Arizona Governor Katie Hobbs Releases Maguire Report Highlighting Military Economic Impact on State of Arizona

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Phoenix, AZ – Governor Katie Hobbs announced today the release of the updated Military Economic Impact Report, commonly referred to as the Maguire Report. This report, sponsored by the State of Arizona and supported by the Arizona Department of Emergency and Military Affairs, highlights the significant economic contributions made by Arizona's military bases and National Guard operations to the state's economy. The Maguire Report reveals a substantial economic impact, with a total jobs impact of 78,780 and an astonishing economic contribution of 15.528 billion dollars.

"The Maguire Report underscores the vital role played by Arizona's military installations, not only in defending our nation but also in driving economic growth within our great state," said Governor Katie Hobbs. "These findings demonstrate that investing in our military is an investment in Arizona's future prosperity. I want to extend my sincere appreciation to the men and women of our armed forces who serve tirelessly at Arizona's military installations. Their dedication and service not only protect our national security but also bolster our local economies, making Arizona a stronger and more resilient state."

Additional key findings from the report include:

Total economic output from Arizona's military operations nearly tripled during the period from FY 2000 to FY 2022, from $5.664B in FY 2000 to $15.528B in FY 2022. This increase came despite recent reductions in direct employment due to military mission adjustments since FY 2014.

Direct employment at principal military operations in Arizona increased by nearly 10% from FY 2000 to FY 2005, followed by a net 1% increase from FY 2005 to FY 2014. However, the most recent analysis reveals a decrease of almost 7% from FY 2014 to FY 2022 due to recent military mission adjustments. "This factor supports the need for continued effort and advocacy to support the military missions already present in Arizona and the economic incentives to attract new missions to our great state," Governor Hobbs noted.

A total of 78,780 jobs in Arizona, comprising direct, indirect, and induced employment, can be attributed to the military as an industry in FY2022. This is down 18% from the total employment impact documented in FY 2005 of 96,328, again supporting the need for continued efforts and advocacy to expand the military as a base industry in the state.

In addition to assessing economic impacts, the study examines the comparisons of state and local fiscal impacts of Arizona's military industry, highlighting its substantial contributions to state and local tax revenues.

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Read the full report at www.azgovernor.gov/MAC/

Arizona's military installations -- and the brave men and women leading the charge to keep our state and country safe -- are the backbone of our state's economy, powering strong careers and leading our country to a more secure, safer future," said Senator Kyrsten Sinema.

"As this report makes clear, Arizona's leading role in our national defense benefits the local economy and families throughout our state," said Senator Mark Kelly. "As a Navy combat veteran and member of the Armed Services Committee in the Senate, it's a privilege to represent a state at the forefront of U.S. military operations, both at home and abroad. The partnership between our exceptional service members, veterans, supportive local communities, and innovative defense industrial base continue to enrich our great state and serves a critical role in protecting our national security."

"Arizona remains a nationwide leader in its contributions toward protecting America's national security interests at home and abroad," said Representative Ruben Gallego, ranking member of the House Armed Services Subcommittee for Intelligence and Special Operations. "Arizona's military installations and the men and women who serve at them not only provide world-class training opportunities, but they are also the economic bedrock for communities across the state. As a leader on the Armed Services Committee, it is my commitment to continue the successes highlighted in the Military Economic Impact Report and ensure Arizona continues to have a seat at the national security table for decades to come."

"Arizona's six major military installations and four National Guard operations represent key economic drivers for local communities," said Sandra Watson, President and CEO of the Arizona Commerce Authority. "Not only do these centers provide substantial job opportunities for Arizonans, they complement Arizona's thriving manufacturing and technology industries, such as Aerospace and Defense, cybersecurity, and more. We're grateful to Governor Hobbs and all our state's leaders for the support they provide to Arizona's military community."

"DEMA is honored to have contributed to the completion of the updated report," said Arizona National Guard Major General Kerry Muehlenbeck. "We extend our gratitude to our federal partners for their collaboration and to Mr. Maguire for all his efforts.  It is important for policymakers to understand the enduring and substantial economic influence of the military missions in Arizona."

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"The military installations in Arizona serve as a key driver for economic development, the Maguire report is instrumental in illustrating the benefits of working and living in Fighter Country," said 162nd Air Guardians President Kari Middleton. "The local military installations play a vital role in our communities, workforce development and Nation's security.  It is essential that Arizonans continue to support the military men and women to allow them to continue to execute critical missions, both at home and abroad. The Maguire report exemplifies the importance these men and women have on our state and local economies, an impact that will only grow as Arizona becomes a top destination for business and industry."

"Once again, we see the enormous positive impact Arizona's military installations have on our state, and especially in Southern Arizona," said Southern Arizona Defense Alliance President Robert Medler. "These installations are national treasures, providing critical training, testing, and operational readiness. With 78,000 jobs and a $15 billion impact, our military installations are truly part of what makes Arizona special. This success reflects the power of leadership and collaboration as we work together to ensure the continued growth of these invaluable assets. As we look towards a future with new missions, I expect these numbers to continue to grow, highlighting our collective commitment to Arizona's prosperity."

"The report confirms the importance of military bases, specifically Davis-Monthan AFB, to the Tucson community and all of Arizona," said DM50 President Jay Bickley. "The men and women who serve at them contribute greatly to the economic strength and well-being of our communities and benefit from tremendous support across the board.  Arizona has long been known for its contributions to National Security, and this year's report affirms that fact as well shows the benefits of a symbiotic relationship between military installations and their local communities. No doubt, Arizona stands as an example for other states to emulate."

"Arizona is a powerhouse of defense," said Arizona Defense & Industry Coalition President & CEO Lynndy Smith. "With proximity to 6 military installations and 4 National Guard operations, the industry looks to Arizona as its ideal home base. This study confirms what is widely understood by the people of Arizona: our military bases significantly impact the economy, which in turn reinforces Arizona as a critical asset to US national security."

"The Air and Space Forces Association (AFA) wants to thank all those Military and Civilian personnel who serve on the 2 Air Force and 2 Air National Guard bases and all other military installations in Arizona," said VP Air & Space Forces Association for Governmental Relations Dr. Bryan Foulk. "AFA also wants to thank all veterans who have chosen to stay and call Arizona home and continue to contribute to our local economies and the well-being of our Nation."

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