Connecticut’s Defense Industry Drives GDP
The defense and military industries play an important role in Connecticut’s economy.
According to a new report from SENEDIA, a Rhode Island-based trade group, Connecticut’s defense cluster generated more than $40 billion in economic output in 2022.
That represents 12.5% of the state’s GDP.
The cluster includes private defense contractors as well as active-duty and civilian military personnel.
Across New England, the cluster generated nearly $120 billion in economic output, or 9.2% of the region’s GDP.
“The defense cluster is an engine of innovation nationwide, and especially here in New England, where billions of dollars in economic activity are generated and hundreds of thousands of military and civilian employees have high-wage, high-tech, high-demand careers,” said SENEDIA executive director Molly Donohue Magee.
The cluster accounted for more than 407,000 jobs in New England, including more than 130,000 in Connecticut.
Those jobs led to more than $40 billion in household income across the region, including $13.7 billion in Connecticut.
That’s 10% of the total income generated in Connecticut.
“The defense industry plays a vital role in Connecticut’s economy, employing thousands of workers in high-paying jobs, and supporting hundreds of companies across the state’s supply chain,” said CBIA president and CEO Chris DiPentima.
According to the report, every 100 direct jobs created in the private sector defense Industry supports another 98 jobs in Connecticut.
SENEDIA said the report shows the power and potential of the cluster.
The report found that defense contracts across New England rose 54% between 2008-2010 and 2020-2022.
That outpaced the national average of 38%, contributing to job creation, income and economic output for the region.
Since 2020 1,613 Connecticut companies have received defense contracts.
Of those, 93% were awarded to General Dynamics Electric Boat, Raytheon Technologies, and Sikorsky Aircraft.
In Connecticut, defense contracts added up to $22.6 billion in 2022.
“Companies like Electric Boat, Raytheon, and Sikorsky are prime examples of the state’s second-to-none workforce, and are important partners in the future of Connecticut’s economy,” said DiPentima.
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