Major economic player

Minot AFB contributes $622.3 million to local area in FY2020

Submitted Photo Airman 1st Class Cameron Maxfield is a missile communications technician with the 91st Missile Maintenance Squadron, shown in this Nov. 25, 2020, photo by Airman First Class Jan K. Valle. As a missile communications technician, Maxfield provides hardened, survivable communications to missile launch control centers. His squadron is a unit of the 91st Missile Wing at Minot Air Force Base.

MINOT AIR FORCE BASE – Minot Air Force Base contributed $622.3 million to the local area’s economy in fiscal year 2020.

This is a $62.9 million increase from the previous fiscal year when the base had an impact of $559.4 million.

2nd Lt. Rein Marie Northrop of the 5th Comptroller Squadron at Minot AFB, presented the fiscal year 2020 economic impact analysis at a Zoom meeting of the Minot Area Chamber EDC’s Military Affairs Committee on Thursday.

The economic data is calculated on regulations from the Air Force and is current as of Sept. 30, 2020. It is calculated with the annual payroll of the base, annual expenditures for construction, contracts and other procurements, and the value of indirect jobs created.

The base’s annual payroll in fiscal year 2020 totaled $419.6 million, including about $332 million for military and about $87 million for civilians.

Airman 1st Class Lauryn Reabold, 5th Security Forces Squadron defender, poses for a portrait on Oct. 19, 2020, at Minot Air Force Base, shown in this photo by Senior Airman Josh W. Strickland. Reabold operates the .240 Echo machine gun out of the Humvee turret on the lead convoy as she and her fellow defenders scout the road and investigate the avenues of approach. Her squadron is a unit of the 5th Bomb Wing at Minot AFB.

As of Sept. 30, 2020, the base had a total population of 12,405 people. Military members, family members and civilian employees are counted in the total population. Northrop said the number fluctuates throughout the year with changeovers and permanent change of stations especially between the months of June and September.

Northrop said the base invests a lot of money in the upkeep of existing buildings as well as new construction projects. She said many of these projects are a direct benefit to private companies based in the surrounding areas of Minot and Minot itself.

She said the total value of construction was roughly $46 million in direct support of the base’s bomb wing and missile wing operations.

She said another $12 million was spent on base support such as replacing flooring, working on roads and renovations of buildings on base.

In addition to construction and base support, she said there are various other expenditures (materials, equipment and supplies procurement) totaling about $39 million. She said 50 percent of it is goes to healthcare.

For example, under materials, equipment and supplies procurement, the commissary spent $1.8 million in the local area. Health care services through TRICARE came to $19.8 million.

The total for construction, services contracts, materials, equipment and supplies procurement amounts to more than $96 million. Compared to last year, she said this is an increase of about 36.5%.

Indirect jobs show how the money plays out in the local economy. Northrop said these numbers are estimates and approximations established by the Department of Defense. She said about 2,000 indirect jobs were created in fiscal year 2020 with about $106 million in value. The number of indirect jobs is based on an average annual pay of $50,336.

“As compared to previous years, we can see an increase of 8%,” Northrop said of the fiscal year 2020 report.

Another factor considered but is not in the $622 million is the number of military retirees in the local area, Northrop said. She said about 3% (1,420 military retirees) of the city of Minot is made up of military retirees. In combined income, she said they bring in about $33 million (gross payroll).

The majority of military retirees are Air Force retirees along with Army, Navy and U.S. Marine Corps retirees, according to the report.

Recapping her presentation, Northrop said there is about a 7% higher impact in fiscal year 2020 compared to fiscal year 2019.

More than $6.7 billion impact on local area

From fiscal year 2010-2020, Minot Air Force Base has had a $6.748 billion impact on the local area.

– 2010: $513.7 million

– 2011: $493.3 million

– 2012: $522.6 million

– 2013: $583.9 million

– 2014: $577.8 million

– 2015: $597.2 million

– 2016: $591.5 million

– 2017: $580.4 million

– 2018: $546.8 million

– 2019: $559.4 million

– 2020: $622.3 million


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