Ties that Bind McDowell Group, Inc. Seattle Propeller Club March - - PowerPoint PPT Presentation

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Ties that Bind McDowell Group, Inc. Seattle Propeller Club March 18, 2015 The Enduring Economic Impact of Alaska on the Puget Sound Region McDowell Group Research and consulting since 1973 15 professional staff Offices in Juneau,

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SLIDE 1

Ties that Bind

The Enduring Economic Impact of Alaska on the Puget Sound Region

McDowell Group, Inc. Seattle Propeller Club March 18, 2015

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SLIDE 2

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

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SLIDE 3

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
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SLIDE 4

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
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SLIDE 5

Economic Impact

  • 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

Exports 74,000

Natural Resources 39,000

Economic Impacts

Alaska‐Related Jobs 113,000 Alaska‐Related Labor Earnings $6.2 billion

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SLIDE 6

Impact Trends

Labor Earnings

Jobs

$4.3 billion $6.2 billion 103,500 113,000 (+12%*) (+9%)

*Adjusted for inflation. 2003 2013 2003 2013

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SLIDE 7

Ties that Bind: Sectors

  • Cargo/freight
  • Seafood
  • Passenger transportation/tourism
  • Petroleum
  • Maritime support
  • Health care
  • Education
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SLIDE 8

Freight and Cargo

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SLIDE 9

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 5,500 Labor Earnings $450 million

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SLIDE 10

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Alaska‐Washington Waterborne Cargo (Tonnage)

Northbound Cargo Southbound Cargo

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SLIDE 11

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

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SLIDE 12

Seafood Impacts

  • Commercial fishing
  • 10,150 jobs
  • $600 million in labor earnings
  • Seafood processing
  • 13,100 jobs
  • $690 million in labor earnings
  • Government/industry orgs
  • 650 jobs
  • $50 million in labor earnings

Fishing 10,150 Processing 13,100

Govt/industry 650

Economic Impacts

Jobs 24,000 Labor Earnings $1.3 billion

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SLIDE 13

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000

2009 2010 2011 2012 2013

$Millions

Washington Revenue from Alaska Seafood

WA‐Based Processors (Less Fish Cost) Gross Fishing Earnings ‐ WA Residents

$2,074 $619 $818 $2,462

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SLIDE 14

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 14,100 Labor Earnings $554 million

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SLIDE 15

‐ 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Enplanements or Passengers

Air and Cruise Passengers: Sea‐Tac & Port of Seattle

Enplanements to Alaska from Sea‐Tac Cruise Passengers from Port of Seattle

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SLIDE 16

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 12,000 Labor Earnings $780 million

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SLIDE 17

‐ 500 1,000 1,500 2,000 2,500 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Barrels/Day (Thousands)

Petroleum Production: Alaska, Western Canada, and North Dakota

Alaska North Dakota Canada Oil Sands

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SLIDE 18

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 5,300 Labor Earnings $390 million

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SLIDE 19

Health Care

  • Many 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 1,200 Labor Earnings $100 million

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SLIDE 20

Education

  • Washington is #1 state for

Alaska students attending out‐

  • f‐state
  • 600+ Alaska students at Puget

Sound institutions

  • 35 different Puget Sound

institutions 2005‐12

  • Programs: WUE, WWAMI,

Alaska scholarships

Economic Impacts

Jobs 250 Labor Earnings $11 million

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SLIDE 21

Tribal Ties

  • Five regional ANCSA corporations
  • perate 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
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SLIDE 22

Additional Ties

  • Federal government
  • NOAA/NMFS
  • EPA Region 10
  • Military
  • Business/professional services
  • Finance/banking/accounting
  • Public relations
  • Engineering
  • Law
  • Consulting
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SLIDE 23

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

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SLIDE 24

More in the Report!

  • Overview of each economy
  • Additional detail on each sector
  • Trends
  • Outlook
  • Impacts on Alaska
  • Available at

www.alaskachamber.com www.seattlechamber.com

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SLIDE 25

Ties that Bind

The Enduring Economic Impact of Alaska on the Puget Sound Region

McDowell Group, Inc. Seattle Propeller Club March 18, 2015