117/795 Corridor Economic Impact Assessment
presented to
Wayne County Transportation
Commission
presented by
Cambridge Systematics, Inc.
Paula Dowell, PhD
August 21, 2014
Transportation leadership you can trust.
Agenda
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2
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• Study Process
• Role of 117/795
• Economic Impact Findings
Study Process
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Process Overview
Document economic
structure – current &
future
Identify highway
dependent industries,
businesses and assets
Conduct interviews,
focus groups &
surveys
Economic model
simulates total
impact
Quantify cost
changes relevant to
current levels
Documenting the Tradeoffs
No build
Costs
Increased travel costs
Increased incidents
Reduced market access
Benefits
Build
Reduce travel cost
Increased safety
Improved connectivity &
access
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Build
Traffic diversion
impact
Redistribution of
development
Conducting the Economic Modeling
Business
costs
Change
in
access
Cost of
local
travel
Economic Model
Regional and
statewide
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• Gross Regional Product
• Jobs
• Income
Input into Analysis
Interviews
Counties
Municipalities
Shippers
Regional Economic Development Organizations
Focus Groups
Data Research
Role of 117/795
Importance of Highway Transport &
Logistics
• US Firms spent $1.39
Trillion on logistics
costs in 2013
• Carrying costs up
2.8% over 2012
• Transport costs up
2.0% over 2012
• Total logistics costs up
2.3%
Source: CSCMP 25th State of Logistics Report, June2014
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What Can Improving Logistics
Do For You?
It is a major employment industry
It has significant growth potential
It is a key input for all industries
It impacts cost of living
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Growth Potential
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Transportation and Warehousing = Quality Jobs
Median Salaries for Various Transportation & Warehousing
Occupations
» Dispatcher - $45,000
» Distribution manager $80,000
» Driver (entry to mid level) - $40,000 – $60,000
» Distribution center forklift operator- $31,000
» Fleet manager - $77,000
Intermediate Manufacturing - $35,000
Source: www.Salary.com
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Transportation Matters to All Industries
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Role of US 117/ I-795
Access to workforce and employment opportunities
Access to I-40 and I-95
» Critical trade corridors
» Access to global gateways
Access to regional education facilities
Potential evacuation alternative
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Population Forecast
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Employment by Industry
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Importance of the Corridor
Over 100 employers, representing over 11,000 employees, are
located within the corridor
Industries that depend on 117/795 include agri-business, food
and food processing, pharmaceutical and healthcare
Wilson, Wayne, and Duplin Counties all have existing industrial
parks that utilize the corridor
Sampson County is currently marketing a 279 acre site at I-40
Exit 355 which is close to corridor
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Emerging Industries
Transportation and Warehousing,
Finance and Insurance, Administrative
Waste Management Services
Professional Services
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Economic Impact Analysis
Traffic Forecasts
Based on NCDOT
forecasts
Average of 4 alternatives
Impact Categories
Direct User Impacts
Business
Competitiveness
Economic
Impacts
Travel time
Vehicle operating costs
Safety cost
Reliability
Traffic volumes
Productivity
Market access
Business costs
GDP
Employment
Income
Economic Modeling Inputs
Variable
Definition
Data Source
Vehicle miles traveled (VMT)
Measure of distance traveled (miles)
CS calculations based on NCDOT
traffic forecasts
Vehicle hours traveled (VHT)
Measure of time spent traveling (hours)
CS calculations based on NCDOT
traffic forecasts
Vehicle operating costs (VOC)
Measure of fuel and non-fuel vehicle
maintenance costs of driving
AAA and American Transportation
Research Institute (ATRI)
User impact
Impact to those directly driving on 117/795
Calculated by project team
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Key Assumptions
Variable
Passenger Trip Purpose
Value (2012$)
Business – 20%
Commute –40%
Source
Based on information from Statewide travel
demand model and stakeholder input
N on-work/Non-commute – 40%
Passenger VOT
Business – $15.26 per hour
Commute – $15.26 per hour
Non-work/Non-commute – $10.95 per hour
Passenger VOC
Fuel – $0.18 per mile
Statewide Hourly Median Value (All
Occupations) – BLS
Hourly Median Household Income – U.S. Census
AAA Driving Cost for North Carolina, 2012
Non-Fuel – $0.06 per mile
Freight crew VOT
$0.60 per mile
ATRI
Freight VOC
Truck – $1.07 per mile
ATRI
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Economic Impact of Completing I-795
2020 - 2040
$74 million in business transportations costs savings in 2040 and
over $1 billion in savings between 2020 and 2040
$568 million in resident and visitor travel time savings
$520 million increase in Gross Regional Product (GRP)
Faster employment growth - average of over 220 additional
jobs annually or 4,450 job-years over study period
$490 million increase in income
Key Takeaways
No build results in slower economic growth
Average of 80 fewer jobs per year over study period
Completing I-795 results in $74 million in business cost savings for
existing users, $520 million in GRP between 2020 – 2040
Increasing efficiency, accessibility and connectivity translates into over
220 additional jobs per year along I-795
Enhances competitive of the region and provides greater access to Port
of Wilmington
Supports existing businesses and attracts new, emerging industries