Defense Contractors Employ 62K San Diegans Locally

Feb 16, 2018 - Bree Burris

Last week, President Trump signed a two-year budget deal that included a hike in the debt ceiling and agreements to raise spending caps for domestic and defense programs.

For San Diego, a community where 20 percent of our GRP is tied to the military, this bill provides some stability and relief from the constant threat of continuing resolutions and sequester.

To better understand how fluctuations in defense spending impact our regional economy, San Diego Regional EDC releasedMapping San Diego’s Defense Ecosystem,” as well as a data visualization tool at This is the first of its kind regional analysis that focuses on the industrial composition of the defense supply chain and quantifies the number of firms and jobs that are impacted by defense spending in San Diego.

Fun Facts:

  • San Diego is home to more than 5,600 defense contractors that collectively employ more than 62,000 people.
  • San Diego is the second largest recipient of defense procurement dollars in the U.S.
  • A strong network of suppliers and access to customers are key reasons that 71 percent of firms have a favorable view of San Diego as a place to do business.
  • Defense contractor jobs have grown 6.3 percent over the last three years, and are expected to grow another 9.3 percent over the next year.
  • Since 2012, the majority of contract dollars received by the region were awarded by the Department of the Navy, each year awarding between 44 and 55 percent of total awards.
  • The majority of contract dollars were awarded to companies in the manufacturing industry, each year receiving anywhere between 47 and 68 percent of total contract dollars.

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