About Ties That Bind - Juneau Chamber of Commerce
Ties that Bind The Enduring Economic Impact of Alaska on the Puget Sound Region McDowell Group, Inc. Juneau Chamber of Commerce March 26, 2015 McDowell Group • Research and consulting since 1973 • 15 professional staff • Offices in Juneau, Anchorage, Bellingham • Areas of expertise: mining, oil & gas, tourism, seafood, transportation, health care, education • Services: economic and socioeconomic analysis, surveys, market research, feasibility studies, community planning, program evaluation About Ties That Bind • Previous reports: 1985, 1994, 2003 • Six counties: King, Kitsap, Pierce, Snohomish, Skagit, Whatcom • Sources: government agencies, industry‐ specific impact reports, McDowell Group data, interviews, business survey • IMPLAN for economic impact analysis Sponsors Presenting Sponsor • Alaska Airlines Gold Sponsors • Lynden Transport, Inc. • Port of Seattle • Port of Tacoma • Shell Oil Company • Totem Ocean Trailer Express Silver Sponsors • Alaska Oil & Gas Association • Banner Bank • Foss Maritime Company • GCI ConnectMD • Jones Stevedoring Co. Bronze Sponsors • Alaska Railroad • At‐sea Processors Association • Manson Construction • Port of Anchorage • Schnitzer • The Wilson Agency / Albers & Company, Inc. • Transportation Institute • U.S. Bank Supporting Sponsors • Alaska Salmon Alliance • Fifth Third Bank • Nexus Northwest Co‐Presenters • Seattle Metropolitan Chamber of Commerce • Alaska Chamber of Commerce • Tacoma‐Pierce County Chamber of Commerce Economic Impact Economic Impacts Alaska‐Related Jobs Alaska‐Related Labor Earnings 113,000 $6.2 billion • Includes direct, indirect, induced impacts • Alaska “exports”: 74,000 jobs • Puget Sound goods/services provided to Alaska • Natural resources: 39,000 jobs • Fishing, processing, petroleum, tourism Natural Resources 39,000 Exports 74,000 Impact Trends Jobs 103,500 2003 113,000 (+9%) 2013 Labor Earnings $4.3 billion 2003 $6.2 billion (+12%*) 2013 *Adjusted for inflation. Ties that Bind: Sectors • Cargo/freight • Seafood • Passenger transportation/tourism • Petroleum • Maritime support • Health care • Education • Tribal Ties Freight and Cargo Freight and Cargo • 3.4 million tons moved between Puget Sound and Alaska in 2013 • 80% northbound, 20% southbound • 97% water, 2% truck, 1% air • Trade with Alaska accounts for over 80% of domestic containerized shipments at Ports of Seattle and Tacoma (20% of total) Economic Impacts Jobs Labor Earnings 5,500 $450 million Alaska‐Washington Waterborne Cargo (Tonnage) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2003 2004 2005 2006 2007 Northbound Cargo 2008 2009 2010 2011 Southbound Cargo 2012 2013 Seafood • Largest Alaska‐Puget Sound Sector • Three components: • Commercial fishing • Seafood processing • Government & industry orgs. • Puget Sound residents own nearly 1,000 vessels participating in Alaska commercial fisheries • 36 processors based in Puget Sound account for 82% of first wholesale value in 2013 Seafood Impacts • Commercial fishing • 10,150 jobs • $600 million in labor earnings • Seafood processing Processing 13,100 • 13,100 jobs • $690 million in labor earnings • Government/industry orgs • 650 jobs • $50 million in labor earnings Economic Impacts Jobs Labor Earnings 24,000 $1.3 billion Fishing 10,150 Govt/industry 650 Washington Revenue from Alaska Seafood $4,000 $3,500 $Millions $3,000 $2,500 $2,000 $818 $619 $2,462 $2,074 $1,500 $1,000 $500 $0 2009 2010 WA‐Based Processors (Less Fish Cost) 2011 2012 2013 Gross Fishing Earnings ‐ WA Residents Transportation & Tourism • Sea‐Tac: 1.1 million Alaska‐ bound air passengers • Port of Seattle: 430,000 Alaska cruise passengers • Alaska Marine Highway: 14,000 Alaska ferry passengers Economic Impacts Jobs Labor Earnings 14,100 $554 million 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Enplanements to Alaska from Sea‐Tac 2013 2012 2011 2010 2009 2008 2007 2006 2005 ‐ 2004 Enplanements or Passengers Air and Cruise Passengers: Sea‐Tac & Port of Seattle Cruise Passengers from Port of Seattle Petroleum • Five refineries in Puget Sound: Ferndale (2), Anacortes (2), Tacoma • Alaska is #1 supplier of crude to Puget Sound’s refineries (46% of their volume) • 265,000 barrels/day Economic Impacts Jobs Labor Earnings 12,000 $780 million Petroleum Production: Alaska, Western Canada, and North Dakota Alaska North Dakota Canada Oil Sands 2,000 1,500 1,000 500 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 ‐ 1981 Barrels/Day (Thousands) 2,500 Maritime Support • Services include ship construction, repair, maintenance, supply of marine‐related goods and equipment, & manufacturing • Vessels from Washington represent 56 percent of Alaska fleet’s gross tonnage Economic Impacts Jobs Labor Earnings 5,300 $390 million Health Care • Some services not available in Alaska • Shared providers: Providence, Providence/Swedish, PeaceHealth, Universal • Shared expertise: 10% of Alaska physicians report WA address; WWAMI program • Puget Sound facilities served over 2,000 Alaska residents in 2013 at 33 different facilities (inpatient only) Economic Impacts Jobs Labor Earnings 1,200 $100 million Education • Washington is #1 state for Alaska students attending out‐ of‐state • 600+ Alaska students at Puget Sound institutions • 35 different Puget Sound Economic Impacts institutions 2005‐12 Jobs Labor Earnings • Programs: WUE, WWAMI, Alaska scholarships 250 $11 million Tribal Ties • Five regional ANCSA corporations operate 14 subsidiaries in Puget Sound • Subsidiaries represent a range of sectors: engineering, construction, security, timber, consulting • 850+ people employed in WA • $51 million+ in direct payroll in WA Additional Ties • Federal government • NOAA/NMFS • EPA Region 10 • Military • Business/professional services • Finance/banking/accounting • Public relations • Engineering • Law • Consulting Puget Sound’s Impact on Alaska • Provides a market for Alaska crude oil • Provides a market conduit for Alaska fish • Provides access to essential goods and materials not produced in Alaska • Provides an important supplement to the Alaska labor force • Serves as Alaskans’ gateway to the Lower 48 and the world Outlook DOWNSIDE/FLAT • Declining oil production and prices • Cargo, population, overall economic activity • Alaska population projections modest at 1% annual • Seafood: stable value for 2015 (pending salmon season); Alaska‐based processors growing • Limited cruise growth capacity UPSIDE • • • • • Potential big projects: gas pipeline, OCS oil and gas development Seafood: Long‐term upside due to resource size, management, & branding Maritime services: aging Alaska fleet needs replacement Tourism: will grow along with nationwide economy Strong Puget Sound economy and population growth • Alaska‐Puget Sound ties will continue to strengthen as economies and populations grow More in the Report! • Overview of each economy • Additional detail on each sector • Trends • Outlook • Available at www.alaskachamber.com www.seattlechamber.com Ties that Bind The Enduring Economic Impact of Alaska on the Puget Sound Region McDowell Group, Inc. Juneau Chamber of Commerce March 26, 2015
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