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Early in 2004, I produced a report on the economic impact of the military in South Carolina. Here are some findings from that report: The many military installations dispersed across South Carolina are a substantial segment of the overall South Carolina economy. Bases around the state fuel economic activity by purchasing goods and services from the local community and by providing income to military and civilian personnel. In addition to the direct impacts that are due to the operations of the bases, additional benefits accrue to the state economy because of the military-related visitors and military retirees that they attract.

However, the ultimate impacts on the state and local economies do not stop with these direct expenditures associated with the military bases. Once an initial injection of funds occurs in the local economy, additional rounds of economic activity are supported by economic multiplier effects. By including these multiplier impacts, the true significance of military base operations to the state and local economies becomes clear.

Further, the role of a military base in the local economy is somewhat unique in that the funding for the operations comes from the federal government. While some of this federal funding is the return of South Carolina tax dollars, much of the money used to support the military represents a true net addition to the South Carolina economy. In this way, the impacts of the military add to the economy as opposed to simply redistributing existing funds.

A total of $7.3 billion in sales accrue annually to South Carolina businesses because of the military’s overall presence in the state. Of this total, $5.9 billion is due to military base operations, $1.3 billion is due to the in-state spending of military retirees, and just under $100 million is due to military-related visitors. Across South Carolina, a total of nearly 142,000 jobs are directly or indirectly supported by the presence of the military. This job total represents nearly 8 percent of total employment in South Carolina. Of this job total, about 54,000 are jobs directly at military bases while the remainder is spread across virtually every sector of the state’s economy. The military’s presence supports about $5.1 billion annually in personal income for South Carolinians. Again, this income flows throughout the economy, not just to those directly employed at the military installations.

The total impact of the military on businesses in the Midlands amounts to $2.3 billion each year. This economic activity helps support 55,500 jobs and $1.9 billion in personal income in the Midlands area. The military’s impact in the Charleston area amounts to $3.5 billion worth of sales at local businesses, a total of 64,300 jobs, and $2.2 billion in personal income. The military’s presence in Beaufort supports a total of $717.5 million in sales at local businesses. This spending supports a total of 17,500 jobs and $614.6 million in personal income each year.

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