Association fees were allocated to establishments primarily engaged in promoting the business interests of their members.  These establishments conduct research on new products and services, develop market statistics, lobby public officials, or publish newsletters, books, or periodicals for distribution to their members.

For the most part, a large portion of the bait used by hand gear vessels in the Northeast is locally landed squid.  Since the bulk of squid landings in the Northeast generally occur aboard otter trawl vessels, bait purchases were allocated to medium bottom trawl bait sectors.  However, it was assumed that the purchases occurred at the wholesale level so transportation and storage margins were included.  Squid purchases by hand gear vessels in a particular sub-region were allocated across medium bottom trawl bait sectors in the state where the sub-region was located. The relative importance of each sub-region’s medium bottom trawl bait sector’s output value to total state-level output was used to allocate bait purchases across sub-regions within a state.

In the NERIOM it was assumed that the bait used by lobster vessels is locally landed herring or mackerel.  Since the bulk of herring and mackerel landings generally occur aboard midwater trawl vessels, bait purchases were allocated to midwater trawl bait sectors.  However, it was assumed that the purchases occurred at the wholesale level so transportation and storage margins were included.  Herring and mackerel purchases by hand gear vessels in a particular sub-region were allocated across midwater trawl bait sectors in the state where the sub-region was located. The relative importance of each sub-region’s midwater trawl bait sector’s output value to total state-level output was used to allocate bait purchases across sub-regions within a state.

Commonly used bait in the Northeast longline industry is frozen squid, mackerel, and herring.  Since the bulk of these landings in the Northeast occur aboard otter trawl vessels and midwater trawl vessels, bait purchases were allocated to both medium bottom trawl bait sectors and midwater trawl bait sectors.  However, it was assumed that the purchases occurred at the wholesale level so transportation and storage margins were included.  Bait purchases by longline vessels in a particular sub-region were allocated across medium bottom trawl bait sectors and midwater trawl bait sectors in the state where the sub-region was located.  The relative importance of each sub-region’s medium bottom trawl bait sector’s output value and midwater trawl bait sector to total state-level output was used to allocate bait purchases across sub-regions within a state.

Bank service charges, both real (fees, points) and imputed (services for which no fee is charged), occur every time a loan is dispersed.  These charges make up the output of financial institutions.  The annual fee for these services in 2001 was calculated by assuming the average charge was 2% of the principle divided by the average life of the loan.

Consignment costs are fees paid to an independent agent or broker that sells harvesters’ seafood.  These services may also include bartering, packaging, and labeling.  Sales of seafood by harvesters through actual fish exchanges/auctions, however, were not classified as consignment expenditures.  As previously indicated, 23 fish exchange/auction sectors were added to the model to account for those types of transactions.  

Commercial harvesters that use fish exchange/auction houses to sell their landings are generally charged about 7 cents per pound.  Thus, fees for utilizing this service were allocated to the 4 fish exchange sectors in the NERIOM.  The relative ex-vessel value of landings that was sold through a fish exchange sector, by each harvesting sector in the NERIOM, was used to allocate expenditures across the four fish exchange sectors.  The 2001 Northeast Dealer data base provided this information.

The default margin table for Sector 142 in IMPLAN Pro was used to allocate purchases of fuel and lubricants.

Gear replacement expenditures were assumed to be for replacement of pots and lines.  Replacement of pots was allocated to Sector 242 which encompasses the construction of fabricated wire products.  Replacement of lines was allocated to sector 103 which includes the production of cordage and twine.  It was assumed that 80% of purchase price was for replacement of pots and 20% for replacement of lines.  These items are usually purchased at the wholesale level so the default IMPLAN Pro margins associated with Sector 242 were also included. acement of pots was allocated to Sector 242 which encompases nt of pots and  and lubricants.to he principle divided by the aver

IMPLAN Pro’s Personal Consumption Expenditure (PCE) vector 1111 was chosen to approximate the industries involved in the manufacturing of groceries purchased by commercial fishermen.  The Bureau of Economic Analysis creates this expenditure vector for their work on national average benchmark input-output tables.  The PCE vector represents the national average expenditure pattern for groceries.  At the time of this writing, IMPLAN Pro’s PCE vector 1111 was developed from SIC coded sectors.  The NERIOM, however, is based on IMPLAN Pro’s new NAICS coding system that was implemented in conjunction with the release of the 2001 data.  Thus, it was necessary to convert the old SIC-based IMPLAN Pro codes into the new NAICS-based IMPLAN Pro codes.  The developers of the IMPLAN Pro system provided the bridge from which these conversions were made.  The majority of the default conversions were maintained in the NERIOM.  However, purchases associated with the two default seafood sectors (i.e., commercial fishing and seafood product preparation and packaging) were reallocated to Sector 60 (frozen food manufacturing) to better reflect likely consumption habits aboard commercial fishing vessels. 

The default margin table for Sector 85 (Soft drink and ice manufacturing) in IMPLAN Pro was used to allocate purchases of ice.

Fees for insurance were applied to IMPLAN Pro sector 427 (Insurance carriers).  This sector includes establishments primarily engaged in underwriting and assuming the risk of insurance policies.  Another insurance sector is included in IMPLAN Pro that contains businesses that act as agents or brokers in selling insurance policies, but this sector is similar to a margin sector and its production function does not account for the actual cost of the insurance policy.  Sector 427 accounts for the underwriting cost and includes reimbursement to agents and brokers for their fees.  

Employee compensation in IMPLAN Pro includes all payroll costs, including benefits such as health and life insurance. 

In most input-output models, such as IMPLAN Pro, interest payments are not paid directly to an industry, they are included in the value-added sector Other Property Type Income. 

Interest payments were allocated to the value-added sector Other Property Type Income. 

A miscellaneous expense category was included in both the UMASS and URI CMER studies.  The preceding allocation of expenditures is based on the responses that were filled in for this question on the surveys.  Responses generally included additional gear purchases (70%), hotel expenditures (20%), and expenses for phone services while at sea (10%).  Gear purchases were allocated to Sector 103 for ropes and twines; hotel expenses to Sector 479; and phone fees to Sector 422.  Also included were the default margins for Sector 103 since rope and twine are usually purchased at the wholesale and retail level.     

IMPLAN Pro Sector 478 includes the activities of marinas.  Marinas usually offer mooring, dockage, and haulout services for a fee.

Lumpers fees were assumed to be paid to marina employees.  The activities of marinas are included in IMPLAN Pro Sector 478.

Permit and license fees in an IMPLAN Pro model are allocated to value-added in indirect business taxes.  These are fees that are paid during the normal operation of a business.

Short term operating loans for lobster vessels were assumed to cover gear replacement costs for pots and lines.  Following the same expenditure pattern delineated above for gear replacement costs, replacement of pots was allocated to Sector 242 and replacement of lines to sector 103.  It was assumed that 80% of the purchase price was for replacement of pots and 20% for replacement of lines.  These items are usually purchased at the wholesale level so the default IMPLAN Pro margins associated with Sector 242 were also included. acement of pots was allocated to Sector 242 which encompases nt of pots and  and lubricants.to he principle divided by the aver

Principal payments for vessels were allocated to Sector 357 Ship Building and Repairing.  This sector includes establishments engaged in the construction and repair of fishing boats.    

Businesses engaged in accounting and bookkeeping services are classified in IMPLAN Pro Sector 438 Accounting and Bookkeeping Services.

Payments received by vessel owners as income are known as value-added payments and are classified as proprietary income in an IMPLAN Pro model.

Expenditures for electronic repairs aboard commercial fishing vessels were allocated to Sector 484 Electronic Equipment Repair and Maintenance.

Establishments engaged in commercial equipment repair, including hydraulic equipment repair and freezer repair are classified in IMPLAN Pro Sector 485 Commercial Machinery Repair and Maintenance.

Vessel and engine repairs conducted at the boat yard were allocated to IMPLAN Pro Sector 357 Ship Building and Repairing.

Vessel and engine repairs conducted by the owner were allocated to establishments primarily engaged in manufacturing metal bolts, nuts, screws, rivets, and washers, and other industrial fasteners.  These establishments are classified in IMPLAN Pro Sector 244.

Onshore expenses, generally due to the ownership of storage facilities or office space, were allocated to four IMPLAN Pro sectors.  Average rents comprised 40% of the shorefront expenses and were allocated to the Real Estate Sector.  Utilities were assumed to be for electricity and were allocated to IMPLAN Pro Sector 30 Power Generation and Supply (20%).  Supplies averaged 30% of onshore expenses and were assumed to be for stationery and related products (Sector 133).  Finally, advertising expenses comprised 10%, on average, of onshore expenses and were allocated to IMPLAN Pro Sector 447.

Tax expenditures included in this sector consist of excise taxes, property taxes, and sales taxes, but exclude income taxes paid by businesses.  These fees were allocated to IMPLAN Pro’s Value-Added Sector Indirect Business Taxes.

Trip supplies consist of expenditures for chemical cleaning products, brooms, mops, soaps and detergents, boxes, plastic packaging materials, bulbs, furnishings, plumbing accessories, and miscellaneous machine parts.  Expenditures for these items were allocated to manufacturing sectors according to proportions contained the default IMPLAN Pro commercial fishing sector’s production function.  Specifically, we summed the absorption coefficients associated with the manufacturing sectors that produce the aforementioned items and then determined the proportion that each sector represented.  These proportions were used to allocate miscellaneous trip expenditure estimates to the correct IMPLAN Pro manufacturing sector.  Average wholesale, transportation, and retail margins across all of the manufacturing sectors were calculated and included in the expenditure estimates since the majority of these purchases occur at the retail level.

Vehicle expenses were assumed to cover repair (20%) and fuel (80%) costs.  Automotive repair services were allocated to IMPLAN Pro Sector Automotive Repair and Maintenance, and the default margin table for Petroleum Refineries was used to allocate expenses for fuel and lubricants.

The wages and salaries of employees were allocated to the Value-Added Sector Employee Compensation.

Seafood Wholesale Dealer Expenditures

Many of the commodities and services purchased by commercial harvesters are also purchased by wholesale seafood dealers.  Therefore, to avoid duplication, detailed descriptions of wholesale dealer expenditures are only provided for products and services that were not purchased by commercial harvesters.  Please see the Commercial Harvester Expenditure section for descriptions of the following expenses that were also incurred by wholesale seafood dealers: bank service charges, ice, insurance, interest expense, professional fees, profits, vehicles, taxes, and wages.  

Advertising fees were allocated to IMPLAN Pro Sector 447 Advertising and Related Services.

The default IMPLAN Pro margin table for Sector 126 Paperboard Container Manufacturing was used to allocate packaging expenses.

Industries in the Real Estate Sector include establishments that are primarily engaged in the renting or leasing real estate to others, including the leasing of mini warehouses and storage buildings.

Establishments contained in Sector 458 Services to Buildings and Dwellings are primarily engaged in cleaning and maintaining building interiors, and providing landscape care and maintenance.

The majority of seafood landings in the Northeast are shipped by truck to Northeast wholesale dealers.  Therefore, IMPLAN Pro Sector 394 Truck Transportation was chosen to represent the costs associated with shipping.  The Truck Transportation Sector comprises establishments primarily engaged in providing general freight trucking.

Industries in IMPLAN Pro’s Warehousing and Storage Sector are primarily engaged in operating warehousing and storage facilities for general merchandise.

IMPLAN Pro’s Power Generation and Supply Sector comprises establishments primarily engaged in generating, transmitting, and/or distributing electric power.

Establishments in IMPLAN Pro’s Natural Gas Distribution Sector are primarily engaged in transmitting and distributing gas to final consumers.

The Telecommunications Sector in IMPLAN Pro contains businesses that are primarily engaged in operating, maintaining, and/or providing access to facilities for the transmission of voice, data, text, sound, and video.

Fish Exchange/Auction Expenditures

Commodities and services purchased by fish exchange/auction establishments in the NERIOM were assumed to be identical to those purchased by wholesale seafood dealers, with the exception of shipping fees, profits, and truck maintenance.  Harvesters who sell their product through auction houses are assumed to pay for the transportation fees in the NERIOM, and owner profits were assumed to be zero since these establishments generally operate as nonprofit entities.  Expenditures included in the fish exchange/auction production function consisted of fees for advertising, bank service charges, ice, insurance, interest, mortgage payments, packaging supplies, professional fees, rent, building maintenance, storage, taxes, utilities, and employee wages.  The IMPLAN Pro sectors associated with these expenses were discussed in the preceding two sections.  

Seafood Processor Expenditures

The IMPLAN Pro default production function for Sector 71 Seafood Product Preparation and Packaging was used to allocate purchases by seafood processors in all 23 coastal sub-regions in the NERIOM to their appropriate IMPLAN Pro sector.  This production function includes over 140 industry sectors that sell commodities and services to the 23 seafood processing sectors in the NERIOM.