Transcript Presentation Title - Economic Development Research Group
Steven Landau Economic Development Research Group, Inc.
www.edrgroup.com
For the Pennsylvania Aviation & Aerospace Conference September 26. 2013
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Ancient Trade Routes:
Amber, Silk, Gold, Salt, Frankincense
Inter-Modal passenger & freight movement
ACCESS to goods and new markets
BUSINESS TRIPS for sales & procurement
TOURISM to visit new places
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•
ACCESS to broader markets & locations
Affecting availability & quality of employment, residence, materials (food, clothing), culture/recreation opportunities 3
The difference between measuring the economic benefit of an airport and the role of an airport in a local/regional economy
Uniqueness of communities/regions, airport facility & role, business mix, and projects 4
Off Airport Economic Development On Airport Economic Impact 5
$ Passenger Time Value
(business)
$ Travel Expense
(business)
$ Freight Shipper Productivity $ Indirect (Downstream) Productivity $ Location Income Attraction •
Economic Development Perspective: Improving Access and Connections
Facilitating access to new jobs, access to new business markets, products & services 6
City, county and state legislators and regulators who want to know ROI or are unaware of the economic contributions made by airports
Local economic development officials and other transportation agencies
The general public who are voters
Neighbors who object to operations and expansion plans
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Avoid (or at least define) Jargon No One Understands & Use English Jargon
Direct Indirect Induced Output
Reasonable Translation/ clarification
Include type of impact (e.g., on-airport) Goods and Services sold by local suppliers to support initial economic activity Spending of wages earned by workers Business sales, or economic activity These effects can also be reported together as “multiplier impacts”, “spinoffs” or “ripple effects” 8
Direct
On-Airport Visitor Spending Air Cargo Shippers* Tax Revenues* * Impacts in “Off Airport” economy
Supplier Sales* Wages Spent by Workers* Total
Important Information: Jobs, Payroll, Output Business Sales, Local/State Tax Revenues, Value Added 9
Direct
On-Airport Visitor Spending Air Cargo Shippers* Tax Revenues* * Impacts in “Off Airport” economy
Spinoff* Total
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Businesses & Government Agencies on Airport Off Airport Businesses
Direct Payroll
Direct Effect
Jobs at the Airport Income to Workers Purchases of Goods & Services
Visitor Purchases of Goods & Services
(Meals, Hotels, Transportation, Retail)
Shippers & Receivers/ Market Access
(freight, productivity)
Direct Effect
Jobs in Retail & Services Income to Workers
Indirect Effects (Off-Site)
Sales at Supplier Businesses:
Jobs and Income to their Workers
Induced Effect (Off-Site)
Spending of Direct + Indirect Worker Income on Consumer Purchases:
Sales at Other Businesses Jobs & Income to Workers
Total Economic Impacts
Sum of Direct + Indirect + Induced Jobs & Income Fiscal Impacts:
Government Tax Revenues
11 Source: EDR Group
Airports Support:
Cost-competitiveness of existing business
Rate of business expansion/attraction
Breadth of activities for key local institutions
Existing business mix
Land use and development trends and potential
Intermodal connections (both passenger & freight)
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Freight Patterns
Business Travel
Land Use
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Increase of air freight, just-in-time delivery, overnight courier
Expanding air-service reliant manufacturing & services
Growing technology industries, yielding new types of manufacturers & service providers
Use of corporate GA & fractional ownership
Intermodal air/truck/rail logistics
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Higher value/weight*
Higher time sensitivity*
Overnight delivery*
Small package delivery trucks
Air & Marine port dependence on rail & hwy
Rail & truck companies focus on long-hauls
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Civilian Aircraft, Engines, And Parts
Electronic Integrated Circuits
Pharmaceuticals & Chemicals
Electric Apparatus
Medical, Surgical, Dental or Veterinary Instruments
Automatic Data Process Machines Precious Metals (gold, diamonds, etc…)
Machinery/Apparatus for Manufacturing Semiconductors & Semiconductor Devices
Source: US Foreign Trade Division assembled by WISERTrade 16
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• • • • • Hotels Restaurants Entertainment Retail Local Transportation 18
Telecommunications
Architectural, engineering, and related services
Management, scientific, and technical consulting services
Banking, finance and business services
Government, other Public Administration
Universities and R&D centers
Medical Services
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• • • • Manufacturing Advanced Logistics Creative Industries Life Sciences 20
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Las Colinas Near DFW
Air Industrial Parks
Warehousing
Hotel, Convention
Recreation
Office, Retail
Mixed Use Development
Airpark Business Ctr (BNA)
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Airport Administration Aviation Services Services to Aircraft (e.g., repairs, janitorial, etc..) Services to Passengers, Pilots & Crew: Terminal Concessions Airport Business Services Government Services (e.g., FAA, Police, Fire, etc..) Support for Agricultural- Flights not crops Enables visitors - only off airport consideration * Add it all up and present a number
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Logistics facilities
Warehouses
Hi-tech sectors
Other Manufacturing
Finance
Business Services
Retail
Entertainment Industries
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AIRPORT ACTIVITY:
number of based aircraft by type; estimated operations by private aircraft, charter/air taxi services, commercial cargo services, commuter or air carriers; volumes of freight and number of commercial passengers
AIRPORT FUNCTION:
commuter, corporate, reliever, destination, hub, gateway, maintenance functions
AIRPORT CAPABILITIES/CONSTRAINTS:
critical aircraft type (prop, corporate jet, air carrier craft); weight and range limits for critical aircraft; lighting and navigation aids
NEARBY FACILITIES:
Industrial parks, business parks, resorts and other attractions
CHARACTERISTICS OF THE REGIONAL ECONOMY:
population, workforce size and education, employment by industry; local growth/change patterns in those factors relative to broader state and national factors
CHARACTERISTICS OF THE REGIONAL SETTING:
tourism attractions, business location site opportunities; supporting infrastructure; distance/connections to interstate highways, ports, urban centers, market area 25
Airport Economic Development Factors Regional Market Factors
• • • •
Industry Competition Tourism Potential Population Business Attractiveness
• • • •
Airport Characteristics Runway Capacity Airport Services Expansion Potential Highway Connections
• • • •
Desired Outcomes Increased Tourism Increased Business Travelers Increased Air-Freight Capacity Business & Job Attraction/Retention
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Preserve/enhance functioning of rural communities
Examples: provide lifelines for transportation, freight, medical evacuation
Support local institutions
Local, regional and statewide importance
Other ways that airports provide benefits
Examples: military use, air shows, non-aviation land use 27
Steven Landau Economic Development Research Group, Inc.
155 Federal Street, 6th Floor Boston, MA 02110 USA Telephone: 1-617-338-6775 x 206 Email: [email protected]
Website: www.edrgroup.com
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Airport Economic Development Regional Market Factors
• • •
Industry Composition Presence of industries that use more aviation (travel, cargo) than average Presence of industries that use more aviation (travel, cargo) than average Potential for job growth in these industries
• • • •
Tourism Potential Jobs created due to increases in visitors and expenditures Strength of tourist attractions in service area Current visitor expenditures Presence of a resort
• • • •
Business Location Attractiveness Office and Industrial Parks Proximity to Markets Supporting Infrastructure (sewer, water, electricity, broadband, etc.) Business Support Services Airport Physical Characteristics
•
Runway Capacity Accommodate corporate jets, cargo or commercial flights (type of craft most appropriate to meet local economic development needs).
• • • • •
Airport Services Refueling facilities Maintenance facilities Pilots Shop Passenger terminal Cargo terminal
• • • • •
Other Distance from major highway(s) Distance of population from airport Delivery market size/access Potential for Expansion On-airport and/or airport owned acres available for development
• • •
Desired Economic Impacts tourist expenditures Business traveler expenditures Business & job attraction/retention/expansion through cargo, corporate and tourism activities
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