State of North Carolina (DD)
Abstract
The defense industry provides tens of thousands of jobs for North Carolina and contributes billions of dollars to our economy each year. Currently, however, it is not clear what portion of those companies doing business within the defense sector are reliant on military spending and given the current strategy to reduce defense spending, we must not expect ?business as usual?, and instead should prepare our manufacturers and communities for economic diversification. The purpose of this planning grant is to develop a proactive response that will mitigate the potential devastating impact of defense budget cuts on a region which has become increasingly dependent on defense contracts. Data on defense spending, collected by the Office of Economic Adjustment for Fiscal Year 2015 (the last full year for which data is available) shows that the majority of defense spending impacts primarily Cumberland and Onslow Counties. The data reflects that prime contracting activity has decreased by $1 billion since 2012 or 26 percent. Greater visibility into subcontracting activity throughout North Carolina is needed to better understand and mitigate the broader impact of reduced defense spending to other defense communities. To accomplish this goal, we will assess the strengths and weaknesses of NC?s defense industry, analyze the state?s capacity to respond to defense spending cuts, pilot studies to analyze and plan business support efforts specific to the defense manufacturing supply chain, and develop a strategic plan in support of the defense industry in North Carolina. As a result of the supply chain mapping, pilot program, and development of the strategic implementation plan, the following results will be achieved: 1. Assessment and forecasting capacity to understand the extent of the defense contracting footprint in the state, 2. Diversification strategy for companies overly reliant on defense spending, with clear alternative solutions and resources identified to support such diversification, 3. Defense contractor transition process that connects employees to growth industry and provides a technology tool to support their transition, and 4. Strategic plan for understanding and seizing opportunities for industry growth. Promoting more resilient, diversified defense firms benefits the Department of Defense by ensuring a ready supply of defense critical suppliers.
Document Details
- Document Type
- DoD Grant Award
- Publication Date
- Oct 25, 2017
- Source ID
- HQ00051710012
Entities
People
- Michael Mullins
Organizations
- North Carolina State University
- Office of Local Defense Community Cooperation
- Office of the Secretary of Defense