Towards Broader Views of Airport

Economic Significance:

Measuring the Economic Significance of AviationTRB Workshop , January 2007

Intermodal Perspectives

Glen WeisbrodEconomic Development Research Group

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Economic Significance of Airports

Standard StudiesAirport Econ ActivityAir Service SupportAviation Dependent(visitor spending)Supplier /Respending(multiplier effects)

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Economic Significance of Airports

Standard Studies

Airport Econ Activity

Air Service Support

Aviation Dependent(visitor spending)

Supplier /Respending(multiplier effects)

Newer StudiesIntl Trade RoleMfg Supply Chain RoleUniversities, R&D, Finance, Business Serv.Econ Devel RoleUrban Devel Role

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(1) Int. Trade Significance

Air Freight Accounts for 1% of export tonsBut 34% of export valueAnd 55% of overseas export value(up from 42% in 1990)

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Maine Study: Export Destinations1 Canada2 Malaysia3 China (Mainland)4 Japan5 Korea, Republic Of6 China (Taiwan)7 United Kingdom8 Singapore9 Netherlands

10 Germany

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Maine Export FlowsMaine Exports via

1 Calais. ME2 JFK Airport3 Jackman, ME 4 Buffalo, NY 5 Derby, VT6 Eastport, ME7 Logan Airport

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Vancouver Gateway Council Study

Airport critical for cruise and freight $

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Portland Business Council Study

Airport critical for JIT shipments to AsiaIntel: 2-hour shift for shipping chips due to congestion getting to airport

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(2) Supply Chain SignificanceChanging Trends

Longer distances

Higher value/weight

Higher time sensitivity

Overnight delivery

Small package delivery

Air dependence on hwy access

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Supply Chains: Air Freight GrowthAir Freight has highest growth rate(ton-miles)

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Products Dependent on Air Cargo

Electronics & elec. equipment

Chemicals, plastics, pharma

Ind. machinery/vehicle parts

Printing & publishing

Industrial bldg construction

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Auto Mfg – GM, ChryslerParts Mfg –to SC (BMW), Mexico & MI (Ford), ONT & MO (Chrysler)

Regional automotive mfg cluster

Reliance on just-in-time mfg-- for air & truck reliabilityPotential loss of jobs to Mexico or Canada

Janesville (Rock Co. Airport)

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Industries Dependent On Passenger Air TravelEngineering & consulting servicesBanking, finance, business servicesLegal servicesGovernment, Public AdministrationUniversities and R&D centersMedical Services

(3) Business Travel Significance

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New England Council: Boston Logan

Critical roles for:Biotech industryComputer R&DHospital ClusterResearch UniversitiesInternational Visitors & Trade

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(4) Economic Devel SignificanceBusiness attraction depends on proximity or access time to airport

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Econ Roles of GA FacilitiesIncrease of air freight, courier Growing technology and multi-location industriesIncreasing use of corporate & fractional ownershipWis. study: 702 new andexpanding firms (34,064 jobs),85% located within 15 miles of jet-capable airport

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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

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St. Cloud, MNValue of Air Service for Business Retention

Community marketing campaign to support service ($100 bonus to travel agents)Guarantee service to airlinesMeasure $ impact on business retained and attracted

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(5) Urban Devel Significance

Air Ind. ParksWarehousingHotel, ConventionRecreationOffice, RetailMixed Use Devel

Airpark Business Ctr (BNA)

Las Colinas Near DFW

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Schiphol Area Devel Co.

Logistics facilitiesWarehousesHi-tech officeFashion/Creative Industries

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Kansai Airport – Rinku Town

Airport Business ServicesAirport HotelsMeeting FacilitiesShoppingAmusement ParkOffice, RetailHwy & Rail Links

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Viewing Economic SignificanceDifferent Perspectives

National: International TradeRegional: Economic DevelopmentLocal: Urban GrowthIndustry: Supply Chains, Clusters

Different ToolsWisconsin ABC System: State vs. Local Econ SignificanceTREDIS: Multimodal Joint EffectsKeeping Econ Significance separate from Benefit/Cost

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Future Economic Significance?

Actual Photo of UFO Landing Zone on the A27 Highway in the Netherlands

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For Further Information

EDRG Web Download Library www.edrgroup.com/articles-transport.htm

TRB Econ Devel Committee Linkswww.tedcommittee.com

Economic Development Research Group, Inc.2 Oliver Street, Boston, MA 02109 USA1.617.338.6775 www.edrgroup.com