National Defense to the Rescue? Alaska economy benefits from military spending.

• Author: Viray, Khristian
• Position: ALASKA TRENDS

Since World War II, the military's economic impact on Alaska has risen and fallen, but one thing is certain: it has remained one of the state's economic backbones, particularly in construction. The construction of the Alaska Highway, along with many other roads, airfields, and military bases, was conducted by the military--directly impacting Alaska's transportation infrastructure and economy. In 2016, national defense construction spending in Alaska is projected by ISER to increase 27 percent over last year, bringing about $552 million into the state. The increase is a break in the downward trend of defense construction spending and of public construction spending as a whole. The sliding value of construction spending is attributed to the rapid decrease of oil prices and the resulting cuts to state government.

Eielson AFB in Spotlight

The effects of the swiff drop in the price of oil over the last eighteen months have been felt throughout Alaska industries. Specifically, the construction industry spending in 2016 will be 18 percent lower than 2015 spending, according ISER. As in the past, defense spending has increased thanks in part to Alaska's strategic geographical location. Eielson Air Force Base is the prime choice for the new F-35 squadrons; a decision will be made later this year. The F-35 is a fifth generation fighter and is the most technologically advanced multi-role fighter in the world. Eielson is the gateway to the world's largest joint air, land, sea, subsea, space, and electromagnetic training assets--Joint Pacific Alaska Range Complex (JPARC), which has about 65,000 miles of available airspace; 2,490 square miles of land space with 1.5 million acres of maneuver land; and 42,000 square nautical miles of sea and airspace.

Increased Spending

In addition to the F-35 projects, the initial phase for the...