page_title: Anchorage, Alaska
section_title: Economy
hierarchical_section_title: Anchorage, Alaska / Economy
caption_attribution_description: English: Aerial view of the Port of Anchorage, Alaska, USA.
context_page_description: Anchorage is a unified municipal consolidated city-borough in the U.S. state of Alaska, on the West Coast of the United States. With an estimated 288,000 residents in 2019, it is Alaska's most populous city and contains 39.37% of the state's population; among the 50 states, only New York has a higher percentage of residents who live in its most populous city. The Anchorage metropolitan area, which includes Anchorage and the neighboring Matanuska-Susitna Borough, had a population of 396,317 in 2019, accounting for more than half the state's population. At 1,706 square miles of land area, the city is the fourth-largest by area in the United States and larger than the smallest state, Rhode Island, which has 1,212 square miles.
  Anchorage is in Southcentral Alaska, at the terminus of the Cook Inlet, on a peninsula formed by the Knik Arm to the north and the Turnagain Arm to the south. The city limits span 1,961.1 square miles, encompassing the urban core, a joint military base, several outlying communities and almost all of Chugach State Park.
context_section_description: Anchorage's largest economic sectors include transportation, military, municipal, state and federal government, tourism, corporate headquarters (including regional headquarters for multinational corporations) and resource extraction. Large portions of the local economy depend on Anchorage's geographical location and surrounding natural resources. Anchorage's economy traditionally has seen steady growth, though not quite as rapid as many places in the lower 48 states. With the notable exception of a real estate-related crash in the mid-to-late 1980s, which saw the failure of numerous financial institutions, it does not experience as much pain during economic downturns.
  The Ted Stevens Anchorage International Airport (TSAIA) is the world's fourth busiest airport for cargo traffic, surpassed only by Memphis, Hong Kong, and Shanghai Pudong. This traffic is strongly linked to Anchorage's location along great circle routes between Asia and the lower 48. In addition, the airport has an abundant supply of jet fuel from in-state refineries in North Pole and Kenai. This jet fuel is transported to the Port of Anchorage, then by rail or pipeline to the airport.
  The Port of Anchorage receives 95 percent of all goods destined for Alaska. Ships from Totem Ocean Trailer Express and Horizon Lines arrive twice weekly from the Port of Tacoma in Washington. Along with handling these activities, the port is a storage facility for jet fuel from Alaskan refineries, which is used at both TSAIA and Joint Base Elmendorf-Richardson (JBER).
  The existing port was substantially built in the late 1950s and is reaching the end of its useful life. Beginning in 2017, the Port of Anchorage is undertaking an extensive 7-year Anchorage Port Modernization Project to upgrade its aging infrastructure, support larger deeper draft vessels, and future proof the port seismically and environmentally for another 75 years.
  The United States military used to have two large installations, Elmendorf Air Force Base and Fort Richardson, which originally stemmed from the branching off of the U.S. Air Force from the U.S. Army following World War II. In a cost-cutting effort initiated by the 2005 BRAC proceedings, the bases were combined. JBER was created, which also incorporated Kulis Air National Guard Base near TSAIA. The combination of these three bases employ approximately 8,500 civilian and military personnel. These individuals along with their families comprise approximately ten percent of the local population. During the Cold War, Elmendorf became an important base due to its proximity to the Soviet Union, particularly as a command center for numerous forward air stations established throughout the western reaches of Alaska (most of which have since closed).
  While Juneau is the official state capital of Alaska, more state employees reside in the Anchorage area. Approximately 6,800 state employees work in Anchorage compared to about 3,800 in Juneau. The State of Alaska purchased the Bank of America Center (which it renamed the Robert B. Atwood Building) to house most of its offices, after several decades of leasing space in the McKay Building (now the McKinley Tower) and later the Frontier Building.
  The resource sector, mainly petroleum, is arguably Anchorage's most visible industry, with many high rises bearing the logos of large multinationals such as BP and ConocoPhillips. While field operations are centered on the Alaska North Slope and south of Anchorage around Cook Inlet, the majority of offices and administration are found in Anchorage. The headquarters building of ConocoPhillips Alaska, a subsidiary of ConocoPhillips, is in downtown Anchorage. It is also the tallest building in Alaska. Many companies who provide oilfield support services are likewise headquartered outside of Anchorage but maintain a substantial presence in the city, most notably Arctic Slope Regional Corporation and CH2M Hill.
  Four small airlines, Alaska Central Express, Era Aviation, Hageland Aviation Services, and PenAir, are headquartered in Anchorage. Alaska Airlines (at one point headquar
caption: Aerial view of the Port of Anchorage on Cook Inlet in 1999.
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