Business

Report shows impact of 104th over $120M

BOSTON — A report on the economic benefits of Massachusetts’ military bases was released yesterday by Lt. Gov. Timothy Murray, including the impact of the 104th Fighter Wing at Barnes Air National Guard. Murray said the overall impact of the 104th is $126 million.
“We have 1,300 employees, and one-third are full-time,” said Col. James Keefe, vice wing commander of the 104th. ‘We have a huge economic impact.”
Keefe said the base includes F-15s, a medivac unit and has a federal mission.
“We are on alert for anyone entering our air space illegally,” said Keefe.
According to the report,in FY 2011, Barnes Air National Guard Base employed 1,317 military (active-duty and Guardsmen), DoD, and non-DoD civilians who together received nearly $59.6 million in salaries and benefits. In FY 2011, Barnes Air
National Guard Base spent more than $7.7 million on contracts, procurements, and purchases for daily operations.
In addition, more than $477,000 was spent on construction-related activities at the installation.
“Barnes Air National Guard Base is a major contributor to the economy of the Commonwealth. Directly and indirectly, this military installation is responsible for more than 1,700 jobs. The overall direct, indirect, and induced economic activity generated by the day-to-day operation of Barnes exceeded $126.3 million in FY 2011,”states the report.
Murray is heading up the administration’s efforts to save the state’s six military bases from federal cuts. The threat of cuts caused Murray to sign an executive order in February creating the Military Asset and Security Strategy Task Force charged with crafting a strong case to protect the bases. The release of the report today comes a day after a new study found that federal defense and homeland security contracts added $33.9 billion to the New England economy in 2011.
The study by the University of Massachusetts Donahue Institute said that translated into an 85 percent increase from eight years ago. Murray said the report released today is a comprehensive study of the impact of Massachusetts’ six large military installations, including how they impact industry and communities.
“This is the first statewide report that showcases the economic and national security impact,” Murray said. “This is the first of its kind of regional study.”
The comprehensive data indicates Massachusetts’ six military installations support more than 45,000 jobs and contribute more than $13.7 billion to the Commonwealth’s economy annually. The installations included in the study are Westover Air Reserve Base in Chicopee; Barnes Air National Guard in Westfield; the U.S. Army’s Soldier Systems Center in Natick; Fort Devens; Hanscom Air Force Base; and the Massachusetts Military Reservation on Cape Cod.
Major General L. Scott Rice, Adjutant General (Acting), Massachusetts National Guard said he was surprised at the results.
“In my role and responsibility, I get caught up in the day to day details,” said Rice. “I am task-oriented and mission-oriented, so when I read this report, I was amazed at the impact we have and the synergy with businesses.” Rice said the military mission in New England “is very real and it’s important” and added he had “no idea” that the impact of the military was so widespread.
Associate Vice President for Economic Development, UMass; and Executive Director, UMass Donahue Institute Lynn Griesemer said the study shows the “combined strength” of the military and business.
“We want to make sure that strength does not get dispersed,” she said. “Because of this study, you begin to see the picture of the region, not just Massachusetts, but all of New England.”
“The real value of the report is beginning of our commitment to keep this data refreshed on a regular basis,” said Defense Technology Initiative President Christopher Anderson of the Donahue report.
Tracking data from 2003 to 2011, the report examines the trends in defense spending and the interconnections between the six New England states. It estimates that the total direct and indirect economic activity spurred by federal defense and security contracts in the region exceeded $62 billion last year. Massachusetts, the report’s top earner, received nearly $13.9 billion from Department of Defense and Department of Homeland Security contracts — an increase of 83 percent over the study period.
The contracts are responsible for 130,000 jobs in Massachusetts, with most of the defense-related spending in the state reserved for professional, scientific and technical services for research and development.

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