DEFENSE SPENDING IN S.D. BOLSTERED LOCAL ECONOMY, NEW REPORT SAYS
Increases in spending, jobs helped in stabilizing region when pandemic took hold
Defense spending across San Diego County bolstered the local economy during the pandemic this year and now accounts for a quarter of the county's gross regional product, according to a new report released Tuesday.
According to the annual Military Economic Impact Report, more than $33 billion in direct payments — via payroll, defense contracts, and retirement and veterans benefits — went to people and companies in the county during the 2020 fiscal year.
That spending, along with spillover that researchers call a multiplier effect, equates to a total economic impact of more than $52 billion — 25 percent of San Diego's gross regional product.
The numbers show an increase of
5.7 percent in direct spending and a 7.7 percent increase in jobs that pencils out to 342,486 jobs.
Numbers in this year’s report differ from last year’s in part because Rady School of Management at the University of California San Diego compiled and analyzed the data, using modeling that was more conservative than prior calculations, said Mark Balmert, chief executive of the San Diego Military Advisory Council,
which commissions the annual report.
Almost 60,000 activeduty sailors and 50,000 active-duty Marines make up the largest factions of employment, the report says, with more than 30,000 local civilians also employed by the Defense Department. Indirect employment linked to defense contracts adds
roughly 190,000 jobs — about 15,000 more than fiscal year 2019.
The presence of the military and defense industries has softened the economic blow of the pandemic, Balmert said.
“The Rady School team did a great job of independently confirming what many of us already know, that the
Defense budget provides an incredible stabilizing force during economic downturns such as we are experiencing during COVID19,” Balmert, a retired rear admiral, wrote in an email.
The report singled-out the impacts of three Nimitzclass aircraft carriers that call San Diego home — the Carl Vinson, the Theodore
Roosevelt and the Abraham Lincoln.
Each ship, the report notes, brings more than 3,000 sailors, making the three together a top-10 employer in San Diego.
Each carrier contributes about $767 million to the region, the report says.