 Jobs, Payroll, Tax Revenue, Infrastructure Important to All Alaskans February 21 , 2003
"Economic Impact of the Seafood Industry on Alaska's Economy" was presented to the Alaska Legislature at a meeting of the lawmakers' Fisheries Caucus at noon Thursday by
Burden reported seafood products remain Alaska's number one export, accounting for almost half of Alaska's total exports in 2001. Seafood harvesting, processing, and support services accounted for almost 37,000 full-time jobs, with an annual payroll of over $900 million. "Alaska's fisheries provide more than half the volume of fish landings in the nation," Burden said. "And 70 percent of the nation's fish-rich continental shelf lies within Alaskan waters, which represents a tremendous opportunity to both create more fisheries jobs in Alaska and supply important food products to a hungry world." Stephanie Madsen, Vice President of the Pacific Seafood Processors Association (PSPA), the major underwriter of the study, noted between global markets, complex distribution systems, multiple participants, and a wide variety of species harvested by a myriad of gear types, the seafood industry is a mystery to many Alaskans. "We wanted to help the public better understand the seafood industry and its value to state and regional economies," Madsen said. Other sponsors include the At-Sea Processors Association, the Commercial Fishing and Aquaculture Bank, the Groundfish Forum, the Marine Conservation Alliance, the North Pacific
According to a news release, the study enjoyed a preview at the Fourth Annual Seafood Industry Legislative Luncheon, sponsored by PSPA, the At-Sea Processors Association, and United Fishermen of Alaska. While legislators, staffer, and fisheries industry leaders dined on a variety of Alaska seafood delicacies, guest speakers told from personal experience how seafood supports Alaska's economy as a source of jobs, revenue, and infrastructure. Wayne Stevens, Executive Director of the Kodiak Chamber of Commerce and President of the Southwest Alaska Municipal Conference explained how all Alaskans benefit from the seafood industry. "The bottom line is that while there may be no perceived direct impact to the communities not directly involved in the seafood industry, the fact remains that our coastal community's economies are inextricably intertwined with others around the State. We need you and you need us." Mayor Bob Weinstein of the City of Ketchikan, who also serves as Chairman of the Southeast Conference of Mayors, brought the message home with vivid examples from his home town. As a local elected official, Weinstein is keenly aware that the seafood industry generated an estimated $65 million in tax revenues to state and local governments in 2001. Noting a decline in participation in fishing - especially in the beleaguered salmon industry - Weinstein described far-reaching effects on local, regional, and statewide economies. "When a small town loses several hundred jobs, fewer people buy groceries, hire mechanics to fix their cars, build homes, pay taxes, and send kids to school," Weinstein said. "That can trigger a downward spiral that can be very difficult to reverse. The ongoing health and stability of the seafood industry is absolutely vital to the economies of Ketchikan, Southeast Alaska, and the entire state."
Summary of Economic Effects
Statewide Economic Effects Employment - About 25,300 full-time equivalent jobs were provided in the seafood harvesting or processing sectors, and 11,600 were in other sectors of the state's economy, for a total of 36,900 jobs. An estimated 11,500 of the direct jobs were held by Alaska residents, and the estimate for secondary jobs in Alaska is 23,100. The number of persons participating in the seafood industry, which provides another indication of the importance of this industry to the state, is much greater, About 53,900 persons earned all or some of their income in 2001 from the harvesting or processing sectors of the seafood industry. Approximately 27,000 of these participants were Alaska residents. Payments to Labor - Total payments to labor by the seafood industry in 2001 are estimated at $932 million. About $370 million went to Alaska residents. Spending of this income in the state generated an additional $210 million in payments to labor for a total benefit of $1.1 billion in income generated by the industry. Ex-Vessel and First Wholesale Value - The estimated total value of resources harvested from Alaska waters in 2001 and sold by harvesters (ex-vessel value), including estimated ex-vessel value from the at-sea sector, is $974 million. After these resources were processed, they generated over $2.3 billion in sales to processors. The ex-vessel value of harvests by Alaska residents is estimated a $397 million, and processing firms domiciled in the state accounted for an estimated $555 million in first wholesale value. Taxes - The seafood industry generated an estimated $65 million in taxes to the state and local governments in 2001. This amounts includes $55 million in payments to the state and an additional $10 million in payments to local governments. Taxes paid by the seafood industry rank second after the oil and gas industry and almost equal to the total corporate income taxes paid to the state by all other industries, not including oil and gas. Economic Output - Direct sales by the industry were $2.3 billion (first wholesale value) and the secondary effects in the rest of the state's economy were $700 million, for a total of $3.0 billion in sales. The industry also generated an estimated $1.6 billion in sales in the rest of the nation's economy, for a total national output of $4.6 billion.
"Economic Impact of the Seafood Industry on Alaska's Economy"
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