7b supp

THE ECONOMIC IMPACT OF THE PORT OF SEATTLE, 2013

A PRESENTATION TO:
Port of Seattle
Prepared by:
Martin Associates                            www.martinassoc.net
941 Wheatland Ave., Suite 203
Lancaster, PA 17603                              November 4, 2014

Purpose
Measure the economic impact of the Port of Seattle:
- Seattle Seaport:
- Marine Cargo
- Waterborne Passenger Activity
- Fishermen's Terminal/Fishing Vessels Homeporting at POS Terminals
- Marina Impacts
- Non-Marine Cargo Real Estate Tenants
- Sea-Tac International Airport


2

Purpose
Measure the baseline impacts by operating unit
Develop impact models that can be used for sensitivity analysis
Compare the impacts with the 2007 impact study
Same methodology used by Martin Associates on our POS
Impact Studies: 1987,1993,1999, 2003 and 2007


3

Flow of Economic Impacts

Port of Seattle                             Value of
Activity                                Imports/Exports 

Business Revenue                    Related User Output 

Payroll             Retained Earnings,         Local Purchases         Related User
Dividends & Investments                         Personal Income

Direct Jobs        Re-spending          Induced         Indirect Jobs       Related User
Jobs                          Jobs 

Taxes 

4

Impacts Created by Port Activity
Jobs:
- Direct
- Induced
- Indirect
Wages/salaries:
- Direct
- Re-spending
- Indirect
Business revenue
Local Purchases
Taxes

5

Methodology
Interviews with 1,067 Port tenants and service
providers
Formulation of direct impact models from interview
data
Development of Seattle induced and indirect job
models
In-terminal passenger survey (1,400 passengers)
Cruise passenger survey (600 passengers and crew)

6

Port of Seattle Economic Impacts 2013

Direct Jobs: 129,744
216,271 jobs generated by Port
Induced Jobs: 53,148
activity
Indirect Jobs: 33,379

$16.2 billion Sea-Tac revenue
$19.8 billion of business revenue     $3.2 billion seaport activity  marine cargo, fishing, cruise,
recreational boating revenue
$0.4 billion non-maritime/airport real estate revenue

$4.2 billion direct wage and salary income
$9.6 billion personal income and
$4.3 billion re-spending and local consumption
local consumption
$1.1 billion indirect income

$545.8 million state
$0.9 billion of state and local taxes
$348.6 million local
*Totals may not add due to
rounding
7

Sphere of Influence of Port of Seattle in
the State of Washington 2013

216,271 direct, induced, indirect
511,620 total influenced   175,664 with importers/exporters using the POS
jobs in the State       marine terminals
119,685 with air cargo shippers using Sea-Tac


$19.8 billion direct business revenue
$88.1 billion economic   $45.6 billion economic value to users of the POS
value to the State      marine cargo terminals
$22.7 billion economic value to air cargo users of Sea-
Tac

*Totals may not add due to
rounding
8

Distribution of Total Direct, Induced and
Indirect Jobs by Line of Business
TOTAL JOBS
16,089
323 3,635
23,409
Marine Cargo
1,831
Fishing
31,980       Marinas
139,004                              Cruise
Real Estate
Airport On-site
Airport Visitor


9

Impacts of Sea-Tac International Airport




10

Airport Impacts




11

Economic Impact of Sea-Tac

Direct Jobs: 18,353 airport generated, 91,571 visitors
171,796 jobs generated by activity
Induced Jobs: 8,349 airport generated, 30,109 visitors
at Sea-Tac
Indirect Jobs:6,090 airport generated, 17,325 visitors

$8.0 billion airport direct business revenue
$16.4 billion of business revenue     $8.4 billion visitors industry revenue
Includes $1.3 billion local purchases

$2.9 billion direct wage and salary income
$6.1 billion personal income and
$2.5 billion re-spending and local consumption
local consumption
$0.7 billion indirect income

$0.6 billion of state/ local taxes      $344.9 million state
$220.3 million local
$0.5 billion aviation taxes        $547.2 million federal aviation taxes
*Totals may not add due to
rounding
12

Distribution of Direct Jobs
by Category, 2013
Job Category                  Direct Jobs
Airline/Airport Services Sector
Passenger Airlines                    7,933
Catering                           635
Skycaps                        770
Government Agencies                1,305
Airport Administration                  1,473
Retail Concessions                   1,456
General Aviation/FBO's                 1,305
Custodial                          156
Parking                           175
Subtotal                         15,206
Freight Transportation Sector
Freight Airlines/Couriers                  702
Freight Forwarders                    145
Subtotal                           847
Passenger Ground Transporation Sector
Rental Cars                          727
Cabs/Buses/Limos/Vans                927
Construction/Consulting                 646
Total                              18,353              13

Distribution of Direct Jobs by
Type of Activity, 2013




14

9 Million Visitors Used Sea-Tac
International Airport in 2013




15

Distribution of Local Visitors' Purchases -
$8.4 Billion




900 passenger survey

16

Distribution of 91,571 Direct Visitor
Industry Jobs




900 passenger survey

17

Seaport Impacts




18

Seaport Economic Impacts

INDIRECT:
Direct          Goods/Services
M&R
Impacts        Equipment
Utilities
INDUCED:          Marine Cargo         Fuel
Food            Cruise             Insurance
Shelter
Transportation         Fishing
Medical            Marinas
Retail
Apparel


19

Marine Cargo Impacts




20

Port of Seattle Marine Cargo Economic
Impacts 2013
Direct Jobs: 8,902
23,409 jobs generated by marine
Induced Jobs: 8,644
cargo activity
Indirect Jobs: 5,863

$1.8 billion of business revenue     Direct Business revenue
Includes $581.1 million local purchases

$527.2 million direct wage and salary income
$2.0 billion personal income and
$1,158.9 million re-spending and local consumption
local consumption
$289.2 million indirect income

$112.1 million state
$0.2 billion of state and local taxes
$71.6 million local
*Totals may not add due to
rounding
21

Distribution of Direct Jobs by Category,
POS 2013
Direct Jobs                Port of Seattle
Total
Surface Transportation
Rail                                 864
Truck                          1,579
Maritime Services
Terminal Employees                  678
ILWU/Dockworkers                 912
Towing                         162
Pilots                                  18
Agents                         90
Surveyors/Chandlers/Misc.Services          326
Forwarders                        274
Warehouse                   1,039
Government                    1,219
Shipyards/Ship Repair/Marine Construction   1,301
Barge/Bunker                     352
Port of Seattle                           88
Totals                             8,902
*Totals may not add due to
rounding
22

Distribution of Direct Jobs by Commodity,
POS 2013
Port of Seattle              1,000 Short Jobs per
Commodity       Jobs    Tons  1,000 Tons
Containerized Cargo
International          3,436     8,955      0.38
Domestic          1,925    5,151     0.37
Grain               88    1,490     0.06
Break Bulk            43      32     1.35
Petroleum            78     869     0.09
Other Dry Bulk          393    1,585     0.25
Other Liquid Bulk         14      53     0.27
Not Allocated         2,924
Total               8,902    18,136

*Totals may not add due to
rounding
23

Commercial Fishing at POS Facilities




24

Commercial Fishing Methodology
Inventory of vessels moored at each facility, by type,
provided by POS:
- Fishermen's Terminal
- Terminal 91
- Maritime Industrial Center
Interviews with tenants (suppliers, boat yards,
restaurants, retail, brokers, insurance, lawyers)
Jobs to sales ratios and salaries developed from
survey of suppliers, ship/boat yards, haul-out
services, banking/insurance, equipment M&R
Combined with total expenditures, by type, at each
terminal
25

Port of Seattle Commercial Fishing
Economic Impacts 2013
Direct Jobs: 8,253
16,089 jobs generated by
Induced Jobs: 4,735
commercial fishing at POS facilities
Indirect Jobs: 3,102

$0.9 billion of business revenue     Direct business revenue, excluding value of catch
Includes $244.8 million local purchases

$674.8 million direct wage and salary income
$1.3 billion personal income and
$483.0 million re-spending and local consumption
local consumption
$156.2 million indirect income

$73.0 million state
$0.1 billion of state and local taxes
$46.6 million local
*Totals may not add due to
rounding
26

Direct Job Distribution - Fishing


1,516
2,064
4,673

Crew
Support
Upland Tenants

27

Recreational Boating at POS Facilities




28

Methodology for Recreational Boating
Inventory of boats, by size and type at each POS
marina, moored and transient:
- Shilshole
- Bell Harbor
- Fishermen's Terminal
- Harbor Island
Interviews with tenants (yacht clubs, schools,
restaurants, retail, etc.)
Development of typical annual expenditures by type
and for transient
Development of jobs to sales ratios, revenue and
income for suppliers of services from surveys

29

Port of Seattle Recreational Boating
Economic Impacts 2013
Direct Jobs: 140
323 jobs generated by recreational
Induced Jobs: 94
boating
Indirect Jobs: 89

$21.6 million of business revenue    Direct business revenue
Includes $7.5 million local purchases

$5.0 million direct wage and salary income
$19.3 million personal income and
$10.7 million re-spending and local consumption
local consumption
$3.6 million indirect income

$1.1 million state
$1.8 million of state and local taxes
$0.7 million local
*Totals may not add due to
rounding
30

Cruise Operations at the Port of Seattle




31

Cruise Impact Model
Number of vessel calls
Size of vessel
Type and length of cruise:
- Homeport vs. Port of call
Passenger levels
Passenger characteristics:
- Local purchases
- Local residents vs. out-of-town
- Pre and post cruise behavior

32

Cruise Methodology
Two sectors of the economy impacted:
- Maritime Sector:
- Services provided to vessels
- Interviews with cruise operators:
- Princess Cruises
- Holland America Line
- Norwegian Cruise Line
- Visitors Industry Sector:
- Services provided to passengers:
- 600 passenger and crew surveys
- Crew survey
- Consistent with Martin Associates' Seattle-Tacoma model


33

Economic Impact of 800,000 Passengers, 169
Homeport Calls, 6 Ports of Call, 3 Day Sails

Direct Jobs: 1,741
3,404 jobs generated by cruise
Induced Jobs: 852
activity
Indirect Jobs: 812

$407.8 million of business revenue    Direct business revenue, excludes price of cruise
Includes $40.7 million local purchases

$70.0 million direct wage and salary income
$176.2 million personal income
$83.9 million re-spending and local consumption
and local consumption
$22.3 million indirect income

$16.1 million of state and local      $9.8 million state
taxes               $6.3 million local
*Totals may not add due to
rounding
34

Economic Impact of Harbor Cruises, 2013

Direct Jobs: 122
231 jobs generated by harbor
Induced Jobs: 52
cruises
Indirect Jobs: 57

$18.3 million of business revenue    Direct business revenue
Includes $6.8 million local purchases

$5.3 million direct wage and salary income
$12.5 million personal income and
$4.0 million re-spending and local consumption
local consumption
$3.1 million indirect income

$.73 million state
$1.2 million of state and local taxes
$.47 million local
*Totals may not add due to
rounding
35

Non-Maritime/Aviation Real Estate




36

Real Estate Methodology
Consists of Port of Seattle Seaport tenants that are
not included in cargo, fishing, recreational boating, or
cruise analysis
Based on a survey of 106 tenants not included in
other types of seaport or airport activity
Development of sensitivity model to assess future
land uses
Additive with other seaport types of business

37

Economic Impact of Real Estate, 2013

Direct Jobs: 1,044
1,831 jobs generated by real estate
Induced Jobs: 486
tenants
Indirect Jobs: 300

$434.9 million of business revenue    Direct business revenue
Includes $48.0 million local purchases

$54.5 million direct wage and salary income
$118.3 million personal income
$41.3 million re-spending and local consumption
and local consumption
$22.4 million indirect income

$11.0 million of state and local      $6.7 million state
taxes               $4.3 million local
*Totals may not add due to
rounding
38

Direct Jobs by Type of
Real Estate Tenant Activity




39

Changes in Impacts Since 2007




40

Structural Changes
Personal Earnings Multiplier:
- Increased savings rate since recession, lower income multiplier
- Results in lower induced jobs and re-spending impact
Growth in overall U.S. productivity-- more output
per job
- Overall jobs to sales ratios have fallen for indirect jobs
- Results in lower indirect and induced jobs per dollar of expenditure



41

Key Operational Changes From 2007
Sea-Tac:
- Growth in passenger activity:
- 31.3 million in 2007
- 34.8 million in 2013
- International passengers grew from 2.2 to 3.6 million
- Growth in visitors using Sea-Tac:
- 7.6 million in 2007
- 9.0 million in 2013
Seaport Activity:
- Marine cargo declined by more than 6 million tons
- International containers
- Grain
- Fishing vessels at POS facilities increased from 311-591 vessels
- Cruise ship calls fell from 187 to 178 calls, passenger levels constant
- Recreational boats at POS marinas increased from 1,579 to 1,777
Real Estate Tenants Declined
42

Changes Since 2007

2013     2007    Change
Jobs
Direct                          129,744   113,317    16,427
Induced                      53,148    62,128    -8,980
Indirect                           33,379    20,540    12,839
Total Jobs                        216,271   195,986    20,285
Personal Income (millions)
Direct                           $4,179    $3,762     $418
Re-spending and Local Consumption     $4,319    $5,066    -$748
Indirect                           $1,126      $700     $426
Total                             $9,624    $9,528      $96
Business Revenue (millions)            $19,813   $17,559    $2,254
Local Purchases (millions)               $2,268    $1,439     $829
State and Local Taxes (millions)            $894     $867      $27
Totals may not add due to rounding
43

Operational Changes  Sea-Tac
Growth in passenger activity:
- 31.3 million in 2007
- 34.8 million in 2013
- International passengers grew from 2.2 to 3.6 million
Growth in visitors using Sea-Tac:
- 7.6 million in 2007
- 9.0 million in 2013
Air cargo fell:
- 319,013 tons in 2007
- 292,709 tons in 2013
Reduced construction expenditures as airport projects
completed
44

Comparison of Sea-Tac Economic Impacts
(On-Site)




Totals may not add due to rounding
45

Comparison of Direct On-Site Jobs
by Category




Totals may not add due to rounding
46

Comparison of Sea-Tac Economic Impacts
(Visitor Industry)




Totals may not add due to rounding
47

Changes in Seaport Cargo Tonnage



Totals may not add due to rounding

48

Changes in POS Cargo Driven Impacts




Totals may not add due to rounding
49

Changes in Direct Jobs by
Commodity Type




Totals may not add due to rounding
50

Changes in Cruise Industry Impacts
Decline in number of cruise calls:
- 187 calls in 2008
- 178 calls in 2014
Passengers remain nearly the same  800,000
Vessels are larger



51

Comparison of POS Cruise Activity




Totals may not add due to rounding
52

Changes in Fishing Impacts
Growth in fishing fleet at POS facilities:
- 311 ships in 2007
- 591 ships in 2013
Growth in factory trawlers and processors:
- 37 vessels in 2007
- 43 vessels in 2013
Decline in income multiplier since 2007  induced jobs
and re-spending impact declined


53

Comparison of POS Fishing Impacts




Totals may not add due to rounding
54

Changes in Marina Impacts
Increase in vessels moored at POS marinas since
2007:
- 1,579 in 2007
- 1,777 in 2013
Decline in income multipliers



55

Comparison of POS Marina Activity




Totals may not add due to rounding
56

THANK YOU!

57

Limitations of Translatable Documents

PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.