New Report Highlights Economic Impact of Military in North Carolina

  • November 5, 2013 • Jobs and the Economy, • Military and Veterans Affairs

    Raleigh, NC –  The military supports 540,000 jobs, including 340,000 in the private sector, according to a new report released today by the N.C. Department of Commerce. The report also found the military boosts the state’s  personal income by more than $30 billion.
     
    The study, released by the Labor & Economic Analysis Division, concludes the military accounts for nearly 10 percent of all economic activity in North Carolina.
     
    “This report confirms the importance of supporting our bases and the North Carolina businesses that benefit from our significant military footprint,” said Governor Pat McCrory. “We’re committed to strengthening our partnership with the military and defense sectors because they create additional jobs for our state.”
     
    Professional and technical services, administrative and waste services and construction are the top three military-supported private industry sectors.
     
    North Carolina has the third-largest military population in the United States. Nearly 110,000 active duty military personnel are assigned to units in North Carolina. However, more than 60,000 individuals are projected to leave the military over the next five years.
     
     “North Carolina has a tremendous opportunity to grow our state’s economy by helping military personnel find employment after their service ends,” said Commerce Secretary Sharon Decker. “These men and women have the skills and character that are desirable to employers across the state.”
     
    Other key findings from the report:
     
    • Department of Defense contracting in FY 2012 totaled $3.4 billion, with 40 percent of that work being performed in the Southeast region and 37 percent in the Eastern region
    • Military is responsible for $48 billion, or 12 percent, of gross state product
    • North Carolina has a total of 769,000 veterans that reside in every county across the state
    • Impact of military has remained relatively stable during the past five years despite the ongoing realignment of military personnel and the recent recession
    • Military operations located outside of North Carolina account for roughly 20 percent of the overall economic impact to the state
    The economic impact analysis was completed using the Policy Insight Plus (PI+) model licensed by Regional Economic Models Incorporated (REMI).  The model uses data from the Bureau of Economic Analysis, Bureau of Labor Statistics, Census Bureau, Department of Defense, Department of Homeland Security and other public data sources.
     
    The full report can be viewed online at: http://www.nccommerce.com/lead/research-publications/special-reports/industry-research