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Economic Concerns for Transportation Fact Sheet

Concepts
Economic Development Glossary
Sources


Concepts

Introduction to Transportation & Economic Development

Recent studies at the local and national levels have reinforced the relationship between an adequate, well-maintained transportation system and a healthy economy. Wise investment in the transportation network can have the following economic effects:

  • Initial construction jobs
  • Direct savings in travel time and reduced accidents
  • Increases in industrial productivity by reducing costs and supporting the shift toward "Just In Time" delivery, which reduces storage needs and helps businesses respond to trends quickly(1)
How Important is Access to the Berkshire Region’s Economy?

For many employers, access is important. According to a recent national article, "Highway Accessibility" was the top rated criteria in selecting a site for a business expansion or relocation (out of 23 criteria). This is critical for two reasons: 1) shipping of raw material or products; and 2) access to labor.

A report on the Berkshire region’s economic development sites which is in draft stage now states "Compared to Rensselaer and Hampshire/Hampden areas, poor access to highways in northern and central Berkshire County which lack a north-south highway" is a weakness hampering the region’s economic development efforts. Because economic development is intensely competitive between regions, it is important to understand relative strengths and weaknesses as compared to similar or nearby regions.

The region’s economy several decades ago was heavily dependent upon manufacturing. That is less true now, although manufacturing accounted for 21% of the region’s employment in 1990. However, those 21% of the jobs generated over 40% of the region’s total income. By comparison, average service sector jobs have about a 1:1 ratio of employment to income, and retail is less than that. (2)

Tourism & the Transportation Network

The majority of tourists arrive in the area near the Massachusetts Turnpike in the summer. The result is that demand on the transportation network suddenly jumps, as shown below. While this extreme difference is not found everywhere in the Berkshires, summer traffic often comes up in discussions of transportation access in this region.

Freight Movement Matters

The movement of freight into, out of, and through the North-Central Berkshires matters to us all. Winding highways and difficult turns in our older settled areas are hard on truck drivers and expensive for businesses. They also impact people driving behind slow-moving trucks or jumping out of the way as the end of a big truck comes over a curb. The noise and vibrations caused by large trucks in downtowns can result in reduced land value for homes near truck routes, while increasing the value of industrial or commercial sites. Generally, trucks are at their most efficient for short hauls. Freight trains can cheaply move large quantities for long distances. An important way to increase the efficiency of freight movement is to improve transfer points. This includes the transfer between big long haul trucks and smaller local ones at distribution centers and the transfers at intermodal centers. These transfers include rail to trucks, or airplanes to trucks.

People Feel Strongly About Parking

Drivers expect to be able to easily park at their destinations. A lack of adequate parking can have detrimental effects on revitalization efforts in a Central Business District (CBD).

There are a Variety of Economic Issues to Improving Transportation Access

It has become an accepted fact that building more roads often encourages people to drive more and can lead to demands for yet more roads (4). This is called induced demand. On the other hand, a perception that it will take a long time and be frustrating to go somewhere can hurt local economies. The type of investment made in the transportation network affects how land is used, which populations benefit from the investments, and the future quality of the environment.


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Economic Development Glossary

Basic Employment

The types of jobs which bring new money into the area, such as those in agriculture, manufacturing, mining, private education, tourism, and information technology.

Direct Costs of Transportation

The direct costs of transportation are the ones which are generally apparent, such as gas for cars, bus fares, and the tax dollars for building and maintaining transportation infrastructure. Broadly it is assumed that the private sector can set and incorporate these costs.

Indirect Costs of Transportation

Indirect costs are usually of less immediate impact than direct costs. Examples are the cost of illnesses due to air pollution, and water pollution from salt and oil on roads. These difficult-to-measure costs are not generally included by the private sector and often not taken into account in making decisions.

Regional Special Events

Events which draw large numbers of non-local people and produce short-term but major demands on the transportation system.

Secondary Employment

The types of jobs which support the basic employment sector with services such as retail or contractors; these generally are local dollars moving from one person to another.


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Sources

  1. "Productivity and the Highway Network" (Washington DC: USDOT, 1996)
  2. Draft Strategy for Site Development to Enhance the Economy of Berkshire County (Pittsfield, MA: Community Investment Associates, April 1999)
  3. New Visions Workbook (Albany, NY: Capital District Transportation Committee, 1995)
  4. "Accounting for Induced Travel in Evaluation of Urban Highway Expansion" (Washington DC:Transporta

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