STATE HOUSE – A report written for the special legislative commission created to recommend ways to preserve and protect the state’s defense economy and military installations called the defense industry one of Rhode Island’s most important economic sectors, directly employing more than 16,000 high skill, high wage employees.
At a news conference held today at General Dynamics Electric Boat in Quonset, legislative leaders, members of the RI Defense Economy Planning Commission and other officials released the report on the economic impact of the defense industry.
President of the Senate M. Teresa Paiva Weed (D-Dist. 13, Newport, Jamestown), who was instrumental in the establishment of the commission in 2010, praised the group’s work and promised to pursue whatever legislative action is necessary “to ensure the continued health of this vitally important economic sector. I want to thank the members of the Defense Economy Planning Commission for the work they have done the past few years. The report being presented today highlights the importance of the defense industry to our state’s economic well-being.”
The Executive Summary of the report presented today said, in part, that “The Defense Sector plays a major role in the Rhode Island economy because of its unique ability to undertake large- and small-scale basic and applied research and development projects and to push manufacturers to develop innovative products and revamp supply chains to meet production and/or distribution demands of civilian and military projects.”
Among the findings of the study commission, the Rhode Island defense industry:
Supported 33,806 jobs (6.4 percent of total employment) in Rhode Island, from which 16,082 are direct jobs and 17,724 are indirect and induced jobs. The Private Defense Industry supported 16,931 jobs and the Military Defense Infrastructure supported 16,874 jobs in the state.
Added $3.75 billion to the state’s economic output, which represents 7.1 percent of the state’s Gross Domestic Product. This figure includes $2.25 billion in direct output and $1.5 billion in indirect output.
Created $1.93 billion in income for Rhode Island households. Direct earnings totaled $1.1 billion and induced earnings totaled $804 million.
Generated $106 million in tax revenues for the state of Rhode Island. This figure includes $47.4 million in personal income tax revenues and $58.6 million in other tax revenues.
In addition, the commission report, entitled “The Economic Impact of the Rhode Island Defense Sector,” finds that:
The average annual wage in the Private Defense Industry was 61 percent higher than the average wage in non-farm industries ($43,489), 37 percent higher than the average wage in manufacturing ($51,238), 89 percent higher than average wage in education and health services, and almost three times the average wage in the leisure and hospitality industry ($18,491).
The average annual wage of NUWC Division Newport civilian workers was 155 percent higher than the average wage for R.I. non-farm employees ($43,489).
The Military Defense infrastructure employs a highly qualified civilian workforce. In 2013, 73 percent of the civilians working for NUWC Division Newport were classified in STEM occupations (science, technology, engineering, and mathematics) and 35 percent of all their employees held advanced academic degrees (master or PhD degrees).
Sen. Louis P. DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton), who co-chairs the commission, said, “Rhode Island cannot afford to lose these jobs or to suffer setbacks in an industry that has been one of our state’s strengths. We need to show that this industry is not only a vital part of the state’s economy, but also essential to the nation’s security.”
Commission co-chair Rep. Raymond E. Gallison Jr. (D-Dist. 69, Bristol, Portsmouth) agreed, saying, “Because there are always concerns about the federal government closing military bases around the country, Rhode Island needs to take steps to promote and strengthen our defense industry. It’s in the interest of the state to work with the leaders in the industry to determine where it stands now, where it’s heading and what it needs to continue to grow.”
Also speaking at today’s news conference was Edinaldo Tebaldi, Ph.D., associate professor of economics at Bryant University, who co-authored the report with John Riendeau, director of business development at the Commerce RI.
Also participating in the news conference were Molly McGee of the Southeastern New England Defense Industry Alliance (SENEDIA), and Jody Sullivan, executive director of the Newport County Chamber of Commerce, which provided funding for the report.
Members of the Commission include Co-Chairmen Sen. DiPalma and Rep. Gallison as well as Senate Majority Leader Dominick J. Ruggerio (D–Dist. 4, North Providence, Providence), and Senators Walter S. Felag, Jr. (D–Dist. 10, Bristol, Tiverton, Warren), James C. Sheehan (D–Dist. 36, Narragansett, North Kingstown), Christopher S. Ottiano (R–Dist. 11, Bristol, Portsmouth, Tiverton), and Dawson T. Hodgson (R–Dist. 35, East Greenwich, Narragansett, North Kingstown, South Kingstown); Representatives Marvin L. Abney (D–Dist. 73, Middletown, Newport), Brian Patrick Kennedy (D–Dist. 38, Hopkinton, Westerly), Deborah Ruggiero (D–Dist. 74, Jamestown, Middletown), Stephen R. Ucci (D–Dist. 42, Cranston, Johnston), Doreen M. Costa (R–Dist. 31, Exeter, North Kingstown), and Patricia L. Morgan (R-Dist. 26, West Warwick, Coventry, Warwick); and representatives of the defense industry, chambers of commerce, academia and state agencies.
For more information, contact:
Randall T. Szyba, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457
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