News Release

September 2, 2021 (Salt Lake City) – Utah’s defense industry is an integral component of the state’s diverse economy, according to the latest report from the Kem C. Gardner Policy Institute. The industry contributes over $19 billion in economic activity, supporting 211,000 jobs and growing nearly twofold since 2015. Growth at Hill Air Force Base, in Veteran services, and in contract awards account for the most significant share of activity.

“Federal spending in Utah has increased significantly in recent years, warranting updated research to measure the sector’s impact on the state’s economy,” said Joshua Spolsdoff, senior research analyst at the Gardner Institute and lead author of the report. “Our research clearly shows Utah’s defense industry is a major building block of the state’s well-diversified economy.”

Key findings from the report include the following:

• Share of the Economy – In 2019, Utah’s defense sector directly and indirectly supported 10.3% of the state’s employment, 9.5% of its personal income, and 10.6% of its gross domestic product (GDP).
• Growth – The defense sector’s total economic impacts increased nearly twofold since 2015, increasing by 102,000 jobs and $9.1 billion in inflation-adjusted GDP.
• Major entities – Of the $4.4 billion in defense contracts in Utah, $3.3 billion (76%) went to 10 contractors. Northrop Grumman, L-3 Communications, and Moog Inc. were the three largest entities, accounting for nearly $2.6 billion (60%) of total contracts.
• Hill Air Force Base – Hill Air Force Base is the largest military installation in Utah and the state’s sixth largest employer in 2019, employing 4,521 active-duty military personnel, 1,137 Air Force reservists, and 14,174 federal civilians.
• Jobs – Defense activities supported an estimated 211,285 full- and part-time jobs, 10.3% of total jobs in the state.
• Income – Defense personnel earned more than $13.9 billion in 2019, 9.5% of total personal income. Federal defense jobs in Utah offered an average of $85,377 in compensation, 35.7% more than nondefense jobs.
• Fiscal Impacts – Defense-related activity generated net fiscal impacts of $244.3 million for the state.

“The Utah Defense Alliance Board of Directors is very pleased with the Kem C. Gardner Policy Institute’s recently completed report on Utah’s Defense Economy,” said Kevin Sullivan, executive director of the Utah Defense Alliance. “Utah hosts many important defense related businesses and military activities in our state, which provide vital contributions to America’s national security as well as a substantial contribution to our state’s economy.  The report does an excellent job of putting the magnitude of that contribution in context and is an excellent resource for state leaders and anyone interested in a better understanding of the make-up of Utah’s economy.”

The full report is now available online.