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North Carolinians understand the military's money factor
By NC Property at 2007-03-09 01:52
June 4, 2006

Section: Opinion
Thad Woodard
By Thad Woodard
Raleigh

Many North Carolinians have a basic awareness of the military presence in our state. For most, that awareness may arise from direct contact as a current or former member of the armed services stationed at a North Carolina facility. Perhaps it is merely from passing a convoy of camouflaged vehicles or observing military aircraft soar low above the highway as we travel to the beach. Few, however, are fully aware of the scope of that presence and of the substantial impact that our nation's armed services have on our state.

North Carolina is host to two of the nation's largest military installations, Fort Bragg and Camp Lejeune, two large Air Force bases, and many smaller military facilities, including reserve centers throughout the state. Named for North Carolina native and Civil War Gen. Braxton Bragg, Camp Bragg was established in 1918 as an Army artillery training facility. Today, over 60,000 military and civilian personnel at Fort Bragg and adjacent Pope Air Force Base contribute more than $4.7 billion to the North Carolina gross state product. The more than 48,000 military and civilian personnel at Camp Lejeune, for 65 years the home of the Marines' “Expeditionary Forces in Readiness,” account for $5.2 billion of the gross state product.

Combined, all military operations in North Carolina have an $18.1 billion annual impact on the state's economy. That amount represents 6.2 percent of the gross state product. Clearly, in addition to their immeasurable contribution to our nation's defense, our military installations and the military and civilian personnel who support them have a significant impact on the North Carolina economy and are an integral part of our state's heritage and culture.

In contrast to the economic impact on the state's economy by the military's physical presence in North Carolina, expenditures for defense contracts are at best modest. Although Department of Defense procurement spending in the state increased 33 percent last year, North Carolina, which ranks third among the states in the number of active troops, currently ranks 25th in military procurement spending. California is first and our northern neighbor Virginia ranks second. In 2005, Department of Defense procurement spending in North Carolina was $2.95 billion, up from $2.21 billion in 2004. That is a lot of money by any measure. However, it represents only 1.24 percent of the Defense Department's procurement spending in 2005. In Virginia, $26.8
billion was spent for military procurement, nine times that spent in North Carolina. It is imperative that our business and political leaders continue to seek ways to achieve a share of our nation's military procurement spending that is commensurate with the military presence in the state.

Although many factors were considered by the Department of Defense Base Closure and Realignment Commission in its review of the nation's military infrastructure, there can be no doubt why the commission, in its report to the president and Congress in September 2005, recommended changes that support North Carolina's military installations and personnel. It is because North Carolina is the most “military friendly” state in the nation.

Thad Woodard is president and CEO of the North Carolina Bankers Association.
Photo: Thad Woodard

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