Measuring the Economic Impact of Air Cargo
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1 2010 ACI-NA Air Cargo Conference March 11, 2010 Seattle, Washington Measuring the Economic Impact of Air Cargo Mike Maynard Sr. Aviation Project Manager Wilbur Smith Associates
2 Measuring the Economic Impact of Air Cargo: Presentation Outline Brief history Economic impact methodology Example study and outcome
3 Measuring the Economic Impact of Air Cargo: Estimating the Regional Economic Significance of Airports FAA, 1992 Direct impacts (airport/tenant) Indirect impacts (visitors) Multiplier impacts (induced/indirect) Total Promote airport benefits
4 Measuring the Economic Impact of Air Cargo: Changes to Aviation Industry Rise of air cargo industry Air cargo activity off-airport (indirect) Forwarders increase in activity (indirect) Role of air cargo in supply chain logistics
5 Measuring the Economic Impact of Air Cargo: Direct Tenants Construction Military Government Air Cargo Education Taxes Indirect Visitors Direct and Indirect + Multiplier Effect IMPLAN or RIMS Multipliers Induced Impacts = Jobs/Employment Annual Payroll Annual Output TOTAL ECONOMIC IMPACTS Total Impacts
6 Measuring the Economic Impact of Air Cargo:
7 Florida Statewide Economic Impact FL Air Cargo Impacts Statewide Economic Impact Study (FDOT) 24 airports with scheduled air cargo service 90+ UPS, FedEx Express and DHL stations off-airport Significant air forwarders, customs brokers and perishable shippers off-airport Economic Impact of Air Cargo in Florida (Freight & Mail) 69,260 total jobs $3.1 billion annual payroll $6.6 billion annual output
8 Florida Statewide Economic Impact FL Air Cargo Impacts Methodology Surveyed on-airport cargo tenants Surveyed UPS, FedEx Express and DHL stations off-airport Surveyed forwarders and perishable shippers Incorporated existing study data where applicable Follow up phone calls Interviewed trade/industry experts: AFIF, USPS, UPS, FCBF Confirmed assumptions Interpolated missing data
9 Florida Statewide Economic Impact: Air Cargo Employment On-Airport (Direct) Off-Airport (Indirect) Total Employment Payroll On-Airport (Direct) Off-Airport (Indirect) Total Payroll Output On-Airport (Direct) Off-Airport (Indirect) Total Output Direct and Indirect Impacts 8,449 12,556 21,005 $384,952,600 $567,428,700 $952,381,300 $769,800,100 $1,436,460,900 $2,206,261,000 Source: Wilbur Smith Associates and IMPLAN Multipliers Induced Impacts 11,946 8,925 20,871 $369,290,900 $392,735,400 $762,026,300 $549,485,000 $1,134,622,800 $1,684,107,800 Total Impacts 20,395 21,481 41,876 $754,243,500 $960,164,100 $1,714,407,600 $1,319,285,100 $2,571,083,700 $3,890,368,800
10 On-Airport Air Cargo Related Employment Tampa International Airport 4% Orlando International Airport 9% Other Airports 13% Fort Lauderdale- Hollywood International Airport 10% Fort Lauderdale-Hollywood International Airport Miami International Airport Orlando International Airport Tampa International Airport Other Airports Total 861 5, ,449 Miami International Airport 67%
11 Off-Airport Air Cargo Related Employment Tampa International Airport 6% Orlando International Airport 9% Other Airports 10% Fort Lauderdale- Hollywood International Airport 4% Fort Lauderdale-Hollywood International Airport Miami International Airport Orlando International Airport Tampa International Airport Other Airports Total 446 9,053 1, ,277 12,556 Miami International Airport 71%
12 Florida Statewide Economic Impact MIA Air Cargo Impacts Significant inbound seafood, fruits and vegetables Total air trade for 2008 was valued at $40.7 billion 96.3 percent of the dollar value of Florida s total air imports and exports 80+ percent of all U.S. cut flower imports arrive in MIA 80 percent of MIA air cargo warehouse space is offairport
13 Off-Airport Air Cargo Related Employment MIA Floral Warehouses MIA
14 Florida Statewide Economic Impact MIA Floral Air Cargo Impacts Aircraft unloading On-airport warehouse and chill CBP/USDA Inspections (fumigation) Trucking from MIA to warehouse Racked for sale to wholesalers Or bouquet production Trucked to destination 2,200+ jobs in floral production
15 Florida Statewide Economic Impact Impact of US Postal Service Every postal clerk and letter carrier handles first class mail everyday 35 percent of workforce is estimated to be related to First Class mail in Florida Over 14,500 direct postal jobs in FL supported by First Class mail activity Direct and Indirect Impacts Induced Impacts Total Impacts Employment 14,530 12,853 27,383 Payroll $972,448,300 $367,743,000 $1,340,191,200 Output $1,443,292,500 $1,263,150,900 $2,706,443,400
16 Other Cargo Economic Analysis Qualitative benefits Economic Impact of Single Route Economic Impact of Commodities Shipped jobs, output, payroll Tertiary and Perpetuity Impacts
17 Thank You!
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