Military Impact in Hawaii

Direct and indirect impacts of military expenditures are reported to generate $14.7 billion into Hawaii’s economy, creating more than 102,000 jobs for residents that collectively report household incomes around $8.7 billion. Military expenditures totaling $8.8 billion annually has elevated the defense industry. Military procurement contracts amount to about $2.3 billion annually, making it a prime source of contracting opportunities for hundreds of Hawaii’s small businesses.

  • Hawaii attracts increased activity in R&D projects and the presence of the Nation’s top prime defense contractors: Boeing, Lockheed Martin, Northrop Grumman, BAE Systems, General Dynamics, Raytheon and several others.
  • Many of Hawaii’s fledgling high technology businesses receive federal grants through DOD programs such as those awarded by the Office of Naval Research (ONR) and the Defense Advanced Research Projects Agency (DARPA), and mentor-protégé programs administered by prime defense contractors.
  • The Pearl Harbor Naval Shipyard is Hawaii’s largest industrial plant, employing more than 4,600 engineers and skilled technicians to service naval surface ships and submarines based in Hawaii and responding to emergency repair calls throughout the Pacific. The naval shipyard also extends use of its facilities to service commercial ships.
  • The Pacific Missile Range Facility at Barking Sands, Kauai is the island’s largest employer outside of government. It is the key R&D site for the nation’s ballistic missile defense program and the Navy’s premier anti-submarine warfare testing and training range.
  • Since 2002, a 50-year contract to privatize the military family housing program has created billions of dollars in business opportunities for Hawaii’s small businesses contracted to develop, service, and manage military residential communities to over 17,000 homes throughout Oahu by Forest City and Lend Lease Hawaii.


View the Military Impact brochure.

Download the Military Affairs Council (MAC) brochure.

For more information about the Chamber’s Military Affairs activities, please email our Military Affairs Department or call (808) 380-2612.