristics of the air cargo's potential economic impact on final demand.
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covered by the impacts generated by air cargo freight capacity changes within an airport market area. • Once the regions are defined, the Bureau of Economic Analysis (BEA)
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Reviewing the Regional Multipliers: A User Handbook for the Regional Input-Output Modeling System (RIMS II) , will reveal massive tables of multipliers.
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3 SECTION III – CASE STUDIES FOR FIVE SELECTED AIRPORTS In 2012, U.S. airports served 807.1 million passengers and handled 57.3 billion pounds of freight (Bureau of Transportation Statistics 2012)
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3.1 Case Studies Case Study 1 – Kansas City International Airport, Kansas City, MO MCI has served the needs of travelers to the Midwest for over 25 years. Opening in 1972, the airport is owned and operated by the city of Kansas City, Missouri.
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• Franklin County, KS • Johnson County, KS • Leavenworth County, KS • Linn County, KS • Miami County, KS • Wyandotte County, KS • Bates County, MO • Caldwell County, MO • Cass County, MO • Clay County, MO • Clinton County, MO • Jackson County, MO • Lafayette County, MO • Platte County, MO • Ray County, MO Airports play an essential role in supporting the growth of a metropolitan economy like the Kansas City region. They directly employ hundreds of workers and provide millions of dollars in direct economy activity and taxes and other revenues to local government.
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activities, government policies, infrastructure, or changes in costs or technology. For any change in economic activity, the impacts on the economy are typically reported on one of three levels: • Direct impacts represent the initial change in final demand for the industry sector(s)
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Estimating MCI's Air Cargo Contribution to the Regional Economy This section summarizes the methods used to estimate MCI's current contribution to the regional economy. This effort quantifies the impact the air cargo through the airport has on the economy at a particular moment in time, using input-output modeling and analysis recommended by the FAA.
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Cargo-related employment for airlines and forwarders were estimated from survey responses, employment data from the airport, and analyses of other similar airports. Despite repeated attempts to gather employment data for several of the cargo-related categories listed above (customs agents, customs brokers, TSA, etc.)
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Table 11. Using the Multipliers and an Estimate of the Number of Jobs the Final-demand Industry to Calculate Final-demand*
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From there, the number of direct jobs is divided by the direct jobs per $1 million in final demand to arrive at an estimated final demand, as shown in Table 12. Table 12.
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Table 13. Estimated Economic Impact, Air Cargo Operations, MCI Regional Purchases (millions of dollars)
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Air Cargo Impacts to Regional Economy More difficult to quantify is the contribution of air cargo to the regional economy. However, it is generally agreed industries are concentrated within regions with direct access to air cargo operations.
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Table 14. Shipment Characteristics by Commodity for Air Transportation (including Truck and Air)
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Cargo Screening and Jet Fuel Elasticity Modeling The effects of the 100-percent cargo screening rule and volatility in jet-fuel prices were analyzed and described in a separate chapter, with price models developed to estimate the elasticity of demand upon price changes from the increased costs of the additional cargo screening and the increase in the price of air cargo due to increases in jet-fuel prices. Cargo Screening Impacts The elasticity analysis noted that the cargo screening includes three effects to be captured in the I-O models applied at the case-study airports: • The reduced demand for air cargo modeled as a contraction in the industries engaged in air cargo operations • Increased output by air transportation engaged in air cargo screening activities • Increased output for air transportation companies due to overhead applied to air cargo screening costs (this third impact serves to counterbalance the first effect)
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For Kansas City, the reductions in freight and counterbalancing increases in cargo screening impacts results in the following direct impacts: Table 16. Air Cargo Screening Inputs for MCI I-O Modeling Grand Total Changes Lower Estimate Upper Estimate Air Transport ($15,854)
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Table 18. Impacts of Jet Fuel Price Increases (10, 20, and 30 percent)
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passenger gates. In 2010, the airport served more than 3.3 million passengers.
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This memo first describes the structure of the Louisville metropolitan economy in 2009, using a Louisville region-specific version of the IMPLAN impact analysis software.3 It then presents the methods used to estimate the air cargo contribution to the economy, and finally presents estimates of economic impact of that air cargo movement. The model is used to measure changes in the regional economy that result from a change in activity relative to a baseline representation of the economy.
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Table 20. Top Ten Industries, Ranked by Employment Louisville Region, 2009 Code Description Employment Labor Income Output 413 Food services and drinking places 49,539 $1,022,839,000 $2,829,005,000 438 State & local govt, education 44,401 $2,489,589,000 $2,828,209,000 360 Real estate establishments 30,527 $285,869,900 $2,811,924,000 319 Wholesale trade businesses 27,909 $2,034,809,000 $5,337,690,000 394 Offices of physicians, dentists, and other health practitioners 22,438 $1,658,313,000 $2,806,253,000 397 Private hospitals 21,994 $1,353,499,000 $2,895,250,000 382 Employment services 20,393 $410,902,500 $599,624,600 339 Couriers and messengers 17,650 $1,341,379,000 $3,645,585,000 357 Insurance carriers 17,154 $1,308,918,000 $5,289,567,000 437 State & local govt, non-education 14,988 $776,938,200 $882,612,900 Source: MIG 2011a.
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The regional economic impacts of air cargo through SDF are directly related to the scale and composition of the air cargo forecasts (i.e., international versus domestic, and belly cargo versus all-cargo freighters)
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Employment data were provided by the airport authority and supplemented by the project surveys of air carriers. These combined data yielded the cargo-related employment estimates presented in the remainder of this section.
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Air Cargo Impacts to Regional Economy More difficult to quantify is the contribution of air cargo to the regional economy. However, it is generally agreed that industries are concentrated within regions with direct access to air cargo operations.
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Table 24. Shipment Characteristics by Two-Digit Commodity and Mode of Transportation for Metropolitan Area of Origin: 2007 Louisville/Jefferson County-Elizabethtown-Scottsburg, KY-IN (KY part)
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Given the lack of data, one approach is to utilize the linkage or interdependence between businesses, industries and clusters. One tool common with cluster analysis is to study the Location Quotient (LQ)
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Table 25. Location Quotients Calculated from Quarterly Census of Employment and Wages Data, 2010 Industry Louisville, KY-IN MSA Base Industry: Total, all industries 1 NAICS 11 Agriculture, forestry, fishing and hunting 0.14 NAICS 21 Mining, quarrying, and oil and gas extraction ND NAICS 22 Utilities 0.68 NAICS 23 Construction 0.99 NAICS 31-33 Manufacturing ND NAICS 42 Wholesale trade 1.02 NAICS 44-45 Retail trade 0.91 NAICS 48-49 Transportation and warehousing 2.06 NAICS 51 Information 0.74 NAICS 61 Educational services ND NAICS 62 Health care and social assistance 0.98 NAICS 71 Arts, entertainment, and recreation 0.95 NAICS 52 Finance and insurance 1.31 NAICS 53 Real estate and rental and leasing 0.79 NAICS 54 Professional and technical services 0.79 NAICS 55 Management of companies and enterprises ND NAICS 56 Administrative and waste services ND NAICS 72 Accommodation and food services 0.98 NAICS 81 Other services, except public administration ND NAICS 99 Unclassified 0.1 Footnotes: (ND)
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Table 26. Location Quotients Calculated from Quarterly Census of Employment and Wages Data, 2010 NAICS Codes 481 through 493 Only Industry Louisville, KY-IN MSA Base Industry: Total, all industries 1 NAICS 481 Air transportation 0.25 NAICS 482 Rail transportation ND NAICS 483 Water transportation ND NAICS 484 Truck transportation 1.47 NAICS 485 Transit and ground passenger transportation 0.46 NAICS 486 Pipeline transportation ND NAICS 487 Scenic and sightseeing transportation ND NAICS 488 Support activities for transportation 0.9 NAICS 491 Postal service 1.08 NAICS 492 Couriers and messengers 7.29 NAICS 493 Warehousing and storage 2.25 (ND)
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Table 27. Estimation of Economic Activity Attributable to Presence of UPS' Worldport Operations LQ Percentage over Base Total Industry Employment "Extra" Employment due to presence of UPS' Worldport NAICS 484 Truck transportation 1.47 32.0% 10,741 3,434 NAICS 493 Warehousing and storage 2.25 55.6% 6,022 3,346 Source: Bureau of Labor Statistics 2011and MIG 2011a.
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Using the increased employment of 6,780 for the truck transportation and warehousing and storage industries from the LQ analysis, the impact of these economic activities includes a total impact of 13,345 jobs, with a total of over $595 million in labor income and total output of over $1.5 billion (Table 29)
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The negative economic effects reduce the economic output of the industry. The cargo screening costs and industry markup attached to those costs reflect the price increase that is passed on to the customer.
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Table 32. Economic Impact Associated with Cargo Screening Impact Type Employment Labor Income Value Added Output Lower Estimate Direct Effect -157.2 ($11,475,207)
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Table 34. Economic Impacts of Jet Fuel Price Increases (10, 20, and 30 percent)
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Table 35. Output impacts of Jet Fuel Price Increases (10, 20, and 30 percent)
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wide-body passenger aircraft. At the same time, domestic cargo increased by 11.5 (Houston Airport System 2012)
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• Indirect impacts represent the response as supplying industries increase output to accommodate the initial change in final demand. These indirect beneficiaries spend money for supplies and services, which results in another round of indirect spending, and so on.
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Table 37. Top Ten Industries, Ranked by Output Houston Region, 2009 Code Description Employment Labor Income Output 115 Petroleum refineries 12,319 $5,855,176,000 $131,604,200,000 20 Extraction of oil and natural gas 111,311 $20,697,070,000 $78,225,240,000 120 Petrochemical manufacturing 12,394 $1,932,184,000 $69,195,790,000 319 Wholesale trade businesses 155,329 $13,753,630,000 $35,985,460,000 361 Imputed rental activity for owner-occupied dwellings 0 $0 $26,463,550,000 360 Real estate establishments 144,085 $2,651,987,000 $26,323,530,000 28 Drilling oil and gas wells 16,519 $2,320,788,000 $21,301,580,000 31 Electric power generation, transmission, and distribution 14,795 $3,296,287,000 $16,581,100,000 206 Mining and oil and gas field machinery manufacturing 28,454 $3,101,443,000 $15,422,700,000 369 Architectural, engineering, and related services 105,312 $9,217,233,000 $15,180,520,000 Source: MIG 2011b.
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operations and air cargo, including cargo-handling companies, customs agents, TSA, customs brokers, container freight stations, freight forwarders, trucking companies, and other cargorelated services. A second important impact related to airport economic activity is the passenger impact, including expenditures for lodging, food, retail purchases, entertainment, transportation services and parking, among others.
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Table 39. Estimated Economic Impact, Air Cargo Operations, IAH Impact Type Employment Labor Income Value Added Output Direct Effect 1,851.0 $116,340,215 $166,346,325 $338,456,519 Indirect Effect 654.9 $40,051,279 $72,684,391 $148,621,695 Induced Effect 925.0 $42,122,921 $79,801,351 $130,628,887 Total Effect 3,430.9 $198,514,416 $318,832,067 $617,707,100 Source: MIG 2011b.
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the weight of commodities shipped by air. In terms of value, electronics is slightly higher in value terms, nearly 39 percent of the value of goods shipped by air but less than 17 percent of the weight of goods shipped by air in 2007, which makes sense as those commodities are often light, but of relatively high value.
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Clearly, the presence of the IAH airport and its well-functioning air cargo operations enables the air transport of this nearly $17 billion in exports. However, a portion of these exports would continue to leave the region in the absence of the IAH airport, using other modes, or through a combination of modes to reach an alternative airport.
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Table 41. Employment, Output, and Employee Compensation of Industry Codes 234 through 249 Industry Code Description Employment Output Employee Compensation 234 Electronic computer manufacturing 6,496.00 $8,444,266,496 $929,792,000 235 Computer storage device manufacturing 7.6 $5,813,081 $721,615 236 Computer terminals and other computer peripheral equipment manufacturing 358 $161,496,688 $31,774,904 237 Telephone apparatus manufacturing 69.1 $35,220,008 $5,740,229 238 Broadcast and wireless communications equipment manufacturing 79.4 $41,965,576 $6,862,952 239 Other communications equipment manufacturing 167 $56,209,872 $10,589,846 240 Audio and video equipment manufacturing 111.1 $64,382,104 $6,929,096 241 Electron tube manufacturing 0 $0 $0 242 Bare printed circuit board manufacturing 501.5 $102,211,008 $30,264,414 243 Semiconductor and related device manufacturing 1,087.40 $745,661,568 $158,196,944 244 Electronic capacitor, resistor, coil, transformer, and other inductor manufacturing 306 $53,095,824 $16,604,259 245 Electronic connector manufacturing 81.9 $17,726,202 $3,631,496 246 Printed circuit assembly (electronic assembly)
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Table 42. Per-worker Output and Employee Compensation of Industry Codes 234 through 249 Industry Code Description Employment Output per Worker Compensationper-Worker 234 Electronic computer manufacturing 6,496.00 $1,299,917.87 $143,133.00 235 Computer storage device manufacturing 7.6 $764,879.08 $94,949.34 236 Computer terminals and other computer peripheral equipment manufacturing 358 $451,108.07 $88,756.72 237 Telephone apparatus manufacturing 69.1 $509,696.21 $83,071.33 238 Broadcast and wireless communications equipment manufacturing 79.4 $528,533.70 $86,435.16 239 Other communications equipment manufacturing 167 $336,586.06 $63,412.25 240 Audio and video equipment manufacturing 111.1 $579,496.89 $62,368.10 241 Electron tube manufacturing 0 NA NA 242 Bare printed circuit board manufacturing 501.5 $203,810.58 $60,347.78 243 Semiconductor and related device manufacturing 1,087.40 $685,728.87 $145,481.83 244 Electronic capacitor, resistor, coil, transformer, and other inductor manufacturing 306 $173,515.76 $54,262.28 245 Electronic connector manufacturing 81.9 $216,437.14 $44,340.61 246 Printed circuit assembly (electronic assembly)
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According to the Houston Airport System, there was an aggregated total value of $7.2 billion in exported goods shipped through the Houston airport in 2009. Of that, $3.1 billion was classified as industrial equipment and computers, as shown in Table 43.
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Cargo Screening and Jet Fuel Elasticity Modeling The effects of the 100-percent cargo screening rule and volatility in jet-fuel prices were analyzed and described in a separate section of this report, with price models developed to estimate the elasticity of demand upon price changes from the increased costs of the additional cargo screening and the increase in the price of air cargo due to increases in jet-fuel prices. Cargo Screening Impacts The elasticity analysis noted that the cargo screening includes three effects to be captured in the I-O models applied at the case-study airports: • The reduced demand for air cargo modeled as a contraction in the industries engaged in air cargo operations • Increased output by air transportation engaged in air cargo screening activities • Increased output for air transportation companies due to overhead applied to air cargo screening costs (this third impact serves to counterbalance the first effect)
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For Houston, the reductions in freight and counterbalancing increases in cargo screening impacts results in the direct impacts identified in Table 46. Though there are losses in the Transport by Air and Courier/Messenger industries, losses are concentrated in the off-airport traded sectors, in this case study illustrated by the electronics industry.
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Table 48 presents the impacts of a 10, 20, and 30 percent increase in jet fuel prices on demand for air cargo at each of the five case study airports. For every 10 percent increase in jet fuel prices, air cargo demand is estimated to decline by 0.7 percent.
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Applying the same reductions to the off-airport traded sector, results in the economic impacts estimated presented in Table 50. Table 50.
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JFK was ranked 19th in the world for total cargo handling in 2010. Cargo volumes increased by 17.5 percent from 2009 but the total of 1.3 million tons was well below the 2000 peak of 1.9 million.
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sectors such as Manufacturing and Agricultural and Mining come in the bottom three positions. This suggests that large volumes of goods required of New York area residents and firms are not produced in the region.
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At the finer level of three-digit NAICS codes (Table 52) , white-collar professions continue to dominate.
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Table 53. Top 20 Manufacturing Sectors in New York Portion of NYC MSA by Six-digit NAICS 6-Digit NAICS Description LQ Employment Payroll Average Payroll 315231 Women's and Girls' Cut and Sew Lingerie, Loungewear, and Nightwear Manufacturing 7.56 595 $45,065,064 $75,740 315233 Women's and Girls' Cut and Sew Dress Manufacturing 7.42 2,598 $207,840,150 $80,000 315234 Women's and Girls' Cut and Sew Suit, Coat, Tailored Jacket, and Skirt Manufacturing 5.75 584 $52,955,634 $90,677 315993 Men's and Boys' Neckwear Manufacturing 5.46 245 $17,725,458 $72,349 339913 Jewelers' Material and Lapidary Work Manufacturing 4.29 739 $25,007,623 $33,840 315239 Women's and Girls' Cut and Sew Other Outerwear Manufacturing 4.22 2,059 $201,246,500 $97,740 339911 Jewelry (except Costume)
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New York City Area Freight (NY Portion) Freight Movements New York City MSA (NY Portion)
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Table 54. Total Air Exports from NY Portion of NYC MSA, 2007 SCTG Total Out Air Total Tons in 2007 (Thousands)
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Table 55. Employment and Payroll of Commodity-producing Industries by Commodity, New York State Portion of NYC Metropolitan Area, 2007 SCTG Description LQ Emp.
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Table 56 shows payroll of the production sectors that we have identified as producing goods for export via air freight. As described above, these are aggregate QCEW sectors related to the commodities shipped that have a location quotient greater than 0.3.
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Note that the gap between state and local tax revenues is generated largely via indirect business taxes. Table 57.
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New York City MSA (NY Portion) Air Imports Table 58 shows the total weight and value of goods shipped by air from the New York portion of the NYC MSA.
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the region is estimated to be generated by incoming JFK air freight. This amounts to 3,505 jobs and $310.0 million in payroll in the region's wholesale industry.
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survey work. Given the already higher average pay of the Office administrative services industry, only the job count related to the Support activities for transportation was ratcheted downward.
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Table 60. Total Economic Impacts of JFK Air Cargo Inflows on the New York Metropolitan Area Output ($Thousands)
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Case Study 5 – Reno-Tahoe International Airport, Reno, Nevada Reno-Tahoe International Airport (RNO) originally built in 1929 was named Hubbard Field.
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The Reno-Sparks Metropolitan Statistical Area includes Washoe County (Reno) and Storey County (Sparks)
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Major Industries in Reno-Sparks With greater sectoral articulation, Table 62 shows, regardless of size, the ten three-digit NAICS industries that are most heavily concentrated in the Reno-Sparks economy. The economic profile for the metropolitan area solidifies.
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Table 63. The Ten Manufacturing Six-digit NAICS Sectors Most Highly Concentrated in the Reno-Sparks MSA, 2010 NAICS Description LQ Jobs Payroll (thousands)
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of Employment and Wages (QCEW) were matched to Standard Classification of Transported Goods (SCTG)
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Reno Area Air Freight Movements As was discussed previously, the analysis of air freight necessarily leaned on publically available data from FAF3. Many (74 to be precise)
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Reconciling originating shipments with local MSA production was a challenge. In fact it became immediately apparent since Pharmaceuticals – a top air freight export for the region according to the FAF3 – does not register as a major production sector in the QCEW data for Reno-Sparks (addressed below)
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Despite the lower threshold a disjoint clearly exists. After combining data from FAF3 and on local production capabilities, just $6.87 million of goods that are shipped out of RNO can derive from the Reno-Sparks metropolitan area.
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From page 110... ...
Table 67. Total Economic Impacts of RNO Air Cargo Outflows on the Reno-Sparks Metropolitan Area Output ($Thousands)
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From page 111... ...
Table 68. Air Freight (including Truck)
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From page 112... ...
Table 69. Air Freight and Related Industries at RNO, 2011 Summary Jobs Payroll (Thousands)
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From page 113... ...
Table 70. Total Economic Impacts of RNO Air Cargo Inflows on the Reno-Sparks Metropolitan Area Output ($Thousands)
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From page 114... ...
References Airports Council International.
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From page 115... ...
Houston Airport System.
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From page 116... ...
U.S. Department of Transportation, Federal Highway Administration, Office of Freight Management and Operations.
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Key Terms
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