Governor Parson releases report on the impact of defense contract spending in Missouri

May 26, 2021

Governor Mike Parson announced today that more than $14 billion in military defense contracts were awarded to Missouri companies in Fiscal Year 2019, the latest year data is available. A new report highlights impacts of this spending statewide, as well as by county, state legislative district, and congressional district.

“We are proud to have dedicated defense companies and employees statewide who work every day to protect our nation,” Governor Mike Parson said. “Military investment in Missouri not only strengthens our economy but the defense of the entire country.”

The latest report focuses on the value of U.S. Department of Defense and related agency contracts awarded to Missouri companies and further analyzes a previous statewide impact report that was released in August 2020. The report provides a closer look into the significant share of contract awards to Missouri vendors. Its analysis helps to better understand distribution in the state and gives more context to sectors most impacted by spending. The 2020 report also included military bases and defense agencies and showed that defense spending in Missouri supports more than 180,000 direct and indirect jobs with $29 billion in total impact. 

“The importance of Missouri’s military installations to our economy is undeniable,” said Rob Dixon, Director of the Missouri Department of Economic Development. “Defense investment in our state impacts more than 25,000 businesses and supports the livelihoods of countless Missourians working in industries such as manufacturing and technology.”

The new report analyzes total contracts during FY2017 through FY2019 and shows an average of more than $13 billion spent on Missouri contract awards. This spending supported 83,100 jobs. Boeing Defense and its supply chain companies received 73 percent of the annual contract awards on average. Statewide, manufacturing firms received 79 percent of all the average annual contract awards.

“This new report underscores the importance of the military services and defense companies that call Missouri home,” Missouri Military Advocate Joe Driskill said. “Many Missourians are unaware of how much defense funding comes to our state each year and how many jobs and increased earnings are directly and indirectly produced for citizens. We hope this report helps citizens understand how much local communities depend on defense industry jobs.”

“While I believe most Missourians understand we have a large military presence in our state, I do not think they realize what a significant economic impact it has,” Senator Sandy Crawford said. “I look forward to supporting even more growth in the future.”

"I am very proud of the confidence shown in our Missouri military installations and supporting business partners,” Representative Dave Griffith said. “We in the Missouri House of Representatives are and have been doing what we can to support our active duty service community as well as our Veterans.”

The Missouri Military Preparedness and Enhancement Commission (MMPEC) and its Office of the Military Advocate commissioned the study to better understand the local impacts of defense contract spending. MMPEC and the Office of the Military Advocate work proactively to support military installations, assist defense contractors, and help veterans find work in Missouri. These efforts support the state’s economy and help keep skilled workers in Missouri after their military service.

To view the entire economic impact report on defense contracts, click here.

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