2 Transportation’s Contribution to the Economy

Key Takeaways domestic product (GDP).1 GDP is an economic

measure of all goods and services produced and
• When measured by value-added to gross
consumed in the country. GDP can be measured
domestic product (GDP), transportation
from three different approaches: (1) expenditure,
services contributed $1,066.9 billion, or 5.6
(2) production (known as value-added), and
percent, to U.S. GDP in 2016. Specifically, for-
(3) income.2 With regards to transportation,
hire transportation services contributed $562.4
the expenditure approach identifies the final
billion (3.0 percent), in-house transportation
(finished) transportation goods and services
contributed $172.3 billion (0.9 percent), and
purchased by persons, businesses, governments,
household transportation contributed $332.2
and foreigners. The production (value-added)
billion (1.8 percent).
approach measures the contribution of
• Transportation’s contribution to the economy transportation services to the economy. Finally,
also can be measured as the share of all the income approach measures the contribution
expenditures on transportation-related of transportation services produced by
final goods and services (known as the final transportation industries to the economy.
demand for transportation). In this perspective,
The Bureau of Economic Analysis’ (BEA’s) national
transportation contributed $1,489.7 billion, or
income and product accounts and the Bureau of
8.9 percent, to U.S. GDP.
Transportation Statistics’ (BTS’) Transportation
• Transportation-related final demand fell 15.6 Satellite Accounts (TSAs) are used to measure
percent during the 2007 to 2009 recession, transportation’s contribution to GDP using the
effectively erasing 10 years of growth. It first two approaches:
recovered in 2014 when final demand rose
above the pre-recession high and then grew • the share of all expenditures (by households,
slowly (0.2 percent) from 2015 to 2016 (latest private firms, the government, and foreigners)
available data). The slow growth between 2015 on transportation-related final goods and
and 2016 resulted from a 7.3 percent decline in services (collectively known as the final
private investment — the first year of decline demand for transportation), and
in private investment since steadily rising from • the contribution of transportation services
the 2009 low. produced by transportation industries (known
• Transportation indirectly contributes to the as value-added by transportation industries)
economy by enabling the production of goods to GDP.
and services. In 2016 wholesale and retail trade The expenditure approach captures the
used the most transportation services at $277.9 contribution of transportation services as well
billion and required 9.0 cents of transportation
services to produce one dollar of output. 1
Unless otherwise noted, GDP refers to the U.S. GDP.
2
For a more detailed explanation, also see Measuring the
Economy: A Primer on GDP and the National Income and
Introduction Product Accounts, U.S. Department of Commerce, Bureau of
Economic Analysis, December 2015. Available at: https://www.
Transportation’s contribution to the economy bea.gov/sites/default/files/methodologies/nipa_primer.pdf as of
can be measured by its contribution to gross September 2018.

2-1
 as transportation-related goods, such as motor private firms, and the government on final goods
vehicles and fuels used for transportation. In and services related to transportation. This
contrast, the production (value-added) approach measure includes (see box 2-1):
captures only the contribution of transportation
• personal consumption expenditures on
industries to GDP, because data exist for only transportation-related goods and services
the total value-added by an industry, i.e., for all (motor vehicles and parts; motor vehicle fuels,
output. With regards to the income approach, lubricants, and fluids; and transportation
data are not detailed enough to measure the services);
contribution of transportation to GDP.
• private domestic investment in transportation
This chapter explains and highlights trends in the structures and equipment;
final demand for transportation and the value-
• government purchases of transportation
added by transportation industries.
goods and services;

• net exports (exports minus imports) of

Transportation-Related Final Demand
transportation goods and services (e.g., motor
Transportation-related final demand (box 2-1) is vehicles and freight charges for moving
a measure of the expenditures by households, goods from and to the United States); and

Box 2-1  National Income Account Terminology

The national income and product accounts use several • Transportation-Related Final Demand measures the
related terms when discussing the size of the economy contribution of transportation services to the econo-
and sectors within the economy, such as transportation. my using the expenditure approach. It is the sum of:

What is Gross Domestic Product (GDP) and Gross °° personal consumption expenditures on trans-
Domestic Demand (GDD)? portation-related goods and services (motor ve-
hicles and parts; motor vehicle fuels, lubricants,
• GDP is the sum of the value of all goods and services and fluids; and transportation services);
produced in the economy. It can be measured from
3 perspectives: °° private domestic investment in transportation
structures and equipment;
°° Expenditure approach: Sum of personal con-
sumption, investment, government expendi- °° government purchases of transportation goods
and services;
tures, and exports less imports.
°° net exports (exports minus imports) related to
°° Production (value-added) approach: Total
transportation goods and services; and
industry output (sales and other operating
income) less the cost of inputs used in produc- °° change in retailers’ inventories of motor vehi-
tion. Alternatively, the sum of employee com- cles and parts.
pensation, taxes on production and imports
• Transportation Value-Added measures the contribu-
less subsidies, and gross operating surplus.
tion of transportation services to the economy using
°° Income approach: Income earned by house- the production (value-added) approach. It equals
holds (wages, health retirement benefits, in- sales, or receipts, and other operating income from
terest income, etc.) and firms (profits including transportation services (gross output) less the goods
royalties from intellectual property rights, etc.) and services used in production (intermediate in-
puts). Data in this chapter are total value-added.
• GDD is like GDP but excludes net exports, thereby
showing only domestic demand. • Income attributed to transportation measures the
income generated from the production of transpor-
What are transportation-related final demand, trans- tation goods and services. Data are not available
portation value-added, and income attributed to in sufficient detail to measure the contribution of
transportation? transportation to the economy using this approach.

2-2  Transportation Economic Trends

• change in retailer dealers’ inventories of purchases ($1,059.5 billion, or 71.1 percent of
finished goods, such as motor vehicles and transportation-related final demand);
parts.
• private domestic investment in transportation
In 2016 the demand for transportation ($1,489.7
structures and equipment ($289.0 billion, or
billion) accounted for 8.9 percent of U.S. GDP (as
19.4 percent);
measured in chained 2009 dollars) (figure 2-1). The
demand included: • government purchases of transportation
• personal consumption expenditures of goods and services ($282.3 billion, or 19.0
transportation, such as vehicle and motor fuel percent);

Figure 2-1  GDP Components of Transportation-Related Final Demand, 1999–2016

      (billions, chained 2009 dollars)
$1,800
Gross private domestic transportation Transportation-related final demand
$1,600
$1,400
$1,200
$1,000 Motor vehicles and parts

$800 Personal consumption

Motor vehicle fuels, lubricants, and fluids
$600 expenditures
Transportation services
$400
$200 Government transportation-related purchases
$0
-$200
Other
-$400
99

15

16
00

01

02

03

04

05

06

07

08

09

10

14
11

12

13

20
19

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

Gross private domestic Motor vehicles and parts Motor vehicle fuels, fluids, and Transportation services
transportation lubricants
$500 $500 $500 $500

$400 $400 $400 $400

$300 $300 $300 $300

$200 $200 $200 $200

$100 $100 $100 $100

$0 $0 $0 $0
2000
2002
2004
2006
2008
2010
2012
2014
2016

2000
2002
2004
2006
2008
2010
2012
2014
2016
2000
2002
2004
2006
2008
2010
2012
2014
2016
2000
2002
2004
2006
2008
2010
2012
2014
2016

Government transportation- Net exports of transportation- Change in retail dealer inventories Transportation-related
related purchases related goods and services of motor vehicles and parts final demand
$500 $0 $30 $1,600
-$20 $20 $1,400
$400 $1,200
-$40 $10
$300 -$60 $1,000
$0
-$80 $800
$200 -$10
-$100 $600
-$120 -$20 $400
$100
-$140 -$30 $200
$0 -$160 -$40 $0
2000
2002
2004
2006
2008
2010
2012
2014
2016

2000
2002
2004
2006
2008
2010
2012
2014
2016
2000
2002
2004
2006
2008
2010
2012
2014
2016
2000
2002
2004
2006
2008
2010
2012
2014
2016

NOTES: “Other” is the sum of the change in retail dealer inventories of motor vehicles and parts and net exports of transportation-related
goods and services. 2016 data are latest available. Shaded areas indicate economic recessions.
SOURCES: U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts Tables, tables 1.1.6, 2.4.6,
3.11.6, 3.15.6, 4.2.6, 5.4.6, 5.5.6 and 5.7.6B, available at https://www.bea.gov/iTable/index_nipa.cfm as of June 2018.

Transportation’s Contribution to the Economy  2-3

 • net exports (exports minus imports) related 2016 resulted from a 7.3 percent decline in private
to transportation goods and services (-$149.9 investment — the first year of decline in private
billion, or -10.1 percent); and investment since steadily rising from the 2009
low.
• the change in retailers’ inventories of motor
vehicles and parts ($8.8 billion, or 0.6 percent).
Demand for Transportation Compared to Other
Transportation-related final demand grew from Goods and Services
1999 (first year for which data are available)
Transportation-related final demand can be
through 2016 by 10.0 percent (from $1,354.4 to
compared to the demand for other goods
$1,489.7 billion chained 2009 dollars) despite
and services, such as housing and healthcare.
a significant decline during the December
Figure 2-2 compares transportation-related final
2007 to June 2009 Great Recession (figure 2-1).
demand to the demand for five other categories
Transportation-related final demand fell 15.6
of goods and services (healthcare, housing, food,
percent (from $1,392.6 billion to $1,175.6 billion
education, and all other goods and services).3 In
chained 2009 dollars) during the 2007 to 2009
2016 transportation continued to be the fourth
recession, falling to its lowest level since 1999
largest expenditure category, amounting to
in 2009. The sharp decline during that recession
$1,662 billion, or 8.9 percent, of total U.S. GDP.
effectively erased 10 years of growth in final
Housing is the largest expenditure category at
demand. Transportation-related final demand
19.3 percent of final demand, slightly more than
recovered in 2014 when it rose above the pre-
twice the size of transportation.
recession high.
The right side of figure 2-2 shows the
The decline in transportation-related final
expenditures for goods and services by category
demand during the recession affected private
from 1991 to 2016. Transportation-related final
investment and personal consumption
demand decreased during the recession from
expenditures more than other categories. Imports
9.6 percent of total final demand in 2007 to 8.3
often decrease during economic declines, and in
percent in 2009, grew from 2009 to 9.8 percent
2009 they decreased to the point that exports of
in 2012, and remained at 9.8 percent in 2013. The
transportation goods and services nearly equaled
share of transportation expenditures fell from
imports. After 2009 imports rose and, once again,
2013 to 2016 due to a larger rise in the demand
exceeded the value of exports. Government
for housing. In absolute dollars, transportation
transportation-related purchases peaked in 2003,
expenditures grew 38.0 percent from 2009 (the
and then declined steadily to $287.4 billion (in
lowest level reached during the Great Recession)
chained 2009 dollars) in 2008. They then rose
to 2013 and then by 1.0 percent from 2013 to 2016.
in 2009 and 2010 as the government increased
spending in response to the recession and to The demand for goods and services does not
declines in private sector investment. provide a full picture of the contribution of
transportation to the economy. The data allow us
Total transportation-related final demand
to measure demand as expenditures on goods
increased following the recession, surpassing
and services. Expenditures may increase due to a
the 2007 peak in 2014 and continued to climb
greater quantity purchased and/or an increase in
through 2016. However, transportation-related
the price of the purchased good or service. The
final demand grew only slightly (0.2 percent) from
two effects cannot be separated to determine the
2015 to 2016. The 0.2 percent growth from 2015
underlying reason for an increase in expenditures
to 2016 marked a sharp contrast to the growth of
2.9 percent or more following the 2007 to 2009 3
“Other” includes expenditures on entertainment, personal
recession. The slow growth between 2015 and care, and payments to pension plans.

2-4  Transportation Economic Trends

Figure 2-2  Final Demand for Goods and Services by Category, 2016
Total GDP = $18.6 trillion
45%
Other
40%
Housing 35%
19.3%
30%
Other 25%
39.1%
2016 Healthcare 20%
Housing
16.5% Healthcare
15%
Food
10%
Food
9.7% 5%
Education Transportation
0%
Education
91
93
95
97
99
01
03
05
07
09
11
13

20 5
16
1
19
19
19
19
19
20
20
20
20
20
20
20
20
6.6% Transportation
8.9%

NOTES: 2016 data are latest available. Shaded areas indicate economic recessions.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics, table 3-9, available at
www.bts.gov.

— whether due to an increase in price for the much end users spend on transportation goods
same amount of goods and services or from an and services, the production approach measures
increase in the quantity purchased. Additionally, the contribution of transportation services
demand, as measured by expenditures, does produced by transportation industries to the
not adequately measure the amount needed economy. It does not include the contribution of
to support economic activity. For example, if transportation-related goods, such as fuel used
spending on transportation infrastructure falls for transportation, due to a lack of available data.
below the level needed to maintain the system,
then the measure underestimates the amount of For-Hire Transportation Services Produced in
spending needed. the Economy
For-hire transportation services consist of air, rail,
Contribution of Transportation Services truck, passenger and ground transportation,
Produced: Value-Added pipeline, and other support services that
transportation firms (e.g., transit agencies and
The production approach, also known as the
common carrier trucking companies) provide
value-added approach, captures the role of
to industries and the public on a fee basis. The
transportation in producing goods and services
contribution of for-hire transportation to GDP can
and the contribution of each industry to the
be measured using the production, also known as
economy as measured by GDP. Value-added (box
the value-added, approach (box 2-1).
2-1) is the contribution of an industry to GDP, as
measured by total output (i.e., industry revenue) Figure 2-3 shows how much for-hire
less the cost of inputs, such as fuel and other transportation services and other industries
materials used in production. The value-added contribute to GDP. Transportation ranks as the
by all industries sum to the total GDP. While the 13th largest contributor to GDP among the 18
previously described method measures how industries in 2016.

Transportation’s Contribution to the Economy  2-5

 Figure 2-3  Contribution to Gross Domestic Product (GDP) by Industry, 2017
Finance, insurance, real estate, rental, and leasing 19.3%
Professional and business services 12.5%
Government, state and local 8.3%
Educational services, health care, and social assistance 8.2%
Manufacturing, durable goods 6.6%
Retail trade 6.1%
Wholesale trade 6.0%
Information 5.6%
Manufacturing, nondurable goods 4.9%
Transportation and
All other sectors Government, federal 3.9%
warehousing
97.2% Construction 3.8%
2.7%
Arts, entertainment, recreation, accommodation, and food services 3.8%
Transportation and warehousing 2.8%
Mining 2.2%
Other services, except government 2.0%
Utilities 1.6%
Agriculture, forestry, fishing, and hunting 0.9%
Transportation and warehousing 2.8%

SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, GDP by Industry table “Real Value-Added by Industry (A) (Q),” avail-
able at www.bea.gov/iTable/index_industry_gdpIndy.cfm.

Figure 2-4 shows for-hire transportation a state GDP depends on the state’s geography,
services’ contribution (value-added) to GDP by population density, mix of industries, and
transportation industries from 1997 to 2017. In location of transportation hubs. For example,
2017 the three transportation industries with the Nebraska has a major national rail hub in Omaha,
largest contributions were trucking ($155.5 billion, and the third-highest percentage of GDP from
0.80 percent of GDP), other transportation and transportation and warehousing of any state
support activities ($129.9 billion, 0.67 percent), and in the country (7.2 percent of Nebraska’s GDP
air ($108 billion, 0.56 percent).4 The transportation in 2017). States with larger total GDPs, such as
industries that grew as a percentage of GDP from California ($2.7 trillion) and Texas ($1.70 trillion),
1997 to 2017 include warehousing and storage also have large transportation and warehousing
(from 0.24 to 0.33 percent), pipelines (from 0.08 activities—$69.2 and $60.0 billion, respectively.
to 0.15 percent, with peaks of 0.15 percent in 2001 Because other economic activities are larger
and 2017), water (0.08 to 0.09 percent), and transit in California and Texas, transportation and
warehousing services represent a small share of
and ground passenger (from 0.18 to 0.20 percent).
their total GDP (figure 2-5).
However, the industries with a larger share of
GDP decreased, including trucking (from 0.90 to
0.80 percent) and air (from 0.62 to 0.56 percent). In-house Transportation and Household
Rail contributed the same percent in 2017 as in Services Produced in the Economy
1997 (0.23 percent), a slight decline from its peak Measuring only for-hire transportation services
contribution of 0.27 percent in 2014. understates the transportation component of
GDP. Many industries produce transportation
Production of For-Hire Transportation Services services for their own use and these services,
by State with few exceptions, are not included in for-hire
measure. The transportation services produced
The amount produced by the for-hire by non-transportation industries for their own
transportation industry and its contribution to use are known as in-house transportation, for
instance, a grocery chains operating its own
4
Other transportation and support activities includes scenic
and sightseeing transportation and support activities for truck fleet to move food from distribution
transportation and couriers and messengers. centers to stores.

2-6  Transportation Economic Trends

Figure 2-4  For-Hire Transportation and Warehousing’s Contribution to GDP by Industry
      (percent)
Contribution to 2017 GDP ($19.4 trillion)

Truck transportation $155.5B (0.8%)

Other transportation and support activities $129.9B (0.67%)

Air transportation $108B (0.56%)

Warehousing and storage $64.1B (0.33%)

Rail transportation $45.5B (0.23%)

Transit and ground passenger transportation $38.8B (0.20%)

Pipeline transportation $29.2B (0.15%)

Water transportation $18B (0.09%)

Truck Other transportation and support activities

1.5% 0.8%
0.6%
1.0%
0.4%
0.5%
0.2%
0.0% 0.0%
1997 2000 2003 2006 2009 2012 2015 1997 2000 2003 2006 2009 2012 2015

Air Warehousing and storage

0.8% 0.4%
0.6% 0.3%
0.4% 0.2%
0.2% 0.1%

0.0% 0.0%
1997 2000 2003 2006 2009 2012 2015 1997 2000 2003 2006 2009 2012 2015

Rail Transit
0.3% 0.3%

0.2% 0.2%

0.1% 0.1%

0.0% 0.0%
1997 2000 2003 2006 2009 2012 2015 1997 2000 2003 2006 2009 2012 2015

Pipeline Water
0.2% 0.2%

0.1% 0.1%

0.0% 0.0%
1997 2000 2003 2006 2009 2012 2015 1997 2000 2003 2006 2009 2012 2015

NOTES: Data are from the value-added by industry table of the BEA Industry Economic Accounts. Data for Transportation and
Warehousing is Line 40, and for individual modes are in Lines 41 through 48. Current-dollar data appear in National Transporta-
tion Statistics, table 3-1.
SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, GDP by Industry, Value-Added by Industry Table (April
19, 2018 release), available at www.bea.gov as of June 2018.

Transportation’s Contribution to the Economy  2-7

 Figure 2-5  State Gross Domestic Product from Transportation and Warehousing as a
      Percent of State Total Gross Domestic Product, 2016

WA

ME
MT ND

OR VT
MN
NH
ID NY
SD WI MA
MI CT
WY RI
NJ
IA PA
NE
NV OH MD DE
UT IL IN
CA CO WV
VA DC
KS MO
KY

NC
TN
AZ OK
NM AR SC
5.0% or more
MS AL GA 4.0 to 4.9%
3.0 to 3.9%
TX
LA 2.0 to 2.9%
Less than 2.0%

FL

AK

Miles Miles Miles

HI
0 250 0 100 0 200

SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, “Regional GDP & Personal Income,” available at www.bea.
gov/iTable/index_regional.cfm.

BTS developed the Transportation Satellite on the TSAs. The colors within the slice show
Accounts (TSAs, see box 2-2) to estimate the the relative shares of for-hire (3.0 percent), in-
contribution of in-house transportation services house (0.9 percent), and household (1.8 percent)
to the economy. The TSAs also show the transportation’s contribution to the total GDP in
contribution of transportation carried out by 2016. That year for-hire transportation services
households using household vehicles. The TSAs contributed $562.4 billion (3.0 percent) to a GDP
thereby provide a more comprehensive measure of $19.0 trillion.5 Transportation services (air, rail,
of the size and role of transportation services in truck, and water) provided by non-transportation
the economy than measures that capture only the industries for their own use contributed an
contribution of for-hire transportation. additional $172.3 billion (0.9 percent) to GDP.6

In 2016, the latest year for which comprehensive

5
The GDP value in the TSAs is larger than the GDP value pub-
lished in the national income and product accounts because
data are available, BTS estimates transportation it includes the contribution of household transportation.
(for-hire, in-house, and household) services’ Household transportation covers transportation provided by
total GDP contribution at $1,066.9 billion (figure households for their own use with household vehicles.

2-6). The pie chart in figure 2-6 represents total

6
Large retailers, such as Walmart and Target, are captured
in for-hire transportation services even though these are
GDP, and the tri-colored slice shows the portion actually in-house transportation services provided by a
contributed by transportation services based non-transportation industry for their own use.

2-8  Transportation Economic Trends

 Box 2-2  What are the Transportation Satellite Accounts (TSAs)?
Satellite industry accounts expand on the national income use—for example, a baker’s delivery truck. Business
and product accounts and the input-output accounts and in-house transportation includes privately owned
supplement these accounts by focusing on one aspect of and operated vehicles of all body types, used primari-
economic activity. The TSAs capture transportation activ- ly on public rights of way, and the support services to
ities carried out by non-transportation industries for their store, maintain, and operate those vehicles.
own purposes and transportation activities carried out by
• Household transportation covers transportation
households using a household vehicle.
provided by households for their own use using a
The TSAs show the contribution of for-hire, in-house, and vehicle, measured by the depreciation cost associat-
household transportation services: ed with household ownership of motor vehicles. Air
passenger travel is included in for-hire air transpor-
• For-hire transportation consists of the air, rail, truck,
tation. The time that households spend operating a
passenger and ground transportation, pipeline, and
private motor vehicle for personal use is not included
other support services provided by transportation
because it is outside the scope of the U.S. Input-Out-
firms such as railroads, transit agencies, trucking
put (I-O) accounts on which the TSAs are built. The
companies, and pipelines, to industries and the pub-
I-O accounts, by design, do not include unpaid labor,
lic on a fee basis.
volunteer work, and other non-market production.
• In-house transportation consists of air, rail, water, and
truck services produced by businesses for their own

Figure 2-6  Gross Domestic Product (GDP) Attributed to Transportation Types and
      Modes, 2016
Total transportation
($1,066.9 billion)

For-hire In-house Household

Enhanced GDP = $19.0 trillion
Truck $147.2 $141.0
Total for-hire
2.97% Other $251.9
All other US GDP
94.37% Total in-house Air $104.2 $28.2
0.91%
Rail $42.7 $0.3
Household
Water $16.5 $2.8
1.75%

Households $332.2

$0 $50 $100 $150 $200 $250 $300

Billions
NOTE: For information on the methodology behind the Transportation Satellite Accounts (TSAs) see box 2-5. The GDP value in the TSAs
(referred to as enhanced GDP) is larger than the GDP value published in the National Accounts, because it includes the contribution of
household transportation. “Household transportation” covers transportation that households provide for themselves with vehicles. “Other”
includes: pipeline, transit, and ground passenger transportation, including State and local government passenger transit; sightseeing
transportation and transportation support; courier and messenger services; and warehousing and storage). 2016 data are latest available.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Transportation Satellite Accounts, available at https://
www.bts.gov/satellite-accounts.

Transportation’s Contribution to the Economy  2-9

 Household transportation (i.e., the depreciation Transportation Used by Industries
cost associated with households owning motor
The TSAs show the amount of transportation
vehicles) contributed $332.2 billion (1.8 percent)
services required by non-transportation industries
to GDP. 7
to produce various goods and services. Figure
The bars in figure 2-6 show transportation’s 2-7 shows the value of for-hire and in-house
contribution to GDP by type (for-hire, in-house, transportation services used by seven major
or household transportation) and by mode. Total industries. Wholesale and retail trade uses the
household transportation’s contribution to GDP largest amount of transportation services at
was larger, at $332.2 billion, than any of the other
$277.9 billion, followed by information and
transportation modes. Trucking contributed the
services at $246.5 billion and manufacturing at
second largest amount, at $288.2 billion. In-house
$201.1 billion.
truck transportation operations contributed
$141.0 billion, while for-hire truck transportation
services contributed $147.2 billion. Air contributed Figure 2-7  Use of For-Hire and In-House
      Transportation by Industry
a total of $132.4 billion, comprising $104.2 billion
      Sector, 2016 (billions of dollars)
of for-hire services and $28.2 billion of in-house
Natural resources
services; rail contributed $42.9 billion, comprising and mining Utilities
$42.7 billion of for-hire services and $0.3 billion Construction
$32.2 $18.9

of in-house services; and water contributed $19.2 $44.8

billion, comprising $16.5 billion of for-hire services

and $2.8 billion of in-house services.

Use of Transportation Services by Government

Industries $129.5 Wholesale and retail trade
$277.9
Transportation services indirectly contribute
to the economy by enabling the production
of goods and services by non-transportation
industries. Specifically, industries rely on Manufacturing
$201.1
transportation services as well as transportation
Information and services
infrastructure, such as roadways, shipping $246.5
channels, and rail lines, to access supplies and
customers. Additionally, workers in each industry
use transportation to reach their workplace.
This section presents data on the amount of NOTE: 2016 data are latest available.
transportation used by non-transportation SOURCE: U.S. Department of Transportation, Bureau of Transpor-
industries and the amount required by these tation Statistics, Transportation Satellite Accounts, available at
https://www.bts.gov/satellite-accounts.
industries to produce a dollar of goods and/or
services.
In the wholesale and retail trade industry, in-
7
In the TSAs, BTS measures the contribution of household house transportation accounts for 51.1 percent
transportation to GDP as the depreciation of automo-
biles and does not include the value of time spent driving of the $277.9 billion total transportation services
because it is out of scope of the U.S. Input-Output (I-O) used (figure 2-8). In-house transportation also
accounts on which the TSAs are built. The I-O accounts, by
design, do not include unpaid labor, volunteer work, and
represents a large portion of transportation
other non-market production. services used in natural resources/mining (30.4

2-10  Transportation Economic Trends

Figure 2-8  Use of For-hire and In-house Transportation by Industry Sector and Mode, 2016
      (billions of dollars)
$300
In-house air, rail, truck, and water For-hire air, rail, truck, and water
$250
Other for-hire transportation For-hire pipeline
$200
Billions

$150

$100

$50

$0
Wholesale Services Manufacturing Government Construction Natural Utilities
and retail resources
trade and mining
NOTES: “Services” includes information, financial services, professional and business services, education and health services, leisure and hospi-
tality, and all other services. Other for-hire transportation includes pipeline, transit, and ground passenger transportation, including State and
local government passenger transit; sightseeing transportation and transportation support; courier and messenger services; and warehous-
ing and storage). 2016 data are latest available.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Transportation Satellite Accounts, available at https://
www.bts.gov/satellite-accounts.

percent of $32.2 billion), construction (43.7 BTS further discusses transportation’s role in
percent of $44.8 billion), and government the seven major industry sectors in Industry
(51.5 percent of $129. 5 billion). Other sectors, Snapshots: Uses of Transportation 2017, available at
like manufacturing, rely more on for-hire https://www.bts.gov/product/industry-snapshots.
transportation services. In the manufacturing
sector, for-hire transportation accounts for 75.4
percent of the $201.1 billion total transportation
services used.

Transportation Required Per Dollar of Output by

Sector
Looking at the amount of transportation services
required to produce each dollar of output shows
how much a sector depends on transportation
services (figure 2-9). In 2016 the wholesale and
retail trade sector continues to require more
transportation services to produce one dollar
of output than any other sector. It required 9.0
cents of transportation services to produce
one dollar of output—4.6 cents of in-house
transportation operations, and 4.4 cents of for-
hire transportation services.

Transportation’s Contribution to the Economy  2-11

Figure 2-9  Transportation Required Per Dollar of Output by Sector, 2016

Wholesale and retail trade

Utilities

Natural resources and mining

Government

Manufacturing

Construction

Leisure and hospitality

Other for-hire transportation
Professional/ business services For-hire air, rail, water, truck transportation
In-house air, rail, water, truck transportation
Other services

Education and health services

Information

Financial services

0 1 2 3 4 5 6 7 8 9

Cents required per dollar of output

NOTES: Other for-hire transportation includes: pipeline, transit and ground passenger transportation, including State and local government
passenger transit; sightseeing transportation and transportation support; courier and messenger services; and warehousing and storage).
2016 data are latest available.
SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Transportation Satellite Accounts, available at https://
www.bts.gov/satellite-accounts.