1 / 11

Defense Industry Downsizing: Lessons from the 1990s and New Directions for Communities

Defense Industry Downsizing: Lessons from the 1990s and New Directions for Communities . Erik R. Pages EntreWorks Consulting Assn. of Defense Communities August 7, 2012. Our Topics Today. What Happened in the 1990s? Lessons Learned for Community Leaders What’s Different Today?

esme
Download Presentation

Defense Industry Downsizing: Lessons from the 1990s and New Directions for Communities

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Defense Industry Downsizing: Lessons from the 1990s and New Directions for Communities Erik R. Pages EntreWorks Consulting Assn. of Defense Communities August 7, 2012

  2. Our Topics Today • What Happened in the 1990s? • Lessons Learned for Community Leaders • What’s Different Today? • Tips for Moving Forward 2012 EntreWorks Consulting

  3. Our Last Defense Downsizing Experience • End of Cold War led to: • Massive DoD Cuts • 2 million defense jobs lost (1985-1995) • Industry Consolidation • More than 40 major firms merged into 5 big players • Pain for Firms, Workers & Communities 2012 EntreWorks Consulting

  4. Lessons Learned from the 1990s • Don’t Sweat the Big Stuff • Don’t Focus on Needs of Large Contractors • Focus on the Supply Chain • Worry About the Industrial Base • Support Worker Transition • Recovery Happens! 2012 EntreWorks Consulting

  5. What’s Different Today? • Prospects for Robust Federal Funds limited • 1990s: TRP ($900 million/$1.4 billion-2011)/large budgets for EDA, DOL, NIST-MEP, etc. • Defense Industry More Consolidated • Yet More Diverse • Supply Chains More Complex • Different Workforce Needs • Worker Transition Challenges around more Diverse workforce 2012 EntreWorks Consulting

  6. Suggestions for Communities • Follow the BRAC Response Model • As suggested by OEA, ADC, & others • Understand Industry/Supply Chain Dynamics • Address Business Support Issues • Business Dev., Entrepreneurial Support, etc. • Invest in Workforce Transition Services • Look for new market opportunities • Supplier Scouting • Export Promotion 2012 EntreWorks Consulting

  7. Understand Your Supplier Base • New England Defense Technology Initiative Industry Profile • www.defensetech.net 2012 EntreWorks Consulting

  8. Understand Business Support Issues • Develop and Upgrade Business Development and Entrepreneurial Support Efforts • Economic Gardening Models-Deployment of a targeted set of services focused on business growth. • Focused on “Second Stage” Firms (those with 10-99 employees) • http://edwardlowe.org/tools-programs/economic-gardening/ 2012 EntreWorks Consulting

  9. Workforce Transition • New Self-Employment Assistance Opportunities • Feb. 2012: Payroll Tax Cut Extension includes $35 million for state self-employment assistance (SEA) programs • Currently operates in six states • Department of Labor has draft regulations on how to manage program • States assessing how to use funds 2012 EntreWorks Consulting

  10. Supplier Scouting • NIST-MEP Buy America Initiative • Helps find US Suppliers in Buy America-related procurements • DoD and numerous Federal agencies • http://www.nist.gov/mep/upload/MEP-Buy-American-v3.pdf • Local Supplier Connection Networks • Connectory.com 2012 EntreWorks Consulting

  11. Thanks!! For More Information: Erik R. Pages EntreWorks Consulting 703-237-2506 Epages@entreworks.net www.entreworks.net www.entreworks.net/blog Newsletter Sign-Up: http://www.entreworks.net/Newsletter.php

More Related