State Initiates New Study on Economic Impact of Military Industry

In order to document the importance of Arizona's Military, the Arizona Department of Commerce has contracted with The Maguire Company to analyze the current economic impact of Arizona's military industry. In May 2002 the original study, "Economic Impact of Arizona's Principal Military Operations" was commissioned by the communities of Glendale, Avondale, Goodyear, Litchfield Park, Peoria, Phoenix, Surprise, Tucson, Wickenburg, and Yuma, and focused on the economic impact of Arizona's active military facilities statewide. The Maguire Company in collaboration with ESI Corporation concluded that the military industry's economic and fiscal impact of $5.7 billion annually and over 83,000 direct and indirect jobs represents a key recession-proof component of the state's economy. Additionally, the principal military operations in the State directly employ over 41,600 persons, which exceeds the number of jobs at the top three private sector employers in the State. "Based on today's changing economic climate, it has been determined that the 2002 study be updated to reflect current post-BRAC and post 9/11 fiscal and military operations trends," said Gilbert Jimenez, Director of the Arizona Department of Commerce. Although the military industry is one of the largest economic engines in Arizona, its value is frequently underestimated. For many years, the "Five C's" were used to describe the basic industries of Arizona - Copper, Cotton, Citrus, Cattle, and Climate. These industries were identified as the core of Arizona's economy. Nowhere in this list was there any recognition of the thousands of Arizona jobs tied directly and indirectly to the many military operations within the State. Arizona continues to demonstrate strong commitment to its military partners through actions including embracing the recommendations of the Military Facilities Task Force; passing legislation to protect military installations from encroachment; establishing the Military Installation Fund to purchase lands around active military installations; and developing Joint Land Use Studies around primary military facilities using Department of Defense grant funds. Extensive stakeholder involvement in each endeavor has led to Arizona's success and has strengthened the state's military presence and set a foundation for future opportunities. The new Economic Impact of Arizona's Military Industry study under development by The Maguire Company is targeted for release by the Arizona Department of Commerce in May of 2007.