New U.S. Port Economic Impacts Report Released | Trade and Industry Development

New U.S. Port Economic Impacts Report Released

Mar 25, 2019
Lancaster, Pa.-based Martin Associates, a leading provider of economic and strategic assessments of the world’s transportation systems, released the results of its latest economic impact study of United States seaports. Dr. John Martin, Martin Associates’ president and founder, debuted his firm’s 2018 National Economic Impact of the U.S. Coastal Port System report during the second day of the American Association of Port Authorities’ (AAPA) 2019 Spring Conference in Washington, D.C. 
In the five years since Martin Associates’ last nationwide ports economic impact study, the contributions of America’s seaports to the nation’s economy have risen dramatically. For example, between 2014 and 2018, the total number of jobs supported by cargo moving through the America’s deep-draft ports increased by more than one-third … from 23.1 million jobs to 30.8 million.  Also, the total economic value that U.S. coastal ports provide in terms of revenue to businesses, personal income and economic output by exporters and importers rose 17 percent … from $4.6 trillion to $5.4 trillion. This accounted for nearly 26 percent of the nation’s $20.5 trillion economy in 2018, which is the same 26 percent ratio as five years ago when the total U.S. GDP was $17.4 trillion. This is an indicator that the value of cargo activities at U.S. ports remains a key factor in America’s economic vitality.
Other notable gains since 2014 in Martin Associates’ new report include: 
* Federal, state and local tax revenues generated by port-sector and importer/exporter revenues rose nearly 18 percent … from $321.1 billion to $378.1 billion;
* Personal wages and local consumption related to the port-sector increased by more than a quarter … from $1.1 trillion to $1.4 trillion, and;
* The average annual salary of those directly employed by port-related businesses rose from $53,723 to $62,800 … a 17 percent increase.
“The sizable growth over the past five years in the number of jobs that American deep-draft ports support, the wages those jobs pay, and the tax revenues that are collected from the cargo activities at these ports is really quite impressive. It’s a testament to overall economic importance of our nation’s seaports,” said Dr. Martin. “The growth in jobs and economic value of America’s ports reflects their handling an additional 165 million tons of international cargo since 2014. It also underscores the importance of both the public and private sectors continuing to invest in port and intermodal infrastructure to support and foster good jobs, national security, inter-national trade and the United States’ unparalleled standard of living.”
Agreeing with Dr. Martin’s assessment, AAPA President and CEO Kurt Nagle noted that, particularly with the economic contributions of America’s seaports growing rapidly, there’s a significant and urgent need for more federal investment in enhancing the connections with those ports. He said, “On both the land-side and water-side, AAPA’s U.S. member ports have identified a combined $66 billion in needed investments over the next decade. These necessary federal channel, terminal, road, rail, bridge and tunnel improvements are crucial to enable our seaports to efficiently handle their expected cargo volumes, continue providing dramatic economic and jobs impacts, and enhance America’s international competitiveness.”
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