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 Navy’s 2018 Economic Impact Assessment (EIA) provides updated 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. The study shows Americans how their tax dollars are used by the Navy as well as how that money is infused back into the local economy.
According to the 2018 EIA, the Navy’s contribution to the regional economy in 2017 included:
- $10.7 billion – total amount of economic activity that the Navy generated in the ROI
- $7.7 billion – total industry output from payroll, operations and maintenance, and visitor spending
- $3.0 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
- $303 million – annual amount in state/local taxes
The last time Navy Region Northwest did an economic impact assessment was 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.
2010 EIA industry output: $1.9 billion
2018 EIA industry output: $7.7 billion
Data collection & analysis:
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. The data was analyzed to establish the baseline economic value generated by the installations and their respective tenant commands.
Indirect economic benefits are produced when money spent by the Navy and its personnel is spent again in the region by local businesses and their employees, which in turn leads to more spending. The economic stimulus from this spending cycle results in business growth, new employment and more spending. This “multiplier effect” is modeled as indirect and induced effects of the direct Navy spending and is reflected in the total economic impact results stated above.
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 current EIA concentrated on specific areas in Washington state.
Contributions beyond money:
In addition to the national 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' economic contribution information & fact sheets:
Naval Station Everett
Naval Air Station Whidbey Island
Naval Base Kitsap
Naval Magazine Indian Island