chapter 5 transportation economics · chapter 5 transportation economics highlights • the demand...
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5-1
CHAPTER 5
Transportation Economics
Highlights• Thedemandfortransportationgrew3.8
percentfrom2014to2015,downfrom4.2percentfrom2013to2014.
• Freighttransportationservices,asmeasuredbythefreightTransportationServicesIndex(TSI),continuetoleadtheeconomy,includingtwoeconomicaccelerationsfollowingtherecession—thefirstfromJune2009toDecember2012andthesecondfromJuly2013toDecember2014.
• OfthetransportationmodesincludedinthefreightTSI,railintermodalgrewthefastestfromJune2009(theendoftheeconomicrecession)toDecember2016,rising50.6percent.
• Employmentinfor-hiretransportationandtransportation-relatedindustriesrosesteadilyfrom2011to2015,to13.6million,exceedingthe2007pre-recessionlevelof13.5million.Employmentthendeclinedin2016to13.0million.
• Totalnationalexpendituresontransportationaccountedforroughly$1,196billionofallpersonalexpenditures,makingitthefourthlargestexpenditurecategory(excludingother)afterhealthcare,housing,andfood.
• Totalgovernmenttransportationrevenuescontinuetofallshortofgovernmenttransportationexpenditures.In2014governmenttransportationrevenuescovered56.7percentofexpenditures.Thegapbetweentransportationrevenuesandexpenditureshasdeclinedsince2009,whenrevenuescovered52.5percentofexpenditures.
• Thetotalcostsfacedbyproducersoftransportationservicesdeclinedduringthe2007to2009recession,andthenclimbedsteadilythrough2014.Theaveragepriceofair,rail,andtrucktransportationservicesdeclinedbetween2014and2016,whilewatertransportationservicepricesrosein2015beforefallingbelowtheir2014levelin2016.
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Chapter 5: Transportation Economics
Transportation Economics TransportationplaysavitalroleintheAmericaneconomy;itmakeseconomicactivitypossibleandservesasamajoreconomicactivityinitsownright,contributingdirectlyandindirectlytotheeconomy.Households,businesses,andthegovernmentdirectlyconsumetransportationgoods(e.g.,vehiclesandmotorfuel)andservices(e.g.,passengerandfreightairtransportation).Transportationindirectlycontributestotheeconomybyenablingtheproductionofgoodsandservices(e.g.,byconnectingproducerstotherawmaterialsforbakingbread,etc.)andemployingworkersintransportationoccupationsinboththetransportationindustryandnon-transportationindustries.Public(government)andprivateexpendituresontransportationfacilities,infrastructure,andsystemscontributetotheeconomybyenablingthemovementofbothpeopleandgoodsdomesticallyandinternationally.Transportationnotonlyenablesinternationaltradebutalsoisamajorgoodandservicetraded.Thefullscopeoftransportation’sroleintheeconomyisavailableinBTS’sTransportation Economic TrendsReport.
Transportation’s Contribution and Role in the Economy
Transportation’s Contribution to GDP
Transportation’scontributiontotheeconomycanbemeasuredbytransportation’scontributiontogrossdomesticproduct(GDP).GDPisaneconomicmeasureofallgoodsandservicesproducedandconsumedinthecountry.ThetransportationcomponentofGDPcanbemeasuredintermsofinvestments
madeandtransportationgoodsandservicesconsumed(collectivelyknownasthedemandfortransportation)orintermsofthetransportationservicesproduced.
In2015thedemandfortransportation($1,477.9billion)included:
1. personalconsumption,suchasvehicleandmotorfuelpurchases($1,020.7billion,69.1percentoftransportationdemand),
2. privatedomesticinvestmentintransportationstructuresandequipment($314.4billion,21.3percent),
3. governmentpurchasesoftransportationgoodsandservices($289.1billion,19.6percent),and
4. netexports(exportsminusimports)relatedtotransportationgoodsandservices(-$146.3billion,-9.9percent)(asmeasuredinchained2009dollars)(figure5-1).
Altogether,thedemandfortransportationaccountedfor9.0percentofU.S.GDP.
Thedemandfortransportationgrewmoreslowly(3.8percent)from2014to2015thanitdidfrom2013to2014(4.2percent),whenthedemandfortransportationreacheditshighestannualgrowthsincetheendoftheDecember2007toJune2009economicrecession.Growthfrom2014to2015fellfromthe2013to2014levelasimportsincreased.Importsoftransportationrelatedgoodsandservicesrosefrom$436.2billionin2014to$467.4billionin2015,whilenetexportsoftransportationrelatedgoodsandservicesfellfromadeficitof$112.1billiontoadeficitof$146.3billion(asmeasuredinchained2009dollars)(figure5-1).
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Transportation’s Role in Production
Thecontributionoftransportationtotheeconomyalsocanbefoundbyexaminingtransportation’sroleinproduction.Thetransportationservicesusedtomovewheatfromfarmstomills,flourfrommillstobakers,andbreadfrombakerstogrocerystores,exemplifyhowtransportationenablestheproductionandsaleofnearlyeverythingmadeandconsumedintheUnitedStates.TheU.S.BureauofEconomicAnalysis(BEA)produces
theU.S.Input-Output(I-O)accounts,whichshowtheinputseachindustryusestoproduceoutput,thetypeofoutputproducedbyeachindustry,andthetypesofproductspurchasedbyfinalconsumers.
Withregardstotransportation,theI-Oaccountsshowtheindustriesusingtransportationservicesprovidedbytransportationfirmsonafeebasis,calledfor-hiretransportation,andthecontributionoffor-hiretransportationfirmstotheeconomy.In2016for-hiretransportation
FIGURE 5-1 U.S. Gross Domestic Product (GDP) Attributed to Transportation-Related Final Demand: 1999–2015 (billions of chained 2009 dollars)
-$400
-$200
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
1999 2001 2003 2005 2007 2009 2011 2013 2015
Trans portation services Personal consumption expenditures
Net exports of transportation-related goods and services
Government transportation-related purchases
Private domestic investment
Motor vehicle fuels, lubricants, and �uids
Motor vehicles and parts
NOTES: Total transportation-related final demand is the sum of total Personal consumption of transportation, total Gross private domestic investment, Net exports of transportation-related goods and services and total Government transportation-related purchases. Net exports is exports minus im-ports of civilian aircraft, engines, and parts; automotive vehicles, engines, and parts; and transport. Federal purchases and state and local purchases are the sum of consumption expenditures and gross investment. Defense-related purchases are the sum of transportation of material and travel. The Bureau Economic Analysis has changed the reference year for chained dollar estimates from 1999 onward as part of the comprehensive revision of the national income and product accounts in 2014.
SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts Tables, tables 1.1.6, 2.3.6, 2.4.6, 3.11.6, 3.15.6, 4.2.6, 5.4.6, and 5.5.6, available at http://www.bea.gov/National/nipaweb/SelectTable.asp?Selected=N as of May 2017.
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Chapter 5: Transportation Economics
(includingwarehousing)contributed$562.9billion(3.0percent)toU.S.GDP(currentdollars)[USDOCBEA2017a].Whilefor-hiretransportationcontributeslesstotheeconomythanotherindustries,for-hiretransportationdeliverstherawmaterialsotherindustriesneedtoproducefinishedproductsanddeliverfinishedproductstowholesaleandretailoutlets.
Inadditiontousingfor-hiretransportationservices,manynon-transportationindustriesalsoundertaketransportationactivitiesfortheirownpurposes(calledin-housetransportation),whichtheI-Oaccountsdonotexplicitlyshow.BTSdevelopedtheTransportationSatelliteAccounts(TSAs)toexplicitlyshowin-housetransportationoperationsandtherebyestimatethefullcontributionoftransportationtotheeconomy.1TheTSAsalsoshowthecontributionoftransportationcarriedoutbyhouseholdsthroughtheuseofahouseholdvehicle.
In2015,thelatestyearforwhichcomprehensivedataareavailable,transportation’stotalestimatedcontributionwas$1,033.3billion.For-hiretransportationcontributed$543.2billion(3.0percent)totheU.S.GDPof$18.4trillion.2Transportationservices(air,rail,truck,andwater)providedbynon-transportationindustriesfortheirownuse(in-housetransportation)contributedanadditional$169.9billion(0.9percent).Total
1FormoreinformationabouttheTransportationSatelliteAccounts,seeU.S.DepartmentofTransportation,BureauofTransportationStatistics,Transportation Economic Trends,chapter2,availableat:https://www.bts.gov/con-tent/transportation-economic-trendsasofNovember2017.2TheGDPvalueintheTSAsislargerthantheGDPvaluepublishedintheNationalAccountsbecauseitincludesthecontributionofhouseholdtransportation.Householdtransportationcoverstransportationprovidedbyhouse-holdfortheirownusethroughtheuseofanautomobile.
householdtransportation,measuredbythedepreciationassociatedwithhouseholdsowningmotorvehicles,contributed$320.2billion(1.7percent).Totalhouseholdtransportation’scontributiontoGDPwaslargerthananyoftheothertransportationmodes.Truckingcontributedthesecondlargestamount,at$281.4billion.In-housetrucktransportationoperationscontributed$138.4billion,whilefor-hiretrucktransportationservicescontributed$143.0billion(figure5-2).
Transportationindirectlycontributestotheeconomybyenablingtheproductionofgoodsandservices.Industry Snapshots: Uses of Transportation summarizesthetransportationservicesandrelatedresourcesusedbythesevenmajornon-transportationsectorstoproducetheirgoodsandservices[USDOTBTS2017c].Somesectorsusemoretransportationthanothers.In2015thewholesaleandretailtradesectorusedthelargestamountoftransportationservicesat$270.7billion,followedbytheinformationandservicessectorat$246.7billion,themanufacturingsectorat$202.5billion,andthegovernmentsectorat$136.9billion(figure5-3).
Lookingattheamountoftransportationrequiredtoproduceonedollarofoutputshowshowmuchasectordependsontransportation.In2015thewholesaleandretailtradesectorrequiredmoretransportationservicestoproduceonedollarofoutputthananyothersector.Thewholesaleandretailtradesectorrequired9.0centsoftransportationservicestoproduceonedollarofoutput(4.7centsofin-housetransportationoperationsand4.3centsoffor-hiretransportationservices)in2015(figure5-4).
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FIGURE 5-2 Contribution of For-Hire, In-House, and Household Transportation to U.S. Gross Domestic Product (2015 Dollars)
Total for-hire2.96%
Total in-house0.93%
Household1.74% $18.0
$44.8
$95.7
$241.6
$143.0
$3.1
$0.4
$28.1
$138.4
$320.2
$0 $50 $100 $150 $200 $250 $300 $350
Households
Water
Rail
Air
Other
Truck
For-hire In-house Household
All other US GDP 94.37%
Total GDP = $18.4 trillion Total transportation contribution = $1,033.3 billion
NOTES: (a) In-house transportation consists of the services provided by non-transportation industries, including households, for their use. Business in-house transportation includes privately owned and operated vehicles of all body types, used primarily on public rights of way, and the supportive services to store, maintain, and operate those vehicles. Household transportation covers transportation provided by households for their own use through the use of an automobile. (b) For-hire transportation consists of the services provided by transportation firms to industries and the public on a fee-basis. (c) Other for-hire transportation includes: pipeline, transit and ground passenger transportation, including state and local government passenger transit; sightseeing transportation and transportation support; courier and messenger services; and warehousing and storage. (d) Gross domestic product (GDP) increased from value reported by the Bureau of Economic Analysis in I-O use table by total output from the household production of transportation services.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Transportation Satellite Accounts, available at www.bts.gov, as of May 2017.
FIGURE 5-3 Use of Transportation by Industry, 2015 (current dollars, billions)
Wholesale and retail trade
$270.0
Information and services
$246.7
Manufacturing$202.5
Construction$45.3
Utilities$20.5
Natural resourcesand mining
$38.2
Government$136.9
NOTES: In-house transportation consists of transportation services (air, rail, truck, and water) provided by non-transportation industries for their own use. For-hire transportation consists of the services provided by transportation firms to industries and the public on a fee-basis. Airlines, railroads, transit agencies, common carrier trucking companies, and pipelines are examples of for-hire transportation industries. “Other” for-hire transportation includes: Transit and passenger ground transportation (excluding State and local government passenger transit); Pipeline; Sightseeing transportation and transportation support; Parcel delivery, courier, and messenger services (excluding U.S. Postal Service); Warehousing and storage; and Other transportation and support activities.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Transportation Satellite Accounts, available at http://www.bts.gov as of May 2017.
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Chapter 5: Transportation Economics
Transportation and Economic Cycles
Transportationactivitieshaveastrongrelationshiptotheeconomy.BTSdevelopedtheTransportationServicesIndex(TSI)tomeasurethevolumeoffreightandpassengertransportationservicesprovidedmonthlybythefor-hiretransportationsector.3BTSresearchshowsthatchangesintheTSIoccurbeforechangesintheeconomy,makingtheTSIausefulpotentiallyleadingeconomic
3FormoreinformationabouttheTransportationServices,seeU.S.DepartmentofTransportation,BureauofTrans-portationStatistics,TransportationEconomicTrends,chapter1,availableat:https://www.bts.gov/content/trans-portation-economic-trendsasofNovember2017.
indicator[USDOTBTS2014].Thisrelationshipisparticularlystrongforfreighttraffic.
Figure5-5illustratestherelationshipbetweenthefreightTSIandthenationaleconomyfrom1970to2016.ThedashedbluelineshowsthefreightTSIdetrendedtoremovelong-termchanges.TheredlineshowsthefreightTSIdetrendedandsmoothedtoeliminatemonth-to-monthvolatility.Thegraybarsrepresenteconomicslowdowns,orperiodswheneconomicgrowthslowsbelownormalratesandunemploymentrisesasaresult.Themarkedpeaksandtroughsshowthatthefreight
FIGURE 5-4 Transportation Required per Dollar of Output by Sector, 2015
Average totalamount required
0
1
2
3
4
5
6
7
8
9
10
Wholesa
le and retail t
rade
Utilitie
s
Natura
l reso
urces a
nd mining
Government
Manufacturin
g
Constructio
n
Leisure and hospita
lity
Profess
ional/ business s
ervices
Other s
ervices
Inform
ation
Educatio
n and health se
rvice
s
Financial se
rvices
Cent
s req
uire
d pe
r dol
lar
outp
ut
In-house air, rail, truck, waterFor-hire air, rail, truck, waterOther for-hire
NOTES: In-house transportation consists of transportation services (air, rail, truck, and water) provided by non-transportation industries for their own use. For-hire transportation consists of the services provided by transportation firms to industries and the public on a fee-basis. Airlines, railroads, transit agencies, common carrier trucking companies, and pipelines are examples of for-hire transportation industries.“Other” for-hire transportation includes: Transit and passenger ground transportation (including state and local government passenger transit); Pipe-line; Sightseeing transportation and transportation support; Courier and messenger services; Warehousing and storage; and Other transportation and support activities.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Transportation Satellite Accounts, available at http://www.bts.gov as of May 2017
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TSIusuallypeaksbeforeagrowthslowdownbeginsandhitsatroughbeforeagrowthslowdownends.
BTSresearchshowstwoeconomicaccelerationsfollowedtheGreatRecession;thefirstfromJune2009toDecember2012andthesecondfromJuly2013toDecember2014[USDOTBTS2017e].ThefreightTSIleadbothoftheseaccelerations;however,therelationshipbetweenthefreightTSIandgrowthcycleschangedsomewhat.ThefreightTSIreachedapeakinDecember2011andturneddownwards12monthsinadvanceofaneconomicdecelerationthatbeganinDecember2012.AfterthepeakinDecember2011,thefreightTSIreachedatroughinOctober2012andturnedupwards.Thetroughinthefreight
TSIinOctober2012occurredbeforethegrowthcyclepeakedinDecember2012,whichmarkedthestartofaneconomicdeceleration.Historically,thefreightTSIhasnothitatroughandturnedupwardsbeforetheonsetofaneconomicdeceleration.TheeconomicdecelerationbeguninDecember2012endedinJuly2013.ThefreightTSIpeakedinDecember2014andturneddownwardsatthesametimeasthegrowthcycle.
TheGreatRecessionfromDecember2007toJune2009separatedtwodistinctperiodsinthegrowthoffreighttransportationservices.ThefreightTSIgrewwellabovethelong-termtrendfromthepre-recessionNovember2004peaktotheJanuary2008peak.Post-recessiongrowthfromtheDecember2011peaktothe
FIGURE 5-5 Detrended Freight TSI, Detrended and Smoothed Freight TSO and Growth Cycles: January 1979–December 2016
Detrended
Detrended and smooth
-15
-10
-5
0
5
10
15
Jan79
Jan82
Jan85
Jan88
Jan91
Jan94
Jan97
Jan00
Jan03
Jan06
Jan09
Jan12
Jan15
detrended and smoothed
Mar-81 Apr-84
Nov-82Oct-85 May-91 Sept-96
Dec-01
May-09
Nov-06
Jan-88
Dec-94
Dec-99
Nov-04Jan-08
Dec-11
Oct-12
Dec-14
NOTE: Shaded areas indicate decelerations in the economy (growth cycles). Detrending and smoothing refer to a statistical procedure that makes it easier to observe changes in upturns and downturns of the data. Detrending removes the long term growth trend and smoothing eliminates month to month volatility.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Transportation Services Index, available at www.bts.gov as of May 2017.
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Chapter 5: Transportation Economics
December2014peakexceededthelong-termtrendbutlesssignificantlyandshortofthefast-pacedgrowthpriortotherecession.Thistrendcontrastswiththegrowthpatternofgrossdomesticproduct,whichgrewjustasrapidlyfromDecember2011toDecember2014(acompoundannualgrowthrateof2.1percent)asitdidfromNovember2004toJanuary2008(acompoundannualgrowthrateof2.0percent).Thevaryingtrendssuggestthattransportationhasrecoveredmoreslowlythantheeconomyasawhole[USDOTBTS2017f].
Figure5-6showsthechangesinfreightmovementbythetransportationmodesincludedinthefreightTSI.Railintermodal,trucking,andpipelineallhavegrownsteadilysinceJune2009,whereasairfreightandwaterborneshowlittlegrowthafterinitial
recovery.Railintermodal4grewthefastest,rising50.6percentfromJune2009(theendoftheeconomicrecession)toDecember2016.Competitivepricing,trackupgrades,andinvestmentinrailintermodalterminalsandotherinfrastructureallcontributedtotherapidgrowthofrailintermodaltraffic[AAR2016].Truckinggrewthesecondfastestat37.8percent,followedbypipelineat29.6percent,waterborneat23.2percent,andairfreightat21.7percent.Railcarloadsdeclined0.8percentfromJune2009toDecember2016.DatafromRailroads and Coalsuggeststhattheweaknessinrailcarloadshipmentsisduetoaweaknessincoalshipments.TotalcoalshippedbyClassIrailroadspeakedin2008at878.6milliontonsanddroppedto491.7milliontonsin2016 [AAR2010and2017].
4Railintermodalisthetransportingofshippingcontain-ersandtrucktrailersonrailroadflatcars.
FIGURE 5-6 Freight TSI Modal Data, January 2000–December 2016
Air freight
Trucking
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x va
lue
(bas
e ye
ar 2
000
= 1) Rail intermodal
Rail carloads
Pipeline
Waterborne
NOTE: Data are seasonally adjusted and indexed
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, seasonally adjusted transportation data, available at www.bts.gov as of May 2017.
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Transportation-Related Employment and Wages
Thetransportationandwarehousingsectorandrelatedindustriesemployover13.0millionpeopleinavarietyofroles,fromdrivingbusestomanufacturingcarstobuildingandmaintainingportsandrailroads.Figure5-7showsthenumberandpercentageofworkersemployedbyfor-hiretransportationandtransportation-relatedindustriesintheUnitedStatesfrom1990to2016.In1990,12.3millionworkerswereemployedinfor-hiretransportationandtransportation-relatedindustries.Employmentrosetoahighof13.9millionworkersin2000butdeclinedto13.2millionin2003duetotheMarchtoNovember2001economicrecessionandtotheaftermathofSeptember11,2001.Employmentdeclined
furthertoalowof12.1millionin2010duetothe2007to2009recession.Employmentrosesteadilyfrom2011to2015,risingto13.6millionin2015toexceedthe2007pre-recessionlevelof13.5million.Employmentdeclinedto13.0in2016becausethedeclineintransportationrelatedemploymentmorethanoffsetincreasedemploymentintransportationindustries.ThepercentageofAmericanworkersemployedinfor-hiretransportationandtransportation-relatedindustries,however,hascontinueditsdeclinefrom11.3percentoftheU.S.laborforcein1990to9.0percentin2016.[USDOTBTS2017d]
Thefor-hiretransportationsector(transportationserviceprovidersandwarehousing)isamajorsourceofemploymentintheUnitedStates,employing5.0million
FIGURE 5-7 Employment in Transportation and Transportation-Related Industries in the United States: 1990–2016
Percent of labor force
0%
1%
2%
3%
4%
5%
6%
7%
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9%
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12%
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19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
20102011
20122013
20142015
2016
Mil
lion
s
Employment in transportation-related industries
Employment in transportation and warehousing
Percent of total U.S.labor force
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics, Table 3-23, available at www.bts.gov as of May 2017.
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Chapter 5: Transportation Economics
in2016(figure5-7).Thesector’slaborforcedeclinedduringthe2007to2009recessionandcontinuedtofallthrough2010,afterwhichitrosesteadily.Thesector’slaborforceroseabovethe2007levelin2014andreachedanall-timehighof5.0millionin2016[USDOTBTS2017d].Additionalpersonsworkasindependentcontractorsforprivatetransportationproviders,suchasdriversforindependent,on-demandride-services(e.g.,UberandLyft)butarenotcountedinthetotals(seebox5-A).
Transportationalsoleadstoemploymentinrelatedindustriesthatprovidethegoodsandservicesneededtoproducetransportation.Thesetransportationindustriesincludemotorvehicleandpartsdealers,transportationequipmentmanufacturing,gasolinestations,andpetroleumandcoalproductsmanufacturing.Anotableshiftintransportation-relatedemploymentoccurredbetween1990and2016.From1990through2001,transportationequipmentmanufacturingwasthelargesttransportation-relatedindustry.However,employmentintransportationequipmentmanufacturingdeclined9.0percentduringthisperiod,whileemploymentin
themotorvehicleandpartsdealersindustrygrew24.1percent.Thisledtomotorvehicleandpartsdealersbecomingthelargesttransportation-relatedemployerin2002.Employmentinmotorvehicleandpartsdealersoverallgrewby32.6percentfrom1990to2016,whileemploymentintransportationequipmentmanufacturingdeclined23.9percent(figure5-8).
Workerswithtransportationoccupationsoverallearned,at$30,730,alowermedianwagethanworkersofalloccupations($37,040)in2016[USDOLBLS2017b].Annualwagesearnedbytransportationandtransportation-relatedworkersvarywidelyacrosstransportationoccupations.Forexample,airtrafficcontrollers,airlinepilots,andaerospaceengineersearnedanannualmedianwageofmorethan$100,000in2016,whilethelargesttransportation-relatedoccupation,heavyandtractor-trailertruckdrivers,earnedanannualmedianwageof$41,340.Thetop-fivehighestwagetransportation-relatedoccupationscollectivelyemployfewerworkers(294,660),whilethelowest-fivewageoccupationsemploy3.6timesmoreworkers(1.0million).(figure5-9)
Box 5-A Independent, On-Demand Ride Services EmploymentThelaunchandspreadofindependent,on-demandride-services(seebox2-A),suchasUberandLyft,hascreatednewemploymentopportunitiesintransportation.Personswhoproviderideservicesareconsideredindependentcontractors.IndependentcontractorsarenotcountedinofficialU.S.jobcounts.In2005theBureauofLaborStatistics(BLS)estimatedthere
were403,000independentcontractorsinthetransportationandmaterialmovingoccupationsascomparedto7.8millionworkerswithtraditionalarrangements[USDOLBLS2005].BLSplanstoincludetheContingentWorkerSupplementinthe2017CurrentPopulationSurveytocaptureon-demandservicesemployment.
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FIGURE 5-8 Employment in Selected Transportation-Related Industries, 1990 to 2016
0.0
0.5
1.0
1.5
2.0
2.5
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Empl
oym
ent
(mil
lion
s)
Petroleum and coal products manufacturing
Transportation equipment manufacturing Motor vehicle and
parts dealers
Gasoline stations
NOTE: Shaded areas indicate U.S recessions, as defined by the National Bureau of Economic Research.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics, Table 3-23, available at www.bts.gov as of May 2017.
FIGURE 5-9 Employment and Wages in Select Transportation and Transportation-Related Occupations, 2016
$89,190$93,350
$109,650$122,410$127,820
$21,730$22,220$22,420$22,830$23,850
$30,150$38,470
$31,180$30,580
$41,340
81,52023,24068,510
8,120113,270
17,300
348,770109,790
426,310
146,350
676,990647,380
858,710
515,020
1,704,520
Transportation, storage, and distribution managersMarine engineers and naval architects
Aerospace engineersAir tra�c controllers
Airline pilots, copilots, and �ight engineers
Parking lot attendantsCleaners of vehicles and equipment
Automotive and Watercraft Service AttendantsDriver/sales workers
Ambulance drivers and attendants, except emergency…
Bus drivers, schoolAutomotive service technicians and mechanics
Shipping, receiving, and tra�c clerksTruck drivers, light or delivery servicesTruck drivers, heavy and tractor-trailer
Top 5 largest employers
Bottom 5 lowest wage
Top 5 highest wage
Number employed Median wage
KEY: SOC = Standard Occupational Classification
NOTE: Transportation and transportation-related occupations from U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics, Table 3-24, available at www.bts.gov
SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, Occupational Employment and Wages, available at http://www.bls.gov/oes as of May 2017.
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Transportation Productivity
Thesizeofthetransportationworkforcedependsonthedemandfortransportationandonfirms’utilizationoftheworkforcerelativetootherinputs,suchascapital,energy,materials,andservices.Economistsmeasurehowefficientlyfirmsuseinputsthrougheconomicproductivity.Economicproductivityistheratiooftotaloutputtotheinputsusedintheproductionprocess.
Productivityincreaseswhenabusinessproducesthesameoutputusingfewer(orlower-cost)inputs.Thebusinessmaythenchoosetoproducemoreoutput,lowerprices,investinthebusiness,orreturnincometoshareholders.
Therearetwomainmeasuresoftransportationproductivity:labor(single-factor)productivityandmultifactorproductivity(MFP).Laborproductivitymeasurestheoutputperunitoflabor
FIGURE 5-10 Labor Productivity Indices for Selected Transportation Industries: 1990–2014 Index, 1990 = 100
50
100
150
200
250
300
19901992
19941996
19982000
20022004
20062008
20102012
2014
Gross output
Labor productivity
Labor hours
Air
50
100
150
200
250
300
19901992
19941996
19982000
20022004
20062008
20102012
2014
Gross output
Labor productivity
Labor hours
Rail
50
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19901992
19941996
19982000
20022004
20062008
20102012
2014
Gross outputLabor productivity
Labor hours
Water
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19901992
19941996
19982000
20022004
20062008
20102012
2014
Gross output
Labor productivity
Labor hours
Truck
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19901992
19941996
19982000
20022004
20062008
20102012
2014
Gross output
Labor productivity
Labor hours
Transit
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100
150
200
250
300
19901992
19941996
19982000
20022004
20062008
20102012
2014
Gross output
Labor productivity
Labor hours
Pipeline
NOTE: Data in this figure are not comparable to the data published in previous editions due to change in data used. Labor hours is the total number of number of hours worked by all workers in a sector to produce gross output. Gross output is the total value of goods and services produced by the sector. Gross output includes the value of the goods and services used to produce the sector output. Labor productivity measures a sector’s output per unit of labor input.
SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, Major Sector Productivity, http://www.bls.gov as of May 2017.
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input,whileMFPmeasurestheoutputperunitasaweightedaverageofmultiplefactors,suchasfuel,equipment,andmaterials.
WhileMFPisamorecomprehensivemeasureofeconomicperformance,laborproductivityiseasiertomeasureandcontinuestohaveabroadappeal.Figure5-10illustrateschangesinlaborproductivityforselectedtransportationsectorsfrom1990to2014.Airtransportationexperiencedthelargestincreaseinlaborproductivityamongall,increasing160.5percent(figure5-10).Airtransportation’slaborproductivitygrewmostnotablybetween2001and2008.Thegainsduringthisperiodcomefromlegacycarriersadoptingaggressivelabor-savinginitiativesandfromlargeoutputgainsamonglow-costcarriers[USDOLBLS2017c].Railtransportationexperiencedthesecondlargestgainsinlaborproductivity,increasingby116.3percent.Thesegainsaretheresultoflabor-savingtechnologiesautomatingoperationalandadministrativetasks[Kriem].Labor-savinginitiativesinairandrailresultedinadeclineinthelaborhoursrequiredtoproduceadollar
ofairandrailtransportationservicesfrom1990to2014.Duringthesameperiod,smallerlaborproductivityincreasesoccurredintruck(32.1percent)andwater(28.9percent).Laborproductivityinpipelinetransportationgrew9.5percentdespitedecliningfrom2000through2014.Laborproductivityintransittransportationdeclined3.0percentduetothetotalamountofhoursrequiredtoproduceoutput(laborhours)risingfasterthanoutput.
Fromtheperspectiveofoutputperunitofmultipleinputs(e.g.,fuel,equipment,andmaterials),airtransportationhadthelargestincreasefrom1990to2014,growing103.5percent(figure5-11).Thegaininairtransportationreflectsan80.1increaseinoutputandan11.5percentdeclineincombinedinputs.Combinedinputsfell,despiteanincreaseincapitalservices,becauseofdeclinesinlaborinputsandintermediateinputs.Theincreaseincapitalservicesandthedeclineinlaborfollowfromtheairtransportationsectoradoptinglabor-savingtechnologies,suchasself-servicekiosks.
FIGURE 5-11 Multifactor Productivity Indices for Selected Transportation Sectors, 1990 to 2014
80
100
120
140
160
180
200
220
19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
20102011
20122013
2014
Mul
tifac
tor p
rodu
ctiv
ity in
dex
(199
0 =
100
)
Air
Rail
Water
Transit
Truck
Pipeline
SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, Major Sector Productivity, http://www.bls.gov as of May 2017.
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Chapter 5: Transportation Economics
WatertransportationexperiencedthesecondlargestincreaseinMFP,growing49.3percentfrom1990to2014,despitedeclining15.2percentfrom1997to2003(figure5-11).TheMFPofrailtransportationgrewsteadilyovertheentireperiodbutmoreslowly,increasing34.2percent.MFPinpipelinetransportationhadasmallerincreaseof31.9percentoverthesameperiodandshowedmoreyear-to-yearvariationthanothermodes.Trucktransportation’sMFPgrewmarginallyat9.8percent,whilethetransitsectorexperiencedadeclineof7.2percent.
Theimpactofproductivityontransportationcompaniescanbeseenthroughchangesinthepricechargedperunitofoutput.Forfor-hirepassengertransportation,theunitofoutputispassenger-miles,andthemeasureofwhattravelerspayistheaveragerevenueperpassenger-mile.Forfor-hirefreighttransportation,theunitofoutputiston-miles,andthemeasureofwhatfreightshipperspayistheaveragefreightrevenueperton-mile.Formodeswhereusersdonottypicallypayperuse,likedrivingapersonalvehicle,completedataaredifficulttoobtain.Increasesinproductivityoftenreducebusinesscosts,whichallowtransportationcompaniestoofferlowerprices.
Figure5-12showsnominalchangesinrevenueperpassenger-milerelativetotheindexforallconsumerexpenditures(CPI)forthreeindustries:domesticaircarriers,commuterrail,andAmtrak/intercityrail.NominalchangesthataregreaterthanchangesintheCPIindicaterealincreasesinrevenue.Amtrak/intercityrailexperiencedthelargestgrowthinrevenueperpassenger-mile,increasing165.8
percentfrom1990to2015(latestavailableyear),whilecommuterrailincreased95.9percentfrom1990to2016.BothAmtrak/intercityrailandcommuterrailexperiencedsteadygrowth.Incontrast,domesticaircarrierrevenueperpassenger-milefellaftertheSeptember2001terroristattacks,begantoriseafterreachingalowin2002,andthenfellagainduringtheGreatRecessiontoits2002levelin2009.Between2009and2014,domesticaircarrierrevenueperpassenger-milerose21.0percentbutthenfell7.3percentbetween2014and2016.
Theincreasesinrevenueperpassenger-milearepartlyduetoanincreaseintheoverallpriceofgoodsandservices.TheCPI,whichmeasuresoverallchangesinprices,increasedby83.6percentfrom1990to2016,indicatingthatAmtrak/intercityandcommuterrailweretheonlyindustrieswithrealincreasingrevenueperpassenger-mileduringtheperiod.
Figure5-13showstheaveragefreightrevenueperton-mileforair,truck,rail,andpipeline.Nominalfreightrevenueperton-mileincreasedforallfreightmodes.Domesticaircarriersexperiencedthelargestincreaseinrevenueperton-mile,increasing145.9percentfrom1990to2014beforefalling11.6percentfromthe2014levelbetween2015and2016.ClassIrailroadsexperiencedasmallerincreaseinrevenueperton-mileof50.1percentinthesameperiodduetoaninitialdecline.
Sources of Economic Growth
TheBEA/BLSIntegratedProductionAccountsshowthecontributionoflabor,capital,andMFPtoeconomicgrowth.Basedontheaccounts,transportation’scontributionhas
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Transportation Statistics Annual Report
FIGURE 5-12 Revenue per Unit of Output for Passenger Transportation Modes: 1990–2016
0
50
100
150
200
250
300
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Pass
enge
r re
venu
e in
dex
(bas
e ye
ar 1
990
= 10
0)
Domestic air carrier
Intercity/Amtrak
Commuter rail
Consumer Price Index
NOTE: Shaded areas indicate U.S recessions, as defined by the National Bureau of Economic Research.
SOURCES: U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics, Table 3-20, available at www.bts.gov as of November 2017Air carrier, domestic, scheduled service (passenger): Domestic air carrier revenue includes baggage fees and reservation changes fees.U.S. Department of Transportation, Bureau of Transportation Statistics, Office of Airline Information, TranStats Database, T1: U.S. Air Carrier Traffic and Capacity Summary by Service Class, available at http://www.transtats.bts.gov/DL_SelectFields.asp?Table_ID=264&DB_Short_Name=Air%20Carrier%20Summary as of Aug. 31, 2015 and Air Carrier Financial Reports, Schedule P-1.2, available at http://www.transtats.bts.gov/databases.asp?Mode_ID=1&Mode_Desc=Aviation&Subject_ID2=0 as of November 2017.Commuter rail: 1990-2001: American Public Transportation Association, 2011 Public Transportation Fact Book (Washington, DC: 2011), tables 2 and 42 (passenger fares / passenger-miles).2002-14: U.S. Department of Transportation, Federal Transit Administration, National Transit Database, Data Tables 19 and 26 (Washington, D.C.: Annual reports), available at https://www.transit.dot.gov/ntd as of November 2017.2015-16: U.S. Department of Transportation, Federal Transit Administration, National Transit Database, Annual Data Tables: Service and Annual Database: Fare Revenue, available at https://www.transit.dot.gov/ntdhtm as of November 2017.Intercity / Amtrak: 1990-2002: National Passenger Rail Corporation (Amtrak), Amtrak Annual Report, Statistical Appendix (Washington, DC: Annual Issues) (transportation revenues / passenger-miles).2003-13: Association of American Railroads, Railroad Facts (Washington, DC: Annual Issues), p. 77 and similar pages in previous editions (passenger revenue/revenue passenger-miles).2014-15: Amtrak, Monthly Performance Review for September 2015 (November 13, 2015), Tables A.2-2, A4-2, available at https://www.amtrak.com/ccurl/322/821/Amtrak-Monthly-Performance-Report-September-2015-Preliminary-Unaudited.pdf as of Mar. 28, 2017.Consumer Price Index: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index-Urban, U.S. All Items Indexes, available at http://www.bls.gov/cpi/ as of November 2017.
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Chapter 5: Transportation Economics
FIGURE 5-13 Revenue per Unit of Output of Freight Transportation Modes: 1990–2016
0
50
100
150
200
250
300
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Frei
ght r
even
ue in
dex
(bas
e ye
ar 1
990
= 10
0)
Domestic air carrier
Class I Rail
Oil pipeline
Truck
NOTE: Shaded areas indicate U.S recessions, as defined by the National Bureau of Economic Research.a For 1990 and later, air carriers that did not report both financial data and all months of traffic data for a given period were excluded from the calcula-tions. Cargo revenue includes both scheduled and charter property revenue and mail revenue.b General freight common carriers, most of which are LTL (less-than-truckload) carriers.
SOURCES: Air carrier, domestic, scheduled service (freight): U.S. Department of Transportation, Bureau of Transportation Statistics, TranStats Database, T-1, Schedule P-11, and Schedule P-12 data, available at http://www.transtats.bts.gov/ as of Sep. 1, 2015, special tabulation.Truck: 1990-2003: Eno Transportation Foundation, Inc., Transportation in America (Washington, DC: 2007), p. 46.2004-07: U.S. Department of Commerce, U.S. Census Bureau, 2009 Transportation Annual Survey (Washington, DC: January 2011), Table 2.1, available at http://www.census.gov/services/ as of Aug. 9, 2011, special tabulation.Class I rail: Association of American Railroads, Railroad Facts (Washington, DC: Annual Issues), p. 34 and similar pages in previous editions.
beensmallerthanothersectors.Priortothe2007to2009economicrecessionandbetween2003and2007,transportation—withanaverageannualgrowthrateof0.14percent—contributedsignificantlylessthanthemanufacturing,service,andfinance—whichallhadaverageannualgrowthratesinexcessof0.50percent(figure5-14).Duringthatperiod,theU.S.economygrewonaverage2.73percentperyear.Duringthe2007to2009economicrecession,almostallsectors,includingtransportation,experiencednegativegrowth.Sincetherecession,transportationhascontributedpositivelytoeconomicgrowth.However,transportation’saverageannualcontributiontoeconomicgrowthof0.06percentfrom2009to2014(thelatestavailable
year)isbelowits2003-2007pre-recessionlevelof0.14percent.
Transportation Expenditures and Revenues
Household Spending
In2016totalnationalexpendituresontransportationbyandonbehalfofU.S.householdsamountedto$1,196billion,makingitthefourthlargestexpenditurecategory(excludingother)afterhealthcare,housing,andfood(figure5-15).Ninety-onepercentofpersonaltransportationexpenditureswenttothepurchase,operation,andupkeepofpersonalvehicles[USDOCBEA2017b].
Between2000and2016,householdtransportationexpendituresincreased42.7
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Transportation Statistics Annual Report
FIGURE 5-14 Sources of Economic Growth: Average Annual Growth Rate by Industry
Total (all industry) 1.79%Services 0.59%
Finance 0.31%Trade 0.26%
Manufacturing 0.20%Information 0.14%
Mining 0.11%Government 0.07%
Agriculture 0.02%Utilities 0.02%Construction 0.01%
Transportation 0.06%
Finance 0.58%Services 0.56%
Manufacturing 0.51%Information 0.32%
Government 0.28%Trade 0.28%
Trans portation 0.14%Mining 0.07%
Utilities 0.02%Agriculture 0.00%
Construction -0.03%
Total (all industry) 2.73%
Government 0.17%Mining 0.17%
Agriculture 0.09%Finance 0.03%Information 0.03%
Utilities -0.05%Transportation -0.11%
Services -0.12%Construction -0.48%
Trade -0.61%
Total (all industry) -1.56%
2007−2009 (Economic Recession)
Manufacturing -0.66%
2003−2007
2009−2014
NOTES: Finance includes: Finance and insurance and Real estate rental and leasing. The service sector includes: Professional and business ser-vices; Education and health services; Leisure and hospitality; and Other services (NAICS 54-81).
SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, Integrated Industry-Level Productivity Account, http://www.bea.gov as of May 2017.
percent,from$838billionto$1,196billion.Thegrowthintotalexpendituresoutpacedthegrowthintransportationexpenditures,increasing88.8percent,from$6.79trillionto$12.82trillionoverthesameperiod.Expendituregrowthforhealthcare(145.6
percent),housing(93.5percent),andfood(83.5percent)outpacedexpendituregrowthfortransportation.Asaresult,thepercentageoftotalexpendituresfortransportationdeclinedfrom12.3percentin2000to9.3percentin2016.[USDOCBEA2017b]
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Chapter 5: Transportation Economics
FIGURE 5-15 Total National Household Expenditures (major expenditure categories), 2016
$3.18 tri l l ion (24.8%)
$2.73 tri l l ion (21.3%)
$2.35 tri l l ion (18.3%)
$1.48 tri l l ion (11.6%)
$1.20 trillion (9.3%)
$1.14 tri l l ion (8.9%)
$411 bill ion (3.2%)
$342 bill ion (2.7%)
Other expenditures
Health
Housing
Food
Transportation
Recreation
Apparel and services
Insurance and pensions
Expenditures ($12.8 trillion)
NOTES: “Other expenditures” include alcoholic beverages purchased for off-premises consumption; furnishings, household equipment, and routine household maintenance; education; accommodations; financial services (excluding pension funds); other goods and services; net foreign travel and expenditures abroad by U.S. residents; and final consumption expenditures of nonprofit institutions serving households.
SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts Tables, Table 2.5.5, 2.4.5U, available at http://www.bea.gov/iTable/index_nipa.cfm as of August 2017.
Public and Private Sector Expenditures and Revenue
Expenditures
Mostgovernmentspendingontransportationtakesplaceatthestateandlocallevels,althoughstateandlocalcapitalexpendituresareoftenpaidforinpartwithfederalfunds(figure5-16).In2014theFederalGovernmentspent$32.8billionontransportation(excludingfederalgrantstostates),andstateandlocalgovernmentsspent$291.2billion(includingexpenditurespaidwithfederalgrants).Inreal2009dollars,transportationexpendituresatalllevelsofgovernmenthaveincreasedsince2007.From2007to2014,realdirectfederalexpendituresincreasedby10.4percent(from$25.6billionto$28.2billion).Realfederaltransferstostatesincreased10.7percent(from
$48.8billionto$54.1billion),whilerealstateandlocalexpenditures(excludingexpenditurespaidforwithfederalfunds)increasedbyonly1.7percent(from$204.3billionto$207.8billion).Governmentsincreasedtransportationspendingfollowingthe2007to2009recessiontostimulatetheeconomy.In2009theFederalGovernmentenactedtheAmericanRecoveryandReinvestmentActof2009,whichauthorized$48.1billionintransportationstimulusspending.Asaresult,transportationexpendituresbytheFederalGovernment(directfederalexpendituresandfederaltransferstostates)reachedapeakin2010at$85.2billion.
Mostfederalspending(excludingfederalgrantstostates)isforaviation($16.9billionin2014,or51.7percent)followedbywater($8.3billion,or25.3percent)andhighways($3.2
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Transportation Statistics Annual Report
billion,or9.7percent)(figure5-17).Inreal2009dollars,federalhighwaypeakedin2011withtherecessionstimulusspending,andthendeclined.[USDOTBTS2017a]
In2014,moststateandlocalspending(includingexpenditurespaidforwithfederalgrants)ontransportationwenttohighways($203.9billion,or70.0percent)andtransit($59.6billion,or20.5percent)(figure5-18).Inreal2009dollars,bothstateandlocalhighwayandtransitexpenditureshaveincreasedfrom2007to2014—highwaysby2.2percentandtransitby12.0percent.Highwayandtransitspendingpeakedin2009asaresultoftransportationstimulusspending.[USDOTBTS2017a]
In2016privateandpublicspendingontransportationconstructiontotaled$133.2billion(figure5-19).Thepublicsectoristhemajorfundingsourcefortransportationinfrastructureconstruction,especiallyforstreetsandhighways.In2016thevalueofgovernment-funded(public)constructionunderwayaccountedfor90.8percent($120.9billion)oftotalspendingontransportationconstruction,andprivatetransportationconstructionaccountedfortheremaining9.2percent($12.2billion).Approximatelythree-quartersofgovernment-fundedinvestmentwasforhighways($90.5billion);theremaindersupportedtheconstructionofair,land,andwatertransportationfacilities($30.4billion).Investmenthasbeengrowingsince2002
FIGURE 5-16 Federal, State, and Local Government Expenditures, 2007 to 2014 (billions of chained 2009 dollars)
$0
$50
$100
$150
$200
$250
$300
$350
2007 2008 2009 2010 2011 2012 2013 2014
Billi
ons o
f cha
ined
200
9 do
llars
State and local from own funds
Direct federal expenditures
Federal transfers to states
NOTES: Shaded area indicates economic recession.net foreign travel and expenditures abroad by U.S. residents; and final consumption expenditures of nonprofit institutions serving households.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Government Transportation Financial Statistics, available at www.bts.gov.
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Chapter 5: Transportation Economics
FIGURE 5-17 Federal Transportation Expenditures by Mode: 2014 (billions)
$16.92
$8.29
$3.17
$2.81
$1.37
$0.14
$0.06
Air
Water
Highway
Railroads
General support
Transit
Pipeline
Total Federal Transportation Expenditures = $32.7 billion
NOTES: Federal expenditure includes direct federal spending, excluding grants to state and local governments. State and local expenditure includes outlays from all sources of funds including funds from Federal grants.
SOURCE: US Department of Transportation, Bureau of Transportation Statistics, Government Transportation Financial Statistics 2017, available at www.bts.gov as of December 2017.
FIGURE 5-18 State and Local Expenditures by Mode: 2014 (billions)
$203.95
$59.56
$21.65
$6.01
$0.04
$0.02
Highway
Transit
Air
Water
Pipeline
General support
Total State and Local Transportation Expenditures = $291.2 billion
SOURCE: US Department of Transportation, Bureau of Transportation Statistics, Government Transportation Financial Statistics 2017, available at www.bts.gov as of December 2017.
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Transportation Statistics Annual Report
despiteaslightdeclinein2011associatedwiththeterminusofAmerican Recovery and Reinvestment Act of 2009(Pub.L.111–5)stimulusspendingontransportationandaslightdeclinein2016($1.8billiondecreasefrom2015).[USDOCCENSUS2017]
Revenue
Governmenttransportationrevenuecomesfromusertaxesandfees,suchasgasolinetaxesandtolls,airtickettaxesandfees,andgeneralrevenues,aswellasincomefrominvestingtransportationfundsandreceiptsfromfinesandpenalties.In2014governmentrevenuecollectedanddedicatedtotransportationprogramstotaled$355.7billion.Aportionofthisrevenue($183.6billion,or51.6percent)comesfromtaxesandchargesleviedontransportation-relatedactivities,while$172.1billion(48.4percent)comesfromnon-transportation-relatedactivitiesbutsupportstransportationprograms(e.g.,stateorlocalsalesorpropertytaxesusedtofinance
transportationprojects).Inreal2009dollars,totalrevenuecollectedbythegovernmentanddedicatedtotransportationprogramsincreasedby9.9percentfrom2007to2014.[USDOTBTS2017a]
Highwayandairtransportation,whichhavetrustfundssupportedbydedicatedtaxes,accountedfor97.6percentoffederaltransportationrevenuein2014.TheFederalGovernmentcollected$39.1billion(72.1percent)inhighwayrevenues(fromtheHighwayTrustFund)and$13.8billion(25.5percent)inaviationrevenues(almostentirelyfromtheAirportAirwayTrustFund),aswellas$1.3billion(2.4percent)inwatertransportationrevenuesand$0.02billion(0.03percent)inpipelinerevenues (figure5-20).Inreal2009dollars,HighwayTrustFundrevenuesdecreasedby16.9percentfrom2007to2014[USDOTBTS2017a].TheFederalGovernmenthasnotincreasedthefederaltaxesforgasolineanddiesel—18.4centspergallonforgasolineand24.4centspergallon
FIGURE 5-19 Value of Transportation Infrastructure Construction Put in Plan (current dollars): 2002–2016
0
20
40
60
80
100
120
140
160
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Billi
ons
of d
olla
rs
Transportation Construction(Private)
Air, Land, and Water Transportation Construction(Public)
Highway and Street Construction(Public)
SOURCE: U.S. Department of Commerce, Census Bureau, Value of Construction Put in Place, Not Seasonally Adjusted (2002-2016), available at http://www.census.gov/ as of May 2017.
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Chapter 5: Transportation Economics
FIGURE 5-20 Federal Own-Source Revenue by Mode: 2014 (billions)
$39.08
$13.81
$1.29
$0.02
Highway
Air
Water
Pipeline
Total Federal Own-Source Revenue = $54.2 billion
NOTE: Own-source refers to taxes and charges levied on transportation-related activities and used specifically for transportation purposes.
SOURCE: US Department of Transportation, Bureau of Transportation Statistics, Government Transportation Financial Statistics 2017, available at www.bts.gov as of December 2017.
fordiesel—sinceOctober1997,causingrealrevenuestodecline.Revenuesalsodeclinedbecausevehiclegasmileageimprovedoverthelasttwodecadesandbecausevehicle-milestraveleddeclinedduringthe2007to2009recession.
Stateandlocalgovernmentscollected$247.3billionofthe$355.7billiongovernmenttransportationrevenues.Ofthisrevenue,thestateandlocalgovernmentscollected$129.4billionfromtransportation-relatedactivities,mostofwhichisfromhighwayrevenuesources($86.7billion,or67.0percentoftransportationrevenuein2014),whichincludefueltaxes,motorvehicletaxes,andtolls(figure5-21).Aviation-relatedrevenue($19.1billion,14.8percent)comesfromlandingfees,terminalarearentals,andseveralothersources.Transitrevenue($18.8billion,14.6percent)isalmostentirelyfromfares.
Revenuecollectedfromtransportation-relatedactivityanddedicatedtotransportation
programscontinuestofallshortofgovernmenttransportationexpenditures.In2014transportationrevenuescovered56.7percentofexpenditures.Thegapbetweentransportationrevenuesandexpenditureshasdeclinedsince2009and2010,whenrevenuescovered52.5percentofexpenditures[USDOTBTS2017a].Whenrevenuesdonotcoverexpenditures,generaltaxreceipts(e.g.,fromsalesandpropertytaxes),trustfundbalances,andborrowingareneededtocovershortages.
Cost of TransportationThemovementofgoodsandpeoplerequirestheuseofresources—labor,equipment,fuel,andinfrastructure.Theuseoftheseresourcesisthecostoftransportation.Producersandusersoftransportationservicespayfortheresources.Usersoftransportationservicesincludebusinesses,government,andhouseholds.Businessespayfortransportationtoacquireinputsforthegoodstheymakeandtodeliverfinalproductstoconsumers.Households
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Transportation Statistics Annual Report
FIGURE 5-21 State and Local Own Source Revenue by Mode: 2014 (billions)
$19.1
$18.8
$4.7
State fuel tax$36.8
State vehicle tax$28.5
State and local tolls
$15.5Other$5.8
Highway
Air
Transit
Water
$86.7
Total State and Local Own-Source Revenue = $129.4 billion
NOTE: Own-source refers to taxes and charges levied on transportation-related activities and used specifically for transportation purposes.
SOURCE: US Department of Transportation, Bureau of Transportation Statistics, Government Transportation Financial Statistics 2017, available at www.bts.gov as of December 2017.
purchaseresources,suchasmotorvehiclesandmotorvehiclefuel,fortravelbyautomobile.
Costs Faced by Producers of Transportation Services
Therearetwotypesoftransportationservicesprovided:freighttransportationservicesprovidedtoproducersofgoodsandservice(e.g.,truckingandairfreight);andpassengertransportationservicesprovidedtobothproducersandhouseholdconsumers.Themajorinputstoproducetransportationservicesincludetransportationequipment,fuel,labor,othermaterialsandsupplies,aswellasthedepreciationofitemslikeairplanes,trucks,railroadlocomotivesandfreightcars,truckingterminals,andrailroadtrackandotherinfrastructure.Thepriceoftheseinputsimpactsthepriceoffor-hirefreightandpassengertransportationservices.
Thecostsfacedbyproducersoftransportationservicesforpurchasingtransportationequipmentincreasedcontinuouslybetween2004and2016,exceptforautomobilesand
light-dutymotorvehicles(figure5-22).5Thecostsfacedwhenpurchasingautomobilesandlight-dutyvehiclesdeclinedbetween2004and2006,roseslightlyin2008and2009(butremainedbelowits2004level),leveledoffin2010,andfinallyincreasedin2011through2016.Thecostsfacedforrailroad,aircraft,heavy-dutytruck,andshipandboatmanufacturingincreasedmorethanforalltransportationequipmentcombined.Thisincreaseinequipmentpricespotentiallyimpactstheprofitabilityandpurchasedecisionsoftransportationsectors,thetransportationcostsfortransportationusers,and/orpricesinothersectorsthatusetransportationservices,suchaswholesale,retail,andwarehousingandstorageindustries.
5TheBureauofLaborStatistic’sProducerPriceIndex(PPI)fortransportationequipment(whichincludesindexesforautomobileandlightmotorvehicles,aircraft,railroadrollingstock,heavy-dutytrucks,shipsandboats,andalltransportationequipment)reflectschangesintransportationequipmentpricesfacedbytransportationserviceproviders.Theactualpricestransportationserviceproviderspaymaydifferfromthepricessellersreceiveforthetransportationequipmenttheysellbecauseofgovernmentsubsidies,salesandexcisetaxes,anddistributioncosts.
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Chapter 5: Transportation Economics
Transportationfuelpricesalsoimpactthepriceoffreightandpassengertransportationandthedemandfortransportation.Anincreaseinfuelprices,forinstance,mayreducethedemandfortransportationmodesreliantonthatfuelandshiftdemandtotransportationmodesthatuselesscostlyfuels.Averageannualfuelpricesforallclassesoftransportationfuels,exceptaviationgasolineandrailroaddieselfuel,peakedin2012andhavesincedeclined.Theaverageannualfuelpriceforgasolinepeakedat$3.70in2012anddeclined40.4percentto$2.20in2016(figure5-23).Themostrecentdataforaviationgasolineandrailroaddieselfuelshowlittlechangeinpricebetween2012and2014(themostrecentyearforwhichdataareavailable).
Costs Faced by Purchasers of Transportation Services
Thepricesthattransportationcompanieschargefortransportationimpactfreightshippers’andtravelers’transportationdecisions.Despiteperiodsofmodestdecline,businessespurchasingtransportationservicessawanoverallincreaseintherelativepricesforair,rail,truck,water,andpipelinetransportationservicesbetween2004and2016.Duringthattimethecostsfacedbybusinessestopurchaserailservicesgrewby54.7percent,morerapidlythanthatforanyothertransportationmode,exceptpipeline,whichgrew128.1percent.Thecostsfacedtopurchasetruck,water,andairtransportation
FIGURE 5-22 Average Price Change in Purchasing Transportation Equipment Faced by Transportation Providers: 2004–2016
80
90
100
110
120
130
140
150
2004 2006 2008 2010 2012 2014 2016
Inde
x (2
004=
100)
All transportation equipment
Heavy duty truck
Railroad rolling stock
Ship and boat building
Aircraft
Automobile and light truck
NOTE: Annual averages. Rebased to 2004. 2016 data are preliminary and subject to revision. Aircraft are civilian aircraft only. Shaded areas indicate U.S recessions, as defined by the National Bureau of Economic Research.
SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, Producer Price Index Industry Data, available at http://www.bls.gov as of May 2017.
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FIGURE 5-23 Sales Price of Transportation Fuel to End-Users (dollars/gallon): 1990–2016
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
1990 1991 1992 1994 1995 1996 1998 1999 2000 2002 2003 2004 2006 2007 2008 2010 2011 2012 2014 2015
Curr
ent c
dolla
rs p
er g
allo
n
Motor gasoline (all types)
Jet fuel keroseneRailroad fuel (diesel)
Diesel no. 2
Aviation gasoline
NOTE: Aviation and railroad fuel data through 2014. Shaded areas indicate U.S recessions, as defined by the National Bureau of Economic Research.
SOURCE: All data except railroad fuel: U.S. Department of Energy, Energy Information Administration, Monthly Energy Review (Washington, DC: April 2016), tables 9.4 and 9.7, available at http://www.eia.doe.gov/emeu/mer/prices.html as of May 2017.Railroad fuel: Association of American Railroads, Railroad Facts (Washington, DC: Annual Issues), p. 61.
servicesalsoincreased,withtruckingservicesgrowingataslightlyslowerrate(27.4percent)thanwater(29.9percent)andair(33.9percent).Transportationservicepricesdeclinedduringthe2007to2009recession,afterwhichtheyclimbedsteadilythrough2014.Theaveragepriceofair,rail,andtrucktransportationservicesdeclinedbetween2014and2016,whilewatertransportationservicepricesrosein2015butthendeclinedbelowthe2014levelin2016(figure5-24).
Costs Faced by Households
Thecostshouseholdsfacefortransportationservices(e.g.,airtravel)andgoodsusedfortransportation(e.g.,motorvehiclefuel)impacthouseholds’spendingdecisions.MostpassengertravelintheUnitedStatesisbypersonalmotorvehicle.Thecostofowning
andoperatingpersonalmotorvehiclesimpactshouseholdtravelbehavior—whatmodehouseholdschoose,howoftentheytravel,andhowfar.
Thecostofowningandoperatingapersonalmotorvehicleincludesinsurance,license,registration,taxes,depreciation,andfinancecharges(ownershipcosts)aswellasgasoline,tires,andmaintenance(operatingcosts).In2015itcost57.1¢permiletoownandoperateapersonalmotorvehicle.Ownershipcostscontinuetoaccountfornearlythree-fourthsofthetotalannualcostofowningandoperatingapersonalmotorvehicleonacents-per-milebasis.Lookingatoperatingcosts,thecostofbothgasoline(thelargestoperatingcost)andmaintenancegrewfrom1990through2015,whilethecostoftiresrosefrom1990through2003,declinedin2004,andthenincreased
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Chapter 5: Transportation Economics
FIGURE 5-24 Average Changes to Transportation Prices Faced by Businesses Purchasing Transportation Services: 2004–2016
80
100
120
140
160
180
200
220
240
2004 2006 2008 2010 2012 2014 2016
Inde
x (2
004=
100)
Air
Truck
Rail
Water
Pipeline
NOTE: Annual averages. Rebased to 2004. Shaded areas indicate U.S recessions, as defined by the National Bureau of Economic Research.
SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, Producer Price Index Industry Data, available at http://www.bls.gov as of May 2017.
slightlybetween2008and2015.Inthemostrecentyears,theaveragetotalcostofgasolinepermilefellfromahighof14.5¢permilein2012to8.5¢in2015.Thisdeclinecontributedsignificantlytothesteadydeclineintheaveragetotalcostofowningandoperatingapersonalmotorvehicle(assuming15,000vehicle-milesperyear),whichpeakedat60.8¢in2012andfellto57.1¢permilein2015(figure5-25).
AccordingtotheConsumerPriceIndexforUrbanConsumers(CPI-U)6,theaveragepriceofowningandoperatingapersonalmotorvehicle(privatetransportationintheCPI-U)
6TheConsumerPriceIndexforUrbanConsumers(CPI-U)measuresthechangeinpricespaidbyurbanconsumersforparticulargoodsandservices,suchasonesrelatedtotransportation.
rose59.5percentbetween1990and2016,albeitlessthanforallgoodsandservices(83.6percent).Ofpersonalmotorvehicleownershipandoperatingcosts,motorvehicleinsurancepricesincreasedthemostbetween1990and2016,growing175.0percent.Theaveragepriceofnewvehiclesgrewtheleast,increasingonly21.4percentoverthesameperiod.[USDOLBLS2017a]
Thetotalaveragepriceofowningandoperatingapersonalmotorvehiclegrewless(at59.5percent)thantheaveragecostofpublictransportation(86.1percent)between1990and2016[USDOLBLS2017a].Theriseinairfareandintracitytransportationpricesdrovethegrowthinpublictransportationpricesbetween1990and2016(figure5-26).
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Transportation Statistics Annual Report
FIGURE 5-25 Average Cost of Owning and Operating an Automobile (assuming 15,000 vehicle-miles per year): 1990–2015
0
10
20
30
40
50
60
70
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Cent
s per
mile
(cur
rent
dol
lars
)
Ownership costs
Gasoline
Maintenance
Tires
NOTE: Figure reflects the average cost of operating a vehicle 15,000 miles per year in stop and go conditions. Ownership costs include insurance, license, registration, taxes, depreciation, and finance charges.
SOURCE: American Automobile Association, Your Driving Costs (Heathrow, FL: Annual Issues), available at http://www.aaapublicaffairs.com as of August 2016.
FIGURE 5-26 Average Changes to Transportation Prices Paid by Urban Consumers: 1990–2016
0
50
100
150
200
250
1990 1993 1996 1999 2002 2005 2008 2011 2014
Inde
x (1
990=
100)
Airline fare
Other intercityAll items
Intracity transportation
Personal motor vehicle
NOTE: Annual averages. Rebased to 1990. Shaded areas indicate U.S recessions, as defined by the National Bureau of Economic Research.
SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index (CPI-U) Data, available at http://www.bls.gov as of May 2017.
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Chapter 5: Transportation Economics
Transportation as a Component of International Trade
Transportation and Trade
TransportationenablestheexportofAmericangoodsandservicesandconnectsU.S.businessestosourcesofrawmaterialsandconsumerstoimportedgoods.AnefficientandreliabledomestictransportationsystemwithgoodconnectionstotheinternationaltransportationsystemsupportstheUnitedStatesintheglobalmarketplace.Transportationnotonlyenablesinternationaltradebutalsoisamajorgoodandservicetraded.
Thevalueofgoodstraded(thetotalvalueofexportsandimports)was$3.7trillionin2016(currentdollars).Afteraccountingforinflation,therealvalueofgoodstradedgrewfrom2000to2016,despiteaslightdeclineduringthe2007to2009recession.Exportsaccountfor
anincreasingshareofthetotalvalueofgoodstraded,butimportsingoodscontinuetoexceedexports.In2016thegoodsdeficit(exportsminusimports)was$749.9billionincurrentdollars[USDOCBEA2017e].
In2016,18.6percent($683.1billion)ofallgoodstradedinternationallywererelateddirectlytotransportation.7Fueloilcomprisedanadditional1.4percentofallgoodstradedin2016[USDOCBEA2017d].Acrossallgoodstradedrelatedtotransportation,newandusedpassengercarsaccountedforthelargestshare.In2016importsoftransportation-relatedgoodsexceededexportsexceptforcivilianaircraft,aircraftenginesandparts,andfueloil8(figure5-27).
7Includesautomotivevehicles,parts,andengines;civil-ianaircraft,engines,andparts;andothertransportationequipment.8Fueloilisapetroleumproductused,forexample,toheathomes.
FIGURE 5-27 U.S. Trade of Transportation-Related Goods: 2016
-200,000 -100,000 0 100,000 200,000
Fuel oil
Other transportation equipment
Aircraft engines and parts
Civilian aircraft, complete, all types
Other parts and accessories
Engines and engine parts
Trucks, buses, and special purpose vehicles
Passenger cars, new and used
Exports less imports
Exports
Imports
Total Export of Transportation-Related Goods = $276,169 billionTotal Import of Transportation-Related Goods = $406,944 billion
Millions of current dollars
SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, International Transactions (ITA), Table 2.1 U.S. International Trade in Goods. Interactive, Annual. Available at http://www.bea.gov/itable/ as of May 2017.
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Transportation Statistics Annual Report
TransportationservicesareusedtomovegoodsfromandtotheUnitedStates.In2016,$1.8trillion(14.5percent)ofallservicestradedwererelateddirectlytotransportation[USDOCBEA2017c].Thevalueoftransportationservicestradedcaptures:
1. passengerfarespaidbyU.S.residentstoforeignairlinecarriersandforeignvesseloperatorsaswellasthepassengersfarespaidbyforeignresidentstoU.S.airlinecarriersandU.S.vesseloperators,
2. thefreightchargesformovinggoodsfromandtotheUnitedStates,and
3. theexpensesthattransportationcompaniesincurinforeignports(i.e.,goodsandservicesprocuredbyforeigncarriersinU.S.portsandbyU.S.carriersinforeignports)[USDOCBEA2017f]
ThefaresandfeesreceivedbyU.S.carrierstomovegoodsandpeopletoforeigncountries
exceedsthefaresandfeesreceivedbyforeigncarriersbringinggoodsandpeopletotheUnitedStates.However,since2007theamountreceivedbyforeigncarriersforbringinggoodsandpeopletotheUnitedStatesaccountsforanincreasingshareoftotalfaresandfeespaidtomovegoodsandpeopletoandfromtheUnitedStates[USDOCBEA2017c].
AirpassengertransportationaccountedforthelargestshareofthetotalfaresandfeespaidtomovegoodsandpeopletoandfromtheUnitedStates,followedbyseafreighttransportation.Forallmodesexceptseafreighttransportation,thefaresandfeespaidtomovegoodsandpeopletoforeigncountriesnearlyequaledthefaresandfeesreceivedbyforeigncarriersbringinggoodsandpeopletotheUnitedStates.Forgoodsmovedbysea,thefaresandfeesreceivedbyforeign-operatedvesselstobringgoodstotheUnitedStatesexceededthefaresandfeespaidtomovegoodstoforeigncountries(figure5-28).
FIGURE 5-28 U.S. Trade of Transportation ServicesTotal Export of Transportation Services = $84,633 billionTotal Import of Transportation Services = $97,174 billion
Millions of current dollars-60,000 -40,000 -20,000 0 20,000 40,000 60,000
Other modes of transport
Air (port services)
Air (freight)
Air (passenger)
Sea (port services)
Sea (freight)
Exports less imports
Exports
Imports
NOTE: Port services are the expenses that transportation companies incur in foreign ports (i.e., goods and services procured by foreign carriers in U.S. ports and by U.S. carriers in foreign ports), excluding purchases of fuel which are counted in the goods exports and imports account.
SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, International Transactions (ITA), Table 3.1 U.S. International Trade in Goods. Interactive, Annual. Available at http://www.bea.gov/itable/ as of May 2017.
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Chapter 5: Transportation Economics
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BureauofTransportationStatistics(BTS):
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