$25B in Defense Funds Expected in 2016: Report

Even as the nation's leaders debate the budget, analysts believe the amount of defense-related spending will stay the same for the San Diego County region.

A survey of the military’s economic impact on San Diego County shows billions in defense-related funds spent in the region this year should be expected next year.

The 2015 San Diego Military Economic Impact Study (SDMEIS) is the seventh annual look at the effects of having such a large military presence on our local economy.

With San Diego being home to 60 percent of the U.S. Pacific Fleet and more than one third of the U.S. Marine Corps combat troops, the authors expect this year’s direct military-related spending of approximately $25 billion to be repeated in 2016.

Even as Congress and the Obama administration debate over next year’s budget, SDMEIS analysts believe San Diego is situated to keep its current level of spending.

More than one-fifth of San Diego County’s economy relies on the military and defense industries, according to the study. Activities in those industries represent 21.5 percent of the region’s total GRP.

When it comes to defense contracts, the top recipients in San Diego in 2014 were General Atomics, Northrop Grumman and National Steel and Shipbuilding. The three companies alone held nearly $3 billion in defense contracts.

Many firms focus on cybersecurity and drone technology – two areas of defense spending expected to remain unchanged or increase in the coming year.

Other highlights of the study:

  • U.S. military accounts for 328,000 jobs or 22 percent of the jobs in San Diego County
  • Two aircraft carriers homeported here bring $1.5 billion to the economy
  • Direct spending related to defense sent to San Diego County during fiscal year 2015 equals about $7,700 for each resident
  • More than 100,000 active-duty Navy and Marine Corps personnel are assigned to ships and bases in San Diego region
  • There are approximately 24,000 Department of Defense civilian employees
  • Retired military and civilian DoD employees living in San Diego are estimated to number 60,000
  • Tourism linked to the military is an estimated $122 million
     
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