Va.’s maritime industry has $8B economic impact, report says

Virginia’s non-military maritime industry was responsible for one in five jobs in Virginia and more than $8 billion in state and local taxes during fiscal 2022, according to a recent study conducted by William & Mary.

The Virginia Maritime Association and the Virginia Port Authority commissioned the study to demonstrate the industry’s economic impact. The fiscal year ran July 1, 2021, to June 30, 2022.

The $8.1 billion was generated from multiple types of tax and fee revenues, but the top three — local property taxes, personal and corporate income taxes and sales taxes — accounted for $6.8 billion, or 84% of the total. Every dollar of maritime-related impact on Virginia gross state product (GSP) creates an average 9.2 cents of state and local government revenue, according to the study.

Virginia’s maritime industry directly added to the commonwealth’s economy in four ways, according to the report:

• Virginia’s ports handled 65.6 million tons of waterborne commerce, valued at $103.5 billion and directly involving 34,600 skilled workers;
• Virginia produced 12.8 million tons of waterborne exports with a value of $14.9 billion, directly engaging 41,000 employees;
• Virginia consumed 7.4 million tons in imports, directly generating $33.1 billion in net new Virginia spending for goods and services provided by 304,800 employees;
• and Virginia’s private shipping and repair industries logged receipts of $12.3 billion, with 33,500 direct employees.

“This is a maritime asset unlike any other,” David White, VMA’s executive director, said in a statement. “This is a very diverse, unique harbor that includes the second-largest commercial port on the [U.S.] East Coast, the world’s largest naval base, the nation’s largest shipbuilding and ship repair industrial base, the nation’s largest offshore wind project and a growing cruise port. This report affirms that the fortunes of Hampton Roads and all of Virginia are tied to our ports and maritime industries. We are a maritime economy, and our best opportunities for growth and security will come from continuing to innovate and capitalize on these strengths that make us unique and help drive economic investment and job growth across Virginia.”

The maritime-related $110.5 billion sum in direct spending for the output of goods and services employs 380,400 Virginians. The total fiscal 2022 maritime impacts include $178.1 billion in spending with a value-added gross state product of $87.8 billion, equal to 14% of the estimated $649.4 billion total Virginia GSP in 2022. Also, the labor income created was $56.9 billion, involving 729,600 Virginia employees.

Virginia’s ports are the second-largest on the East Coast for tonnage and the Port of Virginia is the third-largest container port on the East Coast, based on TEUs (20-foot equivalent units) handed in 2022.

Virginia ports’ tonnage and cargo values are growing, and Virginia has the potential to become a national leader in the emerging offshore wind industry, according to the report. However, concerns include reduced demand for services with reductions in the Navy fleet.