Louisiana’s defense sector continued its rapid expansion in fiscal year 2024, with a new statewide analysis showing military activities generated more than $17 billion in economic output. The report, prepared for Louisiana Economic Development, highlights how the state’s growing network of military installations, contractors, and veteran-connected spending has reshaped Louisiana’s economic landscape over the past three years.

Instead of focusing solely on federal installations, the new assessment measures the full reach of defense-linked activity — including procurement, service contracts, and the indirect ripple effects throughout local communities. Since 2021, overall output connected to military spending has climbed 77%, reflecting a surge in both federal investment and private-sector participation. Employment tied to these activities has also expanded significantly, rising 52% to support more than 117,000 jobs across the state. Those operations generated an estimated $707 million in state and local tax revenues.

Several high-profile industrial moves helped accelerate this growth. At its Lockport facilities, Bollinger Shipyards advanced production on a new class of U.S. Navy Arctic Security Cutters, a multivessel contract that is expected to sustain shipbuilding employment and drive long-term project stability. In Northwest Louisiana, VRC Metal Systems announced it will establish a new maintenance operation at Barksdale Air Force Base focused on modernizing and extending the service life of the B-52 fleet — an investment that positions the region for additional aerospace support work.

Beyond those headline projects, the state recorded more than $3 billion in Department of Defense and U.S. Coast Guard contract activity performed within Louisiana during 2024. The analysis also took a broader view of military-related economic contributions by estimating the impact of veteran household spending and Louisiana Department of Veterans Affairs contracts. Together, those components added $5.6 billion in economic output and supported over 35,000 jobs, underscoring the role of veterans and state-operated facilities as major economic drivers in their own right.

Source: Louisiana Economic Development

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