Governor O'Malley Announces Economic Impact of Maryland's Military Installations
Mission Maryland report cites $36 billion impact on state's economy
EDGEWOOD, MD (September 30, 2010) – Governor Martin O’Malley today released Mission Maryland: Measuring Economic Impact of Maryland’s Military Installations and announced that military facilities located here contribute $36 billion to the state’s economy, 7.5% of the total economic activity. The study determined that the installations create or support more than 268,000 jobs and an estimated $17.1 billion in compensation. The announcement was made at Smiths Detection, Edgewood, a global technology company that provides government regulated technology products and advanced services to security experts and governments worldwide, for threat detection.
“We have long recognized and respected the important role our military installations, commands and facilities play in the defense of our nation,” said Governor O’Malley. “With this comprehensive analysis, we have now quantified the significant overall contribution these facilities have on the state’s economy. Compensation paid to Marylanders, purchases from Maryland companies and visitors coming to Maryland’s installations all pump money into the economy, creating jobs and opportunities for Maryland’s citizens and companies.”
“This is great news for Maryland for three reasons: jobs, jobs, jobs, which mean economic security for more Marylanders,” Senator Mikulski said. “There’s no doubt that our military facilities have a long-standing impact on Maryland’s economy, an impact that will continue to grow as new residents and businesses move to the state as a part of BRAC. But there’s still work to do. We have to work together to help Maryland address the increased demands of BRAC new commands like DISA and C4ISR on our communities. I will continue to focus on how federal dollars can help our counties, and fight for an increased federal investment in these priorities. My promises made to BRAC-impacted communities are promises kept.”
Using federal fiscal year 2008 data, the study determined that the installations directly spend $15.7 billion in Maryland, including in-state payroll, purchases and visitor spending. Military commands and other tenant organizations on the installations employ 118,022 people – 45% civilian and 22% active duty military – representing 3.4% of Maryland’s workforce. Nine out of 10 employees live in Maryland, earning just over $9 billion.
“From Fort Detrick to Indian Head, Andrews Air Force Base to Pax River, Maryland’s military installations play a critical role in ensuring our national security and meeting the needs of our men and women in uniform,” stated Congressman Steny H. Hoyer. “This report underscores the important role these facilities play in driving their local economies, attracting new businesses and creating well-paying jobs. To maintain this momentum, we must continue to ensure that all levels of government work closely with our private sector to make our state an attractive place for military agencies to recruit and retain a highly-skilled workforce to support our national security.”
“As a Member of Congress, I believe it is my duty to support the men and women of the military. It is great to know that support is translating into jobs and a substantial economic benefit to the State of Maryland especially in this tough economy,” said Congressman C.A. Dutch Ruppersberger (D-MD).
The comprehensive analysis of the military facilities was conducted by the Jacob France Institute of the University of Baltimore, in coordination with the Department of Business & Economic Development and funded through the Department of Labor, Licensing & Regulation. The study assessed the installations’ direct, indirect and induced impact, including personnel, payroll, procurement and visitors. With the cooperation of and input from 17 major military installations, the study provides a comprehensive assessment of the installations and their economic impact.
For Maryland companies, the economic impact of the installations is significant. Procuring $6.6 billion in goods and services annually from Maryland businesses, the state’s military facilities foster growth in a host of industries from administrative and support services to information technology, computer services and biotechnology. For Smiths Detection and other businesses that are engaged in chemical and biological detection and protection, homeland security and defense, the opportunities are vast.
During his visit to Smiths Detection’s Edgewood facility, Governor O’Malley also participated in a ribbon-cutting ceremony for the company’s advanced airport X-ray screening systems and the U.S. military’s lightweight chemical detectors. He toured the high-tech facility including a walk-through demonstration of the U.S. military’s Chemical-Biological Protective Shelter (CBPS). Smiths’ threat detection equipment has broad applications for use by military forces, airport and transportation security personnel, customs agents and other public service workers.
“We were thrilled to have Governor O’Malley join in our ribbon-cutting ceremony and recognize Smiths Detection’s local contributions to our national armed forces,” said Tim Picciotti, Vice President, Smiths Detection – Americas. “We are proud to be located in Maryland as we collectively try to make the world a safer place.”
Mission Maryland: Measuring Economic Impact of Maryland’s Military Installations is available online here.