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Florida’s defense industry has $52B statewide impact, study reveals

Military/defense continues growth cycle in state

ORLANDO, FL (January 31, 2008) – Military and defense continues to be one of Florida’s leading growth industries. It now has an economic impact of more than $52 billion, supporting more than 723,000 jobs and generating $1 billion in local and state tax revenue.

These are among the findings Enterprise Florida released today in Florida Defense Industry Economic Impact Analysis, a study it commissioned the University of West Florida (UWF) Haas Center to conduct last September. Other revelations:

• Military and defense’s economic impact has increased by more than 9 percent per year since 2003, the last period evaluated.
• The industry can expect continuous growth, reaching an economic impact of $59.5 billion by 2010.

"This new study reinforces that the amount and size of the military and defense industry in our state is one of Florida’s most important economic drivers," said Rick Harper, the Haas Center’s director of business research and economic development...

"Even more," added John Adams, Enterprise Florida’s president and CEO, "defense-related spending generates high-skill, high-wage jobs across the state in technology-intensive sectors. The national wage scale used by military and civilian defense contractor jobs is particularly vital to the economic well-being of all parts of Florida."

Regarding Florida’s regions, the study notes that defense-related spending drives gross regional product, accounting for 35 percent in Northwest, 18 percent in the Northeast, 5 percent in Central Florida, and 3 percent in South Florida. All but six counties have at least $3 million per year in direct defense spending.

"While Florida’s economy has faced challenges during the past few quarters, particularly in areas hardest hit by the real estate slowdown, high-wage, defense-related jobs are somewhat immune to downturns in the business cycle," Adams observed. "They provide strength to Florida’s economy even in difficult times."

Adams stressed that the study’s results reflect strong state and community support of defense. "It validates Florida’s leadership in developing military friendly policies related to service members and their families. This is essential for maintaining Florida as a critical location in our nation’s national security structure far into the future," he concluded.

Florida Defense Industry Economic Impact Analysis is available via the Florida Defense Alliance Web site.

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Enterprise Florida, Inc. (EFI) is a partnership between Florida's business and government leaders and is the principal economic development organization for the state of Florida. Headquartered in Orlando, EFI’s mission is to diversify Florida’s economy and create better-paying jobs for its citizens by supporting, attracting and helping to create businesses in innovative, high-growth industries. In pursuit of its mission, EFI works closely with a statewide network of economic development partners and is funded both by the State of Florida and by private-sector businesses.

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