The University of Massachusetts Amherst

UMass Donahue Institute

2012 Publication Archive

The New England Defense Industry: Current Profile and Economic Significance

This preliminary report presents the findings of a study examining the economic impact that the defense industry has on the six states of the New England.  In 2011, the region received nearly $34 billion in Department of Defense (DoD) and Department of Homeland Security (DHS) contracts, an 85 percent increase since 2003. 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 New England.

The overall direct, indirect and induced economic activity generated by the resulting work performed in New England exceeds $62 billion, and 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.

The attached report provides state-by-state summaries of the defense industry's economic influence in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. More detailed analysis for each state will be released at a later date.

By: John Gaviglio, Lindsay Koshgarian, Rebecca Loveland

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