CLT Powers Region s Economy Annual Economic Impact
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1 CLT Powers Region s Economy Annual Economic Impact
2 Roaring Engine for Region s Economy Charlotte Douglas International Airport (CLT) is delivering on its promise to serve as a powerful economic engine for the Carolinas. The total economic impact and contributions of the Airport to the 16-county greater Charlotte region reached $16.2 billion in That s a 67 percent jump over the $9.7 billion the Airport generated in 2005, the year the Center for Transportation Policy Studies at UNC Charlotte completed the last study. The growth and expansion of the Airport and the Charlotte region s growth are directly connected. Charlotte Douglas International Airport is a selfsustaining enterprise that creates jobs, employment and economic opportunities. In 2015, the Airport saw record passenger growth, serving 44.8 million passengers, which puts CLT 9th in the nation. Charlotte Douglas is the second largest hub to American Airlines and also home to seven other major carriers, 15 regional carriers and three foreign flag carriers. As a result, the Airport s operations experienced unprecedented growth and ranked as the 5th busiest airport in the U.S., with 544,000 take offs and landings during the year. As CLT grows, the greater Charlotte region s economy is stimulated, by jobs and investments tied directly to the Airport s operations as well as jobs, payrolls and spending in the region that are indirectly attributed to the Airport s activities. There is no asset more important to Charlotte s ability to attract jobs and investment than Charlotte Douglas International Airport. Bob Morgan President & CEO, Charlotte Chamber
3 Annual Economic Impact CLT Powers Region s Economy Annual CLT Powers Economic Region s Impact Economy Now and Then TOTAL ECONOMIC IMPACT $16.2 Billion Then: $9.7 Billion JOBS 224,410 Then: 100,716 PAYROLL $11.5 Billion Then: $5.2 Billion 67 % increase 123 % increase 123 % increase AIRPORT FAST FACTS: International Destinations Daily Departures 700 Average 32 Then: 28 Then: 524 in 24 different countries Passengers Take offs & Landings Then: 16th 44.8 million Then: 31.3 million 5 th in the nation Nonstop Destinations 160 Then: 124 based on 2015 survey data. Then based on 2005 survey data.
4 Supporting Healthy Growth in Jobs and Payroll Direct vs. Indirect Impacts Direct impacts result from economic activities conducted on Airport property by airlines and tenants, Airport management, and various labor, construction and airside aviation contractors. Purchasing of locally-produced goods and services also is included. The economic impact and contributions of the Airport in 2015 shows that growth is most likely to be driven by additional jobs, as businesses choose Charlotte and the surrounding region as a base for their operations. Indirect impacts come from off-site economic activities that would not have occurred without the presence of the Airport. Among the activities included: services provided by hotels, restaurants and other retailers; visitor spending; capital expenditures; and aviation-dependent government agencies. In 2015, CLT operations and activities supported approximately 224,400 jobs in the regional economy, which is more than double the 100,700 level a decade ago. Of the jobs total, 29,185 are directly tied to the Airport operations, services and expansion of aviation facilities. This includes tenant and contractor jobs and over 10,800 American Airlines jobs. Researchers found that 195,225 jobs are indirectly tied to the Airport as regional employers and many other supporting businesses such as hotels, are spurred on by the Airport s vitality and other factors. This healthy job growth in the region pumped more than $11.5 billion into the area economy through wages and salaries. The majority of the wage impact is from regional employers, reaching about $10 billion in American Airlines wage impact was $913 million. Airport tenant and contractor wages and salaries were $532 million. JOBS Airport Tenants & Contractors American Airlines Regional Employers 18,364 (8%) 10,821 (5%) 195,225 (87%) DIRECT INDIRECT TOTAL 8% 5% 224,410 Total 224,410 (100%) 87% PAYROLL Airport Tenants & Contractors American Airlines Regional Employers Total $ million (5%) $913 million (8%) $10.07 billion (87%) $11.52 billion (100%) DIRECT INDIRECT TOTAL $11.5 Billion 87% 8% 5%
5 About the Study A Regional Transportation Powerhouse Beyond meeting demand for business and personal air travel, CLT s contribution to the regional economy includes supporting trade and the movement of cargo, international tourism and other impacts, such as generating tax revenues. Norfolk Southern s Intermodal facility at CLT links air, rail and truck operations to east coast seaports. The 200- acre facility has grown steadily since 2013, and expands Charlotte s ability to handle intermodal traffic. It s expected to create $7.6 billion in regional economic development and some 7,000 jobs over two decades. Tax revenue impact is estimated at over $620 million. Air cargo coming and leaving CLT declined or remained flat in 2015 as compared to 2005 levels, due primarily to the nationwide recession. Total cargo tonnage was approximately 125,000 tons in 2015, a 27 percent drop from CLT remains well positioned to support international trade and increased cargo levels through its Air Cargo Center. The center has approximately 570,000 square feet of facilities, more than 50 acres of aircraft ramp space and a full complement of international service support organizations. The Airport is also home to Foreign Trade Zone #57 and is the region s permanent magnet Foreign Trade Zone #17 site. Charlotte Douglas International Airport (CLT) commissioned the Center for Transportation Policy Studies at UNC Charlotte in 2015 to assess the Airport s economic impact on the greater Charlotte region. The region includes 16 counties in N.C. and S.C. Using the Federal Aviation Administration s (FAA) guidance for the economic significance of airports, the year-long study focused on regional economic activity, employment and payroll that is attributed directly and indirectly to the operation of CLT. Researchers used the latest Airport statistics, economic data and survey data collected from Airport tenants and contractors, Airport passengers, American Airlines, aircraft owners, regional employers, and hotels. The study does not include calculations for induced economic impacts, so it gives a conservative estimation of the Airport s regional impact. Collaborators on the study included the CLT Economic Affairs Office, Charlotte Chamber of Commerce, Charlotte Regional Partnership and Charlotte Regional Visitors Authority. Charlotte is a welcoming city and has a good airport that is expanding. These were part of the winning combination for us that made the difference for Charlotte. Jerome Peribere President & CEO, Sealed Air Corp.
6 Building for Future Demand CLT will continue to be a major economic driver to the greater Charlotte region s economy with a focus on continuous growth and sound investment in expanding aviation facilities, infrastructure and its services to passengers and partners. In 2015 the Airport completed CLT 2015, a multi-year capital investment program, that included expansions of its parking decks, rental car facility and terminal as well as a state-of-the-art inline baggage system. A new $2.5 billion capital investment program also got underway to meet the Airport s growth forecast through Called Destination CLT, it is a development program for the west phase of its master plan update. The improvements include: Significant terminal expansions and renovations as well as added traffic lanes Concourse and airfield expansions to accommodate passenger growth Plans to develop land surrounding the Airport to create economic growth and new jobs Plans for a proposed fourth parallel runway, which will be the longest runway at CLT Charlotte Douglas International Airport 5501 Josh Birmingham Parkway Charlotte, NC OWNED AND OPERATED BY THE CITY OF CHARLOTTE
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