June 29, 2021

ETMAC, Knoxville Chamber Release 2021 Military Economic Impact Report

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Amanda O'dell

The Knoxville area’s military installations and activities generate an estimated $2.98 billion in economic impact each year, according to a study conducted by the East Tennessee Military Affairs Council (ETMAC), in cooperation with the Knoxville Chamber. Data for this study was collected in 2019 and updates the previous study completed in 2017 which showed an impact of $1.8 billion.

The study calculated the monetary impact of the active duty, guard, and reserve components of the US Air Force, Army, Navy, and Marine Corps.  The study takes into account the annual payroll of  active duty, guard, reserve, and civilian personnel, expenditures for construction, supplies, services and materials, indirect jobs resulting from military personnel and military contracts given to area businesses and other factors like retirees’ pay and veterans’ benefits.

“ETMAC completes this economic analysis to provide business and civic leaders a discernable look at the significant contribution that the military and defense programs make to the economy of East Tennessee,” said BG Geoff Freeman, US Army, retired, and President of ETMAC.  “Because the military is one of the major drivers of economic activity in our area, in terms of direct and indirect jobs, supplies and services, and costs to maintain, train and operate facilities, our hope is that business and civic leaders will consider policies and actions that support and help retain this valuable resource in East Tennessee.” 

The economic impact – measured for the year Fiscal Year 2019 is as follows:

Veteran’s Benefits:                             $816,460,118 million
Active Duty/Guard/Reserves:             $327,057,646 million
Dept. of Defense Contracts:               $1,378,009,000 billion
Military Retirees:                                $458,373,672 million
Total:                                                  $2.98 billion

The analysis uses the U.S. Department of Defense methodology to measure activity within 50 miles of Knoxville.  The largest installations from an economic standpoint were the McGhee Tyson Tennessee Air National Guard Base and the 278th Armored Cavalry Regiment, TN Army National Guard.  Also, more than 9,000 + military retirees live within the 50-mile radius. Several organizations rank Tennessee in the “top ten” most desirable places for military retirees, based on such factors as: the state’s cost of living, taxes imposed by the state, city, and county, the availability of a military base and veterans administration facilities, primary care facilities, dentists, shopping stores, banking services, senior citizen services, as well as having a variety of recreational activities.

“It is always important to recognize and honor the contributions of our local military units,” said Freeman.  “We hope this report will encourage local businesses to take special care of the many men and women who serve our country, and recognize how important they are to our national defense, as well as our local economy.”

For a detailed explanation of the Military Economic Impact Report, please visit ETMAC’s website at www.etmac.org.

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ETMAC is a non-profit organization working in cooperation with the Knoxville Chamber to recognize, encourage, support, and advocate veteran and military activities in East Tennessee.  Membership is open to any individual, business, or organization.  For more information about ETMAC, please call the Knoxville Chamber at 865-637-4550 and ask for the ETMAC Representative.

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