The Defense Manufacturing Assistance Program (DMAP) released final results demonstrating tremendous impact on business growth, innovation, and community resiliency. The Economic Growth Institute at the University of Michigan, along with its partners at Purdue University and The Ohio State University, collaborated to deliver critical support and services to companies and communities impacted by downsizing of the defense supply-chain. The five year program completed its work in May 2018 and was funded primarily by the Department of Defense’s Office of Economic Adjustment.
Critical and Immediate Need
The program responded to the unprecedented downsizing in defense spending earlier this decade. 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 an historic draw-down in defense spending – larger than the reduction after the Cold War. It was estimated that 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.
DMAP staff members provided stabilization, resiliency, and diversification assistance to companies and communities across the states of Michigan, Ohio and Indiana. 305 companies were assisted by program staff while 212 targeted projects received funding support. An additional 133 communities were assisted with 34 community projects receiving funding. Participating companies represented over 13,000 jobs, and 662 new jobs were credited to program support. $183 million in new sales were also reported by participating companies. Along with new sales and increased employment, the program sparked new innovations, including 139 new products and 26 commercialized technologies.
These program results are especially noteworthy given the challenging conditions companies faced during this period. While challenges continue for defense suppliers, the DMAP program helped companies address critical and long-term needs, adding resiliency to the supply chain. The program delivered an 18 X return on investment for its funders.
The results below were achieved with dedicated university program staff, invaluable teams of student research associates, and, most importantly, committed participants in industry and local communities.