Arizona: Military boosting state economy
According to The Arizona Republic:
The U.S. military is an often-overlooked - but powerful - component of Arizona's economy.
A new study commissioned by the Arizona Department of Commerce, reports that, in terms of employment, the military is the fifth-largest sector of the state's economy behind business services, hospitality, state government and construction.
With wars in Iraq and Afghanistan boosting defense spending, the economic impact of the military on the state's economy rose more than 35 percent from 2000 to 2005. Those numbers are expected to continue to grow, but could be cut short if any of Arizona's military bases are slated for eventual closure.
Arizona's five military bases and four National Guard installations provided for 45,568 direct jobs in 2005, the most recent year for which economic data is available, and pumped $3.25 billion into the state's economy.
That compares with 41,647 direct jobs and a $2.4 billion economic shot in the arm in 2000.
But the military facilities also supported indirect jobs at companies that provide them with goods and services and at businesses that support the second-tier companies.
Prepared by the Maguire Co. in Phoenix, the report pegs the total at 96,328 jobs and $9.1 billion in 2005, up from 83,506 jobs and $5.7 billion in economic stimulus in 2000.
The report attributes the increase to the wars in Iraq and Afghanistan and increased defense spending. The upward trend is expected to be reflected in 2006, 2007 and 2008.
The military jobs are a particularly important part of Arizona's economy because they are relatively recession-proof.
"Unlike many other Arizona industries and businesses, military operations do not contract substantially during economic slowdowns or recessions," the study says.
But they are subject to changes in public opinion and politics. In the 1990s, after the Cold War was declared over, the Clinton administration severely cut back defense spending and the size of the U.S. armed forces.
Much of the increased military spending since 2001 has been used to ramp back up.
Arizona's bases were substantially spared by the recent round of base closures recommended by the Base Realignment and Closing Commission in 2005. But there could be more evaluations and possible closures in the future that may include Arizona facilities.
Williams Air Force Base near Mesa was closed in 1993 and redeveloped into Phoenix-Mesa Gateway Airport.
Local decisions could also have an impact on Arizona's military bases. Many of them, such as Luke Air Force Base near Phoenix, are aviation-oriented and were selected because of their remote locations. Recent growth is encroaching on the bases...click to continue.
