Arizona Chamber of Commerce and Industry

Industry accounts for over 35,000 jobs, 21% of total manufacturing jobs in state

PHOENIX – The Arizona Chamber Foundation today released an analysis of the defense and aerospace industry’s impact on Arizona’s economy, which finds that the industry is responsible for over 35,000 jobs and 21% of total manufacturing jobs in the state.

The paper argues that because of the industry’s importance to the state’s economy that Arizona leaders need to be mindful of the intense competition around the country for the jobs the industry generates, and to unite in support around the industry.

"The Arizona Chamber Foundation’s policy brief underscores the need for a unified Congressional delegation in Washington, D.C." former U.S. Congressman Jim Kolbe said. "Retaining and growing the defense and aerospace industries is a goal that should unite our delegation across party lines."

While large defense and aerospace employers such as Boeing (4,700 employees), Raytheon (over 11,000 employees) or Honeywell (over 11,000 employees) account for a significant number of jobs in the state, the industry’s importance is especially felt in its multiplier effect on the state’s employment picture.

Economic impact studies from Boeing and Raytheon suggest that every 100 jobs at a prime defense contractor or supplier results in 95 induced jobs in other sectors of the Arizona economy. Prime contractors call on the resources of suppliers who in turn seek parts and labor from other suppliers.

"The positive downstream effect defense and aerospace has on the economy cannot be overstated,"

Arizona Chamber Foundation Executive Director Suzanne Taylor said. "As jobs in the industry grow, so does the growth in other sectors in the economy to meet the consumption demand of the defense employees. With those new jobs comes an increased tax base and a healthier economy overall."

The paper also finds that defense and aerospace companies are responsible for attracting millions of dollars from outside the state. Boeing’s out-of-state operations alone spent $643 million on products from Arizona suppliers.

The entire Arizona Chamber Foundation Policy Brief can be found in its entirety here.

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The Arizona Chamber Foundation (501 (c) 3) is a non-partisan, objective educational and research foundation. The Foundation produces research studies on Arizona public policy issues such as health care, budget, education, regulation, energy and others in an effort to inform policymakers business leaders and the general public.