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Independent Analysis of MTA’s Next Estimated Capital Plan Reveals $60 Billion Contribution to New Jobs and Business Activity in New York State; $15 Billion Outside of New York City

MTA Spending Plan Expected to Support 57,400 Total Jobs over 5 years, Including 12,600 Outside New York City

Nearly 6,000 Jobs Expected on Long Island, 5,100 in Hudson Valley Region; Nearly 1,000 in Capital Region; 170 in the North Country; 100 in Western New York; more than 70 in Central New York, Finger Lakes and Southern Tier; and 60 in Mohawk Valley

NEW YORK, March 25, 2019—A new analysis of the jobs and economic activity created by the next MTA Five Year Capital Plan, conducted by EY, was commissioned and released today by the Partnership for New York City. It describes how the MTA capital investment strategy for 2020-2024 is expected to generate statewide economic benefits. Overall, the MTA’s estimated $44 billion in capital expenditures—which includes $3 billion for MTA Bridges and Tunnel—is projected to generate more than $60 billion in statewide economic output over the five years of the capital investment strategy. That figure would support an estimated 57,400 jobs during the same period, with nearly one in four of those jobs created outside of New York City. The average direct labor income per worker would just exceed $100,000. The MTA also expects the plan to make critical strides in service of its goal of providing 30 percent of contracts to vendors who qualify as certified Minority, Women, and Disadvantaged Business Enterprise firms.

The capital investment strategy is expected to include major purchases of key equipment from manufacturers in New York, including new buses, rail and subway cars, new signaling equipment and additional tracks. It relies on the expertise and services of New York-based construction and engineering firms. Collectively, this activity supports both direct and indirect jobs and business revenues throughout the state. The Capital Investment Strategy for 2020-2024 outlined in this report uses an estimate that reflects the lower end of the MTA’s potential capital investment. The agency allocations were assumed to be approximately proportional to the agency allocations in the current MTA Capital Program.

As a result of the capital plan, Long Island stands to gain over $3 billion in GDP and nearly 6,000 jobs; $2.9 billion in GDP and an estimated 5,100 jobs will be generated in the Hudson Valley; $80 million and 170 jobs in the North Country; $53 million and 100 jobs in Western New York; $41 million and 90 jobs in the Finger Lakes; $35 million in GDP and more than 70 jobs in Central New York; and another $33 million and approximately 80 jobs in the state’s Southern Tier.

The MTA capital investment strategy brings critical on-site construction and engineering services, as well as purchases of key equipment from manufactures in New York. For every $1 billion of direct spending, the anticipated capital expenditures are expected to support nearly 7,300 New York jobs through the direct, indirect, or induced economic effects.

“This analysis demonstrates the tremendous return that will be realized statewide as a result of adequately funding the MTA capital program,” stated Kathryn Wylde, President & CEO of the Partnership for New York City, which commissioned the study. 

“The MTA operates the largest transportation network in North America, averaging 2.6 billion riders annually across its subway, bus and commuter rail systems; serving one-third of all mass transit users in the United States and two-thirds of all US commuter rail passengers. We are pleased to have assisted the Partnership for New York City in analyzing the economic impact of a potential MTA capital plan, shining a light on how their spending would have an impact on workers across New York state as well as in consequential ways throughout the MTA’s supply chain,” said Mike Parker, EY Americas Infrastructure Leader, Transaction Advisory Services.

“This study shows that the MTA capital plan is a vital economic engine for the entire state, and fully funding it through congestion pricing would boost job growth in every corner of New York. It makes clear that the essential work of bringing our transportation system into the 21st century not only benefits the millions who ride our trains, take our buses, and drive over our bridges, but it also brings well-paying manufacturing jobs to New Yorkers across the state, from Western New York to the Capital Region, from the North Country to Long Island,” said Pat Foye, MTA President.

“On behalf of Mayor Bill de Blasio, I am proud to stand with this powerful coalition of business leaders supporting the MTA Capital Plan and the state budget to fund it, including congestion pricing,” said New York City Transportation Commissioner Polly Trottenberg, a New York City member of the MTA Board. “Millions of New Yorkers rely on the MTA’s critical investments to improve subway and bus service and reliability. As we head into the homestretch of state budget negotiations this week, the de Blasio Administration will be strongly advocating for a well-funded MTA Capital Plan that will produce economic benefits throughout New York State.”

“We know that the MTA is the lifeblood of the Greater New York City economy and indispensable for getting people to and from work from Long Island to Dutchess County,” said Assemblymember Amy Paulin, Chair of the Committee on Corporations, Authorities, and Commissions. “We need to make the hard choices to deliver much-needed investments this year. As this report shows, by investing in the New York City subway, our buses, and our commuter trains to restore reliability, we’ll help keep the engine of our economy moving.”

“The MTA capital plan brings economic benefits to New Yorkers across the state—not just transit riders—and the MTA’s contracting goals have helped global companies reform their subcontracting strategies to make them more inclusive of MWBEs.  It is critical that we address the MTA’s funding needs so that they can continue to provide the transit services and economic activity that are so important to our state,” said Senator Brian A. Benjamin.

“This timely report by the Partnership and EY shows that funding the MTA capital plan is not only a crucial investment for straphangers, but also for business across the entire state. If we want to keep our economy moving, Albany must adequately fund the MTA capital plan,” said State Senator Brad Hoylman.

“This analysis reveals how so many of New York’s small businesses rely on investments made by the MTA to generate revenue and local jobs. Funding the MTA is an investment in the small businesses that fuel New York,” said Assemblymember Marcos A. Crespo.

Rodriquez: “The MTA capital plan has an employment multiplier of 1.8 times, making the agency a driver for quality jobs across the state. Funding the capital plan is an important tool for supporting New York’s middle class in both the public and private sectors,” said Assemblymember Robert J. Rodriguez.

“The massive investment we’re making in the MTA—over $300 million in my district of northern and far western Manhattan alone—will generate solid, middle-class jobs across New York State at the same time as it gets the MTA back on track as the transit lifeline so crucial to the economic success of New York City,” said Senator Robert Jackson.

“Investments to the NYC Transit system, the Long Island Rail Road, and the Metro North not only affect the areas they serve, but also the state as a whole,” said Assemblymember Nathalia Fernandez. “By investing in our infrastructure, we are creating jobs and long-lasting economic growth that will impact communities far and wide in positive ways.”

“Public transportation is the backbone of New York City. The report released today by The Partnership for New York City underlines the economic benefits that all of New York State will experience as a result of the next capital investment by the MTA. Investment in the MTA is an investment in New Yorkers,” said Senator Jessica Ramos.

“This study once again confirms that investments in our state’s infrastructure will not only lead to major economic activity and improved transportation, but also to solid middle-class construction jobs with benefits.  When New York invests in our infrastructure we invest in our people,” said Gary LaBarbera, President, Building and Construction Trades Council of Greater New York.

“It is clear that economic prosperity throughout New York state is directly linked to the success of our metro region’s transit system,” said Jessica Walker, President and CEO of the Manhattan Chamber of Commerce. “We are shooting ourselves in the foot if we fail to include critical capital investments for the MTA in this year’s state budget.”

“This report proves that investing in our infrastructure is a win-win for the entire state. A long-term robust plan with solid financial backing will create thousands of middle-class manufacturing jobs across the state while bringing much needed improvements to our transportation system,” said Mario Cilento, NYS AFL-CIO President.

“The benefits of funding the MTA Capital Investment Strategy go beyond improving public transportation. Realizing those benefits requires passing congestion pricing to fund the plan, which can also help fight climate change, reduce particulate matter emissions, and create jobs for New Yorkers. We are proud to join the Partnership for New York City in support of congestion pricing and urge state legislators to ensure that it is included in the final budget agreement,” said Julie Tighe, President of the New York League of Conservation Voters.

“Bombardier is proud of its long-term strategic partnership with MTA New York City Transit, MTA Metro-North Railroad, and MTA Long Island Rail Road, which began 37 years ago. Our rail cars for the MTA and transit agencies across the country are built in New York, by New Yorkers, providing benefits to the state’s economy and to the millions of people who take mass transit every day,” said Elliot G. Sander, President of Bombardier Transportation, Americas Division. 

“Kawasaki’s strong relationship with the MTA has enabled us to sustain our manufacturing facility in Yonkers, which employs hundreds of New Yorkers in high-paying, skilled jobs. The MTA has been instrumental in Kawasaki’s development of a mentoring program for MBE/MWBE companies, which are increasing important in the supply chain. Overall, MTA-funded contracts have enabled Kawasaki to support a supply chain of subcontractors and vendors within New York state that has grown exponentially and generated thousands of jobs across the state,” said Yoichiro Araki, President, Kawasaki Rail Car, Inc.

“MTA capital investment is a contribution to New York state that goes beyond the safe movement of people. Through MTA capital investment programs, Alstom channels more than $100 million into New York state-based suppliers, including millions annually into MWBEs, DBEs, and Veteran-owned firms, and builds talent pipelines via scholarships, coop programs, enhanced curriculum and research initiatives through partnerships with local colleges, universities and institutes,” said Jérôme Wallut, President, Alstom Transportation Inc.

“As a bus manufacturer in Upstate New York, Prevost and Nova Bus rely heavily on business from MTA New York City Transit. The MTA capital program was critical to developing our

bus manufacturing facility in Plattsburgh where we employ hundreds of New Yorkers and work with many other New York-based suppliers and subcontractors,” said Jack Forbes, VP Sales, Prevost.

“While a robust MTA capital budget continues to be essential for providing efficient and reliable transit service to daily commuters, it is also critical for providing business opportunities for many companies like New Flyer of America. We are proud to support bus builds for the MTA with a team of over 80 people in Jamestown, NY and the partnerships we’ve cultivated with MBE/WBE businesses to complement our work for the MTA,” said Chris Stoddart, President, New Flyer of America.

“As a small WBE in Western New York, our contracts with the MTA to supply vehicles has helped us keep our 40 employees busy and has grown our business,” said Deborah Gawron, President, Fleet Maintenance.

“Cubic has proudly served the New York MTA and its public transit system for more than 20 years with the introduction of the iconic MetroCard. The next capital investment strategy will enable the next-generation fare payment system, OMNY, featuring mobile ticketing and open payments via contactless bankcards and smart devices. The system is expected to employ 140 employees at a newly established customer call center outside of Buffalo. Cubic looks forward to strengthening our relationships and investments in New York,” said Steve Brunner, Cubic Corporation Vice President & General Manager for the New York Tri-State Region.

“From our headquarters in College Point to every single neighborhood where we do work, we feel a connection to our community. The work that we do on behalf of the MTA not only helps New Yorkers get where they need to go, it also allows us to employ many of them in good paying union jobs with benefits important to families. We are honored to be able to continue contributing to the renewal, enhancement and expansion of New York’s outstanding transportation network,” said Mitch Levine, President of J Track.

Read the full report here.

 

About the Partnership for New York City

The Partnership for New York City represents the city’s business leaders and largest employers. We work with government, labor and the nonprofit sector to promote economic growth and maintain the city’s prominence as a global center of commerce and innovation. Through the Partnership Fund for New York City, the Partnership contributes directly to projects that create jobs, improve economically distressed communities and stimulate new business creation.

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

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Media Contact
Partnership for New York City
Ashley Greenspan / agreenspan@pfnyc.org / 212-493-7511