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Economic Impact Study                      13
November 2013
Economic Development Council
prepared for     ofSeatdeamGngCounty
WORKFORCE
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with support from    Puget sound Regioml COUHC
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EXECUTIVE SUMMARY
Cluster Overview
Washington State's Maritime industry is rooted in the State's rich history of timber
production, its location as a trade hub, and its proximity to
some of the world's most
productive sheries. The Maritime Cluster includes
core sectors Passenger Water
Transportation; Ship and Boat Building; Maintenance and Repair; Maritime Logistics and
Shipping; Fishing and Seafood Processing; and Military and Federal Operations.
Companies in the cluster range from owneroperated boatbuilding rms,
to Fortune 500
global logistics companies employing thousands in Washington and elsewhere.

Ship and Boat Building, Maintenance and Repair, Fishing and Seafood Processing, and
Maritime Logistics and Shipping
are the oldest and most established sectors in the state.
The region's competitive advantage in both
sectors stems from Washington's
geographical location. As a trading hub linking the rest of the US. to Alaska, Canada,
and Asia, Washington's Maritime Logistics and
Shipping sector moves goods across the
globe efciently. Additionally, Washington's natural
resources have supported the
success of Washington's
economy throughout the history of the State.
Despite the maturity of the industry, newer areas of the cluster, such
as the cruise
industry, have only just begun to take advantage of the region's strengths for their
businesses. Innovation drives growth in each
sector of Washington's Maritime. Research
and resource management has transformed
Washington and Alaska's sheries from
endangered to some of the best managed in the world. Technological advances have
allowed commercial seafood
processors to more efciently use and capitalize total catch
of fish  in the words of
one company, they now make two fish out of
one. Lighter
building materials (rst aluminum, now composites) have enabled boat and ship builders
to construct stronger, cheaper, and safer vessels for their
customers.

The Maritime Cluster relies
on a robust and concentrated
support system to fuel its
growth. This includes everything from fueling operations to research, naval architects,
marinas, accountants, Maritime lawyers, cold storage, boat dealers, and Public Ports.
Maritime Support Services industries facilitate global
movement of export goods and
maintain and create
new distribution channels. Each
company in the cluster benefits
from the agglomeration of closeby Maritime
Support Services firms.
Federal Government spending in the form of
contracts to Naval shipyards accounts for
much of Ship and Boat Building, Maintenance and
Repair in Washington  nearly one
quarter of all Maritime jobs in the state are located in Kitsap County, home to Puget
Sound Naval Shipyard. The Coast Guard and NOAA have
a significant footprint in
Washington, and they are substantial buyers of goods and services related
to Ship and
Boat Building, Maintenance and Repair in
Washington.

Measures and Impacts
Direct Impacts

In 2012 Washington's Maritime Cluster
employed more than 57,700 people directly in
the state, and was responsible for $15.2 billion in
gross business income in 2012

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Etonomz'c Impact Stacy

numerous. Included in this subsector are more than 11,000 civilian
jobs at the Puget
Sound Naval Shipyards in Bremerton.

Exhibit E1. Summary of Maritime Impacts, Washington
State, 2012
a
Gross
Business
Employer    Wages          Income
Core Sectors        Establishments  $ millions 1  Jobs2    $millions
Passenger Water Transportation          130     $262.8   4,500      $544.5
Boat and Ship Building, Repair,
150    $1,163.8  16,500
and Maintenance                                       $1,489]
Maritime Support Services              300      $387.7   4.600      $864.2
Fishing and Seafood Processing          720    $1 ,113.4  15,400     $859215
Maritime Logistics and Shipping          800     $1 ,156.0  16,700     $3,722.4
E
Total                            2,100     $4,083]  57,700    $15,213.3
Source: Bureau of Labor Statistics (2013),
Washington State Employment Security
Department (2013), US. Department of Labor Bureau of Labor Statistics, US. Census
(2013). Includes covered private and public jobs, and sole proprietors.

Maritime Logistics and Shipping
Maritime Logistics and Shipping includes Port and harbor
operations, deep and shallow
water goods movement, inland water freight
transport, and refrigerated warehousing and
storage. This sector includes many support rms and services, such
as Maritime
construction rms who contract with the Ports, and
longshoremen.
Fishing and Seafood Products
.
Fishing and Seafood Products includes commercial and recreational shermen, seafood
processing rms, aquaculture and sh farming, and wholesale and retail seafood markets.
Alaska's distant-water commercial shing eet is home
ported in Puget Sound, and the
economic impact of this is
very large; the sector is one of the largest single employers in
the Maritime Cluster, despite
a decline between 1990 and 2000. Since 2000, covered
employment in the sector has remained very steady.

Maritime Support Services
These services include support for commercial,
recreational, and defenserelated
Maritime, including boat dealers, marinas, fueling and lubricant businesses,
to naval
architects, engineers, parts suppliers, and construction,
to professional services such as
attorneys and accountants, and federally-funded support involving NCAA and the Army

1 Does
not include benets.
3
Employment contains selemployer data for which the latest
year available is 2011. 2012 self-
employment estimates are based on a ve-year
average by sector.

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