In FY2022, over $21 billion in defense-related contracts (DoD and DHS) were performed in Florida. Contracts that support the military and homeland security industries in the Sunshine State have increased by over $9 billion in the last decade – a nominal increase of 75%.
This federal spending not only supports the military but provides direct jobs and economic activity throughout the state. It is estimated to support over 87,000 direct private sector contractor jobs. As can be seen from our first graphic, over 85% of these procurement dollars flow into construction, manufacturing, or professional and technical services.
Many of these jobs are well paid, in occupations like software developers, civil engineers, research and systems analysts. The average earnings per worker (inclusive of benefits and other supplements) for these DoD/DHS contractor occupations are roughly $97,000, over a 50% premium to the state’s average of $62,200.
Construction has also grown over the decade with much of the increase in spending flowing to Bay County in support of rebuilding Tyndall Air Force Base. Construction contracts increased by a staggering 256% from $.9 billion to $3.2 billion.
Approximately 50% of all Florida-based contracts were performed in the manufacturing sector with roughly 25% of those (over $5B) being performed in the Aerospace sub-sector – a critical target sector for Florida’s Department of Commerce.
The professional, scientific, & technical services sector has also grown in support of Florida’s defense industry. Growing 69% since 2012, from $2.9 billion to 4.8 billion, this sector provides critical research & development, testing & evaluation, engineering, and other scientific services employing a technical and highly education workforce provided by Florida’s growing labor force.
Finally, as can be seen in the last graphic, Florida has also gained market share over this time, increasing from 3.7% of all U.S. defense-related contract performance in 2012 to 5.2% in 2022. This increased market share, in both contracts and personnel (see our previous blog post), demonstrates how successful Florida has been in supporting these industries through community and state partnerships, enhancing its resident’s quality of life, developing a deep labor pool from which contractors can recruit needed talent, and a relatively affordable cost of living (although that is changing fast!).
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