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Maritime Industry Creates 6,520 Jobs, $1.98 Billion Economic Impact in Alaska

May 22, 2019 | News, Transportation

Elected officials join business leaders to announce Alaska as leading maritime state

JUNEAU—The Alaska Federal Delegation joined the American Maritime Partnership (AMP), the voice of the domestic maritime industry, to announce a 44 percent increase in jobs in the domestic maritime industry in Alaska.

According to the findings of a new report conducted by PricewaterhouseCoopers (PwC) on behalf of Transportation Institute (TI), the Jones Act fuels a strong domestic maritime industry in Alaska and across the region. The industry employs more than 6,500 individuals, produces $1.98 billion for the local economy, and generates $469 million in worker income in Alaska alone. Regionally, the same study shows that the domestic maritime industry employs more than 37,590 individuals, generating over $2.5 billion in worker income, and produces nearly $10 billion for the Pacific Northwest regional economy.

Alaska is also an important shipyard state. A recent study of shipbuilding by the US Maritime Administration, covering both commercial and military ship construction, found a $122 million annual economic impact in Alaska with 1,070 associated jobs and more than $79 million in worker income.

Alaska’s navigable waterway network is over 5,400 miles, the largest in the country, and almost twice the amount of the next largest network in Louisiana. On this vast network, the domestic maritime industry moves commodities across the 586,000 square miles of the state, keeping the economy moving.

The Jones Act is not only a vital anchor for economic strength and job creation for the Pacific Northwest, but also a pillar for the nation’s national and homeland security. Specifically, this law states that the transportation of merchandise between US points is reserved for US-built, owned, and documented vessels.

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September 2019

September 2019

Elected Officials Support the Domestic Maritime Industry and Job Creation

“Alaska is a major maritime state with more coastline than all of the other states’ coastlines combined. Our navigable waterway network of over 5,400 miles is the largest in the country. In my state, a strong domestic maritime industry is not a luxury, it’s a necessity. The welfare of our people and our economy is dependent on the U.S. maritime industry, providing over 6,000 Americans with maritime jobs that significantly contribute to the economies of Alaska and our nation,” said Alaska Senator Lisa Murkowski. “I proudly support the work of the Alaska and American Maritime Partnerships and am pleased by the growth of maritime industry jobs in Alaska.”

“The Jones Act is vital to maintaining a strong and stable domestic maritime industry that transports goods to Alaska and, as this study indicates, helps strengthen our economy by providing good-paying jobs,” said Alaska Senator Dan Sullivan. “Further, the Jones Act protects our homeland, ensuring that in times of dispute, Alaska and other states across our country will not be caught in the crossfire and held hostage by foreign flagged vessels.”

“The Jones Act is vital for protecting the U.S. maritime industry and promoting a very important sector of Alaska’s economy,” said Alaska Congressman Don Young. “Simply put, the Jones Act is critical to maintaining a strong maritime workforce and ensuring the U.S. has shipbuilding capabilities that can keep pace with our competitors. This study is further proof of its immense success and the importance of protecting the Jones Act. For the sake of our maritime industry, our jobs, and national security, we must continue to support the Jones Act for years to come.”

Maritime Leaders Recognize the Economic Impact of the Jones Act

“The Pacific Northwest is a leader in the domestic maritime industry, supporting nearly 38,000 family-wage jobs and contributing $10 billion to the local economy,” said James L. Henry, Chairman and President of Transportation Institute. “The findings in our most recent study demonstrate the strength and necessity of the Jones Act which serves as the backbone of the American maritime industry, the U.S. industrial base, and job creation for the hardworking men and women that crew the vessels delivering both in times of war and peace.”

“Quite simply, the Jones Act is American security,” said Matt Woodruff, President of the American Maritime Partnership. “In addition to the job creation benefits detailed in this study, our American mariners are relied on by defense leaders to project American force overseas in a national emergency.  Alongside our waterfront workers, they are the eyes and ears of homeland security on our nation’s coasts and waterways. Our American controlled fleet provides economic security, ensuring that our nation’s internal freight transportation system is not subject to foreign interference. American maritime jobs always have and will continue to be vital in the never-ending task of keeping America safe, strong and prosperous for generations to come.”  

“TOTE is built for Alaska and we are proud of the many contributions that our employees, vendors, contractors, partners and peers have made over the last 40 years to help drive one of the most significant economic engines in the Pacific Northwest, the domestic maritime industry,” said Grace Greene, President of TOTE Maritime Alaska, which provides safe, reliable and efficient service between Tacoma and Anchorage. “TOTE’s success, and that of our industry, is rooted in our commitment to safety, innovation and focused investments that create a significantly positive impact for those we serve and the areas in which we operate.”

“The new economic data is proof positive that U.S.-built vessels crewed by American mariners provide our communities and our country substantial benefits from jobs and investments,” said Tom Crowley, Chairman and CEO of Crowley Maritime Corporation. “This study shows the domestic maritime industry is integral to the economic success of Alaska, the Pacific Northwest and the entire nation. The men and women in the maritime industry also provide irreplaceable support to our military’s readiness and homeland security. These benefits demonstrate why experts and elected officials readily support the U.S. maritime industry and the legal framework protecting it.”

“With 6,640 miles of coastline, Alaska is a maritime state,” said Frank Foti, President and CEO of Vigor. “Maritime is a part of Alaska’s DNA and an important contributor to a vibrant economy in the region. Through our work in ship building and ship repair, Vigor is honored to be part of a growing industry throughout the Pacific Northwest and Alaska that creates amazing family wage jobs for skilled people who excel at their craft and deliver value and service to customers.”

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Alaska Business Magazine September 2019

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