Vermont firms landed $625 million in US Department of Defense and Homeland Security contracts in 2011, according to a report released Monday byUniversity of Massachusetts Donahue Institute and commissioned byDefense Technology Initiative. Vermont was fifth highest of the six New England states, with Massachusetts ($13.9 billion) number one, followed by Connecticut ($12.7 billion), Maine ($5 billion) and New Hampshire ($1.3 billion). Rhode Island received the least ($472 million).
Vermont contracts peaked in 2006 and 2007 with over a billion in contracts and have been going down since. While spending is up 34 percent since 2003, contracts have been in decline since 2005 in Vermont.
According to the study, (CLICK HERE FOR REPORT) the defense industry is a major contributor to the economy of New England and to each of the six states that comprise it. In 2011, the region received nearly $34 billion in Department of Defense (DoD) and Department of Homeland Security (DHS) contracts, an 85 percent increase to the region since 2003. See Vermont Summary below.
Defense and Homeland Security contracting is responsible for a total of more than 319,000 jobs and a total payroll of more than $22.6 billion across the region. The overall direct, indirect and induced economic activity generated by the resulting work performed in New England exceeds $62 billion.
There are more than five thousand New England firms and institutions tied to DoD and DHS funds providing essential equipment, supplies and technical services in support of national and regional defense operations.
Much of this activity requires highly skilled workers, precision manufacturing, and sophisticated scientific and technical support.In particular, the highest level of defense-related spending in New England flows into the transportation equipment manufacturing sector for ships (for example, the U.S. Navyâ s DDG 1000 Zumwalt-class destroyer); submarines (the U.S. Navyâ s 14th Virginiaclass submarine, SSN-787), rotary wing aircraft (Sikorsky Black Hawk helicopters); engines, turbines
and components (including General Electricâ s T700 engines); and aircraft components. This large-scale production involves both primary contractors as well as many hundreds of sub-contractors and supplier contractors across the region.
Major investments are also made in the professional, scientific and technical New England Summary services sector for research and development and engineering and technical services. Computer and electronic product manufacturing spending for defense communication, detection and radar equipment also tops the list of defense purchases made in the region.
While major contractors may appear distinct, in reality multiple companies are involved in the production of advanced defense systems. It is the interaction of the
supply chain across New England that creates such a strong cluster of businesses and workers linked to defense production activities across the region.
Vermont Summary
The defense industry is an important contributor to the Vermont economy. In 2011, the statereceived more than $625 million in Department of Defense (DoD) and Department of HomelandSecurity (DHS) contracts, a 34 percent increase to the state since 2003. Defense and HomelandSecurity contracting is responsible for a total of more than 5,000 jobs and a total payroll of morethan $243 million across the state. The overall direct, indirect and induced economic activitygenerated by the resulting work performed in New England exceeds $783 million.
There are 215 Vermont firms and institutions tied to DoD and DHS funds providing essentialequipment, supplies and technical services in support of national and regional defense operations. Much of this activity requires highly skilled workers, precision manufacturing, and sophisticatedscientific and technical support.
Vermont excels in providing specialized manufactured products for defense. The highest levels ofdefense-related spending to Vermont are in the fabricated metal product manufacturing sector forthe production of ammunition and explosives and weapons systems (primarily General Dynamicsâ weapons systems and components). This large-scale defense systems production involves bothprimary contractors as well as sub-contractors and supplier contractors across the region.
Majorspending also flows into the transportation equipment manufacturing sector for aircraft componentsand accessories as well as aircraft and airframe structural components. Investments in thecomputer and electronic product manufacturing sector also top the list of defense purchases madein Vermont.
Source: Defense Technology Initiative, 6.25.2012.
Photo: General Dynamics grenade launcher.
Simmonds Precision does business as Goodrich in Vergennes.