An economic analysis of trade-based business

Overview

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:

$1.29 billion.

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.

$6-7 billion.

Projected aggregate spending annually by all marine industrial businesses, based on this study.

+50%.

Proportion of these dollars spent locally/ regionally.

288.

Approximate number of local employers from which goods and services are commonly purchased by these firms.


KEY FINDINGS

The economic analysis projects that all marine industrial businesses spend between $6-7 billion a year, driving a significant portion of the localsector economy.