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2023 AZ Military Economic Impact of the 162d Fighter Wing

Economic Impact in 2022 dollars

The 162nd Fighter Wing, based in Tucson, Arizona, plays a significant role in the local and state economy, contributing through employment, spending, and tax revenues. In Fiscal Year 2022, the unit generated substantial economic benefits, reinforcing its importance to the region.

Employment and Payroll Contributions

The 162nd Fighter Wing directly employed 1,658 individuals, with an additional 527 indirect jobs and 596 induced jobs created in the local economy. This resulted in a total of 2,781 jobs supported by the unit. Employee compensation was a major economic driver, with total wages reaching $234.8 million, including:

  • Active Duty/Permanent Party: $77.8 million
  • Reserves: $8.5 million
  • Students (Military): $3.1 million
  • Civilians: $73.5 million

Direct Spending and Local Business Support

The base contributed heavily to the local economy through contracts and operational spending, totaling $95.4 million in direct expenditures. Key areas of spending included:

  • Construction & maintenance contracts: $17.6 million
  • Military operations: $390,100
  • Supplies: $75.7 million
  • Utilities: $1.5 million
  • Health services: $187,700

This spending supports local contractors, businesses, and service providers, further strengthening Tucson’s economic base.

Overall Economic Output

The total economic impact of the 162nd Fighter Wing in 2022 amounted to $616.6 million in output, including:

  • Direct impact: $395.7 million
  • Indirect impact: $70.4 million
  • Induced impact: $150.5 million

This broad economic reach highlights the unit’s critical role in sustaining jobs and businesses in the area.

Tax Revenue Contributions

The base also provided a substantial boost to local and state tax revenues, generating $13.1 million in fiscal contributions. These included:

  • Income tax: $3.3 million
  • Sales tax (state, county, municipal): $4.2 million
  • Property tax (county, municipal, school/fire districts): $5.5 million

With 3,624 employees and retirees linked to the base, these tax revenues support essential public services such as education, infrastructure, and emergency services.

Conclusion

The 162nd Fighter Wing is a key economic engine in Tucson, driving job creation, business growth, and tax revenues. With a total impact exceeding $600 million, the unit’s presence extends far beyond national defense, shaping the financial stability and prosperity of Southern Arizona.

Citation:

Arizona Department of Emergency and Military Affairs (2023, October). Economic Impact of Arizona’s Principal Military Operations. Https://Dema.az.gov/Resources/Military-Affairs-Commission. Read the full Maguire Report here.

 

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