The Defense Manufacturing Assistance Program (DMAP) completed its five year programming in May 2018.   The program provided support to companies and communities affected by the downsizing of the defense supply-chain.  The University of Michigan, along with its partners, The Ohio State University and Purdue University, provided stabilization, resiliency, and diversification assistance to companies and communities across the states of Michigan, Ohio and Indiana.  The program was funded primarily by the Department of Defense’s Office of Economic Adjustment.

According to the Department of Defense’s Comptroller’s Green Book, total defense spending in constant dollars declined 34% as of fiscal 2015.  This was the largest draw-down in defense spending – larger than the reduction after the Cold War.  50% or more of the defense supply chain was at risk.  This impact was also felt in the communities where military suppliers reside, leading to job losses, erosion of technical capabilities, and community hardship.

While challenges continue for defense suppliers, the DMAP program produced outstanding results over its two phases.  Along with new sales and increased employment, the program sparked new innovations, including 139 new products and 26 commercialized technologies.  The program produced an 18 X return on investment for its funders.

The results below demonstrate the impact of the combined efforts of UM, OSU, and Purdue, as well as the committed firms and dedicated consultants that participated in this program.

Through their respective Defense Manufacturing Assistance Programs, The University of Michigan, The Ohio State University, and Purdue University, have extensive and successful experience in providing services to impacted companies and communities. Support for the program comes from the Department of Defense’s Office of Economic Adjustment and the Michigan Economic Development Corporation.

The program identifies projects that address critical needs and areas of improvement for communities and companies, and helps maintain an individual firm’s manufacturing capability and capacity through financial management, market analysis and diversification projects leading to survival, stabilization, and potential growth. Intellectual property and technology residing in research universities are also leveraged towards DMAP’s goals of job creation and retention in the defense supply chain. Thus, DMAP is assisting the DOD’s goals to retain the critical manufacturing infrastructure, capacity, and capabilities to meet national security priorities.  

DMAP clients include companies and communities that have seen employment, revenue and even product line losses as a consequence of the downsizing in the defense supply chain.

Company Clients

DMAP helps manufacturers impacted by the Department of Defense’s downsizing to grow sales, diversify and improve employment. Eligibility criteria for companies include:

1. Small-to-medium‐sized Defense Prime Contractor or subcontractor at tier 1, 2, 3 or 4 located in Michigan, Indiana, or Ohio meeting one or both of the following criteria
   • At least 5% reduction in Sales, Production or Employment within the last 24 months due to reduction in Defense contracts (or imminent threat of reduction in next 24 months). Defense Contracts must make up at least 10% of total sales. 
   • Loss of major product line (25%) due to loss of Defense‐related contract.

Community Clients

DMAP reinvigorates communities impacted by defense downsizing by engaging in activities that lead to economic stability and growth. Eligibility for communities criteria include:

1. One or more defense contractor companies in the community eligible to be admitted to the program by applying company selection criteria.
2. Recognized by a state agency as defense‐dependent and adversely impacted by budget reductions.

Projects

The unique aspect of DMAP is that apart from advisory services, DMAP helps clients get to the next stage of stability by managing and executing projects. DMAP funds these community projects (no matching funds required) and co-funds company projects (matching funds on a variable cost-ratio scale required). Expert consultants are brought in to assist clients on these projects.