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AEDC’s economic impact $612 million

Posted on Monday, January 20, 2014 at 1:54 pm

Arnold Engineering Development Complex’s economic impact — which includes AEDC and its remote operating locations — was $612.4 million in Fiscal Year 2013.

The remote operating locations include  the Hypervelocity Tunnel 9 at White Oak in Silver Spring, Md., and the National Full-Scale Aerodynamics Complex at Moffett Field, Calif.

Each location impacted the local areas through payroll, secondary jobs, created through local spending, and other expenditures for supplies, utilities, fuel and services and the spin-off impact of those purchases.

AEDC employed a mixture of active-duty military personnel from the Air Force and Navy, Department of Defense civilians, and contractor personnel, which totaled 2,235 personnel in fiscal 2013.

Of the 2,235 personnel, 50 were active-duty military; two Air Force Reserve and National Guard; 289 appropriated fund civilian employees (includes general schedule, federal wage board and other military branches); 60 government non-appropriated fund employees; 36 other civilians (credit union, Base Exchange and commissary tenants); and 1,798 contractor and sub-contractor employees.

Additionally, using the Tennessee Valley Authority economic impact model methodology, AEDC estimated that more than 1,542 secondary jobs were created in the local area, for a total of 3,777 jobs directly related to AEDC.

Examples of secondary jobs include those created by home construction and at local supermarkets, car dealerships and department stores.

During fiscal 2013, the payroll cost for AEDC government and contractor personnel was $241.4 million.

AEDC’s direct expenditures — which include utility costs, service contracts with outside vendors and military health insurance paid to local doctors and hospitals — totaled $140 million.

Furthermore, the indirect spin-off impact of these direct expenditures is ABOUT $231 million.

The overall economic impact figure does not include more than $100 million paid to the 4,498 retired military personnel living in the local area. In total, this retired pay group generates more than $147 million, including the spin-off effect.

The economic impact data and secondary employment estimates represent AEDC’s economic impact during fiscal 2013, which runs from Oct. 1, 2012 to Sept. 30, 2013.

AEDC operates the world’s largest complex of ground test facilities with a replacement value of more than $11.8 billion. AEDC is the largest employer in Coffee and Franklin counties.