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Massachusetts leans into defense spending to spur new real estate
A state defense initiative backed by federal funding found the sector contributed about $50 billion to Massachusetts in fiscal 2024, and one manufacturer is proposing a $1.3 billion facility creating 1,000-plus jobs.
Massachusetts officials are positioning the state to benefit from increased U.S. defense spending, using a new umbrella program to grow the defense ecosystem and the companies behind it. Bisnow reports that the Healey-Driscoll administration launched the Strategic Hub for Innovation, Exchange and Leadership in Defense, or SHIELD, in October to foster the sector by connecting private industry, academia, and state military bases.
SHIELD’s latest report estimates the defense sector contributed $50 billion to the Massachusetts economy in fiscal 2024, about 7% of the state’s GDP, outpacing the state’s leading life sciences sector at $42 billion. The story also cites Department of Defense data showing Massachusetts ranked No. 10 overall in defense spending in FY 2024, at $16.6 billion from the federal government, and No. 8 in spending directed to defense contracting firms.
With the Trump administration increasing the defense budget, defense-related companies are also expanding their real estate footprints, according to Bisnow. In June, advanced metal manufacturer VulcanForms proposed a $1.3 billion, 1 million square foot manufacturing facility in Devens for medical, aerospace, and defense uses, projecting more than 1,000 new employees. Gov. Maura Healey said the plan reflects the SHIELD initiative’s impact, as VulcanForms already operates two other Massachusetts plants in Devens and Newburyport.