Governor Katie Hobbs recently released the latest version of the Military Economic Impact Report, also known as the Maguire Report, which assesses the substantial economic benefits that Arizona’s military bases and National Guard activities bring to the state’s economy.
The report, backed by the state of Arizona and assisted by the Arizona Department of Emergency and Military Affairs, showed that there was a substantial economic contribution of $15.528 billion and a total jobs impact of nearly 80,000.
The report also evaluates how Arizona’s military sector influences state and local tax revenues, underscoring its significant contributions to these fiscal areas.
The economic output generated by Arizona’s military activities soared by almost threefold between FY 2000 and FY 2022, escalating from $5.664 billion to $15.528 billion. This growth occurred despite a decline in direct employment resulting from adjustments in military operations since FY 2014.
Direct employment at key military sites in Arizona surged by close to 10% from FY 2000 to FY 2005, followed by a modest 1% rise from FY 2005 to FY 2014. However, the latest analysis indicates a nearly 7% drop from FY 2014 to FY 2022 due to recent adjustments in military missions.
“Arizona’s military installations — and the brave men and women leading the charge to keep our state and country safe — are the backbone of our state’s economy, powering strong careers and leading our country to a more secure, safer future,” Sen. Kyrsten Sinema said .
In FY 2022, the military industry in Arizona was responsible for a combined total of 78,780 jobs, including direct, indirect, and induced employment. This marks an 18% decrease from the employment impact recorded in FY 2005, which stood at 96,328 jobs. Once more, this highlights the necessity for ongoing endeavors and support to bolster the military as a foundational industry in the state.
“The Maguire Report underscores the vital role played by Arizona’s military installations, not only in defending our nation but also in driving economic growth within our great state,” Gov. Katie Hobbs said. “These findings demonstrate that investing in our military is an investment in Arizona’s future prosperity. I want to extend my sincere appreciation to the men and women of our armed forces who serve tirelessly at Arizona’s military installations. Their dedication and service not only protect our national security but also bolster our local economies, making Arizona a stronger and more resilient state.”
U.S. Air Force photo by Airman 1st Class Elias Carrero