Boeing Bolsters Alabama Economy By $700 Million Yearly, Company States
The Boeing Co. [BA] through its Ground-based Midcourse Defense (GMD) program contributed more than $700 million to Alabama’s economy last year and supported nearly 5,600 direct and indirect jobs, according to a new University of Alabama study performed on Boeing’s behalf.
The study, conducted earlier this year, found that Boeing’s work on the GMD program contributed $198 million in Alabama household earnings, and that the average Boeing GMD worker last year earned nearly twice the average wage of Alabama workers in 2006.
Boeing is the prime contractor for GMD.
The Center for Business & Economic Research (CBER) at the University of Alabama, Tuscaloosa, conducted the study.
The Boeing GMD study looked at payroll, nonpayroll purchases and expenditures, and vendor commitments in the state to determine the overall impact of Boeing work on the GMD program. Major economic impacts for 2007 include:
- Nearly 5,600 direct and indirect jobs
- $80 million payroll
- $198 million in Alabama household earnings
- 38 jobs created in the state for every 10 Boeing GMD jobs
- The highly skilled, high-income GMD program work force earned an average of 1.9 times the average 2006 wage for an Alabama worker.
A 2006 CBER study determined that Boeing as a whole contributed $1.5 billion annually to Alabama’s economy.