Economic Impact

R.A. Wiedemann & Associates, Inc., was retained to perform an economic impact assessment for Morristown Municipal Airport. The facility is located just 27 miles from New York City and serves corporate and business aviation. The study estimated that Morristown Municipal Airport supports over 1,150 jobs and $243.6 million in annual economic impact. The Airport generates over $13.3 million in State and local taxes and provides incomes of almost $72.3 million to New Jersey residents. The Airport’s replacement value has been estimated at $245.0 million, while its current value is estimated to be $167.1 million. Thus, a snapshot of the total value of the Airport to the community would include the annual economic output of $243.6 million plus the existing value of the airport itself of $167.1 million, which totals $410.7 million. The Airport sponsors intend to use this information to assist in their public relations programs aimed at facilitating continued operation and development of the facility. Technical reports, executive summary brochures, and press releases were generated as outputs of this study.

R.A. Wiedemann & Associates was selected to serve as the project manager of a consulting team evaluating economic impacts of aviation in New York State. This study involved the development of surveys for 46 airports, including all 18 airline service facilities in the State. Significant coordination with the Port Authority of New York and New Jersey was handled by Mr. Wiedemann in developing updated impacts for JFK International and La Guardia. In addition to a technical report and executive summary, Mr. Wiedemann assisted on the production of a video that described the results of the study. That video is now available for Internet streaming on the New York State Department of Transportation web site, along with the technical report and executive summary. Two sets of numbers were generated to show the before and after-effects of the attacks of September 11, 2001. It was shown that in addition to the priceless lives of Americans lost in the World Trade Center, roughly $3 billion in economic impacts were suffered. Activity has recently regained its pre-2001 momentum, and aviation is one of the economic engines fueling the recovery.

R.A. Wiedemann & Associates was selected in association with the University of Illinois to perform an economic impact assessment for DuPage Airport. The Airport, with 470 based aircraft, is one of the largest general aviation facilities in the nation. Over the past 10 years, the DuPage Airport Authority has spent more than $204 million on airport improvements. This spending has positioned the airport to accommodate demand and adapt to changing conditions for the long term future. Of concern has been the emergence of taxpayer groups who point to the airport as a symbol of government overspending. Unknown to these groups has been the economic impact of spending, the real cost (revenues and taxes collected by the Authority that offset local expenditures), and the number of jobs produced and sustained by the airport. Our report documented these statistics and showed conservatively, that the airport produced an annual impact of over $200 million, with 2,000 jobs. A large survey of the airport' s users was taken and management initiatives were developed from the results. Currently, the Airport Authority desires a full business plan, which will be performed as a separate study in the near future.

With proposed changes to the Aviation Laws before the State Legislature in 1990, the Delaware Department of Transportation contracted with R.A. Wiedemann & Associates to produce a statewide study of the economic impacts of aviation in Delaware. The resulting study showed how civil and military aviation in the State had a total impact of over $750 million in 1990. This impact supported, either directly or indirectly, 18,500 jobs in the State. The study has been received favorably by both the government officials and the general public. It is anticipated that future debates over funding of aviation projects will benefit from this study. Over 2,500 copies of the color executive summary were printed for distribution. In 2000, the State updated the study and included a number of other new factors including the tax impacts of aviation and a detailed analysis of the regional significance of Delaware aviation. In 2006, the study was again updated as a part of the State Aviation System Plan.

In recent years, several military bases have been targeted for closure. Using the Economic Impact Forecast System (EIFS) developed by U.S. Army Construction Engineering Research Laboratory (CERL), a comparative analysis was successfully completed by Dr. Hewings of the impacts of closure of the Chanute Base in Rantoul, Illinois.

Dr. Hewings completed a study in 1989, concerning the economic impacts of the closure of Chanute Air Force Base on the Village of Rantoul, Illinois. The study involved a survey of local businesses, professionals, and community leaders in order to gauge the anticipated economic decline by those most likely to be impacted. Local businesses anticipated sales declines between 20% and 50%, while Realtors expected property values to decline sharply. Government officials expressed concern over the loss in property and sales tax revenues. The model looked only at the immediate impact of AFB closure. Had the client desired further analysis, a examination of the impacts of successful economic conversion of the Chanute facilities could have been examined.

Under increasing public pressure to limit or curtail aviation operations in the State, the New Jersey Department of Transportation undertook a study of economic impacts for all public use system airports. R.A. Wiedemann & Associates was selected to perform the analysis which involved 55 airports. For this study, surveys were used to determine total employment and payroll. Secondary source material from the New Jersey Department of Labor was used to determine the indirect economic impacts. The results of the study were used to counter the negative public sentiment that pervades the State. Organizations such as the New Jersey Airport Owners Association and the Aircraft Owners and Pilots Association have indicated a desire to use study results in their public relations and educational programs.

Having recently completed a Part 150 Noise Study, Port Columbus International Airport was still not perceived by its neighbors as a positive, contributing, local enterprise. Rather, great resistance to any suggestions of development has been felt by airport sponsors. In light of this, the on-going Reliever Study included an economic impact analysis specifically for Port Columbus International and its relievers: Ohio State University Airport, Rickenbacker Field, South Columbus, Bolton Field. R.A. Wiedemann & Associates was selected to perform the economic impact analysis for each of these airports. It is anticipated that the results of this study will aid in the public perception of airports in the Columbus metropolitan area and their improvement.

In 1986, the Austin Executive Airport, a large privately owned reliever airport undertook a study to quantify the value of their airport to the community. R.A. Wiedemann conducted the study which resulted in a valuation of the airport to the community. In addition, this study estimated the increased cost of aircraft delays to Robert Mueller Airport as a result of the loss of Executive Airpark.

Faced with negative public reaction to airport development, R.A. Wiedemann & Associates was selected to perform an economic impact analysis of the airport. In this analysis, impacts for both the status quo scenario and full-build option were quantified. In that analysis, it was shown that without development of the airport, the community would potentially lose $2.0 million in annual impacts and over 100 jobs. Through the study, greater awareness of the value of the local airport was developed in the community.