An economic analysis of trade-based business
This last study takes a deeper dive into businesses that are engaged in trade-related activity and how those activities then translate into dollars spent in the local Portland-metro economy.
By looking at the relationships between large local marine industrial businesses and small- to medium-sized businesses that serve as their vendors and suppliers, one can see the connection between the traded and local sectors. Five such firms were interviewed about their spending on direct and indirect materials, services and capital over a two-year period, 2011 and 2012. In those two years, the five marine industrial businesses spent $1.29 billion with more than 50 percent of that spent with local firms, as shown in Figure 5.
BY THE NUMBERS:
Amount the five marine industrial firms spent in 2011-12 to procure materials, capital/plant equipment, and services to produce and deliver their final goods and services to markets locally, across the continent or overseas.
Projected aggregate spending annually by all marine industrial businesses, based on this study.
Proportion of these dollars spent locally/ regionally.
Approximate number of local employers from which goods and services are commonly purchased by these firms.
- Marine industrial businesses have a significant economic impact on local business. In 2012 alone, the five firms surveyed spent $660 million on goods and services, of which more than 40 percent, or $264 million, was infused into the local economy.
- More than 80 percent of the $264 million in local spending by these harbor firms is for raw materials and components, and professional services, maintenance, catering and other services; additional expenditures include machinery, spare parts and construction materials.
- Local firms supported by these dollars include those involved in planning and architecture, engineering, law, transportation, graphic arts/media production, software and information technology, advanced manufacturing plant production equipment, energy and utilities, and skilled trades such as electricians.
- About 288 local employers are supported by these harbor businesses, some of which include: Platt Electric, Albina Pipe Bending, Oak Harbor Freight, Oregon Tractor, Milwaukie Crane & Equipment, Swan Island Sandblasting, West Coast Metals, Baxter Auto Parks, Parr Lumber, Elmerís Flag and Banner, Legacy Laboratory Services, Cascade Architectural & Engineering, Integra Telecom, Rodda Paint, Elephants Delicatessen, and others.
- Even if spending on capital goods, materials and supplies goes to national or international firms, many maintain a local presence such as a distributor, service center, or local warehouse, with local employees and representatives.
The economic analysis projects that all marine industrial businesses spend between $6-7 billion a year, driving a significant portion of the localsector economy.