Role of Support Activities for Transportation in the Economy of Philadelphia & Delaware Counties

Abstract

The Penn State Workforce Education and Development Initiative conducted an analysis of the economic impact of support activities for transportation in Philadelphia and Delaware counties in Pennsylvania. The analysis was designed to help understand the impact of the 385 person layoff at DAL Global Services in Philadelphia, Pennsylvania, effective March 15, 2010.

The Philadelphia branch of DAL Global Services is a staffing agency whose temporary, contract workers provide a variety of airline support activities such as ramp handling and cabin cleaning at the Philadelphia International Airport. DAL Global Services, a wholly owned subsidiary of Delta Air Lines, Inc., has branches in over 50 U.S. locations and is headquartered in Atlanta, Georgia. The Philadelphia Business Journal reported that the company cited a loss of contracts for services provided to US Airways and United Airlines as the reason for the layoff.

Services provided by DAL Global Services are classified in North American Industrial Classification System code 488--support activities for transportation. According to the U.S. Bureau of the Census, establishments in this industry "provide services which support transportation. These services may be provided to transportation carrier establishments or to the general public. This subsector includes a wide array of establishments, including air traffic control services, marine cargo handling, and motor vehicle towing." During 2007, 611,000 U.S. workers were employed in 38,566 establishments offering support activities for transportation with a payroll of $6.2 billion.

An Economic and Workforce Brief quantifies the role of every 100 workers employed in an industry in generating jobs, compensation, and property taxes. A Brief explains the potential impact of an industry by analyzing patterns of transactions among industries and purchases of consumers to document the contribution of a regional industry.

An analysis behind a Brief targets an industry (a group of establishments providing similar products or services), not an individual firm or single establishment. As a result, the economic and workforce impacts calculated represent an average, and the Brief does not forecast the specific impact of a particular establishment.

Keywords: economic impact, air transportation support, Pennsylvania, Penn State