The Utah Department of Veterans and Military Affairs (UDVMA) is excited to share the findings of a comprehensive economic impact study recently conducted by the Kem C. Gardner Policy Institute at the University of Utah. This research, commissioned by UDVMA and the Utah Defense Alliance, sheds light on the significant contributions of Utah's military and defense industry to our state's vibrant economy. The study provides valuable insights into the industry's role in job creation, income generation, and overall economic growth. Let’s look at some of the key findings.

The study reveals the substantial economic footprint of the defense industry in Utah during Fiscal Year (FY) 2023, with key highlights including:

• Job Creation: The industry directly and indirectly supported a staggering 173,713 jobs, equivalent to the size of Utah's entire construction industry. This represents 7.2% of all jobs in the state.
• GDP Contribution: The defense industry contributed an estimated $22.2 billion to Utah's Gross Domestic Product (GDP), accounting for 7.8% of the statewide total.
• Income Generation: The industry generated $14.6 billion in personal income, representing 6.9% of the state total.
• Output Impact: The industry supported $39.5 billion in output, comprising 7.8% of the state total.
• Fiscal Impact: Defense-related activity generated a net positive fiscal impact of $431.3 million for the state government.

These impressive figures demonstrate the vital role the military and defense sector plays in supporting Utah's economic well-being, contributing significantly to the state's financial stability and providing valuable resources for essential public services and programs. This substantial economic activity also strengthens communities across Utah by generating job opportunities and stimulating local economies.

The study analyzed the contributions of several key defense entities in Utah, including:

• Hill Air Force Base: As the state's premier military installation, Hill AFB is a major driver of economic activity, contributing significantly to employment, income, and GDP. Its diverse operations, including aircraft maintenance, missile system management, and F-35 operations, support a wide range of jobs and attract substantial federal investment.
• Dugway Proving Ground: This expansive Army installation plays a crucial role in testing and evaluating military equipment and training, contributing to both local and statewide economic activity. Its unique testing capabilities make it a vital asset for national defense.
• Tooele Army Depot: TEAD's crucial role in ammunition logistics, maintenance, and demilitarization provides valuable jobs and generates economic activity within Tooele County and beyond.
• Utah National Guard: The UTNG provides essential support for both state and federal missions, while also contributing to the local economy through employment and spending. Its part-time force allows individuals to serve our country while maintaining civilian careers.
• Military Reserves, Recruiting, ROTC, and Tuition Assistance: These programs contribute to both national defense and the development of future leaders, while also providing economic benefits through employment and financial assistance for education.
• Veterans: Utah's veteran community plays a crucial role through their service, their healthcare needs, and their contributions to the workforce. Federal spending on veterans' services has a positive economic impact throughout the state.
• DOD Civilian Retirees: The presence of retired DOD civilians contributes to the state economy through their spending and pension income.
• Defense Contracts and Grants: These generate significant economic activity by supporting private sector businesses and research institutions involved in defense-related work.

This study emphasizes the importance of sustained investment in Utah's military and defense sector to ensure continued economic growth, job creation, and a strong national defense presence. The UDVMA is committed to collaborating with partners to foster a supportive environment for this crucial sector. This report provides a valuable benchmark for understanding the defense industry’s economic contributions to Utah and will serve as a key resource for policymakers, community leaders, and stakeholders in supporting our military community. 

You can read the full report here: Utah’s Military and Defense Industry: An Economic Impact Study