The Defense Industry in Connecticut
UMass Donahue InstituteEconomic & Public Policy
Dear Colleague:The Defense Technology Initiative (DTI) is pleased to release a set of three detailed state reports on theeconomic significance of the defense industry in New England. This document is one of three relatedreports, each of which focuses on Connecticut, Massachusetts, and Rhode Island and is a follow up to theNew England Defense Industry Summary we released in June 2012. When these reports are viewedtogether, a clear sense of the interconnectedness of the New England defense technology cluster emerges.Copies of all state reports, conducted by the University of Massachusetts Donahue Institute, can be foundon our website, www.defensetech.net.
The defense industry’s importance to the
Connecticut economy has only grown in recent years. In 2011,1,100 companies were awarded nearly $12.7 billion in Department of Defense (DoD) or the Department of Homeland Security (DHS) contracts, a 51% increase since 2003. These companies employ more than101,000 employees, which represents approximately 6.3% of employment in the state. These employeesexemplify industry expertise in precision manufacturing and sophisticated scientific and technical support,producing cutting edge ships, aircrafts, and specialty engines to the military. With large prime contractorslike United Technologies and General Dynamics, the state supports a complex and interconnected networkof small businesses and subcontractors throughout the region to supply high technology to our military.Yet today, defense firms are already adjusting to the current and potential (sequestration) defense spendingreductions that could total over $1 trillion dollars over the next 10 years. Without Congressionalintervention before January 2013, job losses throughout New England among contactors and the supplychain could total 90,000 jobs across New England and over 36,000 jobs in Connecticut.
Despite these cuts, opportunities exist. As illustrated in the three state reports, the Pentagon’s
focus onscience and technology, research and development, unmanned air systems and cyber security remain
aligned with New England’s strengths. A coordinated New England leadership effort is necessary in order to
take advantage of these opportunities, and to ensure that the region remains the leader into the future.I hope you find this report of interest and that it helps you fully understand the significant economic impactof the defense industry in Connecticut, and more broadly throughout New England.Best,Christopher Anderson Charlie BenwayPresident Executive Vice PresidentDefense Technology Initiative, Inc. Defense Technology Initiative, Inc.