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An Economic Impact Study compiled by the NATO E-3A Component shows a 2008 economic impact of 275.8 million Euro within a 200 kilometers radius of the base and a total of 447.3 million Euro of economic impact throughout Europe and North America. This marks an increase of 10.7 million Euro locally and 22.8 million Euro overall as compared to 2007.
This latest study marks the fourth year that the NATO E-3A Component has completed an economic impact assessment. Since the first economic impact research in 2005, the Component’s financial contribution to the local area economy has grown by 30.9 million Euro and 50.2 million Euro throughout Europe and North America.
Highlights from the 2008 study include:
- 2008 payrolls of € 150.7 million
- 2008 expenditures of € 81.3 million
- Employees on base: 3,050
- Indirect jobs created: 1716 (estimated)
- Economic impact of indirect jobs created: € 43.8 million
- Total 2008 Economic Impact within 200 km radius: € 275.8 million
- Total 2008 Overall Economic Impact: € 447.3 million
The Economic Impact Study (EIS) estimates the economic effect a military installation has on its local area. The area affected is called an “economic area.” An economic area consists of residences of the majority of the military and civilian employees at the installation and in this case was focused on an area up to 200 kilometers from the E-3A Component. An EIS estimates the Euro amount of payroll, services, contracts, military construction, and other base expenditures in the economic area. The EIS also includes an estimate of the number of indirect jobs and the estimated value of those jobs to a community. Indirect jobs are those additional employment opportunities required by local businesses to support the presence of the base. Finally the EIS study also unveils the overall economic impact that is spent outside of the 200 km radius throughout Europe and North America including expenses such as maintenance of aircraft, aviation fuel and foreign military sales.
Indirect job multipliers are used to help estimate the number of secondary jobs created by economic activity from a base. Multipliers were developed based on the size of the employment base for each region surrounding an installation and the base’s general mission. These multipliers are used to calculate the number of jobs in the economic area created by the presence of active duty military, NATO civilian, Local Wage Rate (LWR), contractor and other personnel. The calculation involves counting the number of personnel employed at the E-3A Component at a given time and multiplying the number of employees by the appropriate multipliers. Further, an estimate of the average wage for a local area is used to estimate the total value from those jobs. The total economic impact for the community includes the payroll, total expenditures, and the value of secondary jobs created.
While the model was originally designed to assist in US Base Realignment and Closure activities, it is applicable and useful in portraying the economic impact of Geilenkirchen. An assumption was made that the indirect job creation multipliers--based on the size of the employment base for a region surrounding a US installation and the general mission of the base/installation activity--are reasonable and correspond to the flying mission and NATO environment here at Geilenkirchen.
All information is current as of 31 December 2008. Questions or comments regarding information appearing in this document should be directed to the Public Affairs Office, NATO Air Base Geilenkirchen, Postfach 433007, 52511 Geilenkirchen, Germany, or call +49 (0) 2451-63-2480. E-mail: pao@e3a.nato.int
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