Louisiana's defense sector is booming, with a reported economic impact of a staggering $17 billion in the last fiscal year, as detailed in a new study by Louisiana Economic Development (LED). This figure represents a 77% surge since 2021, reflecting significant growth in military spending within the state. According to the comprehensive analysis, which took into account the various facets of military infrastructure and related industries, the state has seen a related boost in employment numbers, with more than 117,000 jobs now tethered to the defense industry, according to Louisiana Economic Development.
The increase in military spending has not only pumped cash into the local economies but has also bolstered state and local tax revenues to the tune of $707 million. Governor Jeff Landry commented on the uptick, emphasizing that Louisiana is "competing and winning in the defense economy." The report, which was a collaborative effort between Business Development Advisors and The Roosevelt Group for LED and the Louisiana Military Advisory Council, took a granular approach, considering military installations, defense contracts, retirees, and veterans' spending to draw its conclusions about the sector's statewide economic impact.
With this uptick comes a wave of investment and job creation. Industries such as advanced manufacturing and emerging aerospace and technology sectors have particularly benefited. Supporting this growth, Bollinger Shipyards snagged a hefty U.S. Navy contract to build six Arctic Security Cutters, and VRC Metal Systems is setting up a maintenance facility at Barksdale Air Force Base. These moves are expected to foster advanced repair capabilities for military aircraft and generate high-skilled engineering and technician positions, as per the Louisiana Economic Development.
Moreover, the economic footprint of Louisiana's military retirees and veterans has been significant. The analysis found that more than 26,000 military retirees and 260,000 veterans reside in the state, contributing materially to local economies to the tune of $5.6 billion. LED Secretary Susan B. Bourgeois noted the substantial role that military personnel and contractors play in "expanding opportunity, attracting investment, and strengthening the communities.” The department is taking pride in its initiatives that collaborate with the defense community to further these objectives.
On the veteran front, Secretary Charlton J. Meginley of the Louisiana Department of Veterans Affairs articulated the broader contribution of veterans in a statement saying, "This report shows that their contributions extend well beyond military service—strengthening our economy, our communities, and our state as a whole. Their continued impact is something all Louisianans can take pride in." Elucidating the impact of veterans, the study underscored that their expenditures, alongside the Louisiana Department of Veterans Affairs contracts, underpin over 35,000 jobs across the state, according to Louisiana Economic Development.
