An Ocean Blueprint for the 21st Century - California Ocean ...

Figure C.5 Changes in the Ocean Economy 1990–2000120%100%80%60%40%20%0%-20%-40%TOTALOCEANECONOMYConstructionLivingResourcesMineralsShip &BoatBuildingTourism &RecreationTransportation■ Establishments■ Employment(Number of Jobs)■ Nominal wages(Millions)■ Nominal GSP(Millions)Source: BLS, NOEPThe ocean economy has followed this overallpattern of growth in the U.S. economy, shifting awayfrom goods-oriented and towards service orientedproduction. From 1990 to 2000 there were sharpdeclines in establishments and employment in theliving resources, minerals, and ship and boat buildingindustries, while there was a substantial increasein the establishments and employment in thetourism and recreation sector. The marine constructionsector also grew slightly in output, but declinedin employment from 1990–2000, although it shouldbe noted that this sector is poorly measured underthe Standard Industrial Classification system and issubject to strong influence from the business cyclewhen measured at any two particular years.The dramatic shift towards tourism and recreationand away from the goods producing sectors hasmany causes. The growth in tourism and recreationis clearly consistent with long term increases in overallaffluence and increases in leisure time. The enduringappeal of the ocean as a source of recreation hasnot only been sustained, but enhanced by the rise ofsuch industries as cruise ships. 16 At the same timethere have been substantial changes in the goodsproducing sectors.• The ship building industry was at a post-WorldWar II peak in employment in 1990 as the end ofthe Reagan-era naval expansion was occurring.Since almost all ship building in the UnitedStates is done for the Navy, the end of the ColdWar and the subsequent reduction in ship procurementfor the Navy had a profound effect onthis industry. Shipbuilding employment declinedby 38% between 1990 and 2000, while outputdeclined by 12%. There was a significant increasein boat building employment (32%) and output(81%), primarily for the recreational market. Butthis was not enough to offset the decline inemployment in ship building.• The living resources sector saw dramaticdeclines as overfishing in key areas such as NewEngland, the Pacific, and Gulf of Mexico led toenforced reductions in fishing effort. While thefisheries harvesting sector is not fully reflected inthese figures, 17 the overall trend towards declinesin employment and output in this sector is clear.Seafood processing employment, which will mirrortrends in seafood harvesting, declined by12%. The value of output in the seafood processingindustry rose (by 30%) as declining catchesresulted in higher prices. Those declines wereonly slightly offset by the growth of aquaculture,which grew by 27% in employment and 23% inoutput, but remains a small industry.• Minerals production, primarily offshore oil andgas, declined somewhat over the decade as olderfields in the Gulf of Mexico were played out.Employment fell by 35% while contribution togross state product fell by 6%. More importantly,there was a reduction in the number of employeesneeded in the oil and gas industry as moreand more technology was employed to find andproduce the ocean’s mineral resources.• Ocean related transportation declined inemployment, but grew in importance. Thedeclines in employment were primarily in deepA PPENDIX C: LIVING N EAR… AND M AKING A L IVING F ROM…THE N ATION’ S C OASTS AND O CEANS C 11