U.S. Transportation Satellite Accounts for 1996.

Fang, Bingsong ; Han, Xiaoli ; Okubo, Sumiye 等

THIS article presents estimates of the transportation satellite accounts (TSA's) for 1996, which update the 1992 TSA's.(1) Like the 1992 TSA's, the 1996 TSA's are based on, and are an extension of, the input-output (I-O) accounts; they are constructed by rearranging the I-O data and by adding information from other sources of transportation data. The TSA's were developed jointly by the Bureau of Transportation Statistics of the U.S. Department of Transportation and the Bureau of Economic Analysis.

The TSA's identify and aggregate detailed estimates on transportation activities and present the estimates by industry and by commodity. This information can provide answers to such questions as "what is the contribution of transportation to gross domestic product?"; "what industries are large users of transportation?"; and "what are the inputs required by transportation from other industries?" Using the TSA estimates is advantageous for transportation analyses because transportation activities in the TSA's include those conducted on a for-hire basis, which are identified as transportation within the published I-O accounts, and those conducted by businesses for their own use (own-account transportation), which--although included--are not separately identified as transportation in the I-O accounts. Own-account transportation covers activities such as transporting goods from a grocery company's warehouses to its retail outlets by the company's truck fleet and local delivery services provided by small retailers.

The TSA's treat own-account transportation as a separate industry with gross output equal to the sum of its intermediate inputs and value-added components. Because own-account transportation activities that are included as part of the production process in the I-O accounts are treated as if they were market transactions in the TSA's, the total gross output for all industries is larger in the TSA's than that in the I-O accounts. However, the TSA estimate of own-account transportation does not change the total estimate of gross domestic product (GDP) from the I-O accounts, because the value added that is created through own-account transportation activities is already counted in the I-O estimates of industry value added, and the TSA's only reclassify this value added as transportation related.

Using the more comprehensive measures of transportation and the statistical framework developed for the 1992 TSA's, as well as more recent data where available, the 1996 TSA's present an updated snapshot of transportation's changing role in the U.S. economy, particularly in the business sector. From 1992 to 1996, transportation grew more slowly than the overall economy, primarily as a result of relative differences among industries in their intensity of transportation use, in their growth of gross output, and in their changes in intensity of transportation use. Highlights include the following:

* GDP grew more than 25 percent, while the value added that was contributed to GDP by transportation activities--both own-account and for-hire--grew 21 percent. As a result, the share of the value added from all transportation activities in GDP decreased slightly from 5.0 percent in 1992 to 4.8 percent in 1996.

* The five slowest growing industries, which grew at an average rate of 22 percent in 199296, required 4.0 cents of transportation per dollar of their output in 1996. In contrast, the five fastest growing industries, which grew at an average rate of 31 percent, required only 2.9 cents of transportation per dollar of their output.

* Own-account transportation grew more slowly than for-hire transportation in 199296. Gross output of own-account transportation increased 21 percent, while gross output of for-hire transportation increased 24 percent. Similarly, value added from own-account transportation increased 17 percent, compared with a 23-percent increase in for-hire transportation.

Interpreting the above results requires an understanding of the decision processes used by businesses in choosing between buying for-hire transportation services or providing own-account transportation services internally. For example, a business must consider the rental cost and the purchase cost of transportation equipment, operating costs, frequency of service required, size of geographic area covered, special requirements such as refrigeration, availability of alternative means of transportation, and the compatibility between transportation operations and other business activities. Thus, aggregate estimates from the TSA's should be supplemented by more detailed industry data to achieve a better understanding of business transportation choices.

Although the TSA's provide a more comprehensive classification of transportation activities, the TSA estimates still understate the true economic importance of transportation. First, because of data limitations, own-account transportation by modes other than trucks and buses and by most government enterprises are not included.(2) Second, because the current TSA framework maintains the production boundary in the I-O accounts, own-account transportation activities conducted by final users--the use of motor vehicles by households and by general government--are not included. Research on the valuation of motor vehicle services by households and by general government is currently under way, and estimates of these types of own-account transportation are being considered for future inclusion in the TSA's. Third, the estimates of own-account transportation exclude profits because information to make such estimates is not available. Thus, during a period of rising (declining) profit margins, the growth of own-account transportation tends to be understated (overstated).

The 1996 TSA's are presented in four tables: The make table shows the commodities that are produced by each industry (table 1); the use table shows the inputs to industry production and the commodities that are consumed by the final users (table 2); the direct requirements table shows the amount of a commodity that is required by an industry to produce a dollar of the industry's output (table 3); and the total requirements table shows the production that is required, directly and indirectly, from each industry to deliver a dollar of a commodity to final users (table 4). Like the 1992 TSA's, the four basic tables in the 1996 TSA's show own-account transportation as a separate industry and a separate commodity.

Table 1.-- The TSA Make of Commodities by Industries, 1996

[Millions of dollars at producer's prices]

 Commodity

 Agri- Con- Manu-
 culture, Mining struction facturing
 forestry,
 and
 Industry fisheries

Agriculture,
 forestry,
 and fisheries 287,694 0 0 1,171
Mining 0 162,445 0 10,834
Construction 0 0 867,665 0
Manufacturing 0 0 0 3,580,895
Railroads and
 related
 services;
 passenger
 transportation,
 except transit 0 0 0 0
Motor freight
 transportation
 and warehousing 0 0 0 0
Water
 transportation 0 0 0 0
Air transportation 0 0 0 0
Pipelines,
 freight
 forwarders,
 and related
 services 0 0 0 0
State and local
 passenger
 transit 0 0 0 0
Own-account
 transportation(1) 0 0 0 0
Communications and
 utilities 0 0 0 0
Wholesale and
 retail trade 0 0 0 0
Finance, insurance,
 and real estate 0 0 0 0
Services 0 0 0 0
Other(2) 0 0 0 0
Total commodity
 output 287,694 162,445 867,665 3,592,909

 Commodity

 Transportation

 Railroad Motor-
 and freight
 passen- and Water Air
 ger ware-
 ground housing
 Industry

Agriculture,
 forestry,
 and fisheries 0 0 0 0
Mining 0 0 0 0
Construction 0 0 0 0
Manufacturing 0 0 0 0
Railroads and
 related
 services;
 passenger
 transportation,
 except transit 68,494 196 0 0
Motor freight
 transportation
 and warehousing 0 197,995 0 0
Water
 transportation 0 0 34,825 0
Air
 transportation 0 0 0 118,316
Pipelines,
 freight
 forwarders,
 and related
 services 688 1,675 246 3,340
State and local
 passenger
 transit 6,983 0 0 0
Own-account
 transportation(1) 0 0 0 0
Communications and
 utilities 0 0 0 0
Wholesale and
 retail trade 0 0 0 0
Finance,
 insurance,
 and real estate 0 0 0 0
Services 0 22 0 0
Other(2) 118 0 1,748 2,688
Total
 commodity output 76,283 199,889 36,820 124,344

 Commodity

 Transportation

 Pipe-
 lines
 and Own- Communi- Whole
 freight account cations sale and
 for transpor- and retail
 warders tation trade trade
 Industry

Agriculture,
 forestry,
 and fisheries 0 0 0 0
Mining 0 0 0 0
Construction 0 0 0 0
Manufacturing 0 0 48 0
Railroads
 and related
 services;
 passenger
 transportation,
 except transit 0 0 0 0
Motor freight
 transportation
 and warehousing 0 0 14,493 0
Water
 transportation 0 0 0 0
Air transportation 0 0 0 0
Pipelines,
 freight
 forwarders,
 and related
 services 35,703 0 0 0
State and local
 passenger
 transit 0 0 0 0
Own-account
 transportation(1) 0 199,652 0 0
Communications and
 utilities 0 0 620,361 0
Wholesale and
 retail trade 0 0 0 1,453,546
Finance, insurance,
 and real estate 0 0 0 0
Services 58 0 2 2
Other(2) 0 0 56,112 3,656
Total
 commodity output 35,761 199,652 691,013 1,457,204

 Commodity

 Finance
 insur- Total
 ance, Services Other(2) industry
 and real output
 estate

 Industry

Agriculture,
 forestry,
 and fisheries 0 1,510 0 290,321
Mining 0 0 0 173,279
Construction 0 0 0 867,665
Manufacturing 0 83,357 1,702 3,666,001
Railroads and
 related
 services;
 passenger
 transportation,
 except transit 0 0 5 68,695
Motor freight
 transportation
 and warehousing 0 0 0 212,488
Water
 transportation 0 0 0 34,825
Air transportation 0 0 0 118,316
Pipelines,
 freight
 forwarders,
 and related
 services 0 0 0 41,653
State and local
 passenger transit 0 0 0 6,983
Own-account
 transportation(1) 0 0 0 199,652
Communications and
 utilities 0 39,328 1,007 660,696
Wholesale and
 retail trade 0 1 0 1,453,547
Finance,
 insurance,
 and real estate 2,102,188 46,054 0 2,148,241
Services 889 2,960,141 621 2,961,642
Other(2) 11,943 3,419 1,005,370 1,085,107
Total commodity
 output 2,155,020 3,133,709 1,008,705 13,989,110

(1.) "Own-account transportation" includes transportation by truck and bus provided by nontransportation industries for their own use.

(2.) "Other" consists of government enterprises (except State and local government passenger transit) and other input-output I-O) special industries. For a description of I-O special industries, see Ann M. Lawson, "Benchmark Input-Output Accounts for the U.S. Economy, 1992: Make, Use, and Supplementary Tables," SURVEY OF CURRENT BUSINESS 77 (November 1997): 46--47

[TABULAR DATA 2 NOT REPRODUCIBLE IN ASCII]

Table 3.--The TSA Commodity-by-Industry Direct Requirements, 1996

[Direct requirements per dollar of industry output, at producers' prices]

 Industry

 Agri-
 Commodity culture,
 forestry, Mining Con-
 and struction
 fisheries

Agriculture, forestry, and
 fisheries 0.23714 0.00034 0.00549
Mining 0.00123 0.17526 0.00742
Construction 0.01084 0.02023 0.00082
Manufacturing 0.15959 0.07668 0.29931
Railroads and related
 services; passenger
 ground transportation,
 except transit 0.00624 0.00644 0.00175
Motor freight transporta-
 tion and warehousing 0.01407 0.00658 0.01512
Water transportation 0.00127 0.00050 0.00029
Air transportation 0.00239 0.00245 0.00141
Pipelines, freight
 forwarders, and related
 services 0.00039 0.00011 0.00000
Own-account
 transportation(1) 0.05221 0.02118 0.05571
Communications and
 utilities 0.01525 0.05601 0.00507
Wholesale and retail trade 0.04563 0.01918 0.08259
Finance, insurance, and
 real estate 0.07087 0.13604 0.01601
Services 0.02495 0.03011 0.09139
Other(2) 0.00068 0.00601 0.00094
Total value added 0.35726 0.44288 0.41566
Total output 1.00000 1.00000 1.00000

 Industry

 Transportation

 Commodity Railroad Motor
 Manu- and freight
 facturing passen- and
 ger ware-
 ground housing

Agriculture, forestry, and
 fisheries 0.03979 0.00002 0.00002
Mining 0.03213 0.00300 0.00000
Construction 0.03669 0.04796 0.00496
Manufacturing 0.35839 0.12970 0.07191
Railroads and related
 services; passenger
 ground transportation,
 except transit 0.00460 0.04312 0.00210
Motor freight transporta-
 tion and warehousing 0.01554 0.00728 0.18522
Water transportation 0.00041 0.00529 0.00536
Air transportation 0.00385 0.00391 0.00867
Pipelines, freight
 forwarders, and related
 services 0.00131 0.00757 0.03110
Own-account
 transportation(1) 0.00609 0.00000 0.00000
Communications and
 utilities 0.01987 0.01076 0.03151
Wholesale and retail trade 0.06210 0.03670 0.03424
Finance, insurance, and
 real estate 0.01693 0.02834 0.03970
Services 0.05855 0.07336 0.10057
Other(2) 0.00848 0.00628 0.00719
Total value added 0.36526 0.60472 0.47747
Total output 1.00000 1.00000 1.00000

 Industry

 Transportation

 Pipe- State
 Commodity lines and
 and local
 Water Air freight passen-
 for- ger
 warders transit

Agriculture, forestry, and
 fisheries 0.00018 0.00001 0.00000 0.00043
Mining 0.00016 0.00000 0.00416 0.00000
Construction 0.00122 0.00203 0.01350 0.27667
Manufacturing 0.09003 0.12589 0.04220 0.54878
Railroads and related
 services; passenger
 ground transportation,
 except transit 0.00048 0.00130 0.00091 0.02105
Motor freight transporta-
 tion and warehousing 0.00251 0.00234 0.00586 0.01074
Water transportation 0.19277 0.00044 0.00131 0.00172
Air transportation 0.00176 0.06085 0.00621 0.00129
Pipelines, freight
 forwarders, and related
 services 0.04681 0.08535 0.02344 0.00401
Own-account
 transportation(1) 0.00500 0.00000 0.00000 0.00000
Communications and
 utilities 0.00570 0.01414 0.04173 0.07833
Wholesale and retail trade 0.01396 0.01587 0.00981 0.07661
Finance, insurance, and
 real estate 0.05557 0.03005 0.05296 0.01905
Services 0.16648 0.08535 0.22859 0.02893
Other(2) 0.09936 0.07504 0.01253 0.00057
Total value added 0.32202 0.50133 0.55679 -0.08616
Total output 1.00000 1.00000 1.00000 1.00000

 Industry

 Transportation

 Commodity Communi- Whole-
 Own- cations sale and
 account and retail
 transpor- utilities trade
 tation(1)

Agriculture, forestry, and
 fisheries 0.00000 0.00015 0.00093
Mining 0.00030 0.09052 0.00002
Construction 0.00430 0.05316 0.00708
Manufacturing 0.09785 0.04080 0.04317
Railroads and related
 services; passenger
 ground transportation,
 except transit 0.00143 0.00873 0.00096
Motor freight transporta-
 tion and warehousing 0.00569 0.00196 0.00330
Water transportation 0.00056 0.00091 0.00005
Air transportation 7.00000 0.00292 0.00419
Pipelines, freight
 forwarders, and related
 services 0.00086 0.00154 0.00030
Own-account
 transportation(1) 0.00005 0.00196 0.03775
Communications and
 utilities 0.02621 0.11804 0.03150
Wholesale and retail trade 0.03839 0.00867 0.02013
Finance, insurance, and
 real estate 0.01026 0.02622 0.06495
Services 0.09978 0.10763 0.12111
Other(2) 0.00344 0.01558 0.01055
Total value added 0.71114 0.52121 0.65400
Total output 1.00000 1.00000 1.00000

 Industry

 Commodity Finance,
 insur- Services Other(2)
 ance,
 and real
 estate

Agriculture, forestry, and
 fisheries 0.00435 0.00321 0.00042
Mining 0.00000 0.00001 0.00233
Construction 0.03109 0.00826 0.01915
Manufacturing 0.00880 0.10005 0.01132
Railroads and related
 services; passenger
 ground transportation,
 except transit 0.00067 0.00130 0.00117
Motor freight transporta-
 tion and warehousing 0.00295 0.00392 0.00223
Water transportation 0.00000 0.00004 0.00212
Air transportation 0.00201 0.00394 0.00164
Pipelines, freight
 forwarders, and related
 services 0.00003 0.00051 0.00003
Own-account
 transportation(1) 0.00059 0.01753 0.00076
Communications and
 utilities 0.01628 0.02532 0.00965
Wholesale and retail trade 0.00222 0.02050 0.00188
Finance, insurance, and
 real estate 0.15136 0.07016 0.00586
Services 0.07244 0.14286 0.00906
Other(2) 0.01288 0.00838 0.00261
Total value added 0.69432 0.59403 0.92980
Total output 1.00000 1.00000 1.00000

(1.) "Own-account transportation" includes transportation by truck and bus provided by nontransportation industries for their own use.

(2.) "Other" consists of government enterprises (except State and local government passenger transit) and other input-output (I-O) special industries. For a description of I-O special industries, see Ann M. Lawson, "Benchmark Input-Output Accounts for the U.S. Economy, 1992: Make, Use, and Supplementary Tables," SURVEY OF CURRENT BUSINESS 77 (November 1997): 46-47.

Table 4.--TSA Industry-by-Commodity Total Requirements, 1996

[Total requirements, direct and indirect, per dollar of delivery to final demand, at producers' prices]

 Industry

 Agri-
 Industry culture
 forestry, Mining Con-
 and struction
 fisheries

Agriculture, forestry, and
 fisheries 1.33365 0.01384 0.03765
Mining 0.02417 1.23138 0.03657
Construction 0.02783 0.04057 1.01339
Manufacturing 0.40068 0.21234 0.54968
Railroads and related services;
 passenger ground transporta-
 tion, except transit 0.01061 0.00962 0.00536
Motor freight transportation and
 warehousing 0.03453 0.01931 0.03318
Water transportation 0.00254 0.00118 0.00103
Air transportation 0.00657 0.00554 0.00565
Pipelines, freight forwarders,
 and related services 0.00379 0.00231 0.00316
State and local passenger
 transit 0.00108 0.00098 0.00054
Own-account transportation(1) 0.07996 0.03422 0.07075
Communications and utilities 0.04375 0.08526 0.03570
Wholesale and retail trade 0.09814 0.04749 0.13095
Finance, insurance, and real
 estate 0.14649 0.22065 0.07100
Services 0.11090 0.10059 0.17917
Other(2) 0.01574 0.02497 0.01548
Total Industry output multiplier 2.34043 2.05023 2.18927

 Industry

 Transportation

 Industry Railroad Motor
 Manu- and freight
 facturing passen- and
 ger ware-
 ground housing

Agriculture, forestry, and
 fisheries 0.08823 0.02079 0.01263
Mining 0.07647 0.02045 0.01572
Construction 0.02253 0.08139 0.01764
Manufacturing 1.64865 0.35973 0.20718
Railroads and related services;
 passenger ground transporta-
 tion, except transit 0.00907 0.93886 0.00568
Motor freight transportation and
 warehousing 0.03707 0.02101 1.22150
Water transportation 0.00135 0.00102 0.00793
Air transportation 0.00872 0.00694 0.01340
Pipelines, freight forwarders,
 and related services 0.00522 0.01968 0.05200
State and local passenger
 transit 0.00092 0.09569 0.00046
Own-account transportation(1) 0.02481 0.01381 0.00919
Communications and utilities 0.05249 0.03830 0.05826
Wholesale and retail trade 0.11843 0.07855 0.06428
Finance, insurance, and real
 estate 0.08159 0.01097 0.09520
Services 0.15110 0.14091 0.19058
Other(2) 0.02601 0.01912 0.02428
Total Industry output multiplier 2.35265 1.92761 1.99691

 Industry

 Transportation

 Industry Pipe-
 lines
 Water Air and
 freight
 for-
 warders

Agriculture, forestry, and
 fisheries 0.01559 0.01524 0.01054
Mining 0.01548 0.01627 0.01909
Construction 0.01645 0.01431 0.02562
Manufacturing 0.24764 0.26229 0.15674
Railroads and related services;
 passenger ground transporta-
 tion, except transit 0.00283 0.00342 0.00264
Motor freight transportation and
 warehousing 0.01280 0.01200 0.01501
Water transportation 1.15760 0.00126 0.00192
Air transportation 0.00557 1.01325 0.00905
Pipelines, freight forwarders,
 and related services 0.06555 0.11884 1.02460
State and local passenger
 transit 0.00029 0.00035 0.00029
Own-account transportation(1) 0.01019 0.00815 0.00991
Communications and utilities 0.03363 0.03676 0.06330
Wholesale and retail trade 0.04281 0.04138 0.63139
Finance, insurance, and real
 estate 0.12195 0.07455 0.10651
Services 0.26081 0.18299 0.29572
Other(2) 0.18585 0.11060 0.02725
Total Industry output multiplier 2.20424 1.89166 1.79977

 Industry

 Transpor-
 tation
 Industry Communi- Whole-
 Own- cations sale and
 account and retail
 transpor- utilities trade
 tation(1)

Agriculture, forestry, and
 fisheries 0.01170 0.01055 0.00960
Mining 0.01321 0.12055 0.01087
Construction 0.01168 0.08568 0.01655
Manufacturing 0.20168 0.16141 0.12900
Railroads and related services;
 passenger ground transporta-
 tion, except transit 0.00303 0.01051 0.00241
Motor freight transportation and
 warehousing 0.01363 0.03891 0.01012
Water transportation 0.00096 0.00182 0.00038
Air transportation 0.00212 0.00563 0.00613
Pipelines, freight forwarders,
 and related services 0.00222 0.00428 0.00188
State and local passenger
 transit 0.00031 0.00107 0.00025
Own-account transportation(1) 1.00758 0.01402 0.04463
Communications and utilities 0.04056 1.02707 0.04662
Wholesale and retail trade 0.05805 0.03396 1.03468
Finance, insurance, and real
 estate 0.04051 0.07860 0.10399
Services 0.14310 0.16237 0.16867
Other(2) 0.01279 0.11588 0.02393
Total Industry output multiplier 1.56310 1.65227 1.60967

 Industry

 Industry Finance,
 insur-
 ance, Services Other(2)
 and real
 estate

Agriculture, forestry, and
 fisheries 0.01118 0.02023 0.00281
Mining 0.00632 0.01764 0.00608
Construction 0.04087 0.02016 0.02115
Manufacturing 0.06716 0.28057 0.03660
Railroads and related services;
 passenger ground transporta-
 tion, except transit 0.00164 0.00347 0.00151
Motor freight transportation and
 warehousing 0.00805 0.01352 0.00450
Water transportation 0.00023 0.00045 0.00255
Air transportation 0.00349 0.00650 0.00209
Pipelines, freight forwarders,
 and related services 0.00101 0.00247 0.00071
State and local passenger
 transit 0.00017 0.00035 0.00015
Own-account transportation(1) 0.00868 0.02609 0.00310
Communications and utilities 0.02730 0.05782 0.01353
Wholesale and retail trade 0.01431 0.04590 0.00725
Finance, insurance, and real
 estate 1.18795 0.13150 0.01277
Services 0.11120 1.14147 0.02003
Other(2) 0.02724 0.02193 1.00461
Total Industry output multiplier 1.51480 1.77007 1.13946

(1.) "Own-account transportation" includes transportation by truck and bus provided by nontransportation industries for their own use.

(2.) "Other" consists of government enterprises (except State and local government passenger transit) and other input-output (I-O) special industries. For a description of I-O special industries, see Ann M. Lawsen, "Benchmark Input-Output Accounts for the US Economy, 1992: Make, Use, and Supplementary Tables." SURVEY OF CURRENT BUSINESS 77 (November 1997): 46-47.

The rest of this article discusses the changes in the TSA estimates from 1992 to 1996 and describes the estimating method that was used to prepare the 1996 TSA's.

Changes from 1992 to 1996

From 1992 to 1996, transportation's contribution to the economy decreased slightly, primarily reflecting differences in the relative use of transportation and differences in the growth rates among sectors of the economy. This decrease is reflected in both the transportation value-added measure and in the transportation output measure. Within transportation, the contribution of own-account transportation decreased more than that of for-hire transportation, but the general distribution of these two types of transportation among using industries did not change. Table 5 provides summary data on the industry use of transportation, and table 6 shows the industry supply of transportation; these tables are the sources of information for the comparative analyses.

Table 5.--Use of Transportation Across Industries, 1992 and 1996

 Commodity

 Millions of dollars at producers'
 prices

 For-hire Own-account
 Industry transportation transportation(1)

 1992 1996 1992 1996

Total 381,300 473,096 165,461 199,652

Intermediate 217,925 275,903 165,461 199,652
 Agriculture, forestry, and
 fisheries 5,720 7,070 13,177 15,157
 Mining 2,810 2,786 3,870 3,670
 Construction 13,286 16,127 38,950 48,338
 Manufacturing 80,248 94,275 21,806 22,316
 Railroads and related
 services; passenger
 ground transportation 3,470 4,271 ... ...
 Motor freight transporta-
 tion and warehousing 35,049 49,392 ... ...
 Water transportation 5,889 8,509 ... ...
 Air transportation 14,409 17,781 ... ...
 Pipelines, freight
 forwarders, and related
 services 1,294 1,572 ... ...
 State and local government
 passenger transit 173 271 ... ...
 Own-account transportation 1,306 1,720 ... ...
 Communications and
 utilities 8,803 10,607 1,187 1,294
 Wholesale and retail trade 8,963 12,802 42,819 54,878
 Finance, insurance, and
 real estate 10,523 12,174 899 1,259
 Services 21,482 28,745 42,035 51,918
 Other(2) 4,500 7,801 718 823

Final 163,375 197,193 ... ...

 Commodity

 Millions of dollars Percent
 at producers' prices
 Share of total
 for-hire
 Industry Total transportation transportation

 1992 1996 1992 1996

Total 546,761 672,748 100.0 100.0

Intermediate 383,386 475,555 57.1 58.3
 Agriculture, forestry, and
 fisheries 18,897 22,227 1.5 1.5
 Mining 6,680 6,456 0.7 0.6
 Construction 52,236 64,465 3.5 3.4
 Manufacturing 102,054 116,591 21.0 19.9
 Railroads and related
 services; passenger
 ground transportation 3,470 4,271 0.9 0.9
 Motor freight transporta-
 tion and warehousing 35,049 49,392 9.2 10.4
 Water transportation 5,889 8,509 1.5 1.8
 Air transportation 14,409 17,781 3.8 3.8
 Pipelines, freight
 forwarders, and related
 services 1,294 1,572 0.3 0.3
 State and local government
 passenger transit 173 271 (*) 0.1
 Own-account transportation 1,306 1,720 0.3 0.4
 Communications and
 utilities 9,990 11,901 2.3 2.2
 Wholesale and retail trade 51,782 67,680 2.4 2.7
 Finance, insurance, and
 real estate 11,422 13,433 2.8 2.6
 Services 63,517 80,663 5.6 6.1
 Other(2) 5,218 8,624 1.2 1.6

Final 163,375 197,193 42.9 41.7

 Commodity

 Percent

 Share of total
 own-account Share of total
 Industry transportation transportation

 1992 1996 1992 1996

Total 100.0 100.0 100.0 100.0

Intermediate 100.0 100.0 70.1 70.6
 Agriculture, forestry, and
 fisheries 8.0 7.6 3.5 3.3
 Mining 2.3 1.8 12.0 1.0
 Construction 23.5 24.2 9.6 9.6
 Manufacturing 13.2 11.2 18.7 17.3
 Railroads and related
 services; passenger
 ground transportation ... ... 0.6 0.6
 Motor freight transporta-
 tion and warehousing ... ... 6.4 7.3
 Water transportation ... ... 1.1 1.3
 Air transportation ... ... 2.6 2.6
 Pipelines, freight
 forwarders, and related
 services ... ... 0.2 0.2
 State and local government
 passenger transit ... ... (*) (*)
 Own-account transportation ... ... 0.2 0.3
 Communications and
 utilities 0.7 0.6 1.8 1.8
 Wholesale and retail trade 25.9 27.5 9.5 10.1
 Finance, insurance, and
 real estate 0.5 0.6 2.1 2.0
 Services 25.4 26.0 11.6 12.0
 Other(2) 0.4 0.4 1.0 1.3

Final ... ... 29.9 29.4

(*) Less than 0.1 percent

(1.) Own-account transportation" includes transportation by truck and bus provided by nontransportation industries for their own use.

(2) "Other" consists of government enterprises (except State and local government passenger transit) and other input-output (I-O) special industries. For a description of I-O special industries, see Ann M. Lawson, "Benchmark Input-Output Accounts for the U.S. Economy, 1992: Make, Use, and Supplementary Tables," SURVEY OF CURRENT BUSINESS 77 (November 1997): 46-47.

Table 6.--Transportation Value Added by Industry of Origin, 1992 and 1996

 Millions of dollars

 For-hire Own-account
 Industry transportation transportation(1)

 1992 1996 1992 1996

Total 191,644 236,257 121,531 141,981

Agriculture, forestry, and
 fisheries ... ... 8,821 9,465
Mining ... ... 2,965 2,705
Construction ... ... 30,266 37,444
Manufacturing ... ... 15,899 15,011
Railroads and related
 services; passenger ground
 transportation 34,390 41,541 ... ...
Motor freight transporta-
 tion and warehousing 83,371 101,456 ... ...
Water transportation 12,796 11,215 ... ...
Air transportation 42,166 59,315 ... ...
Pipelines, freight forwar-
 ders, and related services 19,624 23,192 ... ...
State and local government
 passenger transit -703 -462 ... ...
Communications and
 utilities ... ... 771 799
Wholesale and retail trade ... ... 30,999 39,186
Finance, insurance, and
 real estate ... ... 607 810
Services ... ... 30,740 36,072
Other(2) ... ... 463 489

 Millions of dollars Percent

 Share of total
 for-hire
 Industry Total transportation transportation

 1992 1996 1992 1996

Total 313,175 378,238 100.0 100.0

Agriculture, forestry, and
 fisheries 8,821 9,465 ... ...
Mining 2,965 2,705 ... ...
Construction 30,266 37,444 ... ...
Manufacturing 15,899 15,011 ... ...
Railroads and related
 services; passenger ground
 transportation 34,390 41,541 17.9 17.6
Motor freight transporta-
 tion and warehousing 83,371 101,456 43.5 42.9
Water transportation 12,796 11,215 6.7 4.7
Air transportation 42,166 59,315 22.0 25.1
Pipelines, freight forwar-
 ders, and related services 19,624 23,192 10.2 9.8
State and local government
 passenger transit -703 -462 -0.4 -0.2
Communications and
 utilities 771 799 ... ...
Wholesale and retail trade 30,999 39,186 ... ...
Finance, insurance, and
 real estate 607 810 ... ...
Services 30,740 36,072 ... ...
Other(2) 463 489 ... ...

 Percent

 Share of total
 own-account Share of total
 Industry transportation transportation

 1992 1996 1992 1996

Total 100.0 100.0 100.0 100.0

Agriculture, forestry, and
 fisheries 7.3 6.7 2.8 2.5
Mining 2.4 1.9 0.9 0.7
Construction 24.9 26.4 9.7 9.9
Manufacturing 13.1 10.6 5.1 4.0
Railroads and related
 services; passenger ground
 transportation ... ... 11.0 11.0
Motor freight transporta-
 tion and warehousing ... ... 26.6 26.8
Water transportation ... ... 4.1 3.0
Air transportation ... ... 13.5 15.7
Pipelines, freight forwar-
 ders, and related services ... ... 6.3 6.1
State and local government
 passenger transit ... ... -0.2 -0.1
Communications and
 utilities 0.6 0.6 0.2 0.2
Wholesale and retail trade 25.5 27.6 9.9 10.4
Finance, insurance, and
 real estate 0.5 0.6 0.2 0.2
Services 25.3 25.4 9.8 9.5
Other(2) 0.4 0.3 0.1 0.1

(1.) Own-account transportation' includes transportation by truck and bus provided by nontransportation industries for their own use.

(2.) "Other" consists of government enterprises (except State and local government passenger transit) and other input-output (I-O) special industries. For a description of I-O special industries, see Ann M. Lawson, "Benchmark Input-Output Accounts for the U.S. Economy. 1992: Make. Use, and Supplementary Tables," SURVEY OF CURRENT BUSINESS 77 (November 1997): 46-47.

Slower growth in transportation.--From 1992 to 1996, value added and gross output by transportation industries grew at a slower rate than the economy as a whole. GDP grew more than 25 percent, while the value added that was contributed to GDP by transportation industries grew 21 percent. Total gross output grew more than 27 percent, while transportation gross output grew 23 percent. The slower growth in transportation reduced transportation's share of the total economy. For example, total transportation used by business to produce each dollar of gross output declined from 3.5 percent to 3.4 percent in 1992-96, and transportation's share of total final use declined from 2.6 percent to 2.5 percent.

The slower growth in transportation can largely be attributed to relative differences among industries in their intensity of transportation use and in their growth of gross output.(3) In 1992-96, the industries that were more intensive users of transportation--agriculture, mining, construction, and manufacturing--grew more slowly than the industries that were less intensive users of transportation--wholesale and retail trade; finance, insurance, and real estate (FIRE); and services (chart 1). The five slowest growing industries grew at an average rate of 22 percent in 1992-96 and required 4.0 cents of transportation per dollar of their output in 1996. Over the same period, the five fastest growing industries grew at an average rate of 31 percent and required 2.9 cents of transportation per dollar of their output in 1996.

[Chart 1 OMITTED]

In addition, transportation's relatively slower growth was attributable to changes in the intensity of transportation use by industries. The transportation requirement for the five fastest growing industries decreased from 3.1 cents per dollar of gross output in 1992 to 2.9 cents in 1996, while that for the five slowest growing industries remained at 4.0 cents. The reduction in transportation intensity for these industries can be attributed to changes in industry practices, changes in transportation efficiencies, and changes in the relative prices of inputs. TSA estimates and additional industry information are required for detailed analysis of the relative contribution of these factors to observed changes in transportation use.

Slower growth in own-account transportation.--Within transportation, own-account transportation grew more slowly than for-hire transportation in 1992-96. Gross output of own-account transportation increased 21 percent, while gross output of for-hire transportation increased 24 percent. Similarly, value added from own-account transportation increased 17 percent, compared with a 23-percent increase in for-hire transportation.(4)

Several factors contributed to the slower growth of own-account transportation. Two key factors are the relative differences in input structures and in the growth of gross output among using industries. For example, the rapidly growing FIRE industry required about half a cent of for-hire transportation for each dollar of industry gross output in 1996, but it required only one tenth as much of own-account transportation. In contrast, the more slowly growing agriculture, mining, and construction industries all required more own-account transportation per dollar of gross output. In addition, the growth of own-account transportation relative to that of for-hire transportation is probably understated, because own-account transportation of transportation industries may be growing more rapidly than that of other industries, but it is classified as for-hire in the TSA's.(5) Indeed, for the industries in which own-account transportation is estimated in the TSA's, the use of own-account transportation in 1992-96 grew as fast as, or faster than, the use of for-hire transportation. However, the for-hire transportation industry's intensive use of its own services caused its growth to exceed the own-account transportation's growth. In addition, other factors such as outsourcing may have shifted some of the own-account transportation operations from nontransportation industries to for-hire transportation industries.(6)

Small changes in industry use of transportation services.--Although industries grew at different rates from 1992 to 1996, their ranking by use of for-hire transportation services changed only slightly. The three largest users remained manufacturing ($94 billion), for-hire transportation ($82 billion), and services ($29 billion). These three industries accounted for 74 percent of all for-hire transportation used by business (chart 2).

[Chart 2 OMITTED]

The ranking of industries by their use of own-account transportation from the TSA's also remained relatively stable in 1992-96. The three largest users remained trade ($55 billion), services ($52 billion), and construction ($48 billion). These three industries accounted for 78 percent of all own-account transportation used by business (chart 3).

[Chart 3 OMITTED]

In both 1992 and 1996, the pattern of industry use of for-hire transportation differed markedly from that of own-account transportation. Manufacturing was the largest user of for-hire transportation, but it ranked fourth as a user of own-account transportation. The trade industry was the largest user of own-account transportation, but it ranked only fifth as a user of for-hire transportation.

The differences in industry usage of for-hire transportation or of own-account transportation may reflect differences in business practices across industries. For example, firms in many services industries regularly send service technicians to client sites, and own-account transportation may provide flexibility in scheduling that for-hire transportation can not provide. Similarly, in many retail trade industries, deliveries tend to be irregular in time and location, and for-hire transportation services may be too limited or too expensive. In addition, the omission of own-account transportation by other modes, such as water and air, may have some impact on the differences in industry usage if different industries rely on own-account transportation by these modes to a different extent.

Estimating methods

The 1996 TSA's are based on information from the 1996 annual I-O accounts and the 1992 TSA's and on additional transportation-related data for 1996.(7) The gross output measure of own-account transportation is a cost-based estimate derived from these data. It includes major cost items for the measured transportation operations for an industry--such as fuel, tires, drivers' compensation--but it does not include the contribution of the own-account transportation operations to profits.

The method used to estimate own-account transportation for the 1996 TSA's generally follows steps that were used for the 1992 TSA's. First, all the commodities in the I-O accounts were separated into the commodities that were related to transportation and those that were not on the basis of whether or not the commodity was used predominantly for transportation purposes. For example, motor gasoline, tires, and automotive repair services were primarily used for the maintenance and operation of motor vehicles.

Second, the total use of each commodity that was identified as transportation-related was separated into two parts--that used for transportation and that used for other purposes. For example, gasoline is used for transportation and for operating farm equipment.

Third, the transportation portions of the transportation-related commodities were distributed to different modes, such as transportation by truck, by bus, by air, and by water.

Fourth, for transportation by truck and bus, the transportation portions of the transportation-related commodities were distributed to using industries. The distributions were based on data related to motor vehicles, such as motor vehicle miles by industry and motor fuel use by industry. A set of distribution weights was derived from these data in order to approximate the relative size of transportation operations in nontransportation industries.(8)

Fifth, estimates of other inputs were prepared to form a complete input structure for own-account transportation. These estimates were based on the input structures of the corresponding for-hire transportation industries and exclude transportation costs and trade margins.

Finally, estimates of transportation costs and trade margins were derived from the data on total transportation costs and trade margins expressed as ratios of the commodity output for each and every I-O commodity.

The major difference between the estimating method used for the 1996 TSA's and that used for the 1992 TSA's is the data that were used to distribute the transportation portion of the transportation-related commodities in step four. For the 1992 TSA's, the distribution weights were based on data from the Census Bureau's 1992 Truck Inventory and Use Survey, which is only conducted every 5 years as a part of the economic census. For the 1996 TSA's, the distribution weights were extrapolated from those used for the 1992 TSA's by detailed industry output data from the 1996 annual I-O accounts (see table A).

Table A.--Source Data for the 1992 TSA's and for the 1996 TSA's

 Data 1992 TSA's

Primary source and accounting 1992 benchmark input-output
framework (I-O) accounts from BEA

Transportation and nontransportation Transportation energy data
use of energy(1) from Department of Energy
 (DOE)

Distribution weights(2) 1992 Truck Inventory and
 Use Survey from
 the Census Bureau

Other commodity inputs(3) 1992 benchmark I-O accounts
 from BEA

 Data 1996 TSA's

Primary source and accounting 1996 annual I-O accounts
framework from BEA

Transportation and nontransportation Transportation energy data
use of energy(1) from DOE

Distribution weights(2) Unpublished work files for
 1992 benchmark I-O accounts
 and 1996 annual I-O accounts
 from BEA

Other commodity inputs(3) 1996 annual I-O accounts
 from BEA

TSA's Transportation satellite accounts

(1.) The shares of total fuel and other transportation-related commodity outputs used for transportation purposes and across different transportation modes.

(2.) The distribution weights used to allocate the total consumption of fuel and transportation-related commodities for transportation purposes across industries.

(3.) Commodities that are not transportation-specific, but that are used in the production of transportation services.

The TSA extrapolators are based on nominal values of industry output, so they include relative price effects. These output-based extrapolators are used to calculate the distribution weights of transportation-related commodities, which are then used to derive TSA estimates of own-account transportation for industries. For the 1996 TSA's, the relative price effects are assumed to have only a small impact. In future updates, real values will be used.

The new source data used to prepare the 1996 TSA's include the following: The output of transportation-related commodities are from the 1996 annual I-O accounts; 1996 data on energy use by transportation modes, which are used to distribute transportation-related commodities by modes, are from the Department of Energy's transportation energy data book; and the input structure of the for-hire transportation industries from the 1996 annual I-O accounts are used to estimate the inputs for own-account transportation. Table A provides a summary comparison of the source data used for the 1992 and 1996 TSA's.

Acknowledgments

The U.S. transportation satellite accounts for 1996 were prepared by staff of the Bureau of Transportation Statistics (BTS) under the direction of Rolf R. Schmitt, Associate Director, and by staff of the Bureau of Economic Analysis (BEA) under the direction of Sumiye Okubo, Associate Director for Industry Accounts, and Ann M. Lawson, Chief of the Industry Economics Division. Bingsong Fang, Xiaoli Han, and Jiemin Guo of BTS and Simon Randrianarivel of BEA developed the estimates. Mark A. Planting of BEA provided valuable suggestions and comments that significantly improved the estimates and the final presentation.

(1.) For an overview of the 1992 TSA's, see Bingsong Fang, Xiaoli Han, Ann M. Lawson, and Sherlene K.S. Lum, "U.S. Transportation Satellite Accounts for 1992," SURVEY OF CURRENT BUSINESS 78 (April 1998): 16-27.

(2.) The TSA's include postal services in government enterprises.

(3.) The transportation intensity for an industry is measured by the industry's direct requirement of transportation as a share of its total output. The higher the share, the more intensive a user the industry is.

(4.) The level of value added from own-account transportation is not comparable with that from for-hire transportation, because the value added from own-account transportation does not include a profit component while that from for-hire transportation does. This treatment of profits for own-account transportation is both conceptual and technical. Profits of own-account transportation activities contribute to overall profits, but a reliable indicator for estimating this contribution is not available.

(5.) In the TSA's, transportation services provided by for-hire transportation industries for the industries' own use are classified as for-hire transportation. Although some of these services may be provided on an own-account basis, the data for own-account cannot be separated from those for for-hire transportation. As a result, the comparison of for-hire transportation with own-account transportation may be slightly distorted. However, the estimates of the size and growth of total transportation are not affected, because own-account transportation activities conducted by for-hire transportation industries are included in the measures of for-hire transportation industries.

(6.) The profit margin for for-hire transportation increased in 1992-96. If the profit margin increased similarly for own-account transportation, then a bias is introduced into the TSA estimates when comparing growth in value added for for-hire transportation, which includes profits, with that for value added for own-transportation, which does not include profits.

(7.) For an overview of the 1996 annual I-O accounts, see Sumiye O. Okubo, Ann M. Lawson, and Mark A. Planting, "Annual Input-Output Accounts of the U.S. Economy, 1996,' SURVEY 80 (January 2000): 37-86.

(8.) The transportation-related commodities for other modes were not distributed to using industries, because sufficient information to create these distributions was not available. This is the major reason why own-account estimates for these modes are not included in the current TSA's.

Data Availability

This article presents the aggregate estimates from the 1996 transportation satellite accounts (TSA's). Estimates for 99 industries at the I-O summary level are available on BENs Web site at <www.bea.doc.gov>; under "National," click on "Industry and wealth data," and look under "Transportation data." On the same site are also available estimates from the 1992 TSA's. Estimates from the 1992 and 1996 annual I-O accounts are available on BEA's Web site at <www.bea.doc.gov>; under "National," click on "Industry and wealth data," and look under "Input-Output data."

The 1996 TSA estimates are also available for $20 on diskette--product number NDN-0252. The 1992 TSA estimates are available for $20 on diskette--product number NDN-0193. To order, call the BEA Order Desk at 1-800-704-0415 (outside the United States, call 202-606-9666).

Satellite Accounts

Satellite accounts are frameworks designed to expand the analytical capabilities of the national accounts without overburdening them or interfering with their general-purpose orientation. In this role, satellite accounts organize information in an internally consistent way that suits a particular analytical focus, yet they maintain links to the existing national accounts. Further, because they supplement the existing accounts rather than replace them, they serve as a laboratory for economic accounting in that they provide room for conceptual development and methodological refinement. In their most flexible applications, satellite accounts may use definitions and concepts that differ from the existing accounts. For example, a satellite account may be built around a broader concept of industry, output, and capital formation than the existing accounts.

Two types of satellite accounts are identified by the System of National Accounts, 1993.(1) Each type is distinguished by its relationship with the central framework. The first type involves the rearrangement of central classifications and the introduction of complementary elements that differ from the conceptual central framework. An example of this type of satellite accounts is the travel and tourism satellite accounts prepared by BEA.(2)

The second type of satellite accounts is based on concepts that are alternatives to the ones of the central framework. A different production boundary or an enlarged concept of consumption or production may be introduced, or the scope of assets may be extended. An example of this type of satellite accounts is BENs environmental accounts, which include natural resources in the asset accounts and the use of natural resources as negative investment in the income and product accounts.(3)

(1.) See Commission of the European Communities, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations, and the World Bank, System of National Accounts, 1993 (Brussels/Luxembourg, New York, Paris, and Washington, DC, 1993).

(2.) See Sumiye Okubo and Mark A. Planting, "U.S. Travel and Tourism Satellite Accounts for 1992," SURVEY 78 (July 1998): 8-22.

(3.) See "Integrated Economic and Environmental Satellite Accounts" and "Accounting for Mineral Resources: Issues and BEA's Initial Estimates," SURVEY 74 (April 1994): 33-72.