Transcript TITLE

Military Economy in
North Carolina
Presented by the North Carolina Military
Business Center to
North Carolina Military Affairs Commission
September 10, 2013
Agenda
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Military presence and military impact
Defense business in North Carolina
Business support structure
Grow the military economy!
Questions
10 SEP 2013
Military Presence
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3rd highest active duty military presence in US
6 major installations (5 DoD/1 DHS)
116 NC National Guard facilities statewide
40 Army Reserve facilities statewide
139,000 active, Guard and Reserve personnel
18,000 annual transitions
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Military Presence
10 SEP 2013
Fort Bragg
• Largest Army base by population
• Workforce: over 80,000
• Commands:
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US Army Forces Command (FORSCOM)
US Army Reserve Command (USARC)
US Army Special Operations Command (USASOC)
Joint Special Operations Command (JSOC)
XVIII Airborne Corps, 82d Airborne Division
440th Airlift Wing/43rd Airlift Group (Pope AAF)
Data: Fort Bragg Data Sheet, FY2012
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Camp Lejeune, MCAS New River
• Workforce: over 59,000
• Commands:
• II Marine Expeditionary Force
• 2nd Marine Division
• Marine Corps Installations East
• Marine Corps Forces Special Operations CMD
• Marine Aircraft Groups 26 and 29
Data: MCIEast Economic Impact Report, FY2011
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MCAS Cherry Point
• Workforce: over 14,000
• Commands:
• 2nd Marine Aircraft Wing
• Fleet Readiness Center East (FRC East)
• FRC East
• Major aircraft depot maintenance facility
• Largest civilian employer east of I-95
Data: MCIEast Economic Impact Report, FY2011
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Seymour Johnson AFB
• Workforce: over 7,200
• Commands:
• 4th Fighter Wing (94 F-15E)
• 916th Air Refueling Wing (16 KC-135R)
• Air Force “Home” for F-15E Strike Eagle
Data: Seymour Johnson Economic Impact Statement, FY 2012
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US Coast Guard
• USCG Base Elizabeth City
• Aviation Logistics Center
• Center for all depot maintenance of USCG aircraft
• USCG Sector North Carolina (Wilmington)
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Military Impact
• Total annual military impact, over $23.4 billion
• 7% of NC State GDP (second largest sector)
• Over 416,000 jobs statewide military impacted
(8% of state workforce)
• Military/civilian payroll:
$19.2 billion*
• Veteran payments:
$2.4 billion*
• Defense contracts:
• Prime contracts:
$3.43 billion
• Subcontracts:
additional billions
*North Carolina Military Footprint,” NC Department of Commerce, 2008
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Agenda
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Military presence and military impact
Defense business in North Carolina
Business support structure
Grow the military economy!
Questions
10 SEP 2013
Procurement
• Prime contracts, DoD in CONUS: $316 billion
• Prime contracts, DoD in North Carolina (83 Counties):
DoD Prime Contracting in North Carolina
Dollar Value in Billions
5.00
4 .0 1
4.00
3 .6 4
3 .6 0
4 .0 6
3 .4 3
2 .9 7
3.00
2 .6 9
2.00
1.00
0.00
2006
2007
2008
2009
2010
2011
2012 (Part)
• Prime contracts, federal in NC (100 Counties):
– $5.39 billion (135k contract actions)
Data: Federal Procurement Data System, FY2012
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Procurement, DoD
DoD Prime Contracts, by County (FY2012)
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Procurement, DoD
Top 10 Counties, DoD Prime Contracts (FY2012)
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Procurement, DoD
DoD Prime Contracts in NC, By Type (FY2012)
Services
Supply/Equipment
Construction
RDT&E
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$1,824,111,982
Research,
Dev, Tech &
Eval
0%
Supply &
Equipment
12%
$402,701,511
$1,187,943,041
$10,485,144
Construction
35%
Service
53%
Procurement, DoD
Top DoD Prime Contractors in NC (FY2012)
Contractor
Type
Sodexo Management
Services
Whiting Turner Contracting
Construction
RQ Construction, LLC
Construction
M. A. Mortenson Company
Construction
General Dynamics ATP
Supply and Equipment
Old North Utility Services
Construction, Services
TCOM Limited Partnership
Services
Dixon Marketing Associates
Supply and Equipment
10 SEP 2013
Agenda
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Military presence and military impact
Defense business in North Carolina
Business support structure
Grow the military economy!
Questions
10 SEP 2013
Support Structure, State
• Develop businesses:
• Small Business Centers (Community College System)
• Small Business and Technology Development Center
• Procurement Technical Assistance Center (SBTDC)
• Business Development:
• North Carolina Military Business Center (NCMBC)
• Policy and Coordination:
• Military Affairs Advisor, Office of the Governor
• North Carolina Department of Commerce
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Support Structure, Non-State
• Federal:
• Small Business Administration (SBA), US Commerce
• Local:
• Chambers, economic developers
• Non-Governmental Organizations:
• Local: Raleigh DEFNET, Charlotte counterpart
• North Carolina Defense Business Association
• North Carolina Military Foundation
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Support Structure, Functional
Strategic
Opportunity Development:
NCMF
Operational/
Tactical
Business Development
(Current/Future): NCMBC
Tactical
Develop Businesses:
NCCCS/SBC, UNC/SBTDC, Ec Dev
Connectional
Foundational
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NCDBA, Wake DEFNET, Charlotte
Policy/Coord.: Military Affairs/NC Commerce
Agenda
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Military presence and military impact
Defense business in North Carolina
Business support structure
Grow the military economy!
Questions
10 SEP 2013
Challenges
• Decline in defense budgets ($487 billion plus
sequestration – impact on bases, businesses)
• Anti-competitive acquisition environment
• Market intelligence, positioning for future wins
• Consolidation among defense contractors
• High competition – companies surging to
market (and NCMBC/other services)
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Opportunities
• NC bases are important in DoD force structure
• Federal market is still strong (high demand)
• In-state, DoD and federal agencies nationwide
• Small business opportunities: 23% goal
• Driving prime and sub opportunities
• Regulatory environment: FAR levels playing field
• Transitioning military & spouse workforce
• Great business capacity in NC (high supply)
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Opportunities
• Sustaining sectors:
• Construction, fac. maintenance, services, energy
• Emerging/growing sectors:
Advanced materials/manufacturing Medical technologies
Tactical energy solutions
Cyber security
Ground vehicles & robotics
Biotechnologies
Aerospace & unmanned systems
Human factors & advanced
analytics
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Strategies
• Sustain current infrastructure and bases
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Sustain world-class business support structure
Engage public statewide on importance of military
Reinforce relationship w/Congressional delegation
Support legislation that sustains training areas,
enhances QOL, strengthens base partnerships
• Establish best environment for bases to sustain
mission readiness – aggressively defend in BRAC
and leverage relationship to BuyNC!
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Strategies
• Grow businesses in the federal market
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Develop statewide database of existing businesses
Engage businesses statewide in federal market
Support initiatives in key technology sectors (UAS)
Support export and on-shoring initiatives
Leverage tech transition and other opportunities
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Strategies
• Grow businesses in the federal market
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Leverage untapped federal buying sources
Expand ties with major in/out-of-state primes
Build relations with “big money” commands in US
Develop market intelligence on emerging contract
opportunities in targeted sectors
• Resource business support structure to execute
above
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Strategies
• Transition infrastructure for future growth
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Create and sustain the best business climate
Establish “Defense” as an industry – and resource it
Create tax structure to grow defense industry
Target and enhance defense industry recruitment
and development of NC businesses
10 SEP 2013
Agenda
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Military presence and military impact
Defense business in North Carolina
Business support structure
Grow the military economy
Questions (and transition to Commerce)
10 SEP 2013
Contact Information, NCMBC
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Scott Dorney, Executive Director, 910-678-0190,
[email protected]
Courtney Smedick, Integrated Marketing and
Government Relations, 910-678-0193,
[email protected]
10 SEP 2013