Sunday, January 23, 2022

Florida defense industry report

During 2020, Florida experienced a 12 percent nominal increase in direct defense spending, growing from $44 billion in 2018 to $49.3 billion in 2020, according to the Florida Defense Industry Economic Impact Analysis report. The defense industry supported nearly 860,200 jobs and generated over $96.6 billion in value-added economic impacts, or 8.5 percent of the Florida economy. Despite the economic disruptions caused by the pandemic, the Florida defense industry remains one of the largest and most productive in the nation. Among the key findings: The total economic impact increased nominally by 1.7 percent to $96.6 billion, or 8.5 percent of Florida’s 2020 Gross State Product (GSP); defense-related spending accounted for a just over 860,200 direct, indirect, and induced jobs; although defense spending increased by 12 percent, or $5.3 billion nominally, the number of total jobs supported declined from 2018 by 6 percent, or 55,000, as in-person household spending was temporally restricted due to COVID-19 safety protocols; and of the $49.3 billion spent in Florida during 2020, about $18.9 billion was for procurement, $8 billion for salaries and wages, and $22.4 billion for transfers (military retiree pensions and veteran’s benefits). The study also details the impact of defense in regions of the state. In Northwest Florida, with multiple major installations, defense activities accounted for about 186,694 jobs in 2020 and almost $22 billion in total Gross Regional Product. The military therefore accounted for about 28.6 percent of all economic activity in the region. The total impact of defense activities on the regional economy is forecast to increase very slightly through 2024. Consequently, employment impacts are forecast to be about 190,343 in 2020; this amounts to over 3,500 more jobs in the region by that time as a result of defense activities. (Source: Enterprise Florida, Florida Defense Industry Economic Impact Analysis, January 2022)