Each year, the EDCUtah research team publishes data on several key industry clusters in Utah. These industry profiles include information like cost comparisons, labor density, and key employers in the industry. More recently, 47G commissioned EDCUtah to conduct an in-depth analysis of Utah’s broader aerospace, defense, and security industries.  

The 47G Report set out to quantify the economic impact of aerospace and defense activity in Utah, as well as adjacent industries such as advanced materials manufacturing and cybersecurity technology. The report also evaluates the Beehive State’s competitive advantages in related industries. It offers valuable insights to better inform 47G members, Utah policymakers, and corporate expansion clients looking to bring their aerospace, defense, and security operations to Utah.  

Here are a few takeaways from the report:

1. Large Portion of Utah’s Economy

The EDCUtah Research team analyzed data collected by multiple federal, state, and private organizations to examine the broader aerospace and defense industry in Utah. The broader industry includes the traditional guided missile and aerospace vehicle parts manufacturing as well as national security, space research, and their critical supply chains. Because of tech’s growing influence on aerospace and defense, sectors like artificial intelligence, cyber security, machine learning, and other activities critical to domestic and internet security are included in the analysis.  

This broader definition of aerospace and defense yields impressive statistics that demonstrate its importance to Utah’s economy. In 2023, the industry:

• Represented 19.2% of Utah’s gross domestic product

• Contributed to nearly 500,000 jobs

• Generated nearly $100 billion in total economic output

• Contributed $1.6 billion in direct annual tax revenue

2. Utah’s Unique Assets

Utah has a rich history and legacy of aerospace and defense in the state. The state is home to multiple military installations, research facilities, and private companies that contribute to the success of the industry.  

Since its establishment in 1939, Hill Air Force Base has been a key installation specializing in aircraft maintenance, repair, and overhaul. It is also home to the Ogden Air Logistics Complex, which maintains and modernizs Air Force aircraft and weapon systems. Other notable military installations in Utah include Camp Williams, the Roland R. Wright National Guard Base, and the Tooele Army Depot, among others.

According to the Milken Institute, the University of Utah ranks no. 1 in the institute’s Technology Transfer and Commercialization Index and Brigham Young University ranks no. 4. This index measures a university’s efficacy of utilizing its research and development capabilities to develop new technologies that can be applied outside of the university. These two universities ranked higher than notable universities such as Stanford University and the Massachussetts Institute of Technology (MIT). Utah is also home to research facilities such as the Space Dynamics Lab at Utah State University, Falcon Hill Aerospace and Research Park, and the Dugway Proving Grounds. These facilities contribute to the advancement of space and weapons research that are critical to both the nation’s defense and Utah’s strong economy.  

Finally, Utah is home to companies such as Boeing, Duncan Aviation, L3Harris, Lockheed Martin, and Northrop Grumman—many of which had at least one corporate expansion project with EDCUtah. These companies contribute to maintaining a highly skilled labor force in Utah and, in turn, benefit from the state’s significant educational assets.  

3. Impact Analysis

EDCUtah estimated the total economic impact of the broader aerospace, defense, and security industry. This analysis is comprised of three four parts: direct, indirect, induced, and total impact.  

The direct impact is the immediate, quantifiable metric in the industry. For example, the industry employs over 236,000 individuals directly in the industry. Additionally, businesses in the industry require inputs for the goods and services that they provide. In engaging with the broader economy to acquire these inputs, they create jobs and income that is captured as indirect impact. Finally, the wages of the direct and indirect employees are spent on the broader economy, creating induced impact. The total impact simply combines the direct, indirect and induced impacts to see how the industry affects the region’s economy.

The results of this analysis show that the industry has a doubling effect on employment with a multiple of 2.02. This means that every direct job in the industry results in another job due to its indirect or induced effects. While the multiples aren’t quite as large for the output and compensation numbers, they are still notable with total impacts of 1.77 and 1.86.

For a deeper dive into the aerospace, defense, and security industry in Utah, contact EDCUtah at connect@edcutah.org or 47G at contact@47g.org. This report is not yet accessible online, but a physical copy may be requested.    

Each month, EDCUtah’s Research Minute highlights interesting economic development data and timely research insights. Want more data? Explore the benefits of investing with EDCUtah.