Utah Defense Industry Generates $19 billion in Economic Activity

The Kem C. Gardner Policy Institute revealed that Utah’s defense industry is a vital component of the state’s diverse economy — generating over $19 billion in economic activity. The state’s local defense industry currently supports around 211,000 jobs (a number that has nearly doubled since 2015). Credit for the most significant share of growth goes to Hill Air Force Base (HAFB), Veteran services, and in contract awards.

The Gardner Institute showed Utah’s defense industry, with significant increased spending in the past few years, is a major building block of the state’s well-diversified economy. Key findings from the report revealed Utah’s defense sector directly and indirectly supported 10.3% of the state’s employment, 9.5% of its personal income, and 10.6% of its gross domestic product (GDP) in 2019.

Of the $4.4 billion in defense contracts in Utah, $3.3 billion (76%) went to 10 contractors. Northrop Grumman, L-3 Communications, and Moog Inc. were the three largest entities, accounting for nearly $2.6 billion (60%) of total contracts, according to the report. HAFB was the state’s sixth largest employer in 2019, employing 4,521 active-duty military personnel, 1,137 Air Force reservists, and 14,174 federal civilians.

The report also revealed local defense activities supported an estimated 211,285 full- and part-time jobs, 10.3% of total jobs in Utah. Defense personnel earned more than $13.9 billion in 2019 (9.5% of total personal income). Federal defense jobs in the state offered an average of $85,377 in compensation, 35.7% more than nondefense jobs. Defense-related activity generated net fiscal impacts of $244.3 million for the state.

Most of the data used in this study was obtained directly from defense organizations in Utah, including HAFB, Tooele Army Depot Base, and Dugway Proving Ground. Utah hosts several prominent defense-related companies and military undertakings in the state that provide vital contributions to national security, and providing a substantial contribution to Utah’s leading economy.

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