On Day 2 of the Guam Defense Forum, the focus turned to how defense spending shapes the island’s economy. Thursday shifted the conversation from security strategy to economic impact.  Billions of dollars will be invested into Guam, to include funding for the relocation of US Marines from Okinawa, the 360-degree missile defense system and other significant military construction across various installations. 

But the same investment must be made into the civilian infrastructure, according to Lieutenant Governor Josh Tenorio, who said, "If Guam infrastructure isn’t strong, then the military mission here in Guam is not strong. So there has to be growth on both sides. Billions of dollars has already been invested in defense programming on Guam, and rightfully so. But we also need that same kind of investment to make our power grid more resilient, to be able to address affordable housing, to make sure that we have clean water and also to make sure that the roads are adequate."

Panels of local leaders laid out how military projects on the island reach far beyond the fence.  In one session, “Economic Forecast: How Defense Actions Spur Economic Development,” panelists examined how military infrastructure and procurement bring jobs and revenue to the island.

Christina Garcia, administrator for the Guam Economic Development Authority, said, "With this military buildup, we are working closely to ensure that our small businesses are aware of that opportunity, take advantage of that opportunity, we’re listening to them for what their needs are."

Guam Community College president Dr. Mary Okada stressed the importance of preparing the workforce for jobs tied to defense, noting, "We really need to encourage students at much younger ages, not wait until they get into high school to identify what opportunities are available. If they are not ready, we need to get ready."

While defense spending does boost the economy, economist Dr. Roseann Jones from the University of Guam says the challenge is keeping that investment in Guam. "For every dollar in defense spending, we retain $0.75. Which means this may sound good but we’re not fully maximizing that. There’s leakage there. We can see where the leakage is– it’s in our supplies that have to be brought in to support the military buildup, and also our leakage of perhaps inefficient workforce or lack of workforce," she said.

Guam Chamber of Commerce chairman Tae Oh adds the true measure of the economic impacts from the military buildup can be seen when jobs stay local. "We can have many companies come here and do a lot of the jobs here. But if all of that money is going outside the island, I don’t think that’s really improving. But when we have companies that come here and hire local people, spend that investment into improving the island, amplifying the job and providing government revenue all at the same time, I think that’s the true indication of the benefits of the military buildup," he said.

Lieutenant Governor Tenorio emphasizes that defense investments need to translate into lasting benefits for island residents, which will ultimately boost national defense. "I expect to see more strategy coming out as a result of the engagements," he stated.

"But also, it's our opportunity to showcase how the investment in Guam’s community really does result in an effective defense of the entire nation."