Alaska businesses construct long-term relationship with military.

• Author: Johnston, Lori

Defense is Alaska's only enduring statewide industry impacting villages, boroughs and cities for centuries.

Department of Defense funding cycles sustain businesses through booms and busts, providing experience and capital that Alaska businesses need for intermittent commercial projects. Construction, engineering, technical, service and maintenance contracting are expected to increase to accommodate more troops and more elaborate training maneuvers.

Last year, the DOD increased contract awards to $1.26 billion and paid civilians and 23,495 service members $1.4 billion in payroll. These numbers continue to rise, creating opportunities for businesses to develop relationships with service members or their traits in Alaska's North Pacific land-air training center.

SPENDING OFF BASE

Service members are posted for two to three years, long enough to achieve the American dream of home ownership. Service members settle in, relying on nearby businesses that sell hardware, housewares, groceries and vehicles, or provide storage, veterinary care and entertainment services. Elmendorf Air Force Base pays 6,781 airmen and 2000 civilian employees about $450 million annually. Retailers depend on military dollars, attracting service members with discounts and special events. In FY04, the Veterans Administration guaranteed $539 million in Alaska housing loans and this year the average guarantee has produced a $193,670 loan. Realtor Linda Garrison of AAR No. 1 Buyer's Agency advertises to the military in the base Newcomers Guide.

Garrison says 80 percent to 90 percent of her business is from the military. "They definitely have a large impact, not only on the economic health of Anchorage and Alaska, but also I think it transcends that; the majority of them become active members of the community and contribute a lot with their knowledge and diversity." Some manage rental properties or run other small family businesses. The contributions of well-educated, responsible, dedicated workers among active, reserve and discharged service members are incalculable.

CONSTRUCTION DOLLARS

During the Cold War, the Air Force superseded the Navy, capitalizing on Alaska's most valuable military real estate: airspace. Today aerial defense activities gravitate around Elmendorf AFB, which houses the 3rd contracting squadron, the Army Corps of Engineers, and the Alaska Command. Elmendorf will continue its joint venture with the Veterans Administration as expedited construction begins on the adjacent VA clinic next year.

What the Army Corps of Engineers does not build, the military directly contracts out through the responsible post or base. When looking for contracts, Alaska's military advises businesses to first call the local post, base or station to learn what government office or prime contractor should be approached.

Elmendorf AFB...