defense adjustment and advanced manufacturing

84 Pages·2016·11.33 MB·English

DEFENSE ADJUSTMENT AND
ADVANCED MANUFACTURING
May 2016
Completed for:
The St. Louis Economic Development Partnership
Disclaimer: This study was prepared under contract with the St. Louis Economic Development Partnership, Missouri, with financial support from the Office of Economic Adjustment, Department of Defense.
The content reflects the views of the St. Louis Economic Development Partnership and does not necessarily reflect the views of the Office of Economic Adjustment.

Image courtesy Boeing
PROJECT
SUMMARY
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3
…..Beginning In the fall of 2014, the St. Louis Economic Development Partnership embarked on a well-worn
path, one first taken by the St. Louis County Economic Council in the early 1990s, initiating conversations
with the Department of Defense (DoD), Office of Economic Adjustment to acknowledge and respond to
economic challenges caused by defense adjustment. Beginning indirectly in 1979 with the end of F-4
P
Phantom II production and more directly between 1990 and 1993, the St. Louis Region lost roughly 16,000 r
o
jobs at McDonnell Douglas as the Cold War came to an end. Policy responses at that time, focused on export je
c
t
assistance, job training, business incubation and expanded equity for new business formation, all proved to S
u
m
be strategic for the Region. m
a
r
y
So as the Region now moves into 2016, it faces a very similar challenge of defense adjustment and regional
diversification, in this case linked to concern over dependence on DoD aerospace manufacturing linked to
final assembly of the F/A-18, the E/A-18, and the F-15, three programs that, like the F-4 Phantom II back in
1979, are now poised to gradually transition out of core military use in coming years.
This Defense Adjustment Strategy, developed with support from AECOM, is anchored by the clear need
to Diversify beyond DoD Aerospace dependence; to Sustain industry leadership and regional Capacity
in Advanced Manufacturing; to Encourage deliberate connections across manufacturers, workforce
intermediaries, logistics and freight providers, economic development agencies and community
organizations; and to Lay the Groundwork for formation of an explicit advanced manufacturing ecosystem,
one that can drive higher-wage future job growth for the St. Louis Region.
At its core, the effort recognizes emerging risks to the St. Louis Region’s relevance as a center of advanced
manufacturing linked with the anticipated decline and loss of F/A-18, E/A-18, and F-15 production. Resulting
strategies seek to reinforce the Region’s relevance in aerospace, linked with the unique technical abilities
of 17,000 aerospace manufacturing jobs in the Region that can be leveraged to expand global opportunities.
Local capacity in advanced materials aligns with Boeing’s local 777X commercial aerospace program, as well
as the Region’s traditionally unappreciated but still strategic freight transportation assets.
Defense Adjustment and Advanced Manufacturing – DRAFT
TABLE OF
CONTENTS
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Acknowledgments 6
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Nomenclature 8 C
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Introduction & Economic Context 12
Project Drivers 20
Strengths, Weaknesses, 32
Opportunities, and Threats
Recommendations 38
Appendix: Supporting Data 40
Defense Adjustment and Advanced Manufacturing – DRAFT
ACKNOWLEDGMENTS
DDRRAAFFTT –– DDeeffeennssee AAddjjuussttmmeenntt aanndd AAddvvaanncceedd MMaannuuffaaccttuurriinngg
DED (Division of Workforce) R&S Machining 7
DRS~Technologies Sabreliner
Eagle~Picher Seiler Instrument & Manufacturing
Economic Development Center of St. Charles County SLATE
Economic Development Corporation of Jefferson County SLEDP World Trade Center
Essex Industries Small Business Administration
Federal Executive Board Southern Illinois University Edwardsville
A
General Motors Wentzville, MO Southwestern Illinois College ck
n
GKN Aerospace Southwestern Illinois Development Authority o
w
GMP Metal Products StroCo Manufacturing le
Greater St. Louis Community Foundation St. Charles County Workforce Development d
g
GWR Safety Systems St. Clair County Economic Development em
H.M. Dunn Aerospace St. Clair County Workforce e
n
Illinois Dept. of Commerce and Economic Opportunity St. Louis Community College ts
IMEC St. Louis Convention & Visitor Commission
Innoventor St. Louis County Human Resource
ITEN St. Louis Development Corporation
Kemco Aerospace St. Louis Economic Development Partnership
Kit Bond Strategies St. Louis Freightway
LaunchCode St. Louis Makes
Leadership Council Southwestern Illinois St. Louis Regional Chamber
ABB Lemonade Properties, Inc. St. Louis University
AGCMO Lewis and Clark Community College SWIP Systems
Ameren LMI Tacony Corporation
Arch Grants Madison County Community Development Tri-City Regional Port District
Arnold Defense Madison County Workforce Technology Business Group
Aziotics Metropolitan Education & Training Center - St. Louis TechShop
BIO STL Metropolitan Training Alliance Tech Manufacturing
Bi-State Development Minority Business Council The Ovid Bell Press
Boeing Missouri Association of Manufacturers United Way of Greater St. Louis
B&G Industries Missouri Department of Economic Development University of Missouri - Columbia
Center for Regional Economic Competitiveness Missouri Partnership University of Missouri - St. Louis
Civic Progress Missouri S&T Versatech
Cope~Plastics Missouri Enterprise Washington University
Cortex St. Louis Patriot Machine WB Industries
Craftsmen Industries Production Products Webster University
Creative Hatch Rank Ops World Wide Technologies
Creative~Packaging~Resources Ranken Tech Xaxax
Davlan Engineering Regional Business Council Zoltek
Defense Adjustment and Advanced Manufacturing – DRAFT
NOMENCLATURE
DDRRAAFFTT –– DDeeffeennssee AAddjjuussttmmeenntt aanndd AAddvvaanncceedd MMaannuuffaaccttuurriinngg