Military Impact in Hawaii

Direct and indirect impacts of military expenditures are reported to generate $14.7 billion into Hawaii’s economy, creating more than 102,000 jobs for residents that collectively report household incomes around $8.7 billion.

Military expenditures totaling $8.8 billion annually have elevated the defense industry. Military procurement contracts amount to about $2.3 billion annually, making it a prime source of contracting opportunities for hundreds of Hawaii’s small businesses.

• Hawaii attracts increased activity in R&D projects and the presence of the nation’s top prime defense contractors: Boeing, Lockheed Martin, Northrop Grumman, BAE Systems, General Dynamics, Raytheon and several others.
• Many of Hawaii’s fledgling high-technology businesses receive federal grants through DOD programs such as those awarded by the Office of Naval Research (ONR) and the Defense Advanced Research Projects Agency (DARPA) and mentor-protege programs administered by prime defense contractors.
• The Pearl Harbor Naval Shipyard is Hawaii’s largest industrial plant, employing more than 4,600 engineers and skilled technicians to service naval surface ships and submarines based in Hawaii and responding to emergency repair calls throughout the Pacific. The naval shipyard also extends use of its facilities to service commercial ships.
• The Pacific Missile Range Facility at Barking Sands, Kauai is the island’s largest employer outside of government. It is the key R&D site for the nation’s ballistic-missile-defense program and the Navy’s premier anti-submarine warfare testing and training range.
• Since 2002, a 50-year contract to privatize the military family housing program has created billions of dollars in business opportunities for Hawaii’s small businesses contracted to develop, service and manage military residential communities for more than 17,000 homes throughout Oahu by Forest City and Lend Lease Hawaii.
• Hawaii is the only location in the world hosting the headquarters for the largest U.S. combatant command (U.S. Pacific Command), the Pacific component commands for the U.S. Army, Navy, Marine Corps, Air Force and Coast Guard, and combat-ready land, sea and air forces.
• The defense industry has the largest industry-related workforce in Hawaii, providing more than 97,500 jobs with annual household incomes totaling $8.7 billion and representing 16.5 percent of Hawaii’s total workforce.
• The Pacific Missile Range Facility on Kauai is the world’s largest multidimensional testing and training range. It is the only range in the world where submarines, surface ships, aircraft and space vehicles can train and be tracked simultaneously.
• The Pearl Harbor Naval Shipyard is the largest industrial/repair complex and employer in Hawaii, with a workforce of nearly 5,000 civilians and military personnel. The total value of the shipyard is $2.54 billion, with more than $925 million funneling into Hawaii’s economy annually.
• The Coast Guard is the maritime workhorse in our island state, saving hundreds of lives and millions of dollars in property by completing search-and-rescue missions by sea and air annually.
• Hawaii’s military community total nearly 145,900 military members and dependents, including close to 60,000 active-duty, Reserve and National Guard members, more than 66,100 dependents and 19,720 Department of Defense civilians.
• Hawaii’s population includes more than 116,800 veterans, of which nearly 17,000 are military retirees. This represents 11 percent of Hawaii’s population.

For more information, visit the chamber of commerce website www.cochawaii.org/military-impact-in-hawaii.