FBEI Economic Impact Report on Military Construction in San Diego

Date: 
Wednesday, June 9, 2010

Press Release

Dept. of Defense provides essential catalyst for San Diego’s construction industry

(San Diego, Calif. – June 7, 2010) – The San Diego Military Advisory Council (SDMAC) announced the results of an economic impact report commissioned to quantify the role the Department of Defense’s military construction spending plays in San Diego’s economy. The report was presented at the Naval Facilities Engineering Command (NAVFAC) Energy Industry Forum held on June 3, 2010, at the San Diego Marriott Mission Valley by Lynn Reaser, Ph.D., chief economist of PLNU’s Fermanian Business & Economic Institute (FBEI) and the principle author of the report.

Tony Nufer, president of SDMAC, said, “Military spending in our region serves as a stabilizing effect during periods of economic recession. Gross sales or total output resulting from military construction and all of its ripple effects will reach $2.3 billion in 2010, and an additional rise to $2.6 billion is projected for 2011.”

Randy M. Ataide, executive director of the FBEI, said, “The final report underscores one more way in which our region benefits from Department of Defense investments. Dr. Reaser and the FBEI staff have done a superb job in researching, analyzing and presenting a complex topic in a clear and understandable way for decision makers to rely upon.”

SDMAC selected the construction sector as a singular area of focus for the report due to the significant increase seen in Department of Defense current and planned spending on construction projects in the San Diego region from 2007-2011. This increase is in sharp contrast to the significant downturn experienced in the civilian construction sector in the San Diego region and the rest of the country. The report, prepared by the FBEI for SDMAC, indicates military construction spending is creating about 15,500 jobs in San Diego County in 2010 after accounting for the total flow of contract money throughout the economy. Next year should see this total rise to 16,100 jobs, which represents an average annual increase of 33 percent since 2007.

Expenditures for the six military installations in the San Diego region – Naval Base Point Loma, Naval Base San Diego, Naval Base Coronado, Marine Corps Recruit Depot San Diego, Marine Corps Air Stations Miramar, and Marine Corps Base Camp Pendleton – were included within the report.

For further information or for a copy of the report, contact Annette Peck at SDMAC at annettepeck@san.rr.com or (619) 299-3762 or Cathy Gallagher at the FBEI at CathyGallagher@pointloma.edu or (619) 849-2564.

The feature story has run in several local news coverages as well… San Diego Union-Tribune, San Diego Daily Transcipt, San Diego Business Journal, and more.