In a significant boost to Louisiana’s economy, military spending infused approximately $17 billion during the 2024 fiscal year, as reported by Louisiana Economic Development (LED). This financial impact highlights the state’s growing defense sector.
The comprehensive analysis, conducted by Business Development Advisors and The Roosevelt Group on behalf of LED and the Louisiana Military Advisory Council, scrutinized several economic factors. These included military installations, defense contracts, and the spending habits of retirees and veterans across LED’s eight defined regions.
Compared to the last study in 2021, this year’s data reveals a substantial 77% increase in total economic output and a 52% rise in employment. State officials emphasize these figures as evidence of Louisiana’s successful attraction of investments and job creation in areas such as advanced manufacturing, aerospace, and technology.
Military and veteran-related spending generated approximately $707 million in state and local tax revenue in FY 2024.
According to LED and the Louisiana Department of Veterans Affairs, this military and veteran-related spending translated to about $707 million in state and local tax revenue in FY 2024. This revenue supports various facets of the state’s economy, including infrastructure, small businesses, and community development.
“Both agencies recognize that these impacts extend well beyond military installations and contractors, driving growth in local economies and improving opportunities for residents statewide,” officials stated.
Hundreds of Thousands Impacted
The economic infusion of over $17 billion in FY 2024 is tied to more than 117,000 jobs, representing approximately 5.4% of the state’s total payroll employment. “Louisiana’s military presence is a source of strength for every region of our state,” LED Secretary Susan B. Bourgeois remarked, emphasizing the critical contributions of military personnel and associated sectors.
The analysis incorporated defense contracts from the Department of Defense and U.S. Coast Guard, which alone contributed over $3 billion in projects during 2024.
Veteran Contributions
The state is home to approximately 262,000 veterans who, alongside around 26,000 military retirees, significantly contribute to the economy through federal compensations, pensions, and medical care. This income circulates back into Louisiana’s economy through taxes, living expenses, and personal consumption.
Key military installations such as Barksdale Air Force Base and Fort Polk play crucial roles in the state’s economy. Fort Polk alone accounts for 16% of the GDP in central Louisiana, underscoring the vital economic role military activities play in the region.
Increasing Investments
Recent investments further validate the economic contributions of Louisiana’s defense industry. Examples include Bollinger Shipyards securing a U.S. Navy contract for six Arctic Security Cutters and VRC Metal Systems establishing an advanced maintenance facility at Barksdale Air Force Base.
“Louisiana is competing and winning in the defense economy,” stated Louisiana Gov. Jeff Landry. “Our shipyards, bases, and defense companies are creating jobs, driving innovation, and powering growth in every region of our state.”
