a blueprint for economic growth: the impacts of doubling pennsylvania's annual highway &...
TRANSCRIPT
A Blueprint for Economic Growth:
The Impacts Of Doubling Pennsylvania's Annual Highway & Bridge Capital Investment
• Jobs• Economic Output• State Tax Revenues
About the Economic Study
First study looking at how public transportation investment stimulates business activity and government revenues
Sets a baseline of information about the industry
U.S. Department of Commerce RIMS model
U.S. Census Bureau NAICS and County Business Patterns
Traces unique relationship of transportation construction and the economy
Pennsylvania’s Highway & Bridge Construction Industry
$2.65 billion in annual capital outlays Generates $6.9 billion in economic activity, or
1.2% of Pennsylvania’s GDP Supports 148,669 full time jobs
74,062 direct jobs 74,607 induced jobs
$7.01 billion in direct & induced wages $863.9 million in state & federal taxes
$259.4 million state income tax revenue $536.5 million federal payroll tax revenue $68 million state payroll tax revenue
The Highway & Bridge Construction Industry in Pennsylvania
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
1.11.26
2.22
2.63 2.682.92
3.39
Pennsylvania Industry Output (in billions)
Source: FHWA Highway Statistics & U.S. Bureau of Economic Analysis
Pennsylvania’s Highway & Bridge Construction Industry
3.3 million workers in industries dependent on transportation infrastructure network Tourism, manufacturing, agriculture,
mining, retail and wholesale trade $114.6 billion in wages $9.9 billion in state and federal payroll tax
revenue $3.5 billion in state income tax revenue
Positive relationship between infrastructure investment and economic growth
Positive impact on private sector employment and activity
Direct user benefits – saving time and improving safety
Increase in industry productivity
Pennsylvania’s Highway & Bridge Construction Industry – Long Run Impact
Doubling Annual Highway & Bridge Investment in Pennsylvania
What is the economic impact of doubling Pennsylvania highway and bridge capital outlays?
How will this impact state and federal tax revenue?
How many jobs will be created?
What other sectors will benefit from this investment?
Economic Impact of $2.5 Billion Highway & Bridge Investment – Overall Economy
Indicator Current ValueImpact of
$2.5 billion investment
New Value
State Output/GDP
$553.3 billion $6.5 billion $559.8 billion
Earnings $208.0 billion $2.0 billion $210.0 billion
Employment 5,195,818 jobs 50,091 jobs 5,245,909 jobs
Value Added $3.5 billion
Economic Impact of $2.5 Billion Highway & Bridge Investment – Job Distribution
Other Indus-tries
57.8%
Con-struction
42.2%
50,091 New Jobs
Economic Impact of $2.5 Billion Highway & Bridge Investment – Construction
Indicator Current ValueImpact of
$2.5 billion investment
New Value
Industry Output/GDP
$21.93 billion $2.5 billion $24.45 billion
Earnings $19.62 billion $903.25 million $20.52 billion
Employment 361,039 people 20,850 jobs 381,889 people
Value Added $1.1 billion
State Income Tax Contribution
$602.35 million $27.73 million $630.08 million
State Payroll Tax Contribution
$190.32 million $8.76 million $199.08 million
Federal Tax Contribution
$1.50 billion $69.10 million $1.57 billion
Economic Impact of $2.5 Billion Highway & Bridge Investment – Manufacturing
Indicator Current ValueImpact of
$2.5 billion investment
New Value
Industry Output/GDP
$75.5 billion $1.1 billion $76.6 billion
Earnings $30.7 billion $196.8 million $30.9 billion
Employment 644,994 people 4,051 jobs 649,045 people
Value Added $392.25 million
State Income Tax Contribution
$943.08 million $6.04 million $949.12 million
State Payroll Tax Contribution
$297.98 million $1.91 million $299.89 million
Federal Tax Contribution
$2.35 billion $15.05 million $2.37 billion
Economic Impact of $2.5 Billion Highway & Bridge Investment – Retail Trade
Indicator Current ValueImpact of
$2.5 billion investment
New Value
Industry Output/GDP
$33.34 billion $345.25 million $33.68 billion
Earnings $15.95 billion $112.0 million $16.06 billion
Employment 682,414 people 5,174 jobs 687,588 people
Value Added $204 million
State Income Tax Contribution
$489.61 million $3.44 million $493.05 million
State Payroll Tax Contribution
$154.70 million $1.09 million $155.78 million
Federal Tax Contribution
$1.22 billion $8.57 million $1.23 billion
Economic Impact of $2.5 Billion Highway & Bridge Investment – Health care & social assist.
Indicator Current ValueImpact of
$2.5 billion investment
New Value
Industry Output/GDP
$53.6 billion $283.75 million $53.89 billion
Earnings $36.88 billion $132 million $37.02 billion
Employment 943,376people 3,308 jobs 946,864 people
Value Added $175.5 million
State Income Tax Contribution
$1.13 billion $4.05 million $1.14 billion
State Payroll Tax Contribution
$357.77 million $1.28 million $359.05 million
Federal Tax Contribution
$2.82 billion $10.10 million $2.83 billion
Main Study Conclusions
Highway & Bridge Construction Industry Spurs Economic Growth in Pennsylvania
$2.65 billion industry generating $6.9 billion in economic activity
Supports 148,669 full time jobs $7.01 billion in direct & induced wages $863.9 million in state & federal taxes
Main Study Conclusions
Impact of increased $2.5 billion in highway & bridge investment
$6.5 billion in economic activity Supports 50,091 full time jobs $2 billion in wages $214 million in state & federal tax revenue
Contact Information
ARTBA – Transportation Development Foundation
1219 28th Street NWWashington, DC 20007
202-289-4434Alison Premo Black, Vice President