A recently released study by the economists
Martin Associates, a firm with more than 20 years’
experience assessing economic impacts associated with
transportation systems, indicates activity at the Port
of Houston has a profound effect on the Houston region
and the Texas economy.
According to the study, in 2006, the
Port of Houston had some impact on 785,049 jobs in Texas
(including 198,983 direct, induced and indirect jobs),
and contributed to $117.6 billion of total economic
activity in the state (including $8.1 billion in direct
business revenue), and $3.7 billion in state and local
taxes. Those taxes included $1.3 billion of direct,
induced and indirect state and local taxes.
The “direct impact numbers”
show a pattern of dramatic growth in economic activity
since the year 2000.
The direct numbers
refer to three primary categories:
•
Jobs
— Between 2000 and 2006, direct jobs increased
by 3,412 jobs from 54,730 to 58,142. The largest
gains - about 1,200 jobs – were among freight
forwarders, reflecting the growth in containerized
cargo and steel, the study says. Other large employment
gains were among longshoremen and dockworkers, reflecting
the growth in containerized cargo, steel and other
breakbulk cargoes.
•
Personal income:
Annual direct personal income influenced by port
activity increased by $559 million – from
$2.27 billion to $2.83 billion between 2000 and
2006.The average annual salary of these 3,412 job
holders has increased from $41,560 to $48,730.
•
Revenue: Annual
direct revenue influenced by port activity increased
by $1.2 billion — from $6.8 billion to $8
billion.
The study defines direct jobs as those jobs with
local firms providing support services to the
Port of Houston.
•
Direct jobs, the study
says, are dependent upon the seaport activity
and would suffer immediate dislocation if
that activity were to cease. Those direct
jobs include jobs with railroads and trucking
companies moving cargo to and from the PHA's
marine terminals and private terminals, members
of the International Longshoremen's Association
(ILA) and non-ILA dockworkers, steamship agents,
freight forwarders, ship chandlers, warehouse
operators, bankers, lawyers, terminal operators,
and stevedores. The 58,142 direct job holders
received $2.8 billion of direct wage and salary
income, according to the study.
•
Induced jobs are those
created locally and throughout the regional
economy through purchases of goods and services
by those directly employed. They include jobs
with grocery stores, the local construction
industry, retail stores, health care providers,
local transportation services, local and state
government agencies providing public services
and education to those directly employed,
and businesses providing professional and
business services in support of those directly
employed. These goods and services, the study
says, would also be discontinued if seaport
activity were to cease. As the result of local
and regional purchases by those 58,142 individuals
holding the direct jobs, an additional 61,714
induced jobs are supported in the regional
economy, according to the study.
•
Indirect jobs are those
jobs generated in the local economy as the
result of local purchases by the firms directly
dependent upon activity at the Port of Houston.
These jobs include jobs in local office supply
firms, equipment and parts suppliers, maintenance
and repair services, insurance companies,
consulting and other business services. If
port operations were discontinued, the study
says, these indirect purchases and the associated
jobs and income would also be discontinued.
The study identified 79,127 jobs as indirect.
A total of $5.9 billion of local purchases
by businesses supplying services at the marine
terminals and by businesses dependent upon
the Port of Houston was spent in support of
those indirect jobs, according to the study.
•
The study defines related
jobs as those with manufacturing and distribution
firms like steel fabrication firms using the
steel imported through the marine terminals,
manufacturers producing or consuming containerized
cargo, and firms producing and consuming dry
and liquid bulk cargoes such as petrochemical
firms. A staggering 586,066 jobs throughout
the state of Texas are identified as being
related to activity at the Port of Houston.
Related jobs are not dependent upon the port
marine terminals to the same extent as are
the direct, induced and indirect jobs.
•
According to the study,
of the 785,049 statewide jobs, a total of
393,147 jobs are related to activity at Port
of Houston terminals
•
Of the 58,142 direct jobs
generated by port activity, 20,021 are generated
by PHA activity
•
Of the 61,714 induced jobs
generated by port activity, 20,516 are generated
by PHA activity
•
Of the 79,127 indirect
jobs generated by port activity, 28,024 are
generated by PHA activity.
•
And, of the 586,066 related
user jobs generated by port activity, 324,586
are generated by PHA activity.
Information for the study was gathered
through telephone interviews with 1,046 firms that included
port tenants, private terminals, railroads, trucking
firms and service providers.
Revised: 09/24/07
Port
of Houston Authority
111 East Loop North • Houston, Texas 77029
P.O. Box 2562 • Houston, Texas 77252-2562
Phone: 713-670-2400
Copyright 2006 Port of
Houston Authority • All Rights Reserved
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