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Military Spending Still Bolsters Local Economy

The military poured $14.7 billion in direct spending into San Diego County in 2007, according to the National University System Institute for Policy Research. That amounted to 14.3% of local economic activity. Some $13.7 billion came from the Department of Defense, including procurement contracts and salaries and wages, and $1.08 billion came from the Department of Veterans Affairs. Between 2006 and 2007, spending rose by 8.9%. Between 2001 and 2007, it rose 74.7%. SAIC, General Dynamics/NASSCO and General Atomics account for 7% of area economic activity. The San Diego metro area (the county) is third in military spending behind Norfolk-Newport News, Virginia and the Los Angeles-Orange County area. When indirect spending is included, the San Diego total rises to $22.3 billion. Economist Kelly Cunningham points out that in past decades, the military had a much bigger role in the San Diego economy, but that it is still significant, particularly when other areas are contracting.

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The military poured $14.7 billion in direct spending into San Diego County in 2007, according to the National University System Institute for Policy Research. That amounted to 14.3% of local economic activity. Some $13.7 billion came from the Department of Defense, including procurement contracts and salaries and wages, and $1.08 billion came from the Department of Veterans Affairs. Between 2006 and 2007, spending rose by 8.9%. Between 2001 and 2007, it rose 74.7%. SAIC, General Dynamics/NASSCO and General Atomics account for 7% of area economic activity. The San Diego metro area (the county) is third in military spending behind Norfolk-Newport News, Virginia and the Los Angeles-Orange County area. When indirect spending is included, the San Diego total rises to $22.3 billion. Economist Kelly Cunningham points out that in past decades, the military had a much bigger role in the San Diego economy, but that it is still significant, particularly when other areas are contracting.

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