Throughout its 200-year history, the Philadelphia Naval Shipyard has been a major economic driver for the region, employing 40,000 people at its peak during World War II. In the early 1990’s, the defense Base Realignment and Closure Commission recommended closure of the yard. Since then, Philadelphia Industrial Development Corporation (PIDC) has taken strategic steps to proactively ensure the future of the Navy Yard, transforming it to support a new diversity of enterprises. PIDC engaged ESI to demonstrate the economic and fiscal impacts that the transformation has had on Philadelphia and Pennsylvania.
ESI’s research team completed the analysis using IMPLAN’s input-output model which required: gathering data on capital investments, operational expenditures, and employment; assessing direct, indirect, and induced economic impacts; estimating tax revenues generated from personal income, sales, and business taxes; and scenario modeling to evaluate the impact of ongoing operations and future redevelopment projects.
Key Findings: The Navy Yard witnessed significant job growth, with employment increasing by 178% from 2004 to 2020. Annual operations added approximately $2.6 billion in value to the Philadelphia economy.
Impact on Client Decision-Making: The results informed PIDC’s strategic planning and investment decisions, highlighting the Navy Yard’s role as a major employment hub and economic driver.
Quantifiable Results: The analysis found that the Navy Yard supported 25,300 FTE jobs in Philadelphia and generated $71.9 million in annual tax revenue for the city.
The project led to ongoing collaboration with PIDC, with long-term recommendations for continued investment and development at the Navy Yard. Future projects include the redevelopment of the Mustin and Historic Core areas, expected to create over 9,900 new jobs and generate significant economic activity.
ESI’s final report to PIDC, “Philadelphia Navy Yard Economic and Fiscal Impact Analysis,” was provided as a presentation that was given to stakeholders within the organization, the City of Philadelphia, and Pennsylvania.
