Towards Broader Views of Airport Economic Significance:
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1 Measuring the Economic Significance of Aviation TRB Workshop, January 2007 Towards Broader Views of Airport Economic Significance: Intermodal Perspectives Glen Weisbrod Economic Development Research Group Economic Significance of Airports Standard Studies Airport Econ Activity Air Service Support Aviation Dependent (visitor spending) Supplier /Respending (multiplier effects) 2
2 Economic Significance of Airports Standard Studies Airport Econ Activity Air Service Support Aviation Dependent (visitor spending) Supplier /Respending (multiplier effects) Newer Studies Intl Trade Role Mfg Supply Chain Role Universities, R&D, Finance, Business Serv. Econ Devel Role Urban Devel Role 3 (1) Int. Trade Significance Air Freight Accounts for 1% of export tons But 34% of export value And 55% of overseas export value (up from 42% in 1990) 4
3 Maine Study: Export Destinations 1 Canada 2 Malaysia 3 China (Mainland) 4 Japan 5 Korea, Republic Of 6 China (Taiwan) 7 United Kingdom 8 Singapore 9 Netherlands 10 Germany 5 Maine Export Flows Maine Exports via 1 Calais. ME 2 JFK Airport 3 Jackman, ME 4 Buffalo, NY 5 Derby, VT 6 Eastport, ME 7 Logan Airport 6
4 Vancouver Gateway Council Study Airport critical for cruise and freight $ 7 Portland Business Council Study Airport critical for JIT shipments to Asia Intel: 2-hour shift for shipping chips due to congestion getting to airport 8
5 (2) Supply Chain Significance Changing Trends Longer distances Higher value/weight Higher time sensitivity Overnight delivery Small package delivery Air dependence on hwy access 9 Supply Chains: Air Freight Growth Air Freight has highest growth rate (ton-miles) 10
6 Products Dependent on Air Cargo Electronics & elec. equipment Chemicals, plastics, pharma Ind. machinery/vehicle parts Printing & publishing Industrial bldg construction 11 Janesville (Rock Co. Airport) Regional automotive mfg cluster Auto Mfg GM, Chrysler Parts Mfg to SC (BMW), Mexico & MI (Ford), ONT & MO (Chrysler) Reliance on just-in-time mfg -- for air & truck reliability Potential loss of jobs to Mexico or Canada 12
7 (3) Business Travel Significance Industries Dependent On Passenger Air Travel Engineering & consulting services Banking, finance, business services Legal services Government, Public Administration Universities and R&D centers Medical Services 13 New England Council: Boston Logan Critical roles for: Biotech industry Computer R&D Hospital Cluster Research Universities International Visitors & Trade 14
8 (4) Economic Devel Significance Business attraction depends on proximity or access time to airport 15 Econ Roles of GA Facilities Increase of air freight, courier Growing technology and multi-location industries Increasing use of corporate & fractional ownership Wis. study: 702 new and expanding firms (34,064 jobs), 85% located within 15 miles of jet-capable airport 16
9 Appalachian Regional Commission Intl. Exports: Vehicles, Machinery, Food, Electronics Appalachian Development Hwy System linking to airports Essentially all air freight depends on trucks to/from airport 17 St. Cloud, MN Value of Air Service for Business Retention Community marketing campaign to support service ($100 bonus to travel agents) Guarantee service to airlines Measure $ impact on business retained and attracted 18
10 (5) Urban Devel Significance Air Ind. Parks Warehousing Hotel, Convention Recreation Office, Retail Mixed Use Devel Las Colinas Near DFW Airpark Business Ctr (BNA) 19 Schiphol Area Devel Co. Logistics facilities Warehouses Hi-tech office Fashion/Creative Industries 20
11 Kansai Airport Rinku Town Airport Business Services Airport Hotels Meeting Facilities Shopping Amusement Park Office, Retail Hwy & Rail Links Viewing Economic Significance Different Perspectives National: International Trade Regional: Economic Development Local: Urban Growth Industry: Supply Chains, Clusters Different Tools Wisconsin ABC System: State vs. Local Econ Significance TREDIS: Multimodal Joint Effects Keeping Econ Significance separate from Benefit/Cost
12 Future Economic Significance? Actual Photo of UFO Landing Zone on the A27 Highway in the Netherlands 23 For Further Information EDRG Web Download Library TRB Econ Devel Committee Links 24 Economic Development Research Group, Inc. 2 Oliver Street, Boston, MA USA
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