Economic Impact Analysis of Fort Lee, Virginia, August 2020
Fort Lee is a major U.S. Army military installation located in Prince George County, Virginia. Fort Lee is home to several major military agencies and training facilities, such as the Combined Arms Support Command, Defense Contract Management Agency, Defense Commissary Agency Headquarters, and Army Logistics University. As a result, Fort Lee hosts thousands of military and civilian personnel, contractors, and students each year. The operations of the installation and spending by installation personnel, contractors, and students generate significant economic impact in the Tri-Cities Area.
A major military installation such as Fort Lee has various economic connections with the surrounding area. The daily operations of Fort Lee require many local services, which are acquired through defense contracts. The military personnel, civilians, and defense contractors, as well as their spouses, live and spend their wages in the region. Students and trainees need housing accommodations off the installation, spend money in the region on leave days, and may also bring their families to the region to attend graduation or other events.
Combining these components, it is estimated that the total economic impact (direct, indirect, and induced) of Fort Lee was $2.25 billion in the region, supporting 23,483 jobs in 2019. This accounts for about 10.1% of 2019 gross domestic product (GDP) in the Tri-Cities Area.2
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