The U.S. Department of Energy’s (DOE) Oak Ridge Reservation is an economic engine for the state of Tennessee, according to a report released by the East Tennessee Economic Council (ETEC). The report studied the effects of DOE’s investment in Tennessee in fiscal year 2017.
This report details the scope and scale of DOE’s impact on Tennessee’s economy. It examined job creation, state GDP growth, private-sector procurements, payroll and pension disbursement, state and local tax contributions, and community development conferred on the state by DOE, as well as the ripple effects of this spending.
Key findings from the report include:
- DOE’s economic impact on the state of Tennessee equals $5.6 billion.
Tennessee’s gross domestic product increased by approximately $3.4 billion as a result of overall spending by DOE and its contractors. Additionally, $2.2 billion in total personal income was generated by DOE–related activities in the state.
- More than 34,000 full-time jobs are supported by DOE activities, with a workforce that spans 50 of Tennessee’s 95 counties.
12,618 jobs were directly created by DOE and its contractors in Tennessee. An additional 21,878 jobs were generated by the indirect effects of DOE investment. For every one job created by DOE and its contractors, an additional 1.7 jobs were created across the state.
- The private sector supports DOE’s missions in Oak Ridge.
Of the approximately $1.1 billion in non-payroll spending from DOE and its contractors, more than $943 million went to Tennessee businesses for the procurement of raw materials, services, and supplies.
- Over $32 million in state and local taxes were generated by DOE-related spending.
A portion of these tax dollars enable the City of Oak Ridge to provide critical infrastructure to support DOE missions and also funds education and schools.
“This report confirms that the Department of Energy’s Oak Ridge Reservation is critical to the state’s economic success,” ETEC president Jim Campbell said. “The men and women who work in Oak Ridge deploy science and engineering innovation to make Tennesseans’ quality of life better, our planet healthier and our nation safer.”
Beyond the billions in economic gain, the report confirmed substantial community and educational benefits from DOE’s presence in Tennessee. DOE and its contractors gave over $2.4 million in charitable donations in 2017. They contributed more than $627,000 to education initiatives in East Tennessee. DOE facilities in Oak Ridge attracted over 50,000 visitors, a number poised to grow from heritage tourism due to the recently announced Manhattan Project National Historical Park and History Museum to commemorate Oak Ridge’s role in ending World War II.
Oak Ridge is integral to our national security and nuclear nonproliferation efforts. It is home to leading scientists and researchers and nearly 2,300 patents and licenses, 127 of which were secured in 2017. State-of-the-art facilities enable these experts to conduct transformative science and technological research to tackle global dilemmas. These assets cement Tennessee’s stature in scientific leadership. Leading firms and experts in energy, nuclear technology, advanced manufacturing, computing and artificial intelligence are drawn to the region to partner with expertise found in Oak Ridge.
Research on DOE’s economic impact in the state of Tennessee in FY2017 was conducted in part by a Booz Allen Hamilton economist and initiated by the East Tennessee Economic Council.
To read the full report visit, https://eteconline.org/
On the heels of the investment, Silicon Ranch also announced the awarding of a long-term power purchase agreement for a 53 MW solar project at Naval Support Activity in Mid-South in Millington, Tenn. The solar array will be the largest in Tennessee and will provide power to TVA customers for the next 20 years.
The report further states that the U.S. advanced energy market is now $200 billion, more than pharmaceutical manufacturing, and approaching wholesale consumer electronics. Energy sector growth highlighted in the report includes: Solar PV revenue grew 21% over last year, wind was up 75%, building efficiency grew 11%, and energy storage multiplied over 10 times year-to-year.
From hosting Assistant Secretary David Danielson and Deputy Assistant Secretary Reuben Sarkar to an invitation to the White House and releasing the state’s first Tennessee Advanced Energy Economic Impact Report, 2015 proved to be a year in which the TAEBC voice was heard clearly on a state, regional and national level.