Utah consistently demonstrates strong economic performance, frequently securing top national rankings for overall economic outlook and Gross Domestic Product (GDP) growth. A recent in-depth analysis from the Economic Development Corporation of Utah (EDCUtah) and Utah industry association 47G, highlighted the significant economic impact of Utah’s aerospace and defense sector. In 2023, this industry alone accounted for nearly one-fifth of Utah’s GDP. It contributed close to half a million jobs, generated almost $100 billion in total economic output, and brought in $1.6 billion in direct annual tax revenue.
The American Legislative Exchange Council (ALEC) also ranked Utah as the No. 1 state for economic outlook for an impressive 18 consecutive years, extending into 2025.This indicates a strong presence for the sector within the state’s economy. A key insight is the industry’s considerable expansion effect on employment, with every job in the sector leading to another job.
A separate report from the Kem C. Gardner Policy Institute, published in January 2025, using 2023 data, focused on the military and defense industry. This perspective reveals a more direct military and government-related economic footprint. In 2023, this segment contributed an estimated $22.2 billion to state GDP, accounting for 7.8% of the statewide total.
A recent Layton City study, funded through the Wasatch Front Regional Council and completed by Better Cities and Urban Design Associates, provided some new data showing the importance of aerospace and defense in northern Utah. The consultants’ research found that approximately one in every six Layton households include someone employed because of Hill Air Force Base, including its public and private contractors.
Major military installations including Hill Air Force Base (HAFB), Camp Williams, and Tooele Army Depot, contribute to Utah’s healthy aerospace and defense industry. The state also boasts prominent research and business facilities such as the Space Dynamics Lab at Utah State University, Falcon Hill Aerospace and Research Park, and East Gate Business Park in Layton, Utah. Leading universities including the University of Utah and Brigham Young University also play a crucial role in technology transfer.
Major companies such as Boeing, L3Harris, Lockheed Martin, Northrop Grumman, BAE Systems, RTX (Raytheon Technologies), Apogee Worx, KIHOMAC, Janicki Industries, General Atomics, General Dynamics, Westest, Rantec, GURU Technologies, Infinite Technologies, Aerospace Support Technologies, ES3, Draper Labs, Hexcel, Duncan Aviation, Collins Aerospace, Pratt & Whitney, Moog Inc., Leidos, V2X and many others offer a significant presence. State initiatives, such as the Utah APEX Accelerator, actively support businesses in securing government contracts, and the Economic Development Tax Increment Financing (EDTIF) program targets aerospace and defense as a key industry for incentives.
The economic impact of Utah’s aerospace and defense sector is indeed substantial. Its success in this domain includes several strategic factors, among them targeted state incentives, vigorous business support, including the APEX Accelerator, a dynamic innovation environment fueled by top-tier universities and research facilities, and forward-thinking investments in promising new technologies. Utah’s deep-rooted military presence, particularly HAFB, serves as an initial pillar, strengthened by support from state policymakers, businesses and investors, and a young, skilled workforce.