Steven Landau Economic Development Research Group, Inc. For the Pennsylvania Aviation & Aerospace Conference September

Ancient Trade Routes: Amber, Silk, Gold, Salt, Frankincense Inter-Modal passenger & freight movement ACCESS to goods and new markets BUSINESS TRIPS for sales & procurement TOURISM to visit new places 2

3 ACCESS to broader markets & locations Affecting availability & quality of employment, residence, materials (food, clothing), culture/recreation opportunities

The difference between measuring the economic benefit of an airport and the role of an airport in a local/regional economy Uniqueness of communities/regions, airport facility & role, business mix, and projects 4

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6 $ Passenger Time Value (business) $ Travel Expense (business) $ Freight Shipper Productivity $ Indirect (Downstream) Productivity $ Location Income Attraction Economic Development Perspective: Improving Access and Connections Facilitating access to new jobs, access to new business markets, products & services

City, county and state legislators and regulators who want to know ROI or are unaware of the economic contributions made by airports Local economic development officials and other transportation agencies The general public who are voters Neighbors who object to operations and expansion plans 7

Avoid (or at least define) Jargon No One Understands & Use English 8 These effects can also be reported together as multiplier impacts, spinoffs or ripple effects JargonReasonable Translation/ clarification DirectInclude type of impact (e.g., on-airport) IndirectGoods and Services sold by local suppliers to support initial economic activity Induced Spending of wages earned by workers OutputBusiness sales, or economic activity

DirectSupplier Sales* Wages Spent by Workers* Total On-Airport Visitor Spending Air Cargo Shippers* Tax Revenues* 9 Important Information: Jobs, Payroll, Output Business Sales, Local/State Tax Revenues, Value Added * Impacts in Off Airport economy

DirectSpinoff*Total On-Airport Visitor Spending Air Cargo Shippers* Tax Revenues* 10 * Impacts in Off Airport economy

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Airports Support: Cost-competitiveness of existing business Rate of business expansion/attraction Breadth of activities for key local institutions Existing business mix Land use and development trends and potential Intermodal connections (both passenger & freight) 12

Freight Patterns Business Travel Land Use 13

Increase of air freight, just-in-time delivery, overnight courier Expanding air-service reliant manufacturing & services Growing technology industries, yielding new types of manufacturers & service providers Use of corporate GA & fractional ownership Intermodal air/truck/rail logistics 14

Higher value/weight* Higher time sensitivity* Overnight delivery* Small package delivery trucks Air & Marine port dependence on rail & hwy Rail & truck companies focus on long-hauls 15

Civilian Aircraft, Engines, And Parts Electronic Integrated Circuits Pharmaceuticals & Chemicals Electric Apparatus Medical, Surgical, Dental or Veterinary Instruments Automatic Data Process Machines Precious Metals (gold, diamonds, etc…) Machinery/Apparatus for Manufacturing Semiconductors & Semiconductor Devices 16 Source: US Foreign Trade Division assembled by WISERTrade

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Hotels Restaurants Entertainment Retail Local Transportation 18

Telecommunications Architectural, engineering, and related services Management, scientific, and technical consulting services Banking, finance and business services Government, other Public Administration Universities and R&D centers Medical Services 19

Manufacturing Advanced Logistics Creative Industries Life Sciences 20

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22 Air Industrial Parks Warehousing Hotel, Convention Recreation Office, Retail Mixed Use Development Airpark Business Ctr (BNA) Las Colinas Near DFW

Airport Administration Aviation Services Services to Aircraft (e.g., repairs, janitorial, etc..) Services to Passengers, Pilots & Crew: Terminal Concessions Airport Business Services Government Services (e.g., FAA, Police, Fire, etc..) Support for Agricultural- Flights not crops Enables visitors - only off airport consideration * Add it all up and present a number 23

24 Logistics facilities Warehouses Hi-tech sectors Other Manufacturing Finance Business Services Retail Entertainment Industries

AIRPORT ACTIVITY: number of based aircraft by type; estimated operations by private aircraft, charter/air taxi services, commercial cargo services, commuter or air carriers; volumes of freight and number of commercial passengers AIRPORT FUNCTION: commuter, corporate, reliever, destination, hub, gateway, maintenance functions AIRPORT CAPABILITIES/CONSTRAINTS: critical aircraft type (prop, corporate jet, air carrier craft); weight and range limits for critical aircraft; lighting and navigation aids NEARBY FACILITIES: Industrial parks, business parks, resorts and other attractions CHARACTERISTICS OF THE REGIONAL ECONOMY: population, workforce size and education, employment by industry; local growth/change patterns in those factors relative to broader state and national factors CHARACTERISTICS OF THE REGIONAL SETTING: tourism attractions, business location site opportunities; supporting infrastructure; distance/connections to interstate highways, ports, urban centers, market area 25

26 Airport Economic Development Factors Regional Market FactorsAirport Characteristics Industry Competition Tourism Potential Population Business Attractiveness Runway Capacity Airport Services Expansion Potential Highway Connections Desired Outcomes Increased Tourism Increased Business Travelers Increased Air-Freight Capacity Business & Job Attraction/Retention

Preserve/enhance functioning of rural communities Examples: provide lifelines for transportation, freight, medical evacuation Support local institutions Local, regional and statewide importance Other ways that airports provide benefits Examples: military use, air shows, non-aviation land use 27

Steven Landau Economic Development Research Group, Inc. 155 Federal Street, 6th Floor Boston, MA USA Telephone: x Website: 28

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Airport Economic Development Regional Market FactorsAirport Physical Characteristics Industry Composition Presence of industries that use more aviation (travel, cargo) than average Potential for job growth in these industries Tourism Potential Jobs created due to increases in visitors and expenditures Strength of tourist attractions in service area Current visitor expenditures Presence of a resort Runway Capacity Accommodate corporate jets, cargo or commercial flights (type of craft most appropriate to meet local economic development needs). Airport Services Refueling facilities Maintenance facilities Pilots Shop Passenger terminal Cargo terminal Business Location Attractiveness Office and Industrial Parks Proximity to Markets Supporting Infrastructure (sewer, water, electricity, broadband, etc.) Business Support Services Other Distance from major highway(s) Distance of population from airport Delivery market size/access Potential for Expansion On-airport and/or airport owned acres available for development Desired Economic Impacts tourist expenditures Business traveler expenditures Business & job attraction/retention/expansion through cargo, corporate and tourism activities 30