Naval Information Warfare Systems Command (NAVWAR) partnered with both the San Diego Military Advisory Council (SDMAC) and the University of San Diego (USD) Knauss School of Business to publish the newest edition of the NAVWAR economic impact study, unveiled at a reception and release event held at USD Jan. 30.
This study aims to quantify the economic relationship between NAVWAR and San Diego and explain NAVWAR’s significance to the region and vice versa. Utilizing IMPLAN, a regional economic analysis software used in estimating economic impact, the report determined total economic impact by combining direct impact with indirect and induced impact.
Direct impact includes direct employment and awarded contracts, while indirect impact represents how local industries are impacted as the economy responds to the new demands of NAVWAR’s business-to-business activity. Induced impact measures how the economy is affected by increased household spending from NAVWAR and its contracted employees.
NAVWAR’s total gross regional product economic impact, including direct, indirect and induced, was calculated to be between $3.14 and $3.38 billion during fiscal year 2022. Of that, $1.74 billion was spent on contracts and $910 million for the total NAVWAR payroll.
“As an advocate for our local military, SDMAC wanted to produce a report to help our community better understand the significant economic importance of NAVWAR operations in the San Diego region,” said Mark Balmert, president and chief executive officer of SDMAC. “The independent and rigorous analysis by the team at USD’s Knauss School of Business has done just that, showing that our community benefits with many well-paying jobs for people across San Diego County.”
Balmert and Stath Karras, executive director of the Burnham-Moores Center for Real Estate at USD’s Knauss School of Business, kicked off the event with their introductory remarks. Special guests in attendance included MaryAnne Pintar, chief of staff for U.S. Rep. Scott Peters; John Pope, executive director of NAVWAR and Capt. Dwight Clemons, chief of staff for the commander of Navy Region Southwest.
“Being where the warfighter operates, trains and modernizes in San Diego is a benefit for us and our teammates to make sure we’re doing the best we can for the Navy and fulfill our information warfare and cyber missions,” said Pope. “We’re connected with those ships and go with them wherever they need. The enhanced connectivity between the ships, submarines, aircraft and satellites makes them so much more effective and lethal.”
As one of the San Diego region’s top twenty employers and the only Naval acquisition command on the West Coast, NAVWAR is an Echelon II command that supports over 150 separate Navy programs and oversees three subordinate commands: Naval Information Warfare Center (NIWC) Atlantic, NIWC Pacific and NAVWAR Space Field Activity. That totals to 11,000 civilian, active duty and reserve professionals worldwide. 5,300 of the employees reside in San Diego County, with more than four-fifths holding at least a four-year college degree. Combining direct hiring and contracting work, over 18,000 jobs have been created by NAVWAR’s presence in the region.
The last edition of the economic impact study was published in 2019 and since then, there have been numerous changes as NAVWAR has continued to innovate and grow with increased focus on cybersecurity. To better reflect the evolution of information as a fundamental element of warfare, NAVWAR underwent a name change from Space and Naval Warfare Systems Command (SPAWAR) in 2019 as well.
A major indication of NAVWAR’s continued importance to the Department of the Navy is Project Overmatch, a Naval initiative headquartered in NAVWAR facilities and led by NAVWAR Commander Rear Adm. Doug Small. It has remained the number two development priority for the DON since its inception in 2020 and serves as the Naval contribution to the Department of Defense’s Combined Joint All-Domain Command and Control strategy. The project is focused on establishing and sustaining sea control through connecting manned and unmanned systems, with its funding increasing every year to better support this vital mission.
NAVWAR is also slated to undergo a massive transformation and overhaul of its outdated facilities through its revitalization project. Situated in over 70-acres in the Old Town area of San Diego and residing in deteriorating World War II-era bomber aircraft factories, a renovation of the workspace is necessary to better serve its high-tech responsibilities and meet emerging security requirements. Manchester Financial Group and Edgemoor Infrastructure & Real Estate were selected as the potential master developer of this project Jan. 9 after a lengthy bidding process. Not only will the revitalization provide NAVWAR with cutting-edge facilities to accomplish its mission, but it will also transform the Old Town landscape with new residential, commercial and transportation spaces.
"For us at NAVWAR, the revitalization is more than its economic impact on San Diego. It’s our ability to recruit and maintain a top-tier workforce so they can complete our mission in facilities that better serve us,” said Pope. “If NAVWAR has modern and secure facilities that allows us to have better connections with our industry partners, both small and large businesses, we can innovate faster and better together.”
The relationship between NAVWAR and San Diego is mutually beneficial for all parties. By leveraging the region’s unique advantages like proximity to operational Naval forces, training ranges, high-tech industry and world-class universities, NAVWAR is able to more easily communicate with fleet customers as well as develop and test new capabilities. Additionally, NAVWAR invests back into the San Diego region by partnering with local contracting companies, including small businesses, and participating in science, technology, engineering and math outreach to support the next generation of scientists.
“The University of San Diego is proud to partner with SDMAC to shed light on the major contribution that NAVWAR makes to our region,” said Karras. “Our support for this report was driven by USD’s commitment to serve as an anchor institution in San Diego and to be a premier university for the military-connected community.”
NAVWAR has been a major presence in the San Diego region for nearly thirty years and will continue to adapt and innovate in the years to come. Read the full report to get a comprehensive look at NAVWAR’s economic impact in San Diego.
About NAVWAR:
NAVWAR identifies, develops, delivers and sustains information warfighting capabilities and services that enable naval, joint, coalition and other national missions operating in warfighting domains from seabed to space and through cyberspace. NAVWAR consists of more than 11,000 civilian, active duty and reserve professionals located around the world.
Date Taken: | 01.31.2024 |
Date Posted: | 01.31.2024 09:35 |
Story ID: | 462806 |
Location: | SAN DIEGO, CALIFORNIA, US |
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