AEDC contributes $653 million to local economy

  • Published
  • By Claude Morse
  • AEDC/PA
ARNOLD AIR FORCE BASE, Tenn. --  Arnold Engineering Development Center (AEDC) economic impact in Middle Tennessee was more than $653  million during government fiscal year 2007. 

This is an increase of more than $54 million from fiscal year 2006. 

"I am gratified to see these numbers because they show the continuing positive influence Arnold is having in the local community, said Col. Art Huber, AEDC commander. "2007 continued the trend of gradual manageable growth in our economic impact."

The commander realizes that continued growth takes a team effort.

"AEDC's success is in large part due to the continuous support of center employees, Arnold Community Council members, local and state leaders and surrounding
communities," he said.  "Their support is what makes AEDC a vital contributor to our nation's defense."

AEDC operates the world's largest  complex of flight simulation facilities with a replacement value of more that $7.8 billion. 

The total economic impact of $653.7 million includes the center's payroll, secondary jobs created locally through the spending of that payroll and other expenditures for
supplies, utilities, fuel and services and the spin-off impact of those purchases. 

AEDC employed 2,754 people in fiscal year 2007. This number includes active duty military personnel from the Air Force and Navy, government civilian and contractor personnel. Active-duty military members made up three percent of the people at the center. 

The 2,754 people employed at AEDC include 72 active duty military members, 17 assigned military reservists, 304 full-time, part-time and temporary government civilian employees (includes 46 non-appropriated fund employees) and 2,318 contractor employees plus 43 other personnel (Base Exchange, Commissary, Credit Union, small tenant organizations). 

Using the Tennessee Valley Authority (TVA) economic impact model methodology, it is estimated that an additional 1,900 secondary jobs were created in the local area, for a total of 4,654 jobs directly related to AEDC. 

Examples of secondary jobs would be those created to build new houses or jobs created in local supermarkets, car dealerships and department stores. 

The payroll cost for AEDC government personnel and contractor employees was more than $163 million. Other indirect expenditures were more than $279 million with the approximately $210 million in indirect spin-off impact.

Direct expenditures include money spent to pay for utilities, service contracts with outside vendors and military health insurance paid to local doctors and hospitals. 

This figure does not include $148 million paid to retired military personnel in the local area. In addition, a conservative estimate is that more than $28 million is paid to government and contractor civilians who retired from AEDC and live in the local area. 

The two retired pay groups generate more than $43 million in spin-off effect. When those figures are added in, AEDC's economic impact soars to more than $872 million. 

The base figures do not include test customers like Pratt & Whitney and General Electric who maintain permanent staff at AEDC to manage tests of their products or other customers who spend time at AEDC during the year to take part in the test process. This would bring the number of people working at AEDC to more than 2,800. 

Additionally, the data does not include permanently assigned Tennessee Air National Guard members who operate the Guard Training facilities on base. The economic impact data and secondary employment estimates were made using the TVA economic impact model methodology. The Air Force economic model, which uses a different, more conservative methodology, shows the center's economic impact at $521.6 million.