The Florida Commerce Office of Military and Defense and the Florida Defense Support Commission recently published the Florida Defense Industry Economic Impact Analysis and the Florida Military and Defense Economic Impact Summary.
- “Military and defense is the second-largest industry sector in Florida; protecting Florida’s 20 plus military installations and supporting Florida’s military communities is imperative for our continued economic prosperity and national security,” said Florida Secretary of Commerce J. Alex Kelly.
Military and Defense is one of Florida’s most significant industry clusters, accounting for over 865,000 direct and indirect jobs and commanding an annual economic impact of $102.6 billion. This is an increase of nearly 6,000 jobs and 6.2% in economic activity from the previous study.
Escambia County has Naval Air Station Pensacola, Corry Station and Saufley Field. They and defense-related industries make up 19.5% of the county’s economy. However, the county has generally seen its workforce become less defense-oriented in recent years.
- Naval Air Station Pensacola, known as the “Cradle of Naval Aviation,” is the initial primary training base for all Navy, Marine, and Coast Guard aviators, as well as home to the Navy Flight Demonstration Squadron (Blue Angels) and other tenant units.
- Corry Station hosts the Center for Information Warfare Training headquarters, which is responsible for developing education and training policies in areas such as cryptology and cyber.
- Saufley Field is a joint-use facility that houses several DoD and other U.S. government organizations, including the Defense Activity for Nontraditional Education Support, the Naval Reserve Center, and the Bureau of Prisons.
In Escambia County, defense-related expenditures generated 31,651 jobs, 40% of which were indirect or induced. These jobs produced $2.9 billion of labor income. The economic impact of the military and defense industry amounted to $4 billion. Nearly $130 million of state and local tax revenues resulted from defense-related activities in the county.
The study divided impact into three categories: the federal military, the National Guard, and the Coast Guard. Of the $4 billion in total economic impact, $3.7 billion stemmed from the federal military. Similarly, expenditures associated with the federal military created 29,560 of the 31,651 direct, indirect, and induced jobs. The National Guard directly or indirectly generated 79% and 78% of the remaining economic impact and jobs, respectively.
- The private sector is making some inroads. The military has consistently accounted for a higher percentage of earnings in Escambia County than in the state or nation. However, the military’s share of total compensation in the county has declined from its 2013 peak of 16.1% as the local economy has diversified. In a departure from the statewide and national forecasts, Escambia County—much like the greater Northwest Region—is expected to experience a marginal increase in the military’s share of total compensation through 2040.