Alaska Aerospace Development Corporation Economic Impact

Friday, February 20, 2009 (All day)

Juneau, AK—The Alaska Aerospace Development Corporation contributed about $28.7 million to the state last year, according to an independent organization that calculated the corporation’s economic impact.

The corporation maintains and operates the Kodiak Launch Complex, which is designed to augment the nation’s ability to place satellites into orbit and support missile defense testing. So it is not surprising that the corporation’s greatest economic impact is on the Kodiak Island Borough.

During fiscal year 2008, the corporation spent about $17.8 million in Kodiak, supporting about 100 local vendors and generating 155 jobs. Those jobs paid about $7.7 million in wages and salaries on the island.

Nearly 1,000 people visited the island during the year to support activities at the launch facility. These visits generated about $365,000 for hotels, restaurants and retail services on the island.

Also, the Alaska Aerospace Development Corporation was involved in a project to increase cellular phone access in areas previously unavailable on the island, and it helped generate funding for improvements to Pasagshak Road. All totaled, the Kodiak Launch Facility was responsible for 11 percent of total earnings for the borough.

In Anchorage, the corporation employed 20 people and paid wages, salaries and fees to employees and suppliers of $1.7 million. All totaled it contributed about $7.1 million to the Anchorage economy.

The study of the corporation’s economic impact was conducted by the independent firm Anchorage’s Northern Economics , which has more than 25 years experience calculating economic impacts. The study was based on the 2008 fiscal year – from July 1, 2007 to June 30, 2008.