The Enid News and Eagle, Enid, OK

Local news

November 11, 2011

U.S. military contributes $9.6 billion to state GDP

Oklahoma’s five military installations, including Vance Air Force Base, accounted for more than 7 percent of the state’s economy in fiscal year 2010, according to a study released late Thursday.

The military contributed more than $9.6 billion to the state’s gross domestic product in FY 2010, the report said, including $5.6 billion in wages.

“Not only do we acknowledge the sacrifice of our military personnel, but we also appreciate the enormous contribution of our five major military installations have on our state’s economy through military contracts and operations, thousands of private-sector jobs supporting the military’s mission and millions of dollars in private-sector investment and research,” said Gov. Mary Fallin.

The Oklahoma Department of Commerce study, conducted with the help of the state Chamber of Commerce, showed the military impacts all Oklahomans, rather than merely those in military communities, said Mike Cooper, city of Enid military liaison and chairman of the Oklahoma Strategic Military Planning Commission.

“In almost every region (of Oklahoma) the military is the largest employer with the highest per capita income,” he said. “It tells you how important the military is in our state.”

The report fixed Vance’s economic impact on the Enid area at $250.1 million, some $12 million higher than the estimate released earlier this year by base officials. Vance’s report listed the base’s economic impact as $238.4 in FY 2010.

The difference came because state researchers used a different model for determining economic impact, Cooper said. Vance’s impact study takes into account direct and indirect jobs, while the state also factored in what it called “induced jobs” resulting from Oklahoma’s five military institutions.

Vance’s annual economic report, Cooper said, was used by the state as a model for its first-ever impact study.

“Vance had a very good model at how they look at the base’s impact,” Cooper said.

The report said Vance employed 2,699 military personnel, federal civilians and contractors in FY 2010, which created an additional 2,876 jobs — a total impact of 5,575. Average wages for the military personnel, federal civilians and contractors at Vance was $49,100, 51 percent higher than the regional average of $32,400.

Those numbers, Cooper said, are bound to climb in coming years.

“Going forward there is a lot of potential at Vance,” he said.

Cooper cited ongoing projects like the joint-use hangar being built at Enid Woodring Regional Airport and the $10.7 million control tower under construction at the base, as well as proposed projects like the extension of the main runway at Woodring and replacement of one runway at Vance.

“All that will make that number go up,” Cooper said.

In addition, he said, the impact of the new Armed Forces Reserve Center located at Vance has yet to be measured.

“Our number is going to do nothing but go up,” Cooper said.

Overall, the state’s five military facilities — Vance, Altus and Tinker Air Force Bases, Fort Sill and McAlester Army Ammunition Plant — employ more than 69,100 military personnel, federal civilians and contractors. Those jobs support 64,700 more jobs, for a total impact of 133,800. In all, the report said, military installations impact one out of every 16 jobs in the state, or 6.3 percent of total employment in Oklahoma.

“Thousands of Oklahomans call supporting the military their job, but countless other Oklahomans consider personal support of our military a special duty,” said Dave Lopez, state secretary of commerce and tourism. “Hundreds of Oklahoma businesses support the military and defense industry as a part of its supply chain.”

The average wage paid by Oklahoma’s military installations in FY 2010 was $43,675, while indirect and induced jobs paid $41,742, both higher than the state’s average salary, $38,237.

The impact, Cooper said, gives a clear picture of just how important the military is to the state.

“When we are working to expand and enhance our military installations, we needed to know what our baseline was, why the military is important to our Oklahoma economy,” Cooper said. “It is a great informational tool. I applaud the governor for taking the lead on this to not only get this information put together, but working with all of us to really figure out how we could pull the leadership of all the bases together in how we can grow the business, how can we can create more jobs.”

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