UCSD - University of California - San Diego
11/13/2025 | Press release | Distributed by Public on 11/13/2025 02:10
New Rady School Report: Military Spending Remains Cornerstone of San Diego’s Economy
Published Date
November 13, 2025Story by:
- Christine Clark- [email protected]
Media contact:
- Christine Clark- [email protected]
Share This:
Article Content
The military continues to play a vital role in powering San Diego's economy, supporting nearly 357,000 local jobs and contributing $61.3 billion to the region's total economic output, according to the 2025 Military Economic Impact Report (MEIR). The report is released annually by the San Diego Military Advisory Council (SDMAC) and the University of California San Diego's Rady School of Management.
Defense spending accounts for 22.2% of the region's Gross Regional Product, according to the report. While total spending dipped slightly - by about 3% from last year - due to federal budget constraints, the findings underscore the enduring strength and stability of the defense sector in San Diego's economy.
"San Diego's defense community continues to be one of the most dynamic and stabilizing forces in our economy," said Lisa Ordóñez, dean of the Rady School of Management. "Our collaboration with SDMAC reflects Rady's ongoing commitment to generating insights that strengthen our region while supporting the service members, veterans, and families who call it home."
The 2025 report documents $39.3 billion in direct defense spending, including $19.8 billion in defense contracts awarded to more than 2,000 companies across the region. Payroll for active-duty, reserve, and civilian employees totaled $15.1 billion, while retirement and veterans' benefits rose to $4.3 billion, reflecting San Diego's long-standing role as home to one of the largest military and veteran communities in the nation
Rady School Dean Lisa Ordóñez.
"San Diego's military presence remains a key driver of economic growth, innovation, and collaboration," said Michael Meyer, associate teaching professor at the Rady School and faculty lead for the report since 2021. "Even with modest shifts and uncertainties in federal budgets, the data show how resilient and deeply connected the defense sector is to our region's workforce and technology ecosystem."
Overall, the defense sector supports more than one in five local jobs - employing roughly 143,000 active-duty, reserve, and civilian personnel, as well as indirectly sustaining an additional 214,000 jobs through contracting, logistics and local business activity.
Innovation and Energy Resilience on the Rise
Beyond the economic data, the 2025 MEIR spotlights how military and academic partnerships are fueling new forms of innovation. San Diego's convergence of defense installations, research institutions such as UC San Diego and technology firms continues to advance emerging fields such as autonomous systems, artificial intelligence and cybersecurity.
While just 0.5% of California's 2025 venture capital investment went to defense startups in San Diego, initiatives like UC San Diego's Innovating for National Security (i4NS) program are building stronger connections between entrepreneurs, academia and the Department of Defense.
The report also highlights San Diego's growing leadership in energy resilience. Projects like the Haybarn Energy Reliability Center at Camp Pendleton - funded by a $42 million California Energy Commission grant - and new microgrid systems at Naval Base San Diego are designed to enhance operational readiness while supporting California's clean energy goals.
Marvin Minas (left)
A Partnership that strengthens the region
For nearly two decades, SDMAC has partnered with the Rady School of Management to produce the annual Military Economic Impact Report. Each year, Rady faculty and MBA students analyze regional data to quantify the scale and scope of the military's impact on San Diego's economy.
"This collaboration helps decision-makers in San Diego, Sacramento, and Washington, D.C. understand how critical the defense sector is - not only to national security but also to local innovation, workforce development, and quality of life," said David Boone, SDMAC president and CEO and a retired U.S. Navy rear admiral.
Boone added, "our report concludes that even amid evolving federal spending patterns, the defense sector remains one of San Diego's most stable and forward-looking engines of growth."
Minas (center, holding flag) performing the Change of Command military tradition.
A business school committed to serving those who serve
This year, Meyer led a group of eight current Rady students who contributed to the report all of whom are either active duty, veteran, or spouse of a service member. Marvin Minas who has more than 17 years of service was one of those students. Minas is a Flex MBA student and veteran who continues to serve as an Army Space Operations Officer in the U.S. Army Reserve.
"Contributing to the report gives us direct insight into the current challenges the military and San Diego face, and an appreciation of the vibrant efforts taking place to employ solutions with industry, government, and academia working in concert," Minas said. "Rady students participating in the production of the MEIR have a unique opportunity to directly interface with top leaders and change agents in industry, academia, the military, as well as other non-profit organizations."
The Rady School's involvement in the report reflects its broader commitment to serving veterans and active-duty service members who pursue graduate degrees in business and analytics at UC San Diego.
Through initiatives such as the Yellow Ribbon Program, veteran fellowships, and personalized advising, Rady provides pathways for service members to translate their leadership experience into successful careers across industries like technology, consulting, and operations.
This fall, Rady proudly welcomed new military and veteran students who represented 30% of the incoming class across programs.
"Supporting veterans and active-duty service members is part of who we are as a business school and as a San Diego institution," said Ordóñez. "Our region's identity is deeply tied to the military, and we're proud to help service members build on their leadership experience to make an impact in business and innovation."
The 2025 Military Economic Impact Report was released on November 12, 2025. The full report and key findings are available at SDMAC.org
Share This:
UCSD - University of California - San Diego published this content on November 13, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 13, 2025 at 08:10 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]