Value of Mass. defense contracts triples in decadeBy Robert Gavin
Globe Staff / December 7, 2010
The defense industry generated $26 billion in economic activity in Massachusetts last year, supporting more than 100,000 jobs and accounting for 85 percent of all federal contracts awarded in the state, according to a study released yesterday.
The report — from the University of Massachusetts’ Donahue Institute and funded by defense contractor Raytheon Co. — found that defense contracts awarded in the state have nearly tripled over the past 10 years, to $15.6 billion in 2009 from $5.5 billion in 2000.Only four other states — Virginia, California, Texas, and Maryland — received more in defense contracts than Massachusetts did last year.
“As the defense sector continues to increase, so too has its importance to the state,’’ the report said. “During a time of serious economic downturn in many areas of the economy, defense has provided stability and reliability while other sectors have faltered.’’The study was based on federal contracting data and economic analyses that estimate so-called multiplier effects of the spending as it works its way through the economy, generating wages, subcontracts, support services, and — ultimately — jobs. For example, wages paid to defense industry workers are then spent on products and services, which support other businesses and their employees.