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Massachusetts Defense-Contract Work Contributed $20 Billion to Economy; Massachusetts Military Installations Had $13B+ in Economic Impact

The Commonwealth’s defense-contract work supported more than 88,000 workers and contributed more than $20 billion to the Massachusetts economy, while Massachusetts military installations directly or indirectly supported more than 57,000 jobs with a total economic contribution of more than $13 billion in fiscal year 2013, according to two new University of Massachusetts Donahue Institute reports.

“The Commonwealth’s six bases and defense-related firms continue to have a major impact on the Massachusetts economy, both in terms of jobs and dollars,” said Governor Baker. “Academia, business, and technology – three of the Commonwealth’s top sectors – play a role in our installations and defense contracts, helping this industry serve as an economic driver. We look forward to their continued growth and contribution to Massachusetts.”

The Massachusetts Military Asset and Security Strategy Task Force and MassDevelopment commissioned the reports.

The first studied the impact of the Commonwealth’s six military installations – Barnes Air National Guard Base, the Fort Devens Reserve Forces Training Area, Hanscom Air Force Base, Joint Base Cape Cod, the U.S. Army Natick Soldier Systems Center, and Westover Air Reserve Base – and the Massachusetts Army National Guard and the U.S. Army Reserve. To view the full report, click here.

The second report studied the defense industry’s contribution to the New England economy, finding that in fiscal year 2013, New England defense contracting generated nearly $49 billion and more than 218,000 jobs. To view that report, click here.

Other findings from the reports include:

  • Massachusetts bases employed 29,230 active, reserve, and guard military and civilian personnel. Installation and personnel expenditures supported another 28,103 jobs.
  • Base expenditures totaled $8 billion and generated another $5.2 billion in induced and economic activity for a total contribution of more than $13 billion.
  • Massachusetts is the top defense contracting state in New England and ranked sixth nationally in contracts received.

“These reports quantify the extent to which Massachusetts military installations and defense companies serve as major economic engines thanks to the Commonwealth’s world-class workforce and top-notch technology companies,” said MassDevelopment President and CEO Marty Jones. “In addition to carrying out vital national-security missions, these bases and businesses power our innovation-based economy.”


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