Economic Impact of Ellsworth Air Force Base

Last Updated 2 months ago

Four Things To Know About Ellsworth AFB’s Impact on Rapid City’s Economy

Ellsworth Air Force Base, the largest single employer in the Rapid City region, recently released its economic impact statement for 2023. The report outlines the base’s contributions to payroll, personnel, indirect jobs, development, and more.

Here are four key takeaways that you should know:

  1. Ellsworth boosts our local population:

Between active duty members, contractors and family members, the base adds more than 9,000 people to the Black Hills region. Additional population brings new spending to our economy and diverse perspectives to our community.

  1. Ellsworth creates jobs:

Ellsworth AFB directly employs 4,100 people, including 3,100 active-duty Airmen and 1,000 civilian personnel. Additionally, household and procurement spending creates another 4,100 indirect jobs in the Rapid City region. In total, Ellsworth supports 8,200 jobs in the local economy, helping to reduce unemployment and offer employment opportunities.

  1. More jobs equal more payroll:

These 4,100 people directly employed by Ellsworth Air Force Base generate $247.5 million in annual payroll. This substantial payroll supports the local economy by contributing to housing, goods, services, and taxes, and even tuition assistance at nearby schools, thereby strengthening the community’s financial health. 

  1. The new B-21 mission is already generating significant local investment:

With many construction projects underway or planned for the new bomber, $233.4 million is being spent on local and federal contractors to meet development needs. Plus, this construction work generates new jobs indirectly associated with Ellsworth – over 2,000 of them!

Overall, with annual economic impact of $886.8 million, Ellsworth Air Force Base is more than a military installation; it’s a vital part of the Rapid City economy. It provides jobs, boosts payroll, invests in local construction, and creates thousands of indirect jobs. This involvement helps build a strong and growing local economy, making the base essential to Rapid City’s prosperity.

What is an indirect job?

An indirect job is a job that exists to support the activities of a company, but the person isn’t directly employed by that company. Let’s use an example: When the Dining Facility (DFAC) on base purchases bulk food to serve Airmen, the food needs to be delivered. The delivery driver who brings the food to the base is not directly employed by Ellsworth AFB but plays a crucial role in supporting its operations. Therefore, this job is indirectly created to support the DFAC’s operation. Another example includes the construction workers who are working on the Base’s new developments. They are not directly employed by EAFB, but their employment is linked to their operations.

 


This article was developed by Elevate Rapid City. As the premier western South Dakota economic and community development organization, Elevate assists businesses with business advocacy, access to resources, workforce solutions and more. The organization operates a full-time Market Research Center: a one-stop-shop for market research and competitive intelligence services in the Black Hills region

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