St. Louis Region (DD)
Abstract
St. Louis is one of the largest manufacturing bases in the United States. The regional manufacturing base is robust ? both broad and well diversified relative to other leading metropolitan areas. Despite the strength of the St. Louis region?s presence in advanced manufacturing and economically supportive environment, the region s manufacturing base decreased by 35% from 2000 to 2011, led by the closure of two Chrysler plants, amounting in 43,845 lost direct, indirect and induced jobs and $18.9 billion in lost output. St. Louis? advanced manufacturing sector faces another powerful shock ? this time from the defense sector. Total jobs at risk in the defense cut-backs exceed 24,000, representing $1.7 billion in lost labor income and nearly $7.8 billion in lost output. The defense cutbacks close proximity in time to St. Louis? automotive closures represents a one-two punch that may require years for the regional economy to absorb. Specifically, the anticipated decrease in production of Boeing?s F-15, and F-18 is projected to have substantial adverse impact on the St. Louis regional companies from Boeing down to fourth and fifth level subcontractors and suppliers. A strategic initiative to support the growth of advanced manufacturing through an Advanced Manufacturing Innovation Center (AMIC) in the St. Louis region represents a diversification opportunity that aligns the core competencies of the businesses and workers most affected by defense spending reductions with the region?s historic strengths (well-established companies, training resources, human capital, geographic location and multi-modal distribution channels). By converting these assets, St. Louis believes that advanced manufacturing holds particular promise for diversifying and strengthening the St. Louis regional economy, and gives a practical path for workers impacted by defense cuts to follow and repurpose their skills. The AMIC will provide institutional support to create a connected advanced manufacturing ecosystem. A connected advanced manufacturing ecosystem combines industry cluster development with entrepreneurial development, workforce development, and university engagement. An advanced manufacturing ecosystem is critical for the St. Louis region to build the competitive strength of current small and medium manufacturers (SMEs) in commercial markets. Being competitive in commercial markets will reduce the susceptibility of SMEs to defense spending reductions, protect the core manufacturing defense supply chain capacity for national security, and ensure defense innovation and capability to support the success of future defense strategies.
Document Details
- Document Type
- DoD Grant Award
- Publication Date
- Oct 25, 2017
- Source ID
- HQ00051710011
Entities
People
- John Hixson
Organizations
- Office of Local Defense Community Cooperation
- Office of the Secretary of Defense