Economic Impact

U.S. Navy’s economic contribution to the Northwest:

Your Navy in the Northwest is a major contributor to the Pacific Northwest economy, providing economic stimulus in the form of good-paying jobs, demand for housing and consumer products, as well as operations support services and supplies, and job training and education opportunities for thousands of people in specialized trades. These and other related activities ripple through a wide range of economic sectors, primarily in the Puget Sound area and Washington state.

The last formal economic impact assessment (EIA) completed for the U.S. Navy in the Northwest was in 2018 using 2017 data and it showed Americans how their tax dollars are used by the Navy as well as how that money is infused back into the local economy. The Navy is working with Washington State on an updated economic impact assessment. Until the ongoing assessment is completed, here are the estimated economic contribution totals after adjusting the 2018 figures to 2023 dollars:

$13.5 billion – total amount of economic activity that the Navy generated in the ROI

$9.8 billion – total industry output from payroll, operations and maintenance, and visitor spending

$3.8 billion – total direct annual payroll of Navy personnel working in the Northwest

78,549 jobs – the number of jobs, including military and civilian personnel directly employed as well as additional jobs related to operations and maintenance, payroll and other spending

$384 million – annual amount in state/local taxes

The 2018 EIA provided information regarding direct, indirect and induced economic contribution to communities in the region of influence (ROI), which includes the following counties: Skagit, King, Pierce, Island, Snohomish, Jefferson, Kitsap and Mason. Data was collected for spending associated with operations at Naval Base Kitsap, Naval Air Station Whidbey Island, Naval Station Everett and Naval Magazine Indian Island during the 2017 fiscal year and validated through interviews with Navy personnel. Although there are more than 190 Navy commands in Navy Region Northwest’s 11-state area of responsibility, the four major installations and many of the larger tenant commands are located in Washington state. This is why the 2018 EIA concentrated on specific areas in Washington state.

Prior to 2018, Navy Region Northwest did an economic impact assessment in 2010 using 2008 data. In the 2010 study, the Navy’s economic contribution was $7.6 billion. A large part of the $3.1 billion increase from the 2010 EIA came from industry output, which can be described as operations, maintenance, and visitor spending in our community.

Totals from previous economic impact studies:

2010 EIA Total Economic Activity Generated by the Navy: $7.6 billion
2018 EIA Total Economic Activity Generated by the Navy: $10.7 billion

Contributions beyond money:

In addition to the national defense mission, Navy installations and tenant commands represent large and very stable sources of economic stimulus that are worth preserving and protecting from incompatible land uses and other types of encroachment. Navy spending in the region has remained constant and reliable and has served as an economic “shock absorber” which has often minimized the impacts of periodic economic volatility. The Navy consistently ranks as one of the top employers in Washington state. In addition to financial contributions, your Navy also regularly provides mutual aid assistance to communities through fire and emergency services, as well as search and rescue support.

We are proud to call this great place home. We work hard to help strengthen and protect this region through partnerships that ensure we balance our national defense mission with our stewardship responsibilities.

We cannot accomplish our mission without the support of our communities. Your Navy remains steadfastly devoted to the defense of our nation, an unwavering requirement we could not achieve without the strong support of our local communities, tribes, government agencies, community organizations and industry partners.

Northwest Navy Installations' 2018 economic contribution information & fact sheets:
Naval Station Everett
Naval Air Station Whidbey Island
Naval Base Kitsap
Naval Magazine Indian Island

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