Study shows aerospace, defense have huge economic impact in Utah

Aerospace, defense and security represented nearly one-fifth of Utah’s GDP and contributed nearly a half-million jobs in 2023, according to a recent analysis by the Economic Development Corporation of Utah. 

EDCUtah also said those industries generated nearly $100 billion in total economic output and contributed $1.6 billion in direct annual tax revenue that year. 

The analysis, commissioned by 47G, an aerospace and defense industry association, studied data from federal, state and private organizations to examine the broader aerospace and defense industry in Utah. It included traditional guided missile and aerospace vehicle parts manufacturing, national security, space research and their supply chains, as well as sectors including artificial intelligence, cybersecurity, machine learning and other activities critical to domestic and Internet security.

The insights from the analysis can better inform 47G members, Utah policymakers and corporate expansion clients looking to bring their aerospace, defense and security operations to Utah, EDCUtah said.

The report indicates that Utah has a unique mix of aerospace and defense assets and research facilities. Its companies include Boeing, Duncan Aviation, L3Harris, Lockheed Martin and Northrop Grumman. “These companies contribute to maintaining a highly skilled labor force in Utah and, in turn, benefit from the state’s significant educational assets,” EDCUtah said in a recent online post about the study.

The state’s military installations include Hill Air Force Base, specializing in aircraft maintenance, repair and overhaul and home to the Ogden Air Logistics Complex, which maintains and modernizes Air Force aircraft and weapon systems. Utah also is home to Camp Williams, the Roland R. Wright National Guard Base and the Tooele Army Depot, among others.

Meanwhile, the Milken Institute’s technology transfer and commercialization index ranks the University of Utah No. 1 and Brigham Young University No. 4. This index measures a university’s efficacy in using its research and development capabilities to develop new technologies that can be applied outside of the university. The UofU and BYU were ranked ahead of Stanford University and the Massachusetts Institute of Technology (MIT).

Research facilities in Utah include the Space Dynamics Lab at Utah State University, Falcon Hill Aerospace and Research Park and the Dugway Proving Ground. “These facilities contribute to the advancement of space and weapons research that are critical to both the nation’s defense and Utah’s strong economy,” the analysis said.

The employment figures in the study included direct, indirect, induced and total impacts. The industries had direct employment of over 236,000 in 2023. Indirect impact, which includes businesses in the industry that require inputs for the goods and services that they provide, totaled 84,446 jobs. Wages of the direct and indirect employees are spent on the broader economy, creating induced impact, equating to 157,268 jobs.

The analysis shows that every direct job in the industry results in another job due to its indirect or induced effects.

Compensation for direct impact totaled $15.4 billion, while indirect impact was $5.1 billion, induced impact was $8.1 billion and the total was $28.6 billion.

Sales/output from direct impacts totaled $53.2 billion in 2023, with the indirect impact being $15.1 billion, induced impact being $25.9 billion and the total being $94.2 billion.