A new report shows Connecticut is ranked 8th in the United States for defense spending. In federal fiscal year 2013 the state received $10.3 billion in defense and homeland security contracts.
The overall direct, indirect, and induced economic activity generated in Connecticut by contractors and grantees is $18.8 billion, according to a UMass study. In 2013, there were 925 Department of Defense (DoD) and Department of Homeland Security (DHS) contractors and 81 DoD and DHS grantees located in Connecticut.
The study found two contracts accounted for one-sixth of all New England contract awards in the 2013 federal fiscal year and they were in Connecticut. General Dynamics Electric Boat in Groton received a $2.5 billion award to build two Virginia-class submarines — South Dakota (SSN-790) and Delaware (SSN-791). Sikorsky Aircraft in Stratford received a $1.8 billion award to supply Black Hawk and Sea Hawk helicopters. General Dynamics at $7.3 billion and UTC at $5.2 billion were also the largest defense contracts in New England by contract value.
Over the last 10 years, Connecticut has received an average 3.2 percent of defense grants and contracts nationally. Defense and Homeland Security grants and contracting are responsible for 79,000 jobs and a total payroll of $6.5 billion in Connecticut, according to the study.
Connecticut’s contract awards are concentrated in one industry sector, transportation manufacturing equipment (80.7 percent). The three major industry subsectors include ship building and repairing (35.8 percent), aircraft manufacturing (23.3 percent), and aircraft engine and engine parts manufacturing (17.3 percent).
