Washington Business Summer 2015 | Page 34

business backgrounder | economy For the Common Good The military presence in Washington Richard S. Davis As Congress and military leaders wrestle with decisions about downsizing bases, Washington state officials are raising awareness about the military’s impact on the state economy. Ask Kristiné Reeves about the importance of the military and defense industry to our state and she recites the benefits like a catechism: $13 billion of Department of Defense (DoD) spending in contracts and payroll; 1,900 companies doing business on behalf of DoD, and 112,000 employees spread across 35 counties. There’s more, but it’s clear: The industry touches every part of community and economic life in Washington, representing more than 3.2 percent of the state Gross Domestic Product. The six major military installations here are: • Joint Base Lewis-McChord • Naval Base Kitsap • Naval Air Station Whidbey Island • Naval Station Everett • Fairchild Air Force Base • Washington National Guard A 2012 study commissioned by Gov. — Rich Hadley, president emeritus of Greater Spokane Incorporated and Chris Gregoire, “Retaining and Expanding AWB’s representative on the Washington Military Alliance Military Missions,” also includes the U.S. Coast Guard (not DoD but part of the Department of Homeland Security), two Department of Energy facilities pursuing training and research that supports DoD, and the University of Washington’s Applied Physics Laboratory that performs research for the Navy. The table shows the economic impact of each installation as reported in the Retaining report. at a glance “People who are leading companies in the state should be more aware of [the significant] statewide impact of the military and what it means to the economy and to all of the companies that contract with the military.” Washington state is home to six major military installations and Department of Defense contracts support 112,000 employees in 35 counties. Last fall, Gov. Jay Inslee reinstituted the Washington Military Alliance, an advisory group made up of major businesses and trade organizations with ties to the defense industry. Members of the alliance work closely with a subcabinet on military downsizing that Inslee established in June as part of “all-hands-on-deck” effort to make the case for keeping service members in Washington. 34 association of washington business Installation Economic Impact Joint Base Lewis-McChord $6.1 billion Naval Base Kitsap $6.1 billion Naval Air Station Whidbey $592 million Naval Station Everett $475 million Fairchild Air Force Base $461 million Camp Murray, Washington National Guard $520 million Data from “Retaining and Expanding Military Missions,” pages 42, 52, 62, 70, 78, and 84