New Report Highlights the Importance of the New England Defense Cluster to U.S. Economic Growth

SENEDIA, the alliance for Defense tech, talent, and innovation, has released a new report that highlights the importance of the New England Defense Cluster to U.S. economic growth.

The term “Defense Cluster” encompasses all defense-related activities including both the private Defense Industry (defense contractors) and the Military Defense Infrastructure, which includes civilian employees working for the Department of Defense (DoD), active-duty military personnel (Army, Navy, Marine Corps, Air Force, Space Force), and U.S. Coast Guard and National Guard personnel.

In addition to state-level impacts for all six New England states, the report provides a comprehensive look at the New England region’s impact. In 2022, the cluster accounted for $119.1 billion in economic output, representing 9.2 percent of the region’s GDP. It also accounted for 407,523 jobs, generating more than $40 billion in income for households.

“The Defense Cluster is an engine of innovation nationwide, and especially here in New England, where billions of dollars in economic activity are generated and hundreds of thousands of military and civilian employees have high-wage, high-tech, high-demand careers,” said Molly Donohue Magee, SENEDIA executive director. “A robust Defense Cluster is essential to national security and this report demonstrates that it is equally critical for our economy.”

New England's Defense contracts are growing at a faster rate than the national average, making it a major contributor to the U.S. defense industry and regional economy. The cluster significantly impacts job creation, income, and output across every New England state, and has a strong multiplier effect and economic linkages with other sectors in the region.

“From small, advanced manufacturing businesses and start-up tech companies to major defense contractors and military installations, the Defense Cluster represents tremendous opportunities for the workforce and for our economy,” said Senate Armed Services Committee Chairman Jack Reed (D-RI). “Across New England, we are developing new technologies and capabilities, modernizing our military, building next-gen submarines, and driving broader economic growth today and for the future.”

High-level findings from the report are summarized on the SENEDIA website, with a full version and state-level highlights available for download.

“The report provides a timely, comprehensive look at the power and potential of the Defense Cluster and we look forward to seeing how policymakers, employers, and military leaders can make use of this important information,” said Magee.

To learn more and to download the report, visit www.senedia.org.