Military Economy in North Carolina

Presented by the North Carolina Military Business Center to

North Carolina Military Affairs Commission

September 10, 2013

Agenda• Military presence and military impact• Defense business in North Carolina • Business support structure• Grow the military economy! • Questions

10 SEP 2013

Military Presence• 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

10 SEP 2013

Military Presence

10 SEP 2013

Fort Bragg • Largest Army base by population• Workforce: over 80,000• Commands:• 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)

10 SEP 2013

Data: Fort Bragg Data Sheet, FY2012

• 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

10 SEP 2013

Camp Lejeune, MCAS New River

Data: MCIEast Economic Impact Report, FY2011

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

10 SEP 2013

Data: MCIEast Economic Impact Report, FY2011

10 SEP 2013

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

US Coast Guard • USCG Base Elizabeth City• Aviation Logistics Center• Center for all depot maintenance of USCG aircraft

• USCG Sector North Carolina (Wilmington)

10 SEP 2013

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

10 SEP 2013

Agenda• 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):

• Prime contracts, federal in NC (100 Counties):– $5.39 billion (135k contract actions)

2.692.97

3.644.01

3.604.06

3.43

0.00

1.00

2.00

3.00

4.00

5.00

Do

llar

Val

ue

in B

illio

ns

2006 2007 2008 2009 2010 2011 2012 (Part)

DoD Prime Contracting in North Carolina

10 SEP 2013

Data: Federal Procurement Data System, FY2012

Procurement, DoD

10 SEP 2013

DoD Prime Contracts, by County (FY2012)

Procurement, DoD

10 SEP 2013

Top 10 Counties, DoD Prime Contracts (FY2012)

Procurement, DoD

10 SEP 2013

DoD Prime Contracts in NC, By Type (FY2012)

Service53%Construction

35%

Research, Dev, Tech &

Eval0%

Supply & Equipment12%

Services $1,824,111,982

Supply/Equipment

$402,701,511

Construction $1,187,943,041

RDT&E $10,485,144

Procurement, DoD

10 SEP 2013

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

Agenda• Military presence and military impact• Defense business in North Carolina • Business support structure• Grow the military economy! • Questions

10 SEP 2013

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

10 SEP 2013

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

10 SEP 2013

Business Development (Current/Future): NCMBC

Develop Businesses: NCCCS/SBC, UNC/SBTDC, Ec Dev

Opportunity Development: NCMF

Tactical

Operational/

Tactical

Strategic

NCDBA, Wake DEFNET, Charlotte

Policy/Coord.: Military Affairs/NC Commerce

ConnectionalFoundatio

nal

Support Structure, Functional

Agenda• Military presence and military impact• Defense business in North Carolina • Business support structure• Grow the military economy! • Questions

10 SEP 2013

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)

10 SEP 2013

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)

10 SEP 2013

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

10 SEP 2013

Strategies• Sustain current infrastructure and bases• 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!

10 SEP 2013

Strategies• Grow businesses in the federal market• 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

10 SEP 2013

Strategies• Grow businesses in the federal market• 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

10 SEP 2013

Strategies• Transition infrastructure for future growth• 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

Agenda• 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• Scott Dorney, Executive Director, 910-678-0190,

dorneys@ncmbc.us • Courtney Smedick, Integrated Marketing and

Government Relations, 910-678-0193, smedickc@ncmbc.us

10 SEP 2013