Report: Mass. defense sector worth $14.7b

A new Patrick administration report estimated the value of the Massachusetts defense economy at $14.7 billion.

Massachusetts ranked eighth among all states in the dollar amount of federal defense dollars it attracted, according to the study, which added that the defense sector of the Massachusetts economy supported 71,000 jobs.

Federal contracts for defense-related goods and services supported 32,240 direct jobs in the state while defense-related activity generated an additional 39,187 jobs statewide, the report said.

The report based its findings on an analysis of data from the federal government's 2005 fiscal year, the latest year for which figures are fully available.

According to the report, the dollar value of those contracts, plus salaries paid to in-state military personnel and retirees, was $9.2 billion, and 2,435 Massachusetts companies received federal contracts for defense-related goods and services.

The contracts generated an additional $5.5 billion in related economic activity, resulting in a total of $14.7 billion in direct and indirect spending, the report said.

The report, conducted by the University of Massachusetts Donahue Institute, was released by the state's Executive Office of Housing and Economic Development and MassDevelopment, the state's finance and development authority.

Here is a link to the study on MassDevelopment's website: www.massdevelopment.com/massachusettsdefenseindustry.pdf.

(By Chris Reidy, Globe staff)