Home Economy Economic Activity Defense cluster sparks economy

Defense cluster sparks economy

By

Molly Donohue Magee

-

09/29/2017

Rhode Island is home to many organizations engaged in undersea technology, cybersecurity and technology innovation. These entities are the core of our state’s defense cluster, a high-tech sector that contributes to economic growth, generates high-paying jobs, and has been resilient despite economic downturns. In August, the Southeastern New England Defense Industry Alliance released the Defense

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Rhode Island is home to many organizations engaged in undersea technology, cybersecurity and technology innovation. These entities are the core of our state’s defense cluster, a high-tech sector that contributes to economic growth, generates high-paying jobs, and has been resilient despite economic downturns. In August, the Southeastern New England Defense Industry Alliance released the Defense Cluster Economic Impact Report highlighting the financial impact the cluster has on Rhode Island and its residents. The defense cluster supported $4.3 billion in economic output in Rhode Island in 2016, which represents 7.6 percent of the Rhode Island Gross Domestic Product. As a result, the cluster is generating significant tax revenue for state and local governments – property, sales, personal income, corporate, and vehicle taxes – used to better the state we live in. The defense cluster supported nearly 30,000 jobs in 2016 – a 12 percent increase since 2012. More and more positions are needing to be filled in this sector as the cluster grows; positions that pay the highest salaries in the state. For example, the average salary of a defense civilian employee at Naval Undersea Warfare Center Newport Division is $101,400, while the industry average salary is $70,200. These careers are giving Rhode Island citizens the opportunity to thrive, with over $2 billion generated in household income.

Rhode Island … is well-positioned in the defense-innovation ecosystem.

Rhode Island has significant resources and is well-positioned in the defense-innovation ecosystem, as highlighted at the recent Defense Innovation Days event in Newport. The Rhode Island defense cluster is growing and will continue to positively impact the Rhode Island economy. To support this growth, we must continue our focus on teaching STEM disciplines and preparing the younger generations for the high-paying careers that will be available to them. Through this, Rhode Island’s economy will continue to strengthen and the defense cluster will continue to multiply in the years to come. Molly Donohue Magee is executive director of the Southeastern New England Defense Industry Alliance.