Arizona slipped from top 10 in Pentagon spending, but defense economy still strong - Phoenix Business Journal

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Over the past decade, Arizona has been as low as 13th among states for defense spending and as high as seventh place. phoenix tucson

By Tristan Richards – Cronkite NewsWASHINGTON – Pentagon spending in Arizona fell sharply in fiscal 2021, part of an overall decline in expenditures nationally that bumped the state from seventh place among states to 13th, according to Defense Department data released this fall.

“In terms of a good environment and a welcoming environment, Arizona is positioned very well to continue that growth in this industry,” said Todd Sanders, president and CEO of the Greater Phoenix Area Chamber of Commerce. Guymon also praised the “great talent” that comes out of the University of Arizona’s engineering department, which he said helps contribute to Tucson’s robust defense economy.Military contracts have long been a staple of the Arizona economy, which includes multinational defense manufacturers such as Boeing, Raytheon and Northrop Grumman, among others. But contract spending took a hit in fiscal 2021 both nationally and in Arizona, with contracts in the state falling from $15.7 billion to $12.

“Our portfolio is well positioned and our future franchise programs have a long runway ahead,” Jolivette said. The Pentagon also said that while eight of the 10 companies on its list of the top 10 contractors had been there before, Pfizer and Moderna “were both new to the list and are anomalies for traditional defense spending.”Over the past decade, Arizona has been as low as 13th among states for defense spending – in fiscal years 2016, 2017 and now 2021 – and as high as seventh place in fiscal 2020.

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