Naval Station Newport (NAVSTANPT), home to
many tenant US Navy Commands, including Coast Guard Commands, Army Reserve
Units, a Marine Corp and NOAA Command, forms the anchor for RI’s Defense
Economy. As a result of the 2005 federal
Defense Base Realignment and Closure Commission (BRAC), NAVSTANPT added
hundreds of jobs and grew in its ever-increasing importance and criticality to
our national defense. One of the unique
tenants is the Naval Undersea Warfare Center (NUWC).
An economic impact analysis of the RI defense
sector was accomplished by Professor Edinaldo Tebaldi of Bryant
University. In the report accompanying his analysis, NUWC is described as the “US
Navy’s principal research, development, test and evaluation center for undersea
weapons systems and many other systems associated with the undersea
battlespace.” And, NUWC is currently adding hundreds of well-paying, jobs in STEM
(science, technology, engineering, and mathematics) fields.
The Defense Economy is vital and critically important to Aquidneck
Island, Newport County, RI and our national defense. As stated in the Tebaldi Report, in 2013 the
RI defense sector, which includes the military defense infrastructure and the private
defense industry, supports approximately 33,000 jobs which equates to 6.2% of
the state’s total employment. Additionally,
our defense economy added approximately $3.7 billion to the state’s economic
output. And, it generates approximately
$105 million annually in tax revenues for the state, which includes $47 million
in personal income tax revenues and $58 million in other tax revenues.
The defense sector is RI’s highest paying. In 2013, the average annual wage of a
civilian NUWC employee was approximately $111,000. The average annual wage for all Rhode Island
civilian employees working for the Department of Defense was approximately $94,000,
and the average annual wage of Rhode Island private defense industry workers
was $70,000.
The average annual wage in the private defense industry in RI was 61%higher
than the average wage in non-farm industries ($43,500), 36% higher than the average
wage in manufacturing ($51,200), 89% higher than average wage in education and
health services, and almost four times the average wage in the leisure and
hospitality industry ($18,500).
Clearly, the Defense Industry is vitally important to our local and
state economies and, most importantly, our national defense. The question regarding BRAC is not whether
another will occur; it’s a question of when. We need to do all in our power to ensure our
coveted defense industry remains vibrant, is nurtured and fares as well in the
next BRAC round as it did in 2005. We need to be proactive in our efforts. In fact, this is one of the impetuses for
having created the RI Defense Economy Planning Commission, of which I’ve been a
Co-Chair for the last many years. The
time to act is now!
Louis P. DiPalma is a Democratic
state senator representing District 12, Middletown, Little Compton, Tiverton
and Newport. He is co-chairman of the
Rhode Island Defense Economy Planning Commission.