U.S. Military Installations surround the region with the largest military base footprint in the U.S., and provide a stabilizing economic influence on the area. Naval Support Activity Panama City and Tyndall Air Force Base in Bay County, along with nearby Eglin Air Force Base, serve as a catalyst for attracting a strong cluster of research activity, defense contractors and aviation and aerospace related companies and suppliers.

Coast Guard

Coast Guard Station Panama City is located adjacent to Naval Support Activity Panama City in the resort community of Panama City Beach, Florida. It was originally established in 1933 at St. Andrew's Marina and was later moved to Alligator Bayou located on the western shore of St. Andrew Bay, in October 1971. The present Coast Guard Station was dedicated in November 1990. The main building is 14,000 square feet and is situated on 11 acres of land. The Station has two 45-foot RBM boats and 25-foot RBS SAFE boats to carry out their Search and Rescue, Homeland Security, Maritime Law Enforcement, and Environmental Protection missions. The Station's area of responsibility extends 50 miles offshore and stretches along 168 miles of coastline from Lake Powell in the west, to Rock Island in the east. This large area also incorporates the vigilant watch over 40 bayous, 18 rivers, 16 bays, 3 sounds, 2 lakes and 107.5 statute miles of Intra-coastal Waterway. The Station is billeted for 30 active duty Coast Guard personnel and 21 reservists. The Station is the call-out authority for three Coast Guard Auxiliary Flotillas. Coast Guard Station Panama City is the host command for four tenant commands which include: Coast Guard Cutter COHO, Aids to Navigation Team, Sector Field Office, and the Electronic Support Detachment. The Station has served the public with excellence for 75 years and will continue to provide the public with the best "Professional, Quality Maritime Service To All."

Naval Support Activity Panama City

The Naval Support Activity Panama City is located on 656 acres along St. Andrew Bay. NSA PC is the Navy’s premier installation for a broad spectrum of research, development, testing and training missions in mine countermeasures, expeditionary warfare, special warfare, and diving. The activity employs nearly 3000 military, DoD civilian, and contractor personnel with an annual payroll of nearly $300 million. The activity and its tenant commands sustained more than $200 million in Florida contracts with a total economic impact of more than $550 million for FY11. Naval Surface Warfare Center Panama City Division is the largest of 17 tenants and the top Navy laboratory for mine, expeditionary and special warfare, and diving and life support systems. NSA PC hosts the Naval Diving and Salvage Training Center, supporting the multi-service training of more 1,800 students. Together with the Navy Experimental Diving Unit and Center for Explosive Ordnance Disposal and Diving, Panama City is the hub for joint diving and salvage training, research, development and testing.

Tyndall Air Force Base

Tyndall Air Force Base encompasses more than 29,000 acres in southeastern Bay County. Their host command, 325th Fighter Wing, is dedicated to their primary mission: Provide world-class training to GUARANTEE AIR DOMINANCE for America and support Team Tyndall. As one of Air Education and Training Command's largest installation, the wing trains F-22 pilots and maintainers; Air Battle Managers; Intelligence Specialists and Airfield Operations Officers. The installations are also home to more than 30 associate organizations including Headquarters 1st Air Force, 601st Air and Space Operations Center, 53rd Weapons Evaluation Group and the U.S. Air Force Civil Engineer Support Agency. Approximately 7,300 military civilian and contract personnel are employed at Tyndall making it the largest employer in Bay County. The base provides support facilities for more than 9,000 military retirees and had a local economic impact that exceeded $642 million in fiscal year 2009.