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June 26, 2012

Report Accents Defense Industry Strength In N.E.

Federal defense and homeland security contracts pumped nearly $34 billion into the New England economy last year and represent more than 319,000 jobs across the six states, according to a new study by the University of Massachusetts Donahue Institute.

The Donahue study was commissioned by the Defense Technology Initiative (DTI), which was created nine years ago to protect Massachusetts' military bases through the 2005 federal Base Realignment and Closure process.

The report said the defense industry is an important contributor to the Massachusetts economy in the following ways:

  • Last year, the Bay State received nearly $13.9 million in contracts from the federal departments of Defense and Homeland Security, representing an 83-percent increase since 2003.
  • The contracts are also responsible for more than 130,000 jobs and a total payroll of more than $9.7 billion.
  • There are nearly 2,500 Massachusetts companies and institutions tied to those funds, providing equipment, services and technical services to support national and regional defense operations.

In a separate announcement today, Lt. Gov. Timothy Murray said the data highlight the importance of the defense industry in Massachusetts amid potential federal defense budget cuts, as well as the economic impact of the state's six military installations, which include Fort Devens and the U.S. Army's Soldier Systems Center in Natick.

"In every region of the commonwealth, there are critical jobs that support our military bases and defense industry and we cannot afford to overlook the value of these jobs," Murray said in a statement. "With this new data and report, Massachusetts can further showcase the economic and national security benefits of our bases as the task force and our congressional delegation actively protects and promotes the state's military bases. We will continue to evaluate strategic investments at each military base to leverage increased job creation and spur economic growth across Massachusetts."

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