{"id":2002,"date":"2021-08-18T17:06:29","date_gmt":"2021-08-18T17:06:29","guid":{"rendered":"https:\/\/crp.trb.org\/uat\/acrp0358\/?p=2002"},"modified":"2022-08-04T15:12:56","modified_gmt":"2022-08-04T15:12:56","slug":"atlanta-aviation-and-increasing-employment-in-two-major-industry-sectors","status":"publish","type":"post","link":"https:\/\/crp.trb.org\/acrpwebresource12\/2021\/08\/18\/atlanta-aviation-and-increasing-employment-in-two-major-industry-sectors\/","title":{"rendered":"Atlanta: Aviation and Increasing Employment in Two Major Industry Sectors"},"content":{"rendered":"\n
\"ATL<\/figure>\n\n\n\n

The metropolitan Atlanta region is the economic hub of the American Southeast, home to the world\u2019s busiest airport\u2014Hartsfield-Jackson Atlanta International Airport (ATL). The region was selected as a case study because of its size and the economic strength of employment in two sectors: (1) transportation, logistics, and warehousing and (2) information technology.<\/p>\n\n\n\n

\"ATL
The Greater Atlanta Region<\/em><\/figcaption><\/figure>\n\n\n\n

Introduction to the Region and Its Economy<\/h2>\n\n\n\n

In 2019, the Atlanta-Sandy Springs-Alpharetta metropolitan statistical area (MSA) had a population of over 6 million, ranking ninth in the country. The region is home to 16 Fortune 500 companies, including Delta Air Lines, Coca-Cola, Home Depot, UPS, and the Southern Company, as well as another 13 companies listed among the Fortune 1000. The region ranks third nationally for Fortune 1000 headquarters. The region boasts a rapidly growing international population, and foreign investment has increased over time. In 2018, Metro Atlanta was home to more than 2,700 foreign-owned companies.<\/p>\n\n\n\n

According to the Atlanta Regional Commission (ARC), the metropolitan planning organization for the region, the area\u2019s freight and logistics sectors are a key component of the region\u2019s economic base, responsible for 38 percent of the total regional economic output. Metro Atlanta\u2019s global logistics presence is built in part on its airport; ATL is the 14th busiest cargo airport in the United States by landed weight.<\/p>\n\n\n\n

<\/th>2008<\/th>2019<\/th>Change #<\/th>Change %<\/th><\/tr><\/thead>
Population (000s)<\/td>5,930<\/td>6,853<\/td>923<\/td>16%<\/td><\/tr>
Total Employment (000s)<\/td>3,607<\/td>4,445<\/td>838<\/td>23%<\/td><\/tr><\/tbody><\/table>
Source: U.S. Bureau of Economic Analysis (BEA)<\/em><\/figcaption><\/figure>\n\n\n\n

The U.S. Cluster Mapping Project\u2019s data show that transportation and logistics (including air transportation, trucking, ground transportation, and support activities) made up the third largest \u201ctraded cluster\u201d in the metro area in terms of total employment. Among traded clusters, it trailed only in business services (e.g., corporate headquarters, computer services, consulting, and engineering), and distribution and electronic commerce (which includes warehousing and storage along with wholesale suppliers of professional and commercial equipment and supplies). The area\u2019s economy also features several other top-performing traded clusters, including marketing, design, and publishing and communications equipment and services.<\/p>\n\n\n\n

Another industry sector where greater Atlanta has a competitive advantage is information technology, based on analyses of the strength of employment in the sector compared to national averages.<\/p>\n\n\n\n

Overview of the Airport and Its Air Service<\/h2>\n\n\n\n

Home to Delta Air Lines, ATL offered nonstop service to 150 domestic and 75 international destinations in 2019. Between 2008 and 2019, total O&D traffic rose by more than 10 million (34%), and total passenger enplanements increased by nearly 20 million (22%).<\/p>\n\n\n\n

\"ATL
ATL Total Passenger Traffic<\/em><\/figcaption><\/figure>\n\n\n\n

Over the same period, the total number of departures dropped by over 35,000 (-8%, from roughly 468,000 to 432,000). However, available outbound seating capacity rose by 14%, from 55 million seats to 63 million seats. As a result, the average number of available seats per departing aircraft increased from 118 to 145 (23%).<\/p>\n\n\n\n

The airport reported that airlines carried a total of over 600,000 metric tons of cargo in 2019\u201440 percent of which was carried domestically and 60 percent internationally (freight and belly cargo). From 2013 through 2019, total tonnage handled at the airport increased by 37,000 tons (6 percent), with international tonnage increasing more than domestic tonnage.<\/p>\n\n\n\n

Connectivity<\/h2>\n\n\n\n
\"ATL
ATL Connectivity Growth Index (2008 = 100)<\/em><\/figcaption><\/figure>\n\n\n\n

\u201cConnectivity\u201d generally means the ability to reach a wide range of places in a short amount of time. Connectivity creates efficiencies that make firms more productive, which in turn attracts more businesses that have their choice of locations.<\/p>\n\n\n\n

Given the volume and variety of air service at ATL, the airport is among the most connected in the world. In 2019, ATL ranked 12th in the world and third in the United States in terms of total connectivity (including both domestic and international service).<\/p>\n\n\n\n

The “Connectivity” figure indexes the change in connectivity at ATL between 2008 and 2019. ATL was not immune to the impact of the Great Recession. ATL\u2019s connectivity dipped for several years due to the industry-wide consolidation of air operations. The airport returned to its pre-recession levels by 2015 and maintained moderate growth in connectivity. From 2015 to 2019, connectivity increased by 15 percent.<\/p>\n\n\n\n

Air Service and Economic Activity<\/h2>\n\n\n\n
\"ATL
Relationship Between Total Regional Employment and Total O&D Traffic<\/em><\/figcaption><\/figure>\n\n\n\n

Origin and destination (O&D) traffic at ATL is highly correlated with total local employment. In the figure “Relationship Between Total Regional Employment and Total O&D Traffic,” the correlation coefficient is 0.93. However, correlation does not establish causation. That is, it is not evident whether rising total employment levels lead to more air traffic or whether more air traffic leads to more total employment. The correlation between total O&D traffic and \u201caviation-reliant\u201d industry sectors such as information technology; professional, scientific, and technical services; and management of companies is also a near-perfect at 0.983. Again, however, correlation does not equate with causality.<\/p>\n\n\n\n

Stakeholder Perspectives on Contributions of Air Service to Economic Development<\/h2>\n\n\n\n

The greater Atlanta region has an extensive array of community and business stakeholders that are involved with air service and economic development concerns. Some key partners of ATL are listed in the table.<\/p>\n\n\n\n

Public Institutions<\/th>Private Organizations<\/th>Public-Private Partnerships<\/th><\/tr><\/thead>
Hartsfield-Jackson Atlanta International Airport<\/td>Airlines (most notably Delta Air Lines)<\/td>Aerotropolis Atlanta Alliance<\/td><\/tr>
Atlanta Regional Commission (10 counties + City of Atlanta)<\/td>Metropolitan Atlanta Chamber of Commerce<\/td>Atlanta Convention and Visitors Bureau<\/td><\/tr>
Georgia Dept. of Economic Development<\/td><\/td><\/td><\/tr><\/tbody><\/table>
ATL and Its Major Air Service and Economic Development Stakeholder Organizations<\/em><\/figcaption><\/figure>\n\n\n\n