Maritime Industry Impact On Nation's Economy Shown In MarAd Report
The Maritime Administration has released the results of the first major Government effort to analyze the impact of the U.S.- flag shipping and American shipbuilding industries on the nation's economy. The findings demonstrate conclusively that these industries contribute greatly to the productive output of the United States.
The results of the study are presented in "Economic Impact of the U.S. Merchant Marine and Shipbuilding Industries: An Input- Output Analysis," a report prepared under a MarAd contract by the Planning and Development Department of the Port Authority of New York and New Jersey.
The following items are among the major findings of the study: • The U.S.-flag merchant fleet accounts for total sales of $8.3- billion annually, and its activities create and maintain 244,900 jobs throughout the nation. This generates personal incomes of $2.4 billion, and corporate incomes of $0.8 billion.
• The American shipbuilding industry has a total annual output of $6 billion, and generates 235,400 jobs in this country. Personal incomes generated throughout the economy by. this industry total $2 billion; corporate incomes total $0.6 billion. The privately owned and operated U.S. merchant marine is responsible for one-third of the shipbuilding industry's activities.
• Operating- and constructiondifferential subsidies are responsible for a combined total output of $2.5 billion in the national economy, and 88,500 jobs on ships and ashore. The subsidies generate personal incomes totaling $0.9 billion, and corporate incomes totaling $0.2 billion.
• From one-third to one-half of the total costs of the subsidy programs are recovered by the U.S.
Treasury in the form of tax accruals induced by the economic activities of subsidized vessel operations and construction.
The study used an Input-Output (I-O) Model to measure the impact of the maritime industries on the economy. The model makes it possible to measure the interactions not only between producers and final consumers, but also among the industries.
The 1-0 Model revealed that through the chain of purchases initiated by maritime activities, the output of the U.S.-flag merchant fleet has a "multiplier effect" of 1.8, meaning that each dollar of sales produces a total output of $1.80 in sales throughout the economy. The multiplier for the American shipbuilding industry has an even higher rating of 2.1.
It should be noted that figures used in construction of the 1-0 Model were from 1970, the latest year for which complete inputoutput data were available. In 1976 dollars (adjusted for inflation), the figures for shipping would be higher by 36 percent, and the figures for shipbuilding would be higher by 44 percent.
The 56-page study (plus appendices) is available from the National Technical Information Service, 5285 Port Royal Road, Springfield, Va. 22161. The price is $10.75 and the order number is PB-272518/AS.
Other stories from March 1978 issue
- Pacific Far East Line To Sell Three Vessels page: 4
- Lockheed Launches Second Of Three 23,000-Ton Submarine Tenders page: 6
- Planning Research Corporation Wins $1.6-Million Contract To Modernize Army Watercraft page: 7
- Planning Research And Morris Guralnick Work On $500,000 Project page: 8
- Propeller Symposium Slated For May 1978 At Virginia Beach, Va. page: 10
- B&W To Transfer Control Of German Nuclear Firm To Brown Boveri Group page: 10
- CAI Appoints Gerald Harrison VP And Director Of Engineering page: 11
- Literature Describes Matched Systems Of Navigational Aids page: 11
- Sun Names Martinson Program Manager For Matson Containership page: 14
- Gamlen Chemical Names Kevin Smith Great Lakes Sales Rep page: 14
- Litton Exhibits New Load Monitoring System page: 16
- Pacific Northwest Section Hears Paper On Application Of Seakeeping Analysis page: 16
- Northwest Marine Iron Works Awarded $8-Million Navy Contract page: 18
- C.F. Bean Names John Lescroart VP For Washington Office page: 22
- Arab Shipbuilding And Repair Yard Officially Inaugurated At Bahrain page: 22
- Maritime Industry Impact On Nation's Economy Shown In MarAd Report page: 23
- ASNE Flagship Section Hears Dr. Thomas Cooper On Military R&D Programs page: 26
- Santa Fe Drilling Names Parry Manager All Drilling Rigs page: 26
- Sun Ship Lands Contract To Construct 720-Foot Containership For Matson Navigation page: 27
- Culpepper And Renehan Announces Formation Of New Steamship Agency page: 27
- SNAME Chesapeake Section Discusses Steering, Maneuvering And Controllability Of Surface Ships page: 27
- Planning Navigation/Communication Conference To Be Held In New York March 21, 22 And 23 page: 28
- Red Fox Announces New Type Marine Sanitation Device page: 29
- 'The Seaborne Transportation Of Liquefied Natural Gas 1977-1985 —Trades, Costs And Revenues' page: 32
- Bird-Johnson Company Appoints Alan Hanson page: 33
- International Ocean Transport Corporation Names Joseph Kearney page: 33
- Gotaas-Larsen Names Nyholm Executive VP page: 34
- Nimmo Named President Baker Marine Engineers page: 34
- LNG Docking Facility Contract Awarded To Raymond International page: 35
- Anastassios Fondaras Elected Chairman Tuned Sphere Int'l page: 36
- Goodwin And Ritchie Named Vice Presidents By Cleveland Tankers page: 38
- Economical Gas Turbine Paper Presented At ASNE Meeting In Groton page: 39
- Literature Available On Galbraith-Pilot Marine Packaged System Concept page: 39
- Hofmeister Named VP Flexi-Van Leasing, Inc. page: 40
- Bearing Condition Checked By New SPM Technique page: 40
- Lucian Q. Moffitt Names National Marine Enterprises page: 41
- Timmons & Charles, Inc. Appoints George Mahaly page: 41
- Nicolai Joffe Corp. Offers Brochure On Replacement Machinery page: 41
- Dr. Irene Peden Named To Kings Pt. Advisory Board page: 42
- Sydney Tharrington Elected President Marine Square Club page: 43
- Los Angeles Marine Societies Annual Joint Meeting page: 43
- MarAd Releases Report On Feasibility Of Exporting Slurried Coal page: 44
- DeLaval Appoints Foltz General Manager For Middle East page: 44
- Moran Appoints Capt. McVay —Names William Watt Assistant page: 47
- Capt. Stream And L.R. Glosten Form M.A. Stream Associates page: 48
- DeLaval Names Scordo Turbine And Compressor Division Sales Manager page: 49
- Richard M. Currence Named President Pott Offshore Division page: 49
- Ocean Fleets Limited Appoints Steven And Adams page: 50
- Port Of Palm Beach Building $4,500,000 Sugar Terminal page: 50