Indiana will lose jobs if it doesn't invest in its military future soon

Indiana will lose jobs if it doesn’t invest in its military future soon

Posted by author February 14, 2025 Jobs

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Matt Craig
| It’s Your Business

The Sagamore Institute reports Indiana has more than 61,000 defense jobs. The Hoosier defense ecosystem contributed $6.5 billion to the Indiana economy in 2023. Many U.S. states with a defense presence have a state-level government entity dedicated to sustaining military missions, which focus on opportunities for future mission growth. A review of 16 states found that most have defense offices and/or funds dedicated to at least one of three primary areas: military base infrastructure, defense community assistance, and the defense industry.

Currently, Indiana does not have such a state program. When compared to other states, Indiana’s lack of policies and funding dedicated to Hoosier military bases and their future military relevance is less than ideal. Without establishing new policies or dedicated funding, this key part of Indiana’s economy could be at risk.

Increasingly, states have realized that supporting their military installations brings a massive influx of direct economic impact, via paychecks and focused spending on projects that benefit their community. This has caused many states to take a proactive support role, with bond programs ranging from $40 million to $350 million. State military affairs office annual budgets ranging from $5 million to $8 million and one state has established a $200 million revolving loan program. These states could provide a blueprint for Indiana to follow.

Connecticut has a $40 million program that provides support to installation infrastructure that directly results in increased military value to its base, which in turn is responsible for $4 billion of economic impact yearly to Connecticut.

In the past four years Michigan and Mississippi established programs and offices focused on defense to strengthen and expand military missions within their states, bringing increased Department of Defense (DoD) spending, and improved defense communities outside their installations.

Florida’s Office of Military and Defense manages grant programs to streamline business and economic development efforts, provide support for military families, and protects military installations. Furthermore, the Florida Defense Infrastructure Grant Program supports up to $6 million in infrastructure projects that support military installations and surrounding communities.

The future of Indiana’s military footprint depends on decisions made in Washington, D.C. Those installations with high functioning facilities and supported infrastructures will be a more valuable part of the DoD’s portfolio, likely to attract future missions and additional personnel into those communities. Conversely, those installations in need of substantial investment could face a reduced mission scope. In a fiscally constrained defense environment, this can even lead to installation closures.

For many reasons, states have decided to provide direct infrastructure and community support to avoid a much more costly scenario — losing the jobs and economic impact provided by their military installations and defense jobs. By establishing a dedicated defense investment program, Indiana will send a clear signal to the DoD that our state and our Hoosiers intend to remain a vital part of the nation’s defense.

Matt Craig is director of Crane Community Support for Radius Indiana.