Economic Impact Study Summary

ECONOMIC IMPACT SUMMARY
MILITARY
AND
AEROSPACE
IMPACT
ON THE
STATE OF
ALABAMA
FY 2019
January 2023
| 1
Economics_brochure-Military_&_Aerospace_Impact_on_the_State_of_Alabama_020323-rev8.indd 1 2/3/23 2:34 PM

REPORT OVERVIEW
The Defense and Aerospace Industries play a significant

role in Alabama’s economy. While there is overlap between
Defense and Aerospace, this report analyzes the two sectors
independently. Availability of complete data and a ‘normal’ year
made 2019 the year to serve as a representative year for the
impact that the defense industry has on the state of Alabama.
The Gross Domestic Product of the state is $231.2 billion. There

are 67 counties in Alabama with a total population of over 4.9
million. Almost all counties benefit from defense spending either
directly receiving contracts from the DOD or indirectly through
subsequent spending by companies and its citizens.
Total Impact on the State of

Alabama
Employment 264,780 Jobs
Payroll $19,309 M
Output $50,318 M
2 |

DVIDS F16 -187th Fighter Wing
Photo by Public Affairs - airforcetimes.com
There are five active installations located in the state:
Anniston Army Depot and Fort McClellan Training Center

Fort Rucker
Maxwell-Gunter Air Force Base
Redstone Arsenal
Aviation Training Center
In addition to these major installations, defense and

security oriented companies are located across the state.
The total economic impact of military personnel and contracts

amounted to $50.3 billion and accounted for just over $19.3
billion in payroll for the state of Alabama. This also contributed
close to 265,000 jobs to the state.
| 3

TABLE OF CONTENTS
Overview of State....................................................... 5
The Military in Alabama.............................................. 6
By the Numbers........................................................... 8
State Impact 2019..................................................... 10
Anniston Region........................................................ 12
Birmingham Region................................................... 14
Coastal Region........................................................... 16
Fort Rucker Region.................................................... 18
Maxwell-Gunter Region........................................... 20
Redstone Arsenal Region.......................................... 22
Independent Regions................................................ 26
Aerospace Sector...................................................... 28
National Guard........................................................... 30
Coast Guard............................................................... 31
SBIR and STTR............................................................ 32
Grants......................................................................... 33
Fort Benning Region................................................. 34
Military Reserve......................................................... 35
Military Retirees........................................................ 36
ALMSF and CMER..................................................... 37
Alabama’s Role in the Defense Industry.................. 38
4 |

OVERVIEW OF STATE
For the purpose of this study, the state was divided into regions
to develop regional impacts. The regions in this study were
formed as clusters of counties that, for the most part, are
anchored by an active military base.
Contract spending of $16 billion in 2019 makes Alabama a top

10 state for defense spending. Almost 7% of the state’s GDP
can be attributed to defense spending.
8 REGIONS
Redstone Arsenal
Anniston
Fort Rucker
Maxwell-Gunter
Birmingham
Coastal
Dallas
Marion
| 5

THE MILITARY IN ALABAMA
Total Statewide Economic Impact $50.3 B
Percent of Alabama Economy 21.8%
Statewide Direct and Multiplier Jobs 264,780
Military Personnel1 28,432
Civilian Personnel1 24,372
Military Reserve1 7,083
National Guard1 12,046
Total Veterans in AL2 368,214
Total Military Retirees Living in AL3 62,423
Buildings owned by Military4 4,760
Total Acreage (All Installations)4 156,143
1. Defense Manpower Data Center- Military and Civilian personnel by State/Country

(September 2019)
2. U.S. Department of Veteran Affairs
3. Department of Defense, Office of the Actuary
4. Department of Defense, Base Structures Report – FY 2018 Baseline
5. Defense Spending by State 2018 and 2019
6. Study
6 |

F-35A Fighter Jet.
Photo by US Air Force
Total defense spending in Alabama remains consistently in the

top ten over the past years. Alabama ranked #9 with $15.4
billion spent in the state in 2018 and #9 again in 2019 with $16
billion of direct spending in the state. Total defense spending
was 6.9% of Alabama’s GDP in 2018 and 2019 placing it in #4
and #3 respectively5.
Alabama ranked #11 for both years in defense contract spending

with $12.2 billion in 2018 and $12.7 billion in 2019. Payroll also
ranked #11 in both years with $3.2 billion in 2018 and $3.3 billion
in 20195.
The data and results in this study demonstrates that Alabama

has remained steady in its support for its military population of
63,597 military personnel and over 430 thousand veterans and
retirees6.
| 7

BY THE NUMBERS
4 INDUSTRIES MAKE UP 74% OF DOD

CONTRACTS
23% 32%
Engineering Research &
Services Development
9% 10%
Ship & Boat Aerospace
Building Manufacturing
AEROSPACE CONTRACTS BY TOP REGIONS
8 |

DEFENSE AS PERCENT OF REGION’S GDP
PERSONNEL BY TYPE
| 9

STATE IMPACT 2019
The defense spending of $16 billion rippled through Alabama’s

economy supporting 264,780 jobs, $19.3 billion in payroll and
creating a total economic impact on output of over $50.3 billion
in 2019. Activities that support the defense industry account for
21.8% of Alabama’s economy, in 2019.
The components of the total impact are military personnel and

contracts received. The total impact on output due to contractors
is nearly $30 billion and military personnel is $21 billion.
The total value of contracts performed in Alabama for FY 2019 is

over $15.7 billion. Companies in Alabama received approximately
73% of the contracts. The value of the contracts received by
companies in Alabama is over $11.5 billion. Approximately 780
companies in Alabama received contracts from the Department of
Defense (DOD).
BREAKDOWN OF THE TOTAL STATE IMPACT
Components of Total State Impact

Impact Military Personnel DOD Contractors
Employment 96,340 Jobs 168,439 Jobs
Payroll $8,552 M $10,757 M
Output $20,844 M $29,474 M
10 |

TOTAL ECONOMIC IMPACT BY REGION
$9 B $6 B
28,865 26,706
jobs jobs
$581 M
$27 B $3 B $2 B
2,583
jobs
143,156 jobs 21,331

jobs
13,102
jobs
As the graph indicates, each region benefits from some level of

defense activity, both in terms of output and employment. The
Redstone Arsenal Region is associated with the highest level of
job creation at more than 143,000 (direct and multiplier). Fort
Rucker Region generated close to 29,000 jobs. Maxwell-Gunter
Region generated close to 27,000 jobs. Regions with smaller
contributions still have contracts and are home to veterans and
retirees that spend their income in the region.
| 11

Training in Pelham Range.
Photo by Anniston Star
ANNISTON REGION
The total impact of Department of Defense activities
in the Anniston Region is over $2 billion and is 15% of
the Gross Regional Product (GRP). The total impact on
employment is over 13,000 with a payroll impact of $1
billion.
Total Impact on Anniston

Region
Payroll $1,000 M
Output $2,124 M
12 |

The Anniston Region is home
to the Anniston Army Depot
(ANAD), Fort McClellan Training
Center (FMTC) and the Center
for Domestic Preparedness (CDP)
in Calhoun County. Calhoun
County and the surrounding
counties, Cherokee, Cleburne,
Etowah, Talladega and St. Claire,
all support the DOD and other
U.S. Government organizations
that are essential to our
nation’s defense. The Depot is
renowned for its maintenance
facility while the Training Center
provides facilities, ranges and
maneuver areas for various
Federal and State agencies.
Up to 80,000 troops train in a given year. The CDP trains 50,000
emergency responders annually. This region plays a significant role
in supporting the defense and related industries and is critical to
Alabama’s economic strength and stability. The GRP is $14 billion,
with a population of 426,000, and an employment level of 110,000
people.
| 13

BIRMINGHAM REGION
The Birmingham Region
contains 8 counties. While
Jefferson hosts the Air National
Guard, other counties in this
region are Blount, Walker,
Tuscaloosa, Bibb, Chilton, Shelby,
and the Coosa counties. This
region does not host an active
military base, however, Sumpter
Smith Air National Guard Base
is located in the Birmingham-
Shuttleworth International
Airport. It covers essential
facilities to support the mission
of the 117th Air Refueling Wing
(117ARW). Many companies in
the defense industry are settled
around the Magic City. The
region’s Gross Regional Product (GRP) is $75.8 billion, and hosts a
population of 1.28 million, with an average employment of 537,000.
Total Impact on Birmingham Region

Payroll $146 M
Output $581 M
14 |

Alabama National Guard’s 187th FW and 117th ARW.
Photo by Alabama National Guard
The total impact on employment is over 2,500, with a payroll of

$146 million. The total impact on output is over $580 million.
This region plays an important role is supporting the military.
| 15

Launch of USS Gabrielle Giffords in Mobile.
Photo by U.S. Navy
COASTAL REGION
The total impact of the Department of Defense activities
exceeds $3 billion and accounts for 8.8% of the Gross
Regional Product (GRP). Over 21,000 people are
employed in this region because of the Department
of Defense with a payroll impact exceeding $1 billion.
Total Impact on Coastal Region

Payroll $1,022 M
Output $3,051 M
16 |

The Coastal Region is in
southwest Alabama and is along
the Gulf Coast. The City of
Mobile is a port city with the
WWII-era USS Alabama battleship
anchored in Battleship Memorial
Park. Established in 1928, the
port provides connectivity for all
types of cargo from coal to
automobiles coming in or
leaving the country. This region
also includes the Aviation Training
Center (ATC) where Coast Guard
pilots train. Baldwin County,
situated east of Mobile County,
is one of the fastest growing
counties in Alabama. Mobile and
Baldwin are Alabama’s access to
the Gulf of Mexico Coast. Other counties in this region include
Escambia, Covington, Conecuh, Monroe, Clarke and Marengo.
Aerospace and Ship Building are the dominant industries in the
Coastal Region. The GRP is $34.7 billion with a population of 780
thousand with an employment level of 336,000.
| 17

FORT RUCKER REGION
The total impact of Department of Defense activities in
the Fort Rucker Region is over $9 billion and is 68% of
the Gross Regional Product (GRP). The total impact on
employment is nearly 29,000 with a payroll impact of $2.7
billion.
Total Impact on Fort Rucker Region

Payroll $2,730 M
Output $9,039 M
18 |

Fort Rucker holds the title
for Alabama’s largest military
installation, spanning the 63,000-
acre base of southeast Alabama
countryside in an area known as
the Wiregrass, named for a wild
grass peculiar to the region. Home
to U.S. Army Aviation, the base
is mainly located in Dale County
with portions in the Geneva,
Coffee, and Houston counties.
The U.S. Army Aviation Center of
Excellence (USAACE) develops
leaders and drives change by
producing agile and adaptive Army
Aviation professionals. The Fort
Rucker Region encompasses the
aforementioned counties as well as the Pike, Henry, and Barbour
counties, which occupy the southeast corner of Alabama.
Together, the counties in the Fort Rucker Region have a
population of 308 thousand people and a GRP of $13.37 billion.
This region plays an important role in training helicopter pilots
for the military in Alabama.
| 19

The Air Force Reserve’s 908th
Airlift Wing at Maxwell Air Force
Base will become the main hub
for training pilots to fly the new
MH-139 Grey Wolf.
Photo by USAF
MAXWELL-GUNTER REGION
The total impact of Department of Defense activities in
the Maxwell-Gunter Region is over $6.3 billion and is 21%
of the Gross Regional Product (GRP). The total impact on
employment is nearly 27,000 with a payroll impact of $1.9
billion.
Total Impact on Maxwell-Gunter

Region
Payroll $1,901 M
Output $6,266 M
20 |

Maxwell Air Force Base hosts Air
University. Most Air Force members
pass through Air University for training
and education at least once in their
career and over 700 students move
to Maxwell each year to attend
Professional Military Education. Almost
37,000 students pass through Maxwell
each year for officer commissioning
and a variety of professional continuing
education courses. Maxwell also hosts
the 42nd Air Base Wing and the Air
Force Reserve’s 908th Airlift Wing.
Gunter Annex, a separate installation,

hosts the Senior Non-Commissioned
Officer School, the Business and
Enterprise Systems Directorate,
the Defense Information Systems
Agency, and the 26th Network Operations Squadron. In addition, the
187th Fighter Wing is located at Montgomery’s Dannelly Field. The
GRP for this region is $29.6 billion and the Maxwell-Gunter Region has a
population of 678,101.
| 21

UGV Launches a javelin missile at
Redstone Arsenal.
Photo by US Army
REDSTONE ARSENAL REGION

The total impact of Department of Defense activities in the
Redstone Arsenal Region is over $27.3 billion and is 51%
of the Gross Regional Product (GRP). The total impact
on employment is 143,156 with a payroll impact of over
$13 billion. The Redstone Arsenal is home to over 65
organizations employing 42,000.
Total Impact on Redstone Arsenal

Region
Payroll $13,202 M
Output $27,272 M
22 |

Redstone Arsenal (RSA) is located
in Madison County adjacent to the
cities of Huntsville and Madison.
This northern region also includes
Cullman, Limestone, Morgan,
Marshall, Dekalb, Jackson, Franklin,
Colbert, Lauderdale, and Madison
counties. It has many one-of-a-kind
facilities including testing sites.
It leads growth in Logistics and
Acquisition services, RDT&E, Missile
and Space Intelligence Center,
Homeland Defense and Space and
Missile Defense. The military base,
located in north Alabama, is one
of the largest contributors to the
regional economy and Alabama’s
economy. Located within the Redstone Arsenal is the Marshall
Space Flight Center (MSFC), a NASA center and other federal
agencies, including a growing presence of the FBI. The
GRP for the region is $53.3 billion and the population of the
region is 1,074,516. The Defense and Aerospace sector is well
represented in the region.
| 23

https://upload.wikimedia.org/wikipedia/commons/f/f8/PCA1.jpg
REDSTONE ARSENAL REGION

Located within the Redstone Arsenal is the Marshall Space
Flight Center (MSFC), a center of the National Aeronautics
and Space Administration (NASA). Being responsible
for space programs, it employs highly skilled engineers
and scientists to develop rockets and has a symbiotic
relationship with the military activities on the base. MSFC
impacts shown here are also included in the Aerospace
sector impacts
Total Impact of NASA-MSFC in

Redstone Arsenal Region
Payroll $1,427 M
Output $3,466 M
24 |

Within the Redstone Arsenal (RSA)
are offices of multiple federal
organizations. The Federal Bureau
of Investigation (FBI) announced that
it would construct new facilities and
realign functions and staff to RSA,
leveraging the technology, science
and engineering interests in the area
to create a technology hub.
Between 2006 and 2022 the FBI has procured over $2 billion for
the construction and expansion of operations in RSA. The total
impact to date of the authorized spending is approximately $3.9
billion.
This region plays a significant role in space and missile

related missions of the military. It is also at the forefront of
technological innovations and cyber threats.
The Payload Operations Control Room in

the Huntsville Operations Support Center,
Marshall Space Flight Center.
Photo by NASA/MSFC
| 25

DALLAS AREA
The Dallas Area does not have an active base but receives
contracts that serve the entire military. The counties in this region
comprise of Dallas, Perry, Hale, Sumter, and Wilcox. Contracts in
Dallas County were primarily for military uniforms, thus serving
multiple military bases. The contracts in the remaining counties
are for utilities, housekeeping, nature conservation, and building
repair. The Gross Regional Product (GRP) for the region is nearly
$2.5 billion with a population of 83,570.
The total impact of Department of Defense activities in the Dallas

Area is over $53 million and is 2% of the GRP. The total impact
on employment is nearly 559 with a payroll impact of over $15
million.
Total Impact on Dallas Area

Employment 559 Jobs
Payroll $15 M
Output $53 M
26 |

MARION AREA
The Marion area contains 3 counties: Marion, Winston, and Lamar.

With a GRP of $2.1 billion, the population of the area was 67,143.
The military does not have a strong presence in the Marion area,
however, the Marion Area receives contracts to support the
military’s presence elsewhere in the state. The total impact on
output is $3.4 million, and accounts for 22 jobs with a payroll
impact of $1 million.
Total Impact on Marion Area

Employment 22 Jobs
Payroll $1 M
Output $3 M
| 27

AEROSPACE SECTOR
The total impact of the Aerospace Industry in Alabama is
$17.4 billion which is 7.5% of Alabama’s GDP. The total
impact on employment in Alabama to 63,258, which is 4%
of average annual employment for all industries. The total
impact on payroll is $4.3 billion and is 5.5% of total annual
wages in Alabama.
Total Impact of Aerospace

Industry on Alabama
Payroll $4,251 M
Output $17,369 M
28 |

The hub of commercial aerospace is the Coastal Region with Airbus
leading in terms of employment. The Airbus manufacturing facility
opened in Mobile in 2015. It was the first commercial aircraft
production for Airbus in the United States. However, the Redstone
Arsenal Region hosts NASA and the Missile Defense Agency and
has the highest value of all aerospace contracts performed in
2019, at about 99% of total contract value. The space industry
along with guided missiles and rockets are important contributors
to the space sector here in Alabama, especially in the Redstone
Arsenal Region.
Alabama ranks fifth in the nation for aerospace engineers with 3,860
employed earing an annual mean wage of $121,370. Alabama has
the highest location quotient of 4.98 for concentration of jobs in
aerospace engineering.
The Aerospace Industry is an important component of Alabama’s

economy. In addition to the Aerospace Industry, Alabama has
a strong military and aviation presence. Almost all of the aero-
space companies receive contracts from both the DOD and
NASA, making it difficult to separate the aerospace sector and
the defense sector here in Alabama.
The United Launch Alliance (ULA) Atlas V rocket with the OSIRIS-REx spacecraft on the
launch pad at Space Launch Complex 41 (SLC-41) at Cape Canaveral in 2016.
Photo by United Launch Alliance
| 29

Guardsman wearing an EOD 9 bomb suit.
Photo by Sgt. Ashley Marble
NATIONAL GUARD
The Alabama National Guard consists of 11,391 soldiers and
Airmen supported by 304 personnel at the State Military
Department. Alabama National Guard units are dispersed
throughout the state and their troops are even more dispersed,
with over 3% residing outside of the state. Headquartered in
Montgomery, the Army National Guard also runs Fort McClellan
which hosts full-time training, formal military schools, and the
DHS’s Center for Domestic Preparedness. The 117th Air Refuel
Wing’s Airmen in Birmingham have the mission to provide quality
worldwide air refueling, airlift, support, logistics, intelligence, and
medical services in support of our community, state, and nation.
The 187th Fighter Wing in Montgomery is undergoing a mission
transition from F-16 fighter aircraft to the F-35, the Air Force’s
latest fifth-generation fighter aircraft, while continuing to uphold
the highest traditions of the Tuskegee Red Tails.
The total impact of the National Guard is nearly $2.5 billion and is
more than 1% Alabama’s GDP. The total impact on employment
is over 15,000 with a payroll impact of nearly $584 million,
comprising only 0.72% of the state’s total employment.
Total Impact of National Guard on

Alabama
Payroll $584 M
Output $2,450 M
30 |

MH60 in rainbow.
Photo by Coast Guard
COAST GUARD
Mobile Bay is home to the US Coast Guard’s Aviation Training
Center and its Sector Mobile unit. The US Coast Guard is part of
the US Department of Homeland Security (DHS), making it distinct
from all other military branches under the DOD. The Sector Mobile
unit, headquartered in Mobile, is under the 8th Coast Guard District
and its area of operations covers nearly all of Alabama along
with parts of Florida, Georgia, and Mississippi. The Coast Guard
Aviation Training Center in Mobile is the Coast Guard’s aviation
and capabilities development center and an operational air station.
Within the ATC, the Operations department conducts traditional
Coast Guard air station missions such as Search and Rescue,
Homeland Security, and Environmental Protection. Coast Guard
pilots train here to qualify.
The DHS awards all the contracts that the Coast Guard receives. The
total value of all the contracts for the Coast Guard is $303 million.
The total impact of the Coast Guard is nearly $904 million and is less
than 0.5% Alabama’s GDP. The total impact on employment is 4,468
with a payroll impact of over $300 million.
Total Impact of Coast Guard on

Alabama
Payroll $314 M
Output $904 M
| 31

SBIR AND STTR
The Small Business Innovation Research (SBIR) and Small

Business Technology Transfer (STTR) programs support small
businesses in research and development in technology. One
of the missions of these funds is to foster technology transfer
through co-operative R&D between small businesses and
research institutions.
The U.S. Army awarded 59% of the funds for SBIR/STTR in

2019. Over 95% of these funds were primarily awarded in the
Huntsville metropolitan area. More than 40 companies were
awarded these funds contributing to the total impact of $462
million and generating over 2000 jobs.
The total value of awards in Alabama is $235 million for SBIR and
$43 million for STTR which had a total impact of $462 million.
The flow of awards generated an impact of over 2100 jobs and
$144 million in payroll.
Total Impact of SBIR/STTR on

Alabama
Payroll $144 M
Output $462 M
32 |

GRANTS
Grants are awarded to higher education institutions, school

systems and government agencies to promote technology
transfers. The objective of these awards is to transfer value
to and benefit the U.S. government and involve significant
coordination among the recipient and agency.
DOD awarded 130 grants across 24 institutions in Alabama,

totaling nearly $179 million. The total value of the grants in
2019 was $170 million generating a total impact of $320 million
and creating an impact of over 1600 jobs and generating $86
million in payroll impacts.
Total Impact of Grants on

Alabama
Payroll $86 M
Output $320 M
| 33

FORT BENNING
Lee and Russell Counties form the Fort
Benning Region in Alabama, although
these counties mostly serve the
Maxwell Region. These two counties
are home to military personnel working
at Fort Benning. Over 6,000 military
personnel live in these two counties and serve at Fort Benning.
The total GDP for these two counties is just over $8 billion in
2019. The population in the Fort Benning Region of Alabama is
222,503.
With the GDP for the two counties being just over $8 billion,
about 5.8% of the Fort Benning Region within Alabama is
impacted by Fort Benning, GA.
Total Impact of Fort Benning in

Lee and Russell Counties On
Alabama
Payroll $151 M
Output $472 M
34 |

MILITARY RESERVE
Active-Duty Service branches include DOD’s Army, Navy, Marine

Corps and Air Force. The Reserve components include DOD’s
Army National Guard, Army Reserve, Navy Reserve, Marine
Corps Reserve, Air National Guard and Air Force Reserve and
Department of Homeland Security’s (DHS) Coast Guard Reserve.
The Ready Reserve includes the Selected Reserve, the Individual

Ready Reserve (IRR) and the Inactive National Guard (ING).
Of all the Active-Duty members, Alabama ranks 24th with 8,367

members representing 0.7% of the Active-Duty members. With
19,129 Selected Reserve Members, Alabama ranks 12th in the
country hosting 2.4% of Selected Reserve members.
| 35

MILITARY RETIREES
There were a total of 62,423 military retirees in the state of

Alabama in 2019, of which 58,672 receive pay from the DOD.
The yearly pay for the retirees is calculated by converting the

monthly payment. The consumer expenditure patterns by the
Bureau of Labor Statistics is used to calculate the impact.
The direct impact of retiree expenditures is $1.8 billion, resulting

in the total impact of retiree expenditures in the state of
Alabama to be just over $3 billion. The total impact on payroll is
$977 million.
The retiree expenditures in the state of Alabama for the

year 2019 also generates 20,908 jobs. The total impact on
employment is 28,402 in Alabama.
Total Impact of Military Retirees on

Alabama
Payroll $977 M
Output $3,068 M
36 |

ALMSF
The Alabama Job Creation and Military Stability Commission

was created in June 2011. The Commission is led by Lieutenant
Governor Will Ainsworth who serves as a Chair.
The operational arm of the Military Stability Commission, the

Military Stability Foundation is a private, non-profit foundation
that works with DOD installations and communities that surround
and support them to develop and implement measures to retain
and strengthen Alabama’s military assets and infrastructure. For
further information please visit www.almsf.org.
CMER
UAH CMER works in conjunction with the UAH College of

Business to assess organizations’ needs through economic
research and impact analysis as well as supply chain and
transportation research.
This study represents results obtained by The University of

Alabama in Huntsville (UAH) with funding from the Alabama
Military Stability Foundation (ALMSF). In addition, CDO
Consulting was awarded a subcontract to obtain data regarding
personnel at military bases across Alabama. The researchers also
reached out to all the military bases in Alabama to collect relevant
data for this project.
| 37

ALABAMA’S ROLE IN THE DEFENSE
INDUSTRY
The critical role of defense contractors in Alabama cannot be

overstated. The military men and women play a key role in the
defense of the nation, but the contractors providing the goods
and services enable them to complete their missions successfully.
In 2019 Alabama ranked 9th in total defense spending with

$16 billion and 3rd in Defense Spending as a percentage of the
state’s GDP with 6.9%.
Nearly 75% of the contracts were concentrated in 4 industries:

Research and Development
Engineering Services
Aerospace Manufacturing
Ship and Boat Building
These jobs pay on average $80,409 which is 68% larger than the
annual average wage.
Counties with an active base and counties that are close to the
active bases tend to be more reliant on Defense Spending.
Reliant meaning contract value as a percentage of county Gross
Domestic Product. Counties with a higher population also have
a tendency to perform various tasks for the Defense industry.
However, the kind of good or service rendered will determine
the value of the contracts. For instance, heavy machinery, and
high-tech will require higher employment and food and other
services will require fewer jobs.
38 |

The darker regions on the heat map have a higher concentration
of contracts per capita. Counties with a military installation were
removed to reduce skewness.
The courage, discipline and tenacity shown by the extraordinary

military personnel cannot be understated. The State of Alabama
is committed to supporting the troops and their families
stationed here. The Alabama Military Stability Foundation
supports the military communities in the state, facilitating the
necessary communication and promoting legislative efforts to
make Alabama a military friendly state.
| 39

ECONOMIC
IMPACT
SUMMARY
THIS STUDY WAS

SPONSORED BY
THE ALABAMA
MILITARY STABILITY
FOUNDATION.
PLEASE VISIT:
WWW.ALMSF.ORG
January 2023

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ECONOMIC IMPACT SUMMARY

Economics_brochure-Military_&_Aerospace_Impact_on_the_State_of_Alabama_020323-rev8.indd 1 2/3/23 2:34 PM

The Defense and Aerospace Industries play a significant

The Gross Domestic Product of the state is $231.2 billion. There

Total Impact on the State of

Economics_brochure-Military_&_Aerospace_Impact_on_the_State_of_Alabama_020323-rev8.indd 2 2/3/23 2:34 PM

There are five active installations located in the state:

Anniston Army Depot and Fort McClellan Training Center

In addition to these major installations, defense and

The total economic impact of military personnel and contracts

Economics_brochure-Military_&_Aerospace_Impact_on_the_State_of_Alabama_020323-rev8.indd 3 2/3/23 2:34 PM

The Military in Alabama.............................................. 6

State Impact 2019..................................................... 10

Fort Rucker Region.................................................... 18

Redstone Arsenal Region.......................................... 22

SBIR and STTR............................................................ 32

Fort Benning Region................................................. 34

ALMSF and CMER..................................................... 37

Alabama’s Role in the Defense Industry.................. 38

Economics_brochure-Military_&_Aerospace_Impact_on_the_State_of_Alabama_020323-rev8.indd 4 2/3/23 2:34 PM

Contract spending of $16 billion in 2019 makes Alabama a top

Economics_brochure-Military_&_Aerospace_Impact_on_the_State_of_Alabama_020323-rev8.indd 5 2/3/23 2:34 PM

Total Statewide Economic Impact $50.3 B

Percent of Alabama Economy 21.8%

Statewide Direct and Multiplier Jobs 264,780

Military Personnel1 28,432

Civilian Personnel1 24,372

Military Reserve1 7,083

National Guard1 12,046

Total Veterans in AL2 368,214

Total Military Retirees Living in AL3 62,423

Buildings owned by Military4 4,760

Total Acreage (All Installations)4 156,143

1. Defense Manpower Data Center- Military and Civilian personnel by State/Country

2. U.S. Department of Veteran Affairs

3. Department of Defense, Office of the Actuary

4. Department of Defense, Base Structures Report – FY 2018 Baseline

5. Defense Spending by State 2018 and 2019

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Total defense spending in Alabama remains consistently in the

Alabama ranked #11 for both years in defense contract spending

The data and results in this study demonstrates that Alabama

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4 INDUSTRIES MAKE UP 74% OF DOD

AEROSPACE CONTRACTS BY TOP REGIONS

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The defense spending of $16 billion rippled through Alabama’s

The components of the total impact are military personnel and

The total value of contracts performed in Alabama for FY 2019 is

BREAKDOWN OF THE TOTAL STATE IMPACT

Components of Total State Impact

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143,156 jobs 21,331

As the graph indicates, each region benefits from some level of

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Total Impact on Anniston

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Total Impact on Birmingham Region

Employment 2,583 Jobs

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The total impact on employment is over 2,500, with a payroll of

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