Military and Defense Industry

 

The military continues to be a significant stabilizing impact on the local economy:

  • Total direct economic impact rose by almost $715 million to over $14.6 billion in FY 2008
  • Consumption in goods and services - $7.1 billion
  • Active duty Navy and USMC personnel in Hampton Roads for 2008 exceeded 84,000 with 66% assigned to Norfolk.  Active duty personnel in Norfolk increased by 2.4% in 2008 to 56,001.
  • Approximately 31,000 Navy civilian employees in Hampton Roads in 2008 of which 54% were located in Norfolk.  Norfolk’s Navy civilian employment increased by 15% to 16,563.
  • No economic decline as a result of war deployments
  • City continues to be center of activity for the U.S. Navy
  • Naval Station Norfolk is the world's largest naval station

On October 28, 2009, President Obama signed into law the National Defense Authorization Act for Fiscal Year 2010, which increases the rates of monthly basic pay for members of the uniformed services by 3.4%, effective January 1, 2010. This is in addition to an earlier FY 2009 increase of 3.9%, which took effect January 1, 2009

In August 2010 Defense Secretary Roberts Gates recommended the shutdown of Norfolk-based Joint Forces Command (JFCOM) within the next 12 months. JFCOM has offices in Norfolk and Suffolk and employs about 6,000 people in Hampton Roads.

The Hampton Roads Planning District Commission (HRPDC) has produced a series of special reports on the proposed closing of JFCOM.

  • Economic Impact Brief Number 1
  • Economic Impact Brief Number 2
  • Economic Impact Brief Number 3
  • Economic Impact Brief Number 4

    • THE NAVY IN HAMPTON ROADS, FY 2008

    Active duty military

    84,267

    Officers

    11,940

    Enlisted and students

    72,327

    Average annual salary *

    $52,000

    Officers

    $90,000

    Enlisted and students

    $46,000

    Retired and survivors

    43,966

    Military family members

    96,512

    Ships homeported

    84

    Aircraft squadrons homeported

    34

    Annual payroll for active duty military (in millions)

    $4,417

    Total annual payroll for active duty military and civilians (in millions)

    $7,499

    Total procurement expenditures (in millions)

    $7,139

    Total direct economic impact

    $14,638

    Federal civilian workers

    30,768

    Active duty military in Norfolk

    56,001

    Federal civilian workers in Norfolk

    16,563

    Source:  "The Navy in Hampton Roads," by the the Navy Region Mid-Atlantic Public Affairs Office, October 14, 2009.  The fiscal year is October 1 through September 30. Unless specified, data is for Hampton Roads. This data covers the Navy and USMC.

    * Average salaries are estimated, and include housing allowances

    Basic Allowance for Housing Rates

    The Basic Allowance for Housing (BAH) is based on geographic duty location, pay grade, and dependency status. The intent of BAH is to provide uniformed service members accurate and equitable housing compensation based on housing costs in local civilian housing markets, and is payable when government quarters are not provided.

     

    The average increase in the Basic Allowance for Housing in 2010 will be 2.5%.  This is much smaller than the 6.9% average rate increase in 2009 and is due, in part, to lower rental costs in many areas across the country.

    E-1 with Dependents: $1,359.00

    E-1 without $1,110.00

    0-7+ with Dependents: $2,406.00

    Without $1,881.00

    See Military.com for more information

    Norfolk is the North American Headquarters for NATO (North Atlantic Treaty Organization)