Last year, spending was $2.95 billion compared with $2.21 billion the year before.

An analysis of the data was prepared by the N.C. Military Business Center in Fayetteville.

“North Carolina’s effort to provide the most military-friendly climate in the nation is clearly paying off,” said Gov. Mike Easley. “Not only is our state home to some of the best military operations and most talented soldiers, many of our companies are providing essential defense services and products from construction to textiles for uniforms. We will continue to partner with the military to ensure that this sector of North Carolina’s economy continues to grow.”

The N.C. Military Business Center, initially funded in 2004 by the General Assembly and operated within Fayetteville Technical Community College, is an economic development initiative that connects North Carolina businesses to military and other federal opportunities and provides one-on-one assistance to these businesses to win military contracts.

It also operates an Internet portal, www.MatchForce.org, which electronically matches North Carolina businesses to federal opportunities and to potential employees in the state.The N.C. Small Business and Technology Development Center within the Department of Commerce also provides firms with support.

Counties outside the state’s military centers, Wake, Mecklenburg, Guilford, New Hanover, Brunswick and Harnett counties, accounted for nearly a quarter of the Department of Defense spending in the state.

Cumberland County, which includes the Army’s Fort Bragg and Pope Air Force Base, lead the state with nearly $600 million in spending, an increase of 57 percent over the previous year. Onslow County, home to the Marine’s Camp Lejeune, ranked second with $390 million in federal defense spending. Craven County, site of the Marine Corps Air Station at Cherry Point, ranked third with nearly $200 million last year.

“I am very pleased that Department of Defense spending increased in North Carolina and what that means for new jobs in our state,” said Lt. Gov. Beverly Perdue. “This is an important first step in growing our military economy, but there is much work left to do.”

“This increase is great news for all of North Carolina,” said Dr. Larry Norris, President of Fayetteville Technical Community College. “An increase of $735 million clearly validates the emphasis that our state has put on expanding Department of Defense procurement. Creating the North Carolina Military Business Center within our Community College System continues to be an important part of that strategy.”

Scott Dorney, executive director of the Military Business Center, said, “We expected increases in construction ($842.6 million) and services ($769 million), and both experienced well over $100 million in growth. However, we are very pleased that other areas experienced tremendous growth as well,” including subsistence ($105.7 million) and medical supplies ($136.7 million), both up over $100 million from 2004.