Louisiana’s economy received a significant injection of $17 billion during fiscal year 2024 due to military-related expenditures, according to a comprehensive analysis by Louisiana Economic Development (LED). The study, conducted by Business Development Advisors and The Roosevelt Group for LED and the Louisiana Military Advisory Council, assessed the economic footprint across eight regions, factoring in defense contracts, military installations, and spending by veterans and retirees.
This figure reflects a 77% rise in total economic output and a 52% increase in employment compared to the previous assessment in 2021. State officials highlight these gains as evidence of Louisiana’s growing prominence in the national defense sector, fostering job creation in advanced manufacturing, aerospace, and high-tech industries.
Military and veteran-related activities contributed approximately $707 million in state and local tax revenue during the fiscal year. These funds support public infrastructure, small businesses, and community development initiatives throughout the state. LED and the Louisiana Department of Veterans Affairs jointly emphasized that the economic ripple effects extend far beyond bases and contractors, benefiting local economies and enhancing opportunities for residents.
The $17 billion impact is linked to over 117,000 jobs, representing about 5.4% of the state’s total payroll employment. LED Secretary Susan B. Bourgeois stated that Louisiana’s military presence strengthens every region, underscoring the contributions of active-duty personnel, defense contractors, and veterans who continue to play vital roles in the state’s prosperity.
The analysis includes data from Department of Defense and U.S. Coast Guard contracts awarded in FY 2024, which funded more than $3 billion in projects within the state. It also accounts for annual income from military retirees and federal Veteran Affairs (VA) programs, including compensation, pensions, and medical benefits—funds that are reinvested locally through consumer spending and tax contributions.
With around 262,000 veterans receiving federal assistance and approximately 26,000 military retirees residing in Louisiana, their financial activity bolsters the local economy. Key installations examined include Barksdale Air Force Base, Fort Polk, Naval Air Station Joint Reserve Base in Belle Chasse, Marine Forces Reserve, U.S. Coast Guard 8th District, Naval Information Warfare Center New Orleans, the 377th Theater Sustainment Command, and the Louisiana National Guard.
Fort Polk in Leesville is particularly influential in central Louisiana, where military spending accounts for 16% of the regional GDP. Analyst Meginley described its economic importance as difficult to overstate.
Recent developments further reinforce Louisiana’s strategic role in defense. Bollinger Shipyards in Lockport secured a U.S. Navy contract to build six Arctic Security Cutters, while VRC Metal Systems is establishing a new maintenance facility at Barksdale Air Force Base, bringing advanced B-52 repair capabilities and high-skilled engineering positions.
Governor Jeff Landry remarked that Louisiana is successfully competing in the national defense economy, with shipyards, military bases, and defense firms driving innovation and economic expansion across all regions.
— news from Military.com
— News Original —
Louisiana Gets Multi-Billion-Dollar Economic Boon From Military Spending
Military spending in Louisiana led to $17 billion being infused into the statewide economy during the 2024 fiscal year, according to an analysis by Louisiana Economic Development (LED). n nThe study was conducted by Business Development Advisors and The Roosevelt Group for Louisiana Economic Development and the Louisiana Military Advisory Council, examining military installations, defense contracts, and retiree and veteran spending to measure economic impact within LED’s eight defined regions. n nThis new data shows a 77% increase in total output and a 52% increase in employment compared to the same study last conducted in 2021. State officials point to the numbers as a representation of how Louisiana’s defense economy is attracting investment and creating jobs, in sectors including advanced manufacturing, aerospace and technology. n nMilitary and veteran-related spending generated approximately $707 million in state and local tax revenue in FY 2024. n nOfficials with LED and the Louisiana Department of Veterans Affairs jointly told Military.com that military and veteran-related spending generated approximately $707 million in state and local tax revenue in FY 2024. Those dollars circulate statewide as wages, business revenues and tax collections that support infrastructure, small businesses and community development. n n“Both agencies recognize that these impacts extend well beyond military installations and contractors, driving growth in local economies and improving opportunities for residents statewide,” officials said. n nHundreds of Thousands Impacted n nThe more than $17 billion generated during FY 2024 is connected to more than 117,000 employees, equating to approximately 5.4% of total state payroll employment according to the study. n n“Louisiana’s military presence is a source of strength for every region of our state,” LED Secretary Susan B. Bourgeois said in a statement. “The men and women who serve, the contractors who support them and the veterans who continue to contribute after service all play a vital role in our success.” n nThe defense contracting analysis incorporates FY 2024 Department of Defense and U.S. Coast Guard contracts, which generated more than $3 billion worth of projects performed in 2024. n nAnnual gross pay associated with military retirees and federal Veteran Affairs (VA) expenditures, plus VA contracts, were also accounted for to comprise the analysis. n nOver 26,000 Military Retirees n nLouisiana has approximately 262,000 veterans who receive federal financial aid in the form of compensation, pensions and medical care—income that, similar to that of the state’s approximate 26,000 military retirees, is reinfused back into Louisiana’s economy through the tax base, living expenses and personal spending. n nThe Louisiana military facilities and activities studied as part of the 59-page analysis include Barksdale Air Force Base, Fort Polk, Naval Air Station Joint Reserve Base (Belle Chasse), Marine Forces Reserve, U.S. Coast Guard 8th District, Naval Information Warfare Center New Orleans, the 377th Theater Sustainment Command, and the Louisiana National Guard. n nOf Louisiana’s five military installations, Meginley said Fort Polk in Leesville is especially a major driver of the economy in the central portion of the state. n n“The GDP that military spending has for just that part of the state is 16%,” Meginley said, according to the Louisiana Radio Network. “You can’t really put into words just how important the military is to the economy of central Louisiana.” n nMore Contracts n nLED said that more recent investments in Louisiana’s defense industry further back up the data and economic contributions to the state. n nLouisiana-based Bollinger Shipyards, for example, was awarded a U.S. Navy contract to construct six Arctic Security Cutters at its facilities in Lockport. VRC Metal Systems is investing in a new maintenance facility at Barksdale Air Force Base, said to provide advanced repair capabilities for B-52 aircraft while creating high-skilled engineering and technician jobs. n n“Louisiana is competing and winning in the defense economy,” Louisiana Gov. Jeff Landry said in a statement. “Our shipyards, bases and defense companies are creating jobs, driving innovation and powering growth in every region of our state.” n nStory Continues