For Immediate Release - May 11, 2008

DEFENDING AMERICA AND KEEPING THE MASSACHUSETTS ECONOMY STRONG

The Patrick-Murray Administration Highlights The $14.7 Billion Defense Technology & Homeland Security Industry During May

BOSTON - Wednesday, May 7, 2008 - Today, Housing and Economic Development Secretary Daniel O'Connell announced a month-long focus on the Commonwealth's $14.7 billion defense technology and homeland security industry sector. Previous months' activities have focused on the information technology, communications and manufacturing industries. The Patrick-Murray administration's monthly focus on key industry sectors is part of its continued efforts to highlight the diversified strength of the state's economy.

The defense technology and homeland security industry comprises roughly 2,435 Massachusetts companies that have secured contracted work from the U.S. Department of Defense (DoD) and Department of Homeland Security (DHS). Of the $9.8 billion in total contracts awarded to Massachusetts companies, approximately 83% by value represents the work that remains in-state. The combined total of $14.7 billion reflects the economic impact of both direct and indirect effects of the these contract dollars. The industry sector also includes military installations, such as Hanscom Air Force Base and the U.S. Army Soldier Systems Center in Natick. Other entities that receive unique federal funding, such as Lincoln Laboratory, Draper Laboratory, and MITRE, are also part of the industry's presence in Massachusetts.

"We are proud to be home to some of the nation's large and small leading companies conducting business in the defense technology and homeland security industry," said Daniel O'Connell, Governor Patrick's chief housing and economic advisor. "Not only do these companies develop goods and services that keep America safe, they help strengthen the Massachusetts economy by employing large numbers of people and purchasing products from local companies -- creating a significant multiplier effect." It is estimated that the combined industries employ over 71,000 people statewide.

A 2007 commissioned report conducted by the UMass Donahue Institute ranked Massachusetts as the eighth highest among states that received DoD and DHS defense contracts. The dollar value of prime contracts increased by 91.6% between 2000 and 2005, a figure that far exceeded the 18.5% growth in Massachusetts' gross domestic product (GDP) during the same period. In 2005, nearly 36,000 military service members, staff and retirees lived in Massachusetts. Total payroll and retirement benefits for the groups were more than $1 billion and generated another 7,200 jobs.

During the month of May, the Patrick-Murray administration will work with local partners to conduct three regional summits to hear directly from business leaders about ways the state can continue to create the conditions for growth in this industry. Administration and key legislative leaders will also be invited to tour companies that produce some of the nation's leading technologies in this industry. A tour of one of the state's military installations is also being planned for the month. All activities serve to strengthen relationships with this important industry sector.

"We applaud the Patrick-Murray administration for its efforts to grow the Commonwealth's defense technology and homeland security industry," said Brigadier General Donald Quenneville (USAF, retired), Executive Director of the Defense Technology Initiative (DTI), the industry group that represents defense and homeland security employers throughout New England. "Massachusetts has the research capacity, expert industrial base and skilled workforce to maintain its leadership position as a global defense technology cluster, and interest and investment by the state will help ensure future success. In particular, DTI is working with the Patrick-Murray administration and the Congressional delegation to bring the Air Force Cyber Command - and its related economic activity - to Massachusetts."

Throughout the month updated activities for the defense and homeland security industry sectors will be posted on the state's website at: .

###

The Executive Office of Housing and Economic Development is one of eight Secretariats that make up the Governors Cabinet. Under the leadership of Secretary Dan O'Connell, the Executive Office of Housing and Economic Development oversees the following undersecretariates: the Departments of Business Development, Housing and Community Development, and Consumer Affairs and Business Regulation.