Defense Spending Increased in North Carolina During the 2008 Fiscal Year

Email from Office of Governor Bev Perdue, June 5, 2009

Gov. Bev Perdue and the North Carolina Military Business Center (NCMBC) announced this week that Department of Defense spending in North Carolina grew by 22 percent and exceeded $3.6 billion in federal fiscal year 2008 – an increase of $657 million from 2007.

“These numbers are yet another indicator that the Tar Heel state is becoming a very significant player in the global military and defense industry cluster,” said Gov. Perdue. “The time to capitalize on this trend is now, to leverage expanding markets, capture federal revenues and grow jobs right here in North Carolina – the most military friendly state in America.”

Gov. Perdue was instrumental, with the General Assembly, in establishing the NCMBC in the Community College System and the Defense and Security Technology Accelerator (DSTA) in Fayetteville. She also spearheaded the development of the North Carolina Military Foundation, a private organization focused on recruiting defense contractors and growing the state’s defense and homeland security economy.

According to a 2008 Department of Commerce study, the military has a $23.4 billion total annual impact on the state economy. Defense procurement in North Carolina, based on place of performance, increased from $2.9 billion in federal fiscal year 2007 to $3.6 billion in 2008. During the same time frame, spending by all federal agencies in North Carolina increased approximately $743 million, or 16 percent, from $4.5 billion to $5.2 billion.

For more information on Department of Defense spending and the North Carolina Military Business Center, please visit www.ncmbc.us.