Defense Manufacturing Assistance Program
Supporting companies and communities affected by the downsizing of the defense supply chain (Ended May 31, 2018)
ABOUT THE DEFENSE MANUFACTURING ASSISTANCE PROGRAM
The Defense Manufacturing Assistance Program, primarily funded by the Department of Defense’s Office of Economic Adjustment, provides 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, provide stabilization, resiliency, and diversification assistance to companies and communities across the states of Michigan, Ohio and Indiana.
As of FY2015, according to the Department of Defense’s Comptroller’s Green Book, total defense spending in constant dollars has been reduced 34%. This is the largest draw-down in defense spending – larger than the reduction after the Cold War. There is common discussion of a Base Realignment and Closure (BRAC) due to the excess capacity that now resides in the military; with the reductions that will occur from that process, it is anticipated that the military supply chain will be impacted by as much a 50% or more. This impact is then referred into the communities where the military suppliers reside via job loss or instability and the impending hardships that result from these impacts.
ABOUT DMAP AND DMAP PARTNERS
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.
CLIENTS
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:
- 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:
- One or more defense contractor companies in the community eligible to be admitted to the program by applying company selection criteria.
- 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.
DMAP Staff
