2010 Connecticut Maritime Economic Impact Study
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ECONOMIC IMPACT STUDY OF MARITIME INDUSTRIES IN CONNECTICUT Prepared for: Connecticut Maritime Coalition, Inc. P.O. Box 188 Stonington, CT 06378 Connecticut Department of Economic & Community Development 505 Hudson Street Hartford, CT 06106 Prepared by: Apex Companies, LLC 58H Connecticut Avenue South Windsor, CT 06074 FXM Associates 53 County Road Mattapoisett, MA 02739 February 2010 Economic Impact Study of Maritime Industries in Connecticut February 16, 2010 Connecticut Maritime Coalition, Inc., “Organizational Center for the Connecticut Maritime Cluster” www.ctmaritime.com Contents - Page 1 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................1 1.1 Study Purpose and Objectives .......................................................................12 1.2 Scope of Work, Focus, and Methodology ......................................................12 1.2.1 Primary and Secondary Sources ........................................................13 1.3 Background and History .................................................................................15 1.4 Report Organization ........................................................................................17 2.0 PLANNING CONTEXT..................................................................................................19 2.1 Connecticut Maritime Industry Stakeholder Interviews ................................19 2.2 National Marine Transportation System.........................................................25 2.3 Regional Waterborne Commerce....................................................................29 2.4 Connecticut Maritime Industry Strategies .....................................................30 2.5 Maintenance and Improvement Dredging ......................................................44 2.5.1 Currently Anticipated Dredging Projects............................................48 2.5.2 Details of Example Federal Dredge Project Needs ............................51 2.5.3 Details of Example Non-Federal Dredge Project Needs ....................55 3.0 PORT PROFILES .........................................................................................................59 3.1 Port of Bridgeport............................................................................................59 3.2 Port of New Haven ...........................................................................................65 3.3 Port of New London.........................................................................................72 3.4 Norwalk Harbor ................................................................................................76 3.5 Port of Stamford ..............................................................................................78 4.0 ECONOMIC IMPACTS OF EXISTING MARITIME INDUSTRIES..................................82 4.1 Overview of Connecticut’s Maritime-dependent Industries..........................82 4.2 Analyses of the QCEW Data from the US Bureau of Labor Statistics..........84 4.2.1 Water Transportation ...........................................................................84 4.2.2 Support Activities for Water Transportation ......................................85 4.2.3 Scenic and Sightseeing Water Transportation ..................................86 4.2.4 Ship and Boat Building........................................................................86 4.2.5 Boat Dealers .........................................................................................87 4.2.6 Marinas .................................................................................................88 4.2.7 Seafood Product Preparation and Packaging ....................................89 4.2.8 Commercial Fishing .............................................................................90 4.2.9 Aggregate Maritime-Dependent Sectors ............................................90 4.3 Ameliorating Disclosure Issues in the QCEW Findings................................91 4.4 Enhancing QCEW Findings to Include Information on Proprietors .............94 4.5 Economic Impacts of Connecticut’s Maritime-Dependent Industries..........97 4.5.1. Impact Analysis....................................................................................99 4.5.2. Economic Impact Analysis of Waterborne Cargo ............................101 5.0 IMPACTS OF NO DREDGING ON CONNECTICUT’S MARITIME ECONOMY ..........112 5.1 Overview of a “No Dredging” Scenario........................................................ 112 5.2 Results from the U.S. Army Corps of Engineers Survey ............................ 113 5.3 Interpreting the Survey Results .................................................................... 114 5.4. Total Direct, Indirect and Induced Economic Effects.................................. 118 6.0 EXECUTIVE SUMMARY OF THE ECONOMIC ANALYSES ......................................124 6.1 Methods and Sources.................................................................................... 124 6.2 Summary Findings ........................................................................................ 126 7.0 POTENTIAL FUTURE ECONOMIC BENEFITS OF DREDGING................................130 8.0 CONCLUSIONS..........................................................................................................134 Economic Impact Study of Maritime Industries in Connecticut February 16, 2010 Connecticut Maritime Coalition, Inc., “Organizational Center for the Connecticut Maritime Cluster” www.ctmaritime.com Contents - Page 2 TABLES Table ES-1 - Economic and Tax Impacts of Connecticut's Maritime-related Industries, 2007 Table ES-2 - Final Adjusted Revenue Losses Resulting from a Dredging Stoppage, by Sector Table ES-3 - Summary of Short Term Growth Potential Table 2.1 - Summary of Short Term Growth Potential Table 2.2 - Changes in Shipping over the Last ten Years Table 2.3 - Shipping M&A Volume Skyrockets Table 2.4 - Connecticut Non-Market Recreational Use of Long Island Sound Table 2.5 - Economic Impact of Connecticut Maritime Sectors from 2000 Table 2.6 - Changes in Economic Variables as a Consequence of Employment Table 2.7 - Changes in Secondary Employment and Output of Connecticut Ports Table 2.8 - Average Changes in Tax Revenue in Nominal Dollars Table 2.9 - Economic Impact of Connecticut’s Ports Table 2.10 - Annual Boardings on Passenger and Auto Ferries (2000) Table 2.11 - Travel Expenditure Patterns of Marina Visitors Table 2.12 - Southeastern Connecticut Regional Industry Maritime Cluster Profile Table 2.13 - Economic Impact of Recreational Boating in Connecticut Table 2.14 - Maritime Industry Cluster Employment and Establishments, 2005 Table 2.15 - Connecticut Navigation-Dependent Facilities Table 2.16 - Non-federal Facilities – Maintenance Dredge Needs (30 years) Table 4.1 - Water Transportation Jobs and Wages Table 4.2 - Support Activities for Water Transportation: Jobs and Wages Table 4.3 - Scenic and Sightseeing Water Transportation: Jobs and Wages Table 4.4 - Ship and Boat Building: Jobs and Wages Table 4.5 - Boat Dealers: Jobs and Wages Table 4.6 - Marinas: Jobs and Wages Table 4.7 - Seafood Product Preparation and Packaging: Jobs and Wages Table 4.8 - Fishing, Hunting and Trapping: Jobs and Wages Table 4.9a - Maritime Dependent Industries: Jobs Table 4.9b - Maritime Dependent Industries: Wages Table 4.10 - Maritime Dependent Industries: Jobs and Wages, 2007 Table 4.11 - Proprietors’ Share of State Aggregate Worker Earnings by Industry in Connecticut, 2007 Table 4.12 - Maritime-Dependent Industries in Connecticut: Total Jobs and Worker Earnings, 2007 Table 4.13 - Cargo Shipments through Connecticut Ports by Commodity, 2007 Table 4.14 - 2007 Cargo Shipment Tonnages through Connecticut Ports by Port Table 4.15 - Economic and Tax Impacts of Connecticut's Waterborne Cargo, 2007 Table 4.16 - Economic and Tax Impacts of Connecticut's Non-cargo Maritime Industry, 2007 Table 4.17 - Economic and Tax Impacts of Connecticut's Maritime Tourism, 2007 Table 4.18 - Economic and Tax Impacts of Connecticut's Maritime-related Industries, 2007 Table 5.1 - Survey Sample by Sector of Connecticut’s Maritime Industry Table 5.2 - Survey Results of Revenue Losses Resulting from a Dredging Stoppage, by Sector Table 5.3 - Adjusted Revenue Losses Resulting from a Dredging Stoppage, by Sector Table 5.4 - Maritime-Dependent Industries in Connecticut: Total Jobs and Worker Earnings, 2007 Table 5.5 - Final Adjusted Revenue Losses Resulting from a Dredging Stoppage, by Sector Table 5.6 - Economic and Tax Loss to Connecticut's Economy of Not Dredging through 2012 Table 5.7 - Economic and Tax Loss to Connecticut's Economy of Not Dredging through 2017 Table 5.8 - Economic and Tax Loss to Connecticut's Economy of Not Dredging through 2027 Table 5.9 - Economic and Tax Loss to Connecticut's Economy of Not Dredging through 2037 Table 7.1 - CMC Summary of Future Benefits from Initial Investment Economic Impact Study of Maritime Industries in Connecticut February 16, 2010 Connecticut Maritime Coalition, Inc., “Organizational Center for the Connecticut Maritime Cluster” www.ctmaritime.com Contents - Page 3 APPENDICES Appendix A: EIS Maritime Industry Contact Interview Log sand Interviews Appendix B: Strategic Economic Documents Reviewed Appendix C: USACE Dredge Needs Summary Tables Appendix D: Technical Details on the I-O Model Economic Impact Study of Maritime Industries in Connecticut February 16, 2010 Connecticut