Gardener report shows economic impact of Utah’s defense industry

A new report from the Kem C. Gardner Policy Institute at the University of Utah highlights the substantial contributions to the state’s economy from Utah’s military and defense industry. The report from shows that the defense industry directly and indirectly supports over 173,000 jobs and contributed an estimated $22.2 billion in gross domestic product in 2023.

“Our research shows Utah defense installations make large purchases from local businesses,” said Levi Pace, a senior economist at the Gardner Institute and lead author of the report. “The Departments of Defense and Veterans Affairs provide high-paying jobs across the state and offer substantial benefits to employees and retirees. Annually, Utah receives considerable federal funding for the contributions of service members and civilians to the military and veteran support.”

According to the report, in fiscal year 2023, Utah’s defense industry directly provided 49,540 military and civilian jobs, 2 percent of the state’s employment. Utah’s federal defense workforce earned over $3.5 billion in compensation in 2023, representing 2.5 percent of the statewide total. Federal defense jobs in Utah offered $102,115 in average compensation, about one-third more than the $77,801 average paid by all other jobs.

In FY 2023, Utah companies received $5.9 billion in defense contracts, of which $5.2 billion (88 percent) went to 10 contractors, including Northrop Grumman, with $3.5 billion.

The report said the defense industry directly and indirectly supported 173,713 full- and part-time jobs, mostly related to Hill Air Force Base, federal support for Utah veterans, defense contracts and grants and the Utah National Guard.

The defense industry’s direct and indirect contribution to the state GDP of $22.2 billion represented 7.8 percent of the statewide total for all industries. Defense-related activity in Utah generated net fiscal impacts of $431.3 million for the state government, based on estimated revenues of $841.5 million and expenditures of $410.2 million.

“The Kem C. Gardner Policy Institute has once again delivered a comprehensive analysis of Utah’s military and defense industry,” said Kevin Sullivan, executive director and chief operating officer of the Utah Defense Alliance Board. “Utah continues to host many national defense businesses and military installations that provide vital contributions to our country’s national security. This report captures the statewide economic magnitude of those activities. The Utah Defense Alliance Board of Directors appreciates the Gardner Institute’s work producing this valuable study.”

The full study can be accessed through the Gardner Institute website at gardner.utah.edu.