OH: Domestic Maritime Industry Creates 13,850 Jobs, $3.2B in Growth
15 Jul, 2019
The American Maritime Partnership (AMP), the voice of the domestic maritime industry, hosted a press conference recently at the Great Lakes Towing Company with Congresswoman Marcy Kaptur (D-OH), local business leaders, and maritime advocates and employees to announce new economic benefits of the industry to the state of Ohio and Great Lakes region.
According to the findings of a new study conducted by PricewaterhouseCoopers (PwC) on behalf of Transportation Institute (TI), the Jones Act continues to fuel a strong maritime industry in Ohio and across the Great Lakes region, where the PwC report shows 123,670 Jones Act-related jobs – or 20% of the national total – are based. Throughout Ohio, the industry employs more than 13,850 individuals, produces $3.2 billion for the local economy, and generates $817.5 million in worker income. Between 2011 and 2016, maritime employment in Ohio increased by 3,520 jobs. $30 billion of the national Jones Act economic impact comes from the eight Great Lakes states.
As highlighted at today’s event, Ohio is also an important shipyard state. A recent study of shipbuilding by the U.S. Maritime Administration (MARAD), covering both commercial and military ship construction, found more than $617 million of annual economic impact and more than $364 million in worker income for the state.
The backbone of the domestic maritime industry is the Jones Act, which requires the transportation of merchandise between all U.S. points to be reserved for U.S. -built, -owned, -crewed, and -documented vessels. The law is not only a vital anchor for economic strength and job creation for Ohio, but also a pillar for the entire nation’s prosperity and security.
Elected Officials Support the Domestic Maritime Industry and Job Creation:
“Today’s report confirms our course: invest in our maritime assets and prepare our workforce for the maritime jobs of the future. This region has an important place at the table to strengthen our strong domestic maritime industry and its critical role in our national security and prosperity,” said Rep. Marcy Kaptur (D-OH). “In Ohio alone, the efforts of over 13,000 workers facilitate more than $3 billion moving into local economies and generating $817.5 million in worker income. These are the benchmarks from which workers and industry leaders can build on our successes and plan a future of expanded commerce and opportunity.”
“Ohio workers are the best in the world at what they do and today’s report shows that our state’s maritime industry is no exception. Ohio’s ports and shipping industry provide good-paying jobs and these workers play a key role in our nation’s economy,” said Sen. Sherrod Brown (D-OH).
“The Great Lakes is one of America’s most important environmental and economic resources and are a major component of Ohio’s domestic maritime industry. This would not be possible without the skilled and dedicated men and women who comprise Ohio’s maritime workforce,” said Rep. Bob Gibbs (R-OH). “Ohio’s status as one of America’s best states for the maritime industry is no surprise to those who see it up close every day. The release of today’s study showing an increase in the number of domestic maritime jobs in Ohio and the contribution its employees make to the state and nation are to be applauded.”
“Across America, cities are focused on building infrastructure, keeping residents safe and creating a local economy where all our residents have opportunities. Investing in workforce development and jobs helps a local economy not only thrive here and now, but grow for the future. And that’s exactly what the Jones Act has contributed to Cleveland, and to the entire Great Lakes region,” said Councilmember Matt Zone of Cleveland, Ohio and Immediate Past President of the National League of Cities.
Maritime Leaders Recognize the Economic Impact of the Jones Act:
“The state of Ohio is a leader in the domestic maritime industry, supporting 13,850 family-wage jobs and contributing over $3.2 billion to the local economy,” said James L. Henry, Chairman, and President of Transportation Institute. “The findings in our most recent study demonstrate the strength and necessity of the Jones Act which serves as the backbone of the American maritime industry, the U.S. industrial base, and job creation for the hardworking men and women that crew the vessels delivering both in times of war and peace.”
“Quite simply, the Jones Act is American security,” said Matt Woodruff, President of the American Maritime Partnership. “In addition to the job creation benefits detailed in this study, our American mariners are relied on by defense leaders to project American force overseas in a national emergency. Alongside our waterfront workers, they are the eyes and ears of homeland security on our nation’s coasts and waterways. Our American controlled fleet provides economic security, ensuring that our nation’s internal freight transportation system is not subject to foreign interference. American maritime jobs always have and will continue to be vital in the never-ending task of keeping America safe, strong and prosperous for generations to come.”
“20 percent of all Jones Act jobs are in the Great Lakes states,” said Jim Weakley, President of the Lake Carriers’ Association. “The men and women employed in the domestic maritime industry build and maintain our ships for commercial and governmental clients, including the Navy’s Littoral Combat Ship program, and crew our vessels moving iron ore, stone, and coal, the base of steel and American manufacturing, construction, and energy production.” Weakley further noted, “All eight Great Lakes states are dependent on commercial maritime and the entire national economy is reliant on the cargoes moved on the Lakes by Jones Act-compliant vessels, crews, and companies. There is no second guessing, the Jones Act is critical to American economic security.”
“As a charter member of the Transportation Institute and a participant in the Jones Act domestic shipping industry, along with many of our U.S. Flag customers, we are very proud of the achievements and contributions made over the years in fulfilling and even exceeding the purposes envisaged by this legislation.” said Ron Rasmus of the Great Lakes Towing Company.
“As an Ohio-based company, we play an important role in supplying our Great Lakes customers with the building blocks of America — from moving limestone from Marblehead to Cleveland, iron ore from Minnesota to the steel mills in Toledo and Cleveland, to ensuring the critical road salt moves from Cleveland to ports throughout the Great Lakes to keep roads safe in the winter,” said Mark W. Baker, President of The Interlake Steamship Company. “The steel, power generation and construction industries as well as the municipalities rely on the Great Lakes shipping industry, which is proudly U.S. crewed, U.S. owned and U.S. built. We are excited to be building a new vessel in Wisconsin that will play a key role in supplying Ohio customers. And we are proud to be a part of a maritime industry that produces $3.2 billion for the local economy, and generates $817.5 million in worker income in Ohio alone.”
“The domestic maritime industry is a hugely important source of well-paying, family-wage jobs for American mariners here in Ohio and all across the country,” said Seafarers International Union Assistant Vice President Bryan Powell. “SIU members have been safely plying these waterways for many decades, contributing to the local economy and delivering the goods.” Powell added, “I’m also proud of the fact that high-ranking individuals in the administration and in our military have pointed out that our crews are a vital component of homeland security. They’re on our rivers and coasts every day; they know if something doesn’t look right, and they have a big stake in the safety and security of our vessels and ports.”
“U.S Maritime Cabotage Laws, also known as the Jones Act, protect the Great Lakes through regulation of 46 CFR Shipping, enforced by the United States Coast Guard. Evidence based studies also prove the Jones Act plays an instrumental role in national and economic security of the United States. For all these and many more reasons the Jones Act is good for Ohio by keeping it environmentally and economically healthy,” said John E. Clemons of the American Maritime Officers Association.
Thanks to the Jones Act, the domestic maritime industry employs approximately 650,000 Americans across all 50 states, creates $41 billion in labor income for American workers, and adds more than $154.8 billion in annual economic output each year. The U.S. domestic fleet is one of the largest in the world, with more than 40,000 vessels – built in American shipyards, crewed by American mariners, and owned by American companies – that operate in American waters 24 hours a day, seven days a week.
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