Author: Josh Levy
Military spending supports 578,000 North Carolina jobs and nearly $34 billion in state personal income, according to a recently completed LEAD report, the Economic Impact of the Military on North Carolina.
The study looked at the current active-duty personnel and National Guard and Reserves in the state, as well as veterans’ pensions and military contracting in order to capture the numerous ways in which military spending occurs in the state. Estimated military spending supports roughly 10 percent of total employment. In addition, federal defense spending accounts for 7.8 percent of the state’s total personal income and 12.8 percent ($66 billion) of North Carolina’s total gross state product.
Most North Carolinians are aware that the military has a large presence in the state, with more than 100,000 active-duty personnel, more than 30,000 in the North Carolina National Guard and Reserves, five bases representing all branches of the military, a military ocean terminal and a U.S. Coast Guard base. What is less known is how many jobs and economic activity outside of the military is supported by this presence.
The study found that about two-thirds (386,000) of the total military-supported jobs in the state occur in the private sector. These private sector jobs may support the military directly; for example, through contracting relationships, or more indirectly as a result of the increased demand for goods and services that military spending creates. The top three private industries supported by the military are Professional, Scientific and Technical Services; Administrative and Waste Management Services; and Construction.
The report, an update to a similar 2013 report, was created in partnership with the NC Military Affairs Commission and the economic impact modeling was carried out by Regional Economic Modeling Inc. (REMI). Many more aspects of the military’s presence in the state are discussed in the report.