AEDC adds $536M to local economy
This is an increase of almost $45 million from 2002.
“The total economic impact includes the center’s payroll, secondary jobs created locally through the spending of that payroll, and other expenditures for supplies, utilities, fuel and services and the spin-off impact of those purchases,” said Dennis Mitchell, AEDC cost analyst.
AEDC employed some 2,793 people in 2002. This number includes active duty military personnel from the Air Force, Navy and Army, government civilian and contractor personnel. Active-duty military personnel made up about four percent of the people at the center.
The 2,793 people employed at AEDC include part-time and temporary government civilian and contractor employees. Using the Tennessee Valley Authority economic impact model methodology, it is estimated an additional 1,927 secondary jobs were created in the local area, for a total of 4,720 jobs directly related to AEDC.
Examples of secondary jobs would be those created to build new houses or jobs created in local supermarkets, car dealerships and department stores.
The payroll cost for AEDC government personnel and contractor employees was almost $200 million. Other indirect expenditures were more than $163 million with the approximate payroll for secondary jobs exceeding $53 million and another $120 million in indirect spin-off impact.
Direct expenditures include money spent to pay for utilities, service contracts with outside vendors and military health insurance paid to local doctors and hospitals.
This figure does not include another $60 million in retired pay paid to retired military personnel in the local area. In addition, the conservative estimate is that $26 million is paid to government and contractor civilians who retired from AEDC and live in the area.
The retired pay generates another $40.4 million in spin-off effect. When those figures are added in, AEDC’s economic impact soars to more than $662 million.
The economic impact data and secondary employment estimates were made using the TVA economic impact model methodology. The Air Force model, which uses a different, more conservative methodology, shows the center’s economic impact at $417.1 million, up $35.2 million from last year.