National Aeronautics and Space Administration
Economic Impact of NASA
in Florida
FY 2010
SpaceX made history on December 8, 2010 from the Kennedy Space Center, as the successful
flight of its Falcon 9 rocket and Dragon capsule marked the first time a commercial company
launched and returned a spacecraft to Earth.
Preface
The National Aeronautics and Space Administration (NASA) has a number of Centers that help the
Agency pursue its space exploration and discovery goals. The Kennedy Space Center (KSC) in
Florida is one of those Centers, and as such plays an important role in helping NASA achieve those
goals.
As good stewards of the responsibilities and resources the nation entrusts to the Agency and its
Centers, NASA strives to maximize the benefits produced by activities it conducts at its Centers,
including KSC, while minimizing costs. In addition to the technical and social benefits derived from
these activities, the total benefit of business NASA conducts also includes significant economic
benefits in the locations it operates across the country, including Florida. To help quantify,
understand, and communicate this benefit, the Chief Financial Officer (CFO) at KSC annually
produces an economic impact assessment of NASA spending in Florida covering three concentric
economic areas: local (Brevard county), regional (Central Florida counties) and state. The CFO
typically enlists the help of one or more outside economic experts in developing these assessments.
This year’s assessment uses the results of a study conducted by the Transportation Economics
Research Institute, a Mt. Dora, FL based private organization under the direction of Dr. Warren
McHone, who is also a Professor of Economics at the University of Central Florida. The study was
based on data supplied by KSC and its affiliates. This economic impact assessment has been
collaboratively produced by Dr. McHone and KSC CFO Personnel.
The Office of the CFO is pleased to submit the results of the Fiscal Year 20 10 assessment, covering
the period from October 1, 2009 through September 30, 2010. The study and methodology used has
been reviewed and we concur with the findings contained in this report.
Additional copies of the report are available through the Office of the NASA KSC CFO,
(321) 867-3726.
Economic Impact of NASA in Florida
Fiscal Year 2010
Produced by the NASA Office of the CFO at
Kennedy Space Center, Florida
With the support of W. Warren McHone, PhD
Transportation Economics Research Institute
Table of Contents
1.
Study Highlights………………………………………………………………………………………....1
2.
Kennedy Space Center 2010 Review ………………….…………………………………………….3
3.
NASA Space Program Spending In Florida ........................................................................ 8
4.
Spending By Tourists and Business Visitors ................................................................... .15
5.
Monetary Injections into Florida Economies ..................................................................... 17
6.
Total Economic Impact of NASA in Florida ....................................................................... 18
7.
Summary ............................................................................................................................ 21
8.
Notes .................................................................................................................................. 21
1. Study Highlights
The following list is a summary of the major findings of this study.
KSC, other NASA centers and other space related activities at
KSC spent $1.8 billion in FY 2010 in support of space program
activities in the State of Florida. Measured in constant dollar
terms this was a 9% decrease from the FY 2009 level.
KSC and other NASA Centers managed 1,623 active contracts
in Florida in FY 2010. 90% of KSC/NASA spending (including
civil service wages) was concentrated on-site at KSC.
Total space-related direct spending was $1.71 billion in
Brevard County, $89 million in other Central Florida counties
and $39 million in other Florida counties.
Commodity purchases by KSC and other NASA Centers in
Florida totaled $1.5 billion in FY 2010. Over 73% of these
purchases were concentrated in three commodity categories.
The top commodity category was the $612 million for Scientific
Research & Development Services.
The total worker population on/near-site KSC in FY 2010 was
13,630. Of this total, 244 workers were excluded from this
study because they represented a transfer of economic activity
within the study area or they were engaged in non-space
related activities. Most (73%) of the study’s 13,386 space
related workers were employed by prime contractors, 17%
were KSC/NASA federal civil service workers and the
remainder were KSC Visitors Complex and other space-related
tenants.
Total gross earnings of all space-related workers at KSC were
$1.1 billion in FY 2010.
The average annual salary for KSC on-site workers was over
$83,000 in FY 2010, which was twice the wage level of the
average Brevard County worker.
Page 1
1.5 million out-of-state tourists visited the KSC Visitor Complex
(KSCVC) in FY 2010 generating $47 million in wages and nonlabor purchases in the state by KSCVC. In addition, out-ofstate business visitors to KSC spent $6.4 million in total local
travel and lodging expenditures in FY 2010.
The total monetary injection of outside money into Florida’s
economy by all KSC-based activities was $1.83 billion in FY
2010. This total consisted of $1.1 billion in wage payments to
households and $717 million in commodity purchases. Total
impact relevant injections in FY 2010 were 8% lower than their
FY 2009 level.
The injection of outside money into the state and local
economies plus the subsequent indirect transactions that were
generated by this spending resulted in a FY 2010 total
economic impact of NASA in Florida of $4.1 billion in output,
$2.2 billion in household income and 33,049 jobs. The
injections also generated $314 million of federal taxes and
$134 million of state and local taxes.
At the state level each direct job at KSC was multiplied into
2.26 total jobs, each dollar of earnings was multiplied into
$2.09 in total income and each dollar of total direct spending
for commodity purchases and wage payments was multiplied
into $2.16 of output production.
In summary, FY 2010 space-related spending in Florida was
down 8% from its FY 2009 level. The decrease in injections led
to a 5% reduction in the total state-wide output impact. The
difference between the percentage decreases in injections and
total output impact was due to a decrease in the output
multipliers at the state, regional and local levels as secondary
suppliers for the shuttle program began to shift more of their
activities out of Florida.
Page 2
2. Kennedy Space Center 2010 Review
In 2010, NASA's Kennedy Space Center helped begin a new volume to the agency's space
exploration book as the storied Space Shuttle Program entered into its final chapters.
Kennedy teams were involved in launching five missions this year; two on expendab le launch vehicles
and three on space shuttles. And on Dec. 8, SpaceX successfully launched its Falcon 9 rocket and
Dragon capsule from Cape Canaveral Air Force Station. The flight was the first for NASA's
Commercial Orbital Transportation Services (COTS) program, which is developing commercial supply
services to the International Space Station. It also was the first time a commercial company launched
and returned a spacecraft to Earth.
Commercial companies going to low Earth orbit for both cargo and crewed missions was the focus of a
new direction for NASA announced in February by the White House. That was followed up by a visit by
President Obama to Kennedy on April 15 to outline details of his plans for the future of U.S. leadership
in human spaceflight. The president committed NASA to a series of developmental goals leading to
new spacecraft for reaching low Earth orbit and new technology for potential missions beyond the
moon. The president’s visit preceded NASA’s Conference on the American Space Program for the 21st
Century, held at the center’s Operations and Checkout Building and Kennedy Space Center Visitor
Complex.
NASA's Launch Services Program based at Kennedy started its year on Feb. 11 by sending the
agency’s Solar Dynamics Observatory (SDO) into space aboard an Atlas V rocket from Launch
Complex-41 at Cape Canaveral Air Force Station. SDO is a first-of-its-kind mission to reveal the sun’s
inner workings in unprecedented detail.
NASA Launches Solar Dynamics Observatory
Page 3
Less than a month later, NASA's latest Geostationary Operational Environmental Satellite, or GOES -P,
lifted off aboard a Delta IV rocket from Space Launch Complex-37 at Cape Canaveral Air Force
Station. The latest National Oceanic and Atmospheric Administration (NOAA) satellite joined four other
similar spacecraft to improve weather forecasting and monitoring of environmental events.
Just three days before the Launch Services Program's first flight of 2010, NASA’s Space Shuttle
Program launched its first of three missions this year aboard shuttle Endeavour on Feb. 8. STS -130’s
six astronauts delivered the Tranquility node and cupola to the International Space Station during the
two-week flight.
On April 5, space shuttle Discovery launched on its STS-131 mission to deliver science experiments,
equipment and supplies to the space station. Discovery and its seven member astronaut crew landed
at Kennedy 15-days later.
What turned out to be the final shuttle mission of the year, STS-132, lifted off on May 14. Shuttle
Atlantis and its six astronauts delivered the Russian-built Mini Research Module, cargo and critical
spare parts to the station. Atlantis touched down at Kennedy’s Shuttle Landing Facility after the 12-day
mission.
Space Shuttle Endeavour
Space Shuttle Discovery
Space Shuttle Atlantis
NASA’s Shuttle Fleet Rises to The Occasion in 2010
STS-132 was the last scheduled space flight for Atlantis. Currently, it’s planned to be used as the
"launch on need," or potential rescue mission for the final scheduled shuttle flight, Endeavour's STS 134 mission. Among the new directions in the NASA Authorization Act of 2010 passed by Congress in
Page 4
September and signed by President Obama in October was the approval to turn Atlantis’ planned
rescue mission into an actual flight to the space station in the summer of 2011. NASA intends to fly
this flight pending resolution of funding considerations.
The last scheduled shuttle mission for the year was supposed to be Discovery’s STS -133 mission to
add the final pressurized module to the U.S. portion of the International Space Station. Now STS -133
is set to be the first flight of 2011. A hydrogen gas leak on Discovery’s external fuel tank scrubbed a
Nov. 5 launch attempt. After analysis and modification, STS-133 has been rescheduled for February
2011.
Two very visual signs the Space Shuttle Program is retiring came in 2010. In May, the final shuttle
solid rocket booster segments arrived at Kennedy by rail. The segments will be used for Atlantis,
whether it’s a potential rescue flight or real mission to the space station. Then in September, the final
external tank to be delivered to Kennedy arrived and began being prepared for Endeavour’s STS-134
mission.
Even before the Obama Administration began taking NASA in a new direction for life after space
shuttles, Kennedy management already was focusing on bringing new commercial companies to the
space center. In June, the official groundbreaking ceremony for NASA and Space Florida’s new
technology and commerce park, known as Exploration Park at Kennedy was held outside the Space
Life Sciences Laboratory. Exploration Park is designed to be a strategically located comple x for
servicing diverse tenants and uses that will engage in activities to support the space and space -related
activities of NASA, other government agencies and the U.S. commercial space industry, as well as
bring new aerospace work to the Space Coast.
Kennedy management also set up a new Center Planning and Development Office to enhance the
economic vitality of Kennedy. Last spring, the office created a new website aimed at making it easier
to partner and do business with the space center: http://kscpartnerships.ksc.nasa.gov/.
After supporting its last space shuttle in 2009, Kennedy's Launch Pad 39B began being deconstructed
this year to convert it from a shuttle launch pad to a commercial launch site that could host multiple
types of spacecraft.
Phase one of NASA’s new mobile launcher was completed this year. The 355-foot-tall tower could be
converted to support commercial launch vehicles or possibly even large heavy-lift rockets.
Four years worth of upgrades to Kennedy's Launch Equipment Test Facility also were completed this
summer. The LETF, which has fixtures that can simulate launch conditions, can support the Space
Shuttle Program in its final months, as well as the Launch Services Program and commercial
companies in the coming years.
To support the agency's new direction, the space transportation planning office was established at
Kennedy to help develop a commercial capability to low-Earth orbit leading to astronaut launch
services that NASA could buy to the International Space Station in the 2015 timeframe. The 21st
Century Space Launch Complex program was established to help modernize Kennedy's infrastructure
and facilities and transform them from a space shuttle launch port into a multi-purpose launch complex
Page 5
that could support many different companies. Kennedy also is working on technology demonstration
spaceflight plans that will support NASA's new long-term exploration goals.
To help employees with the Space Shuttle Program retirement, Kennedy held two large -scale jobs fairs
this year, one in May and the other in September, along with months of career-building courses and
other work force support efforts. In June, Secretary of Labor Hilda Solis announced that the U.S.
Department of Labor awarded a $15 million grant to assist workers in Florida who will be affected by
the end of the shuttle program.
Also this summer, the White House established the Presidential Task Force on Space Industry Work
Force and Economic Development, which examined how to use a $40 million, multi -agency initiative
for regional economic growth and help prepare space industry workers for future opportunities. The
Federal Aviation Administration also began establishing an office at Kennedy this year to help support
the commercial human launch services endeavor.
Kennedy also expanded its "green space" efforts in 2010. On April 8, NASA, Florida Power & Light
(FPL) and political leaders commissioned FPL's Space Coast Next Generation Solar Energy Center at
Kennedy Space Center. The 10-megawatt solar-power facility will provide electricity to more than
1,000 Florida homes and reduce annual carbon dioxide emissions by more than 227,000 tons. In
December, Kennedy’s new Propellants North Administration and Maintenance Facility was reopened
for business. It will be one of NASA’s ―greenest‖ facilities, expected to achieve the U.S. Green Building
Council's Leadership in Environmental and Energy Design (LEED) Platinum status, the highest rating.
And this summer, Kennedy helped with the unprecedented effort to save wildlife from the effects of the
BP Deepwater Horizon oil spill in the Gulf of Mexico. Hundreds of endangered sea turtle eggs were
brought to a hatchery at Kennedy and then the baby turtles were released into the Atlantic Ocean off
Kennedy’s Central Florida coast.
NASA/KSC partnering with Florida Power & Light and SunPower Corporation constructed a solar power facility which will
provide an estimated 10 megawatts of emissions-free power for FPL customers.
Page 6
On the education front, on May 28 NASA's first Lunabotics Mining Competition, hosted by Kennedy
Space Center's Education Programs and University Research Division, drew more than 20 university
teams to design and build remote controlled or autonomous excavators, called lunabots. The 2011
competition is expected to be even bigger.
NASA's first Lunabotics Mining Competition at the KSC Visitor Complex.
On July 1, NASA helped welcome more than 100 people as new U.S. citizens during a naturalization
ceremony at the Kennedy Space Center Visitor Complex. U.S. Citizenship and Immigration Services
administered the Oath of Allegiance to candidates representing 36 countries. This was the first time a
NASA facility hosted a naturalization ceremony.
American citizen applicants came to the Rocket Garden for a naturalization ceremony pose for a group photo.
And as the Space Shuttle Program winds down and new programs start up, Kennedy Space Center
looks forward to hosting many new "first time" events and milestones in the coming decad e. For more
information about NASA's Kennedy Space Center, visit:
http://www.nasa.gov/kennedy
Page 7
Sources of NASA’s Economic Impact in Florida
In addition to KSC/NASA’s spending on space operations and research, there are a number of other
activities directly associated with Kennedy that add to its total economic impact. These include the
local travel expenditures of out-of-state business and government personnel that travel to KSC to
conduct business, tourist travel to KSC for launch viewing, and the Kennedy Space Center Visitor
Complex’s (KSCVC) sales to out-of-state visitors.
The economic impact of all of these activities is presented in this report. The analysis is conducted at
three geographic levels – Brevard County, the larger Central Florida Region (includes Brevard, Flagler,
Lake, Orange, Osceola, Seminole and Volusia counties) and the State as a whole.
Not all NASA activities in Florida originate from the Kennedy Space Center. Other NASA Centers
funded and managed many contracts within the state (and in turn, subcontracts, vendors and
suppliers) for a multitude of Florida products and services. For example, a major Florida aerospace
contractor continues support for the Space Shuttle Main Engine (SSME), which is work performed
under a Marshall Space Flight Center (MSFC) contract. All NASA costs are included in this study.
3. NASA Space Program Spending In Florida
Recent Trends in NASA’s Spending in Florida
The money that NASA spends in Florida to support its space missions and other research activities
represents an enormous injection into the economies of Brevard County, the larger Central Florida
region and the State of Florida. These injections come in the form of wages to local residents and the
purchase of goods and services from local businesses and organizations. In FY 2010 KSC, other
NASA Centers and other space related activities injected $1.8 billion into the Florida economy and
$1.7 billion into Brevard County (see Exhibit1). After adjusting previous years’ spending for inflation,
this year’s procurement and wages represented an adjusted 9% decrease from their FY 2009 levels for
both the State and the County.
Page 8
KSC/NASA SPENDING IN BREVARD COUNTY AND FLORIDA IN FY 2010
(Billions of Constant 2010 Dollars)
After adjusting
for price
changes NASA
and KSC
spending in
Florida in FY
2010 decreased
by 9% at both
the local and
statewide levels
from their
corresponding
amounts in the
previous year.
$2.00
Billions of 2010$
$1.50
$1.00
$0.50
$Fiscal Year
2006
2007
Brevard County
2008
2009
2010
State of Florida
Exhibit 1
Page 9
The Location of NASA Spending in Florida
Brevard County (KSC and CCAFS) is the primary launch site for most of NASA’s space missions. To
support the launch and related responsibilities, KSC managed 1,241 active contracts in FY 2010 with a
total value of $949 million. Eight other NASA Centers managed a total of 382 active contracts in
Florida in FY 2010; by far the largest of these was the Space Shuttle Program’s Space Program
Operations Contract (SPOC), managed by Johnson Space Center in Texas. This activity expended
$885 million through its Florida operation in FY 2010. The portion of the SPOC contract performed in
Florida was $533 million. Including this contract, other NASA centers injected a total of $574 million
into the state in FY 2010 through contracted activities. While the majority of the KSC/NASA contract
dollars was concentrated in awards to major contractors, 40% of all contract awards were for small
contracts ($25,000 or less).
With the inclusion of wages for on-site civil service and contractor workers, KSC and other NASA
Centers spent $1.8 billion in Florida in FY 2010. 90% percent of this spending was conducted on-site
at KSC. Total direct spending in Brevard County was $1.7 billion. Direct spending in other Central
Florida counties and other counties in Florida totaled $89 million and $39 million, respectively. Note
the totals in Exhibit 2 include spending for space operations and the KSC Visitor Complex.
TOTAL SPENDING BY KSC, OTHER NASA CENTERS AND OTHER SPACE
RELATED ACTIVITIES IN FLORIDA BY PLACE OF CONTRACT PERFORMANCE FY 2010
The majority
(93%) of the
$1.8 billion of
NASA
expenditures
in Florida
was
concentrated
in Brevard
County.
$2,000
$1,800
Millions of 2010 $
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-
Total Spending by Place
KSC Onsite/Near-site
Other Brevard
Total
Other Central
Florida
Other Florida
Total Florida
$1,660
$50
$89
$39
$1,838
Exhibit 2
Page 10
Major Commodity Purchases in Florida
As shown in Exhibit 3, KSC, other NASA Centers’ and other space related commodity purchases in
Florida totaled $1.5 billion in FY 2010. For the purposes of this exhibit, the on-site labor expenditures
of the NASA Space Shuttle Program’s Space Flight Operations Contract (SPOC) and the multiple KSC
base operation contracts were allocated to relevant commodity categories. NASA/KSC civil service
wages paid to Florida residents, other on-base space related wages and KSC Visitor Complex wages
added another $297 million for a total spending amount of $1.8 billion. The top three commodity
categories constituted 73% of the commodity purchases and 61% of total space related spending in
Florida in FY 2010. The top commodity category in FY 2010 was the $612 million in scientific research
and development.
FY 2010 NASA/KSC MAJOR COMMODITY PURCHASES AND WAGES IN FLORIDA
(Commodity Categories with $10M+ Purchases in Millions of FY2010 $)
$0
$100
$200
$300
$400
$500
$600
$700
Sci Research & Development Services
Misc. Prof & Technical Services
Engineering services
Executive and Management
Services to Buildings
Security Services
Construction
Office Administrative Services
Univ Grants & Contracts
Custom Computer Programming Services
Facilities Support Services
Other Health Care Services
Transportation Services
All Other Commodity Categories
NASA/KSC
commodity
purchases in
Florida totaled
$1.8 billion in
FY 2010. 73%
of the total was
concentrated in
the top three
commodity
categories.
Civil Service & Other Space Related Wages
Brevard County
COMMODITY NAME
Other Central Florida
Brevard County
Other Florida
Other Central
Florida
Other Florida
Florida Total
Sci Research & Development Services
$597
$12
$4
$612
Misc. Prof & Technical Services
$298
$27
$3
$329
Engineering services
$166
$16
$5
$187
Executive and Management
$65
$7
$1
$73
Services to Buildings
$42
$0
$0
$42
Security Services
$42
$0
$0
$42
Construction
$39
$2
$0
$41
Office Administrative Services
$30
$2
$0
$32
$1
$3
$15
$19
Custom Computer Programming Services
$19
$0
$0
$19
Facilities Support Services
$17
$0
$0
$17
Other Health Care Services
$14
$0
$0
$14
Transportation Services
$13
$0
$0
$13
All Other Commodity Categories
$74
$16
$10
$100
Univ Grants & Contracts
Civil Service & Other Space Related Wages
$247
$46
$3
$297
Total Commodity Spending
$1,417
$85
$39
$1,541
Total Commodity & Civil Service Wage Spending
$1,665
$132
$42
$1,838
Exhibit 3
Page 11
Employment at KSC
The total worker population on/near-site KSC in FY 2010 was 13,630. This includes workers involved
in launch and launch control, payload processing, mission integration and technology development, as
well as those workers involved in planning, maintenance, operation and management of KSC
employees, infrastructure, environment and the KSC Visitors Center. It also includes 244 workers that
have been excluded from the following economic analysis. Exclusions include 156 lease tenants that
are either non-spaced related or whose activities represent a transfer of economic activity from other
businesses within the study areas. In addition 70 Department of Interior workers and 50% (18) of onsite Department of Defense workers that are shared with the Air Force are also excluded. Thus, the
total space related workforce at KSC in FY 2010 was 13,386.
KSC and NASA prime contractors employed the overwhelming majority (73%) of on-site workers.
Federal civil service workers employed by KSC and other NASA Centers made up an additional 1 7%
and the remainder was employed by the KSC Visitor Center and other space related tenant
contractors. As might be expected, most (94%) of the employees at KSC lived in Brevard County.
However, as illustrated in Exhibit 4, over 1,000 workers commuted from nearby Central Florida
counties and a small number of workers lived elsewhere in the state.
KSC’s skilled work force prepares shuttle main engines for launch
Page 12
CIVIL SERVICE, ON_SITE/NEAR_SITE CONTRACTOR, KSC VISITOR CENTER AND SPACE
RELATED TENANT EMPLOYEES BY RESIDENCE IN FY 2010
Prime
contractors
employed 73%
of the 13,386
on-site
workforce
utilized in this
study. 94% of
on-site/nearsite
employees
resided in
Brevard
County.
16,000
14,000
12,000
Employees
10,000
8,000
6,000
4,000
2,000
Brevard
Other Central Florida
Other Florida
Florida Total
KSC & Other NASA Civil Service Employees
KSC & Other NASA Contractor Employees
KSC Visitor Center & Space Related Tenant Employees
Brevard
Other
Central
Other
Florida
Florida Total
KSC & Other NASA Civil Service Employees
1,836
420
28
KSC & Other NASA Contractor Employees
9,622
506
-
897
78
-
12,355
1,004
KSC Visitor Center & Space Related Tenant Employees
Total On-site/Near-site KSC & Other NASA Personnel
28
2,283
10,128
975
13,386
Exhibit 4
Page 13
Earnings at KSC
Total earnings for all space related workers at KSC were $1.117 billion dollars in FY 2010 (see Exhibit
5). Over 91% of these wages were paid to residents of Brevard County. A large majority of the
workers at KSC are highly trained engineers, managers and technicians that command relatively high
salaries. Accordingly the average annual salary for the work force at KSC was over $83,000 which
was twice the salary that was earned by the average Brevard County worker.
EARNINGS BY RESIDENCE FOR KSC AND OTHER NASA CIVIL SERVICE, ON-SITE/NEARSITE CONTRACTORS, OTHER SPACE RELATED TENANTS AND KSC VISITOR CENTER
EMPLOYEES IN FY 2010
$1,200
With total annual
wages of $1.117
billion in FY
2010,
KSC/NASA
workers had an
average annual
salary that was
twice the salary
of the average
Brevard County
worker.
Earnings in millions of 2010 $
$1,000
$800
$600
$400
$200
$Brevard
Other Central Florida
Other Florida
Florida Total
KSC & Other NASA Civil Service Employees
KSC & Other NASA Contractor Employees
KSC Visitor Center & Space Related Tenant Employees
Brevard
KSC & Other NASA Civil Service Employees
KSC & Other NASA Contractor Employees
KSC Visitor Center & Space Related Tenant Employees
Total On-site/Near-site Earnings
$
$
$
$
200
779
45
1,024
Other Central
Florida
$
46
$
41
$
3
$
90
Other Florida
$
3
$
$
$
3
Florida Total
$
249
$
820
$
48
$
1,117
Exhibit 5
Page 14
4. Spending by Tourists and Business Visitors
KSC Visitor Complex Operations
KSC’s economic presence in Florida is not just limited to the contracts and employees that are
required to carry out NASA launch and research programs. KSC’s Visitor Complex welcomed
approximately 1.5 million visitors in FY 2010. Out-of-state residents accounted for 81% of these
visitors, spending a little over $71 million on goods and services provided by the visitor complex. The
KSCVC had 725 employees, which it paid $28 million in wages. All of these employees were residents
of Central Florida. In addition to its payroll expenses, the visitor complex spent $40 million to
purchase the merchandise and services that are required to operate the facility.
KSC Visitor Complex
Impact Relevant Visitor Complex Spending
In considering the economic impact of visitor complex expenditures in Florida, it is necessary to focus
only on the portion of the purchases and wages that went to Florida firms and residents. While all of
the wages paid by the KSCVC went to Brevard and other Central Florida residents, only 54% of the
procurement purchases were from Florida firms. In addition to adjusting for out -of-state purchases, it
is also necessary to adjust the in-state spending to reflect the portion that is attributable to out-of-state
visitors. The logic behind such an adjustment is that the expenditures by in -state visitors do not
represent an injection of outside money into the state and local economies. Instead, these
expenditures are only a transfer of economic activity between sectors within the state or local
economy. Based on the geographic distribution of visitors, it was determined that 8 1% of the total
activity at the visitor complex could be attributed to out-of-state visitors. Consequently, the amounts of
KSCVC spending that are relevant for the impact analysis are $22.8 million in salaries and $17.7
million in other non-labor purchases for a total injection of $46.9 million (see Exhibit 6).
Page 15
Business Visitor Spending
One other source of NASA’s economic stimulus in Florida is the local travel expenditures of out-ofstate business visitors that came to KSC in FY 2010. This includes visitors that came from NASA
Headquarters, other NASA centers and out-of-state contractor personnel. The purpose of the visits
included pre-launch meetings and reviews, general information exchange and a variety of other
business functions. It was estimated that the total local (Brevard and other Central Florida counties)
spending for lodging, food, car rentals and other miscellaneous items by bu siness visitors in FY 2010
was $6.4 million.
The spending by the visitor complex attributed to out-of-state visitors and the local travel expenditures
of KSC business visitors’ resulted in a total injection of $46.9 million dollars into the Florida economy in
FY 2010. The details of this injection are shown in Exhibit 6.
In FY 2010 the
KSC Visitor
Center along with
KSC business
visitors
contributed to the
overall economy
in Central Florida
and Brevard with
$47 million
injected into the
regional
economy.
KSC VISITOR CENTER IMPACT REVELANT COMMODITY AND WAGE PAYMENTS IN FLORIDA
AND LOCAL TRAVEL EXPENDITURES OF KSC BUSINESS VISITORS
50,000
(Spending in thousands of 2010$)
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
Brevard
Other Central Florida
Other Florida
Florida Total
Visitor Center Non-Labor Purchases
Visitor Center Wages and Salaries
Business Visitors Local Travel Spending
Other Central
Florida
Other Florida
8,687 $
8,245 $
781
20,849 $
1,999 $
5,735 $
637 $
-
Brevard
Visitor Center Non-Labor Purchases
Visitor Center Wages and Salaries
Business Visitors Local Travel Spending
$
$
$
Total Tourist and Business Traveler Spending
Visitor Center Jobs by Residence
$
35,271 $
537
10,881 $
53
Florida Total
$
17,712
$
22,848
$
6,372
781 $
-
46,932
590
Exhibit 6
Page 16
5. Monetary Injections into Florida Economies
The purchases and household income payments that are described in the preceding sections of this
study are injections of outside money into the economies of Brevard County, the larger seven -county
Central Florida region and the State as a whole. These injections enter the economy through direct
purchases of goods and services by contractors and the direct payment of earnings to workers. For
the purpose of this analysis, all on-site contractors’ awards were divided into their wage and non-wage
components. The wage portion of these contracts was added to the earnings of KSC and NASA civil
service workers and KSC Visitor Center impact relevant wages to arrive at the amount of direct
household income received by all space-related on-site/near-site workers at KSC. Exhibit 7 shows the
total direct commodity purchases and direct household income payments resulting from spending for
space program operations, KSC Visitor Complex sales to out-of-state tourists and KSC business
visitors’ local travel spending.
The total injection of outside money into Florida’s economy by all KSC based activities was $1. 83
billion in FY 2010. (Note: this total differs from the spending totals in Exhibits 1-3 because it excludes
the portion of KSC visitor spending that is attributable to in-state visitors.) Direct earnings payments to
Florida households totaled $1.1 billion and the total direct commodity purchases from contractors were
$717 million. Total impact relevant injections in FY 2010 were down 8% from their FY 2009 level.
FY 2010 TOTAL NASA-RELATED INJECTIONS INTO FLORIDA ECONOMIES FROM ALL SOURCES
In FY 2010 all
KSC based
activities injected
$1.83 billion of
outside money
into Florida’s
economy. This
total consisted of
$1.1 billion in
wage payments to
households and
$717 million in
direct commodity
purchases from
contractors.
$2,000
$1,800
(Spending in millions of 2010 $)
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
Commodity Purchases
Brevard
Commodity Purchases
Income Paid to Households
Total Direct Injections
Income Paid to Households
Other Central Florida
Brevard
$649
$989
$1,638
Total Direct Injections
Other Florida
Other Central
Florida
$31
$119
$149
Other Florida Florida Total
$37
$717
$4
$1,112
$41
$1,829
Exhibit 7
Page 17
6. Total Economic Impact of NASA in Florida
Indirect Economic Activity Generated by NASA Spending
The economic activity generated by NASA organizations in Florida begins, but does not end, with the
direct purchases of these organizations and the wage payments to their workers. This first round of
spending generates a secondary set of economic interactions in the local businesses that supply
goods and services to NASA contractors and employees. These businesses, in turn, pay wages to
their employees and buy goods and services from their own suppliers and the process continues
through many subsequent rounds of purchases. All of these rounds of indirect activity are referred to
as the generated impact of the initial KSC/NASA injections into the economy.
The tracing and accumulation of all of the many rounds of generated economic activity that are set i n
motion by NASA’s initial stimulus requires a complex set of economic models that map the structure of
the economy and the way in which the many sectors of the economy interact to support each other.
These models are referred to as regional input-output models. The specific models used in this study
utilize a highly detailed breakdown (440 economic sectors) of the economy to trace economic
transactions. Separate models were built for Brevard County, the larger seven-county Central Florida
region and the state of Florida as a whole.
Total Economic Impact
The total impact of all KSC/NASA activities in Florida (see Exhibit 8) is the sum of the initial injection of
earnings and commodity purchases plus the subsequently generated impact of these injections.
In FY 2010, this total impact in Florida was $4.1 billion in output, $2.2 billion of household income and
33,049 jobs. This activity also generated $314 million of federal taxes and $134 million of state and
local taxes. The largest share of the impact—87% of the output impact, 98% of the income impact and
87% of the employment impact—occurred in Central Florida. As noted in Section 5, FY 2010 spacerelated spending in Florida was down 8% from its FY 2009 level. The decrease in injections led to a
5% reduction in the total state-wide output impact. The difference between the decrease in injections
and total output impact was due to a decrease in the output multipliers at the state, regio nal and local
levels as secondary suppliers for the shuttle program began to shift more of their activities out of
Florida.
Page 18
FY 2010 TOTAL ECONOMIC IMPACT OF ALL NASA ACTIVITIES
IN FLORIDA BY GEOGRAPHIC AREA
4,500
4,000
In FY 2010 the total
economic impact of
NASA in Florida was:
* $4.1 billion in
output
* $2.2 billion in
household income
* 33,049 jobs
* $314 million in
federal taxes
* $134 million in
state and local
taxes.
The vast majority of
the impact was in
Central Florida
Output, Income & Taxes in millions of 2010 $
3,500
3,000
2,500
2,000
1,500
1,000
500
Output
Income
Brevard County
Federal Taxes
Central Florida Region
State & Local Taxes
State of Florida
(Millions of 2009$)
Area of Economic Impact
Output
Income
Federal Taxes
State & Local
Taxes
Brevard County
3,048
1,715
228
88
Central Florida Region
3,574
2,130
289
113
State of Florida
4,093
2,167
314
134
Employment
State of Florida
33,041
Central Florida Region
Brevard County
25,000
28,704
27,728
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
Exhibit 8
Page 19
Impact Multipliers
Impact multipliers provide a summary measure of the economic potency of a particular economic
activity. Multipliers were calculated in this study for Output, Income and Employment. The Output
Multiplier is the total output impact as shown in Exhibit 8 divided by the total direct spending for
commodity purchases and wage payments to workers. The Income Multiplier is the total income
impact shown in Exhibit 8 divided by the direct wage payments to all KSC based employees. Finally,
the employment multiplier is the total employment impact shown in Exhibit 8 divided by the number of
on-site employees at KSC.
The multipliers that were calculated for each of the geographic study areas in this analysis are shown
in Exhibit 9. The jobs multiplier for the state as a whole indicates that each direct on-site job (i.e. civil
service and contractor employees) at KSC was multiplied into 2.26 total jobs throughout the Florida
economy. It should be noted that this represents the direct job itself plus 1.26 jobs that were
generated through the indirect economic process. The Florida income multiplier indicates that each
dollar of direct wages that was paid at the KSC complex resulted in $2.09 of total income in the State.
The output multiplier shows that each dollar of direct total spending for commodity purchases and
wage payments resulted in $2.16 in total statewide output. Similar interpretations apply to the Central
Florida and Brevard County multipliers.
NASA IMPACT MULTIPLIERS FY 2010
Jobs, 2.26
Florida
Income, 2.09
Output, 2.16
Jobs, 2.22
Central
Florida
Income, 2.06
Output, 2.00
Jobs, 1.77
Brevard
Income, 1.75
Output, 1.66
0.00
0.50
Jobs
1.00
1.50
Income
Output
2.00
2.50
Exhibit 9
Page 20
7. Summary
As the Space Shuttle program began to wind down in FY 2010, the monetary injections by KSC and
other NASA Centers into Florida’s economy showed an 8% decrease from that of FY 2009. The
decrease in total injections along with a decrease in the output multipliers in all three study areas
resulted in a 5% reduction in the State’s FY 2010 output impact compared to FY 2009. Although the
impact is down from last year, this economic analysis makes it clear that the John F. Kennedy Space
Center continues to be the major economic anchor for Brevard County and the surrounding Central
Florida Region. Its economic presence and importance continue to provide a great source of high
quality economic diversity to Central Florida and the State’s service based economies.
8. Notes
The following are some notes about the study and this report.
Impact Models: The economic impact analysis presented in this report is generated by a set of
regional input-output models constructed by the Transportation Economics Research Institute using
the Minnesota IMPLAN Groups (MIG) software package. Structural data for the models, which is
updated on an annual basis, was also provided by MIG.
Study Areas: Input-output models were constructed for three geographic areas—Brevard County,
Central Florida (which includes Brevard, Flagler, Lake, Orange, Osceola, Seminole and Volus ia
Counties) and the state of Florida.
Data Sources: All data and numbers reported and used in this study are based on reports and data
files provided through the Office of KSC’s Chief Financial Officer or found on the KSC internet site.
Numbers reported in the impact section of the report were generated by the economic impact models
constructed for this study.
Methodology and Study Details: The methods of analysis, report assumptions and detailed tables of
results are available upon request.
Page 21
National Aeronautics and Space Administration
John F. Kennedy Space Center
Kennedy Space Center, FL 32899
www.nasa.gov
EP2011-2-033-KSC