HAWAII DEFENSE ECONOMY
Second largest sector of Hawaii’s economy
Hilo Hattie has entered into a contract with the United States Air Force to distribute 175,000 face masks over the next year for use across the United States, "The Store of Hawaii" announced this week.
The $740.5 billion military spending bill that cleared the Senate Armed Services Committee this week includes more than $300 million for several construction projects at Army and Navy bases in Hawaii.
Defense giant BAE Systems is exiting the surface ship repair business at Pearl Harbor Naval Shipyard after a more than 10-year run, eliminating about 325 jobs and leaving some uncertainty whether the work sometimes topping $50 million per ship can be fully retained in Hawaii under new Navy contracting terms.
The Military In Hawaii
An Economic and Community Partnership
The U.S. Military is a critical part of the Hawaii community and benefits everyone in the State.
Hawaii has long been recognized for its strategic importance and unique relationship with the military. Hawaii is one of the only states that is home to all branches of the military: Army, Navy, Marines, Air Force, National Guard and Coast Guard. And the military is also present in all four of the counties across the state.
Hawaii’s strategic importance was re-emphasized when, in 2011, President Obama announced a “pivot,” or rebalancing of US interests to the Asia-Pacific region. With the U.S. Pacific Command (PACOM), which has an area of responsibility encompassing nearly half of the earth’s surface, headquartered in Honolulu, as well as other strategic and important commands, facilities and bases in the state, Hawaii clearly is vital to US interests in the region.
In addition to its strategic importance, Hawaii’s relationship with the military is a vital part of the state’s economy. From jobs for civilians and contracts for local businesses, to spending by active duty military personnel deployed in Hawaii and their families, the defense industry is the second largest industry segment in Hawaii.
As one of the state’s top economic drivers, the defense sector generated $7.8 billion in spending in fiscal year 2015 and supported more than 64,000 personnel across the islands.
The state of Hawaii continues to receive military investment in areas such as construction, ship-repair, and building maintenance. Hawaii is also home to many cutting-edge research and development projects with some of the nation’s top defense contractors. And Hawaii-based businesses have the unique opportunity to partner and innovate on numerous projects such as cyber-security and missile defense.
Hawaii Defense Economy
A Community and Business Resource
The Hawaii Defense Economy project is focused on enhancing understanding of the economic impact of U.S. Department of Defense (DoD) contracts and grants awarded in the state of Hawaii. With approximately $2 billion in total value of defense contracts in Hawaii annually, any changes in DoD spending will have an impact on the economy.. It is critical that the state proactively prepare for any changes the future may bring to Hawaii’s defense economy.
The Hawaii Defense Economy project is undertaken by the State of Hawaii, through the Department of Department of Business, Economic Development, and Tourism – Business Support Branch and is funded by the DoD – Office of Economic Adjustment. This project has been tasked with analyzing the impact of DoD contracts and grants awarded in Hawaii. It does not include other types of defense spending such as payroll of military personnel.
The defense industry is a major economic driver in Hawaii and defense contracts bring billions of dollars into the state each year. This project will provide insights into the relationships between the DoD in Hawaii and companies contracted to do business performed in the state.Governor David Ige
Data Analysis Tool – The Value of Contracts By County
This tool provides a summary of estimated spending (prime/ assistance contracts and reported sub-contract/ sub-grant awards), jobs, and economic output for the most recent 12 months. It also provides the % of DoD Dependency using estimated DoD jobs (not including DoD active, reserve, or civilian personnel) divided by total employment for the county or state. To filter the results, you can click on the county in the mapping interface. You can hover over the county to see summarized information. The bar chart in Box A provides summary annual Net Dollar Flows for each county and the state overall.