The state of Hawaii will complete a supply chain map for its defense contracting community, under a $763,856 grant from DOD’s Office of Economic Adjustment.
This grant will enable the state to identify the prime contractors, subcontractors and suppliers to the military, allowing state leaders to better support the defense industry as Pentagon spending faces uncertainty, according to a press release from the office of Gov. David Ige (D). Past analyses of the military’s impact on Hawaii have only been completed at the macro-economic level.
“This project will reveal how the defense sector impacts every island and aspect of our economy,” said David Carey, chairman of the Military Affairs Council of the Chamber of Commerce Hawaii, which is a strategic partner for the grant. The council will work with the state Department of Labor and Industrial Relations to complete the study.
The defense industry is Hawaii’s second largest economic sector. Annual direct defense expenditures in the state have averaged about $8.8 billion, resulting in a total output of $12.2 billion into the economy. The sector supports approximately 100,000 jobs, or 16.5 percent of the state’s total jobs, across all Hawaiian islands.