Report: Navy’s local impact grew by $2 billion in 2018
Hampton Roads’ economic boost largely thanks to ship construction, payroll increases
“In short, our national security, economic, naval and political security alike places great premium on the people of Hampton Roads. For here are the dedicated shipbuilders who help to build and ensure our future strength.”
— Thomas Modly, Secretary of the Navy
VIRGINIA BEACH — The Navy’s economic impact in Hampton Roads grew by nearly $2 billion last year due to increases in payroll and the procurement of goods and services that include ship construction and maintenance contracts, according to a report released Tuesday.
The direct economic impact of the Navy in the region during the 2018 fiscal year was more than $16 billion, up from about $14.1 billion in the prior year, according to statistics released by Norfolk-based Navy Region Mid-Atlantic.
“Hampton Roads is a critical operational hub for the Navy. The numbers speak volumes to the impact your Navy has on the local economy and it reinforces our strong partnership with the area,” Rear Adm. Charles Rock, commander of Navy Region Mid-Atlantic, said in a statement.
“Our men and women homeported here play a much larger role than simply serving our country — they are interwoven into the community we all call home. We are part of the fabric of Hampton Roads, America’s Navy Town.”
The service released the estimates the same day acting Secretary of the Navy Thomas Modly addressed the Hampton Roads Chamber of Commerce and called for the construction of a larger naval fleet.
He said the Navy has about 290 ships right now, but needs 355.
The service has 54 ships and 35 aircraft squadrons based in Hampton Roads.
“We need to have more ships,” Modly said. “We simply cannot take on the broad security challenges that we have, which are getting more and more complicated around the world, with the number of ships we have.”
Every aircraft carrier in the United States is built at Newport News Shipbuilding, which also builds nuclear-powered attack submarines.
The Navy’s economic impact figures take into account active duty and reserve personnel, civilian employees and contractors. Figures also include spending on retired military personnel and those receiving survivor benefits who live in the area.
“In short, our national security, economic, naval and political security alike places great premium on the people of Hampton Roads,” Modly said. “For here are the dedicated shipbuilders who help to build and ensure our future strength. Here are the suppliers and teammates who maintain and prepare our fleet. Here are the innovative researchers who sharpen that blade of innovation. And most importantly, here live the many military families who call this community home because they feel welcome here.”
The Navy said there was an increase of about 3,000 civil service employees working at bases in the region, compared with the previous year.
The service estimates there were 89,000 uniformed personnel at Hampton Roads bases, an increase of about about 1,500 from the previous year. The report says that figure is constantly changing due to the transient nature of military personnel, but called it a “reasonable estimate.”
The Navy estimates there were nearly 107,000 military family members in Hampton Roads in the past year, down more than 4,000 compared to the 2017 fiscal year.