2016 New England Defense Summit Wednesday, November 9, 2016 CONNECTICUT CONVENTION CENTER H HARTFORD, CT Discover What the Future Holds for the Region’s Aerospace and Defense Industry RADE Overview Sponsored by The defense industry is a major contributor to the economy of New England as a region and individually to each of its states. As such, understanding the impact of Department of Defense budget and policy/program priority shifts becomes critical in order to strategically plan for assisting communities, businesses and workers, supporting adjustment and diversification programs, and aligning regional assets to take advantage of future opportunities that will fortify and diversify the sector. • T he State of Connecticut – Department of Economic and Community Development The Regional Aerospace and Defense Exchange (RADE) is developing the necessary strategies to support the New England aerospace and defense supply chain and ensure continuity and retention of the skilled talent base. With Connecticut serving as the central “hub” for coordination and dissemination of information, RADE will enhance the region’s capacity to assist local communities with economic diversification and workforce development by aligning the resources of state, regional, and local organizations. • New Hampshire Department of Resources and Economic Development Ultimately, RADE seeks to fortify and diversify the sector, creating a critical regional aerospace and defense asset for key stakeholders throughout New England. State Partners • Maine Department of Economic and Community Development • MassDevelopment • Rhode Island Commerce Corporation • Vermont Agency of Commerce and Community Development The RADE Summit is presented by the Connecticut Department of Economic and Community Development (“DECD”) with funding from the Office of Economic Adjustment, Department of Defense under an award to the State of Connecticut referenced as (DIA) FAIN: HQ00051310118. Any content presented or published does not necessarily reflect the views of the Office of Economic Adjustment or the U.S. Department of Defense. Collaborate. Discover Opportunities. Exchange. 2016 New England Defense Summit Agenda 7:30 – 8:00 Registration/Breakfast 8:00 – 8:10 elcome: New England’s Innovative Aerospace and Defense Strategies W Forging a new innovative economic development objective in support of New England’s aerospace and defense sector. Speaker: C ommissioner Catherine Smith Connecticut Department of Economic and Community Development 8:10 - 8:20 The Importance of the Defense Sector to the State and Region Speaker: B ob Ross, Executive Director Connecticut Office of Military Affairs 8:20 – 9:15General Session: Building a Stronger Regional Economy Through Data Modeling Using an interactive platform that measures the impact of Department of Defense investments and presents supply chain relationships gives policy makers the power to forecast future trends and plan for changes in the marketplace. The RADE Economic Modeling Platform is a web-based, graphical tool for analyzing and assessing the dependency of the region on DoD spending, providing valuable data that can support economic development efforts for business attraction, retention and expansion. Presenters: C hristine Chmura, Ph.D. CEO & Chief Economist Chmura Economics & Analytics 9:15 – 9:30 Break 9:30 – 12:00 Breakout Sessions (Session One: 9:30 to 10:45, Session Two: 10:45 to 12:00) usan Palisano S Director, Education & Workforce Development Connecticut Center for Advanced Technology A Regional Collaboration and Exchange: The New England Cluster Advantage The RADE initiative and its’ Virtual Industry Commons are providing the backbone to catalyze collaboration among state partners and lay the foundation for a collective regional voice. The New England states’ combined OEA efforts in workforce development, supply chain asset mapping, international trade, export compliance, diversification strategies, marketing, and commercialization will help grow the region’s defense-related economy. Moderator: C ommissioner Jeffrey J. Rose New Hampshire Department of Resources and Economic Development Presenters: R ichard Pearson RADE Workforce & Economic Development Consultant Connecticut Center for Advanced Technology THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT3 Collaborate. Discover Opportunities Exchange. 2016 New England Defense Summit Agenda Presenters: Terrance J. Meehan (continued) OEA Grant Administrator State of Maine, DECD J ohn C. Beatty Sr. Executive Director of the Military Asset and Security Strategy Task Force Commonwealth of Massachusetts John Riendeau Director, Business Development, Rhode Island Commerce Corporation Nathaniel Nelson International Trade Officer, Office of International Commerce State of New Hampshire Division of Economic Development Technology Innovation: From R&D to Commercialization New England’s defense manufacturers will need to embrace innovative strategies to retain and gain competitive advantages through their existing markets and/or through the ability to diversify into commercial markets. This requires a supply chain that is flexible, agile, and ready to implement new technologies, materials, and processes to increase production capacity and capabilities. Moderator: D r. Martin Romitti, Senior Fellow Center for Regional Economic Competitiveness Presenters: D arryl Sargent Vice President of National Security & Space Programs Draper lliot Ginsberg E President & CEO Connecticut Center for Advanced Technology Inc. Joe Marino Chief Executive Officer Rite Solutions David Olchowski President & General Manager GKN Aerospace Engine Systems GKN Aerospace Services Structures Corp 12:00 Luncheon 12:30 – 1:30 Keynote Address: Observations and Insights on New England’s Defense Sector Introduction: C atherine Smith, Commissioner Connecticut Department of Economic and Community Development Speaker: ierre Chao P Founding Partner, Renaissance Strategic Advisors Managing Partner, Enlightenment Capital Mr. Chao brings over three decades of management consulting, investment banking and policy expertise in the aerospace and defense industry. Throughout his career he has been a trusted advisor to senior corporate, government and financial decision makers on key strategic issues — from major investments to mergers and acquisitions to strategic and policy choices. Mr. Chao will share his observations, insights and projections on New England’s defense sector. 4 THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT Exchange. Collaborate. Discover Oppo Presenter Biographies KEYNOTE SPEAKER Pierre Chao CO-FOUNDER OF ENLIGHTENMENT CAPITAL AND RENAISSANCE STRATEGIC ADVISORS Pierre Chao brings over three decades of management consulting, investment banking and policy expertise in the aerospace & defense industry. Throughout his career he has been a trusted advisor to senior corporate, government and financial decision makers on key strategic issues, from major investments to mergers and acquisitions to strategic and policy choices. As well as being a Managing Partner and co-founder of Renaissance Strategic Advisors, he is also a co-founder and Managing Partner of Enlightenment Capital and a Senior Associate at the Center for Strategic and International Studies (CSIS). His distinguished career has included many senior analyst and advisor positions at some of the nation’s major financial institutions, including Credit Suisse First Boston, Morgan Stanley Dean Witter, Smith Barney, and Prudential-Bache Capital Funding. He served as director at JSA International, a Boston/Paris-based management-consulting firm that focused on aerospace & defense, and was a co-founder of JSA Research. Pierre was ranked the number-one aerospace & defense analyst by corporations in the 1998-2000 Reuters polls, the number-one analyst in the 1995-99 Greenwich Associates polls, and appeared on the Wall Street Journal All-Star list. In 2000, Pierre was appointed to the Presidential Commission on Offsets in International Trade. He is a guest lecturer at the National Defense University and the Defense Acquisition University, was appointed by the Secretary of Defense to the Defense Business Board, and served on multiple Defense Science Board task forces. Catherine Smith COMMISSIONER, CONNECTICUT DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT Catherine Smith was appointed Commissioner of the Connecticut Department of Economic and Community Development in April 2011. She is responsible for attracting and retaining businesses and jobs, revitalizing neighborhoods and communities, and fostering appropriate development in Connecticut’s towns and cities. Since taking the position, Commissioner Smith has spearheaded programs to generate economic activity and expand business across Connecticut. She orchestrated the creation of the Small Business Express program and the Manufacturing Innovation Fund, as well as securing funding for the Connecticut Bioscience Innovation Fund. She also coordinated the agreements that brought Jackson Laboratory to the state and recommitted UTC to Connecticut. Smith has been a frequent speaker at industry conferences and in the media and has been recognized by U.S. Banker magazine’s “Top 25 Most Powerful Nonbank Women in Finance.” Bob T. Ross EXECUTIVE DIRECTOR, CONNECTICUT OFFICE OF MILITARY AFFAIRS Bob Ross is an advisor to the Governor and legislature on defense industry issues and the primary liaison to the Connecticut congressional delegation on military and defense matters. He coordinates statewide efforts to protect and promote Connecticut military bases and defense industries. He also represents the state to enhance the quality of life for service members and military families residing in or deploying from Connecticut. Bob is a retired naval officer who piloted aircraft carriers and guided missile cruisers before directing public affairs for the United States Sixth Fleet, encompassing naval operations ashore and at sea in the Mediterranean, Europe and North Africa. He also served as a Pentagon spokesman and was Director of Community and Media Relations for the Atlantic Fleet, coordinating public affairs for over 250 ships homeported at 13 major naval bases. Bob is a Board Member of the National Association of Defense Communities, Trustee of the Chamber of Commerce of Eastern Connecticut, former Commissioner on the Connecticut Maritime Commission, and a recipient of the University of Connecticut’s Distinguished Alumni award for continued commitment and excellence in public administration. Christine Chmura, Ph. D CEO & CHIEF ECONOMIST CHMURA ECONOMICS & ANALYTICS A thought-leader on labor market data, Chris is a nationally recognized speaker among site selectors, economic developers, private firms, workforce practitioners, and educators. She has served as a keynote speaker for national and international conferences, is a member of the “Blue Chip Financial Forecasters,” is a quoted source on regional and national economic trends in the media throughout the nation, and is a former board member of the National Association of Business Economists. Since founding Chmura Economics & Analytics in 1998, Chris and her team of experts have continued to innovate data solutions, such as JobsEQ, LaborEQ, Zonyx, and FedSpendTOP, that help answer critical client questions across the public and private sectors. THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT5 Leverage Assets. Share Best Practices. Resources. Presenter Biographies Susan H. Palisano DIRECTOR, EDUCATION & WORKFORCE DEVELOPMENT, CONNECTICUT CENTER FOR ADVANCED TECHNOLOGY INC Susan served as Director of Education & Workforce Development at the Connecticut Center for Advanced Technology, Inc. (CCAT) since 2005. She heads a unit that implements innovative programs to develop and support today’s and tomorrow’s vital STEM workforce. With over 24 years of experience in both public- and private-sector information technology, education, and training, Susan has an extensive background in policy, leadership and consensus building, strategic planning, research and analysis, and grants. Susan serves on Congresswoman Elizabeth Esty’s STEM Workforce Advisory Board, and sits on The Manufacturing Institute’s Education Council. She was project manager at CCAT for Phase I and Phase II State of Connecticut OEA grant initiatives, and a recent presenter at the Association of Defense Communities 2016 Summit and the National Aerospace and Defense Workforce Summit. MODERATOR Jeffrey J. Rose COMMISSIONER, NEW HAMPSHIRE DEPARTMENT OF RESOURCES AND ECONOMIC DEVELOPMENT Jeffrey Rose has been the Commissioner of the New Hampshire Department of Resources and Economic Development (DRED) for almost three years, after his unanimous confirmation. Jeff is responsible for the Division of Forests and Lands, the Division of Parks and Recreation, the Division of Travel and Tourism, and the Division of Economic Development. Prior to DRED, Jeff worked nine years for BAE Systems in a variety of government relations and public affairs roles. He combines this experience with eight years in the public sector, where he served in leadership roles for several members of New Hampshire’s congressional delegation. Jeff serves his community on a variety of boards and advisory councils. Richard Pearson RADE WORKFORCE & ECONOMIC DEVELOPMENT CONSULTANT, CONNECTICUT CENTER FOR ADVANCED TECHNOLOGY INC Rich is engaged in the RADE cluster initiative, working with each state partner to develop collaborative opportunities. He is recognized for his broad scope of work in strategic management consulting with senior government officials and non-profit executives, and his ability to conceptualize, design, plan and manage complex projects and build consensus among diverse interests. Rich has considerable expertise in workforce and economic development, and the challenges facing aerospace and defense. He was a consultant on the first Connecticut grant with the Town of East Hartford and brings those connections to the RADE project. Rich also supports RADE’s workforce development-related tasks. 6 John Riendeau DIRECTOR OF BUSINESS DEVELOPMENT RI COMMERCE CORPORATION John Riendeau has been the Director of Business Development since 2011, and with the Corporation since 1988. He administers, plans, coordinates, and supervises activities pertaining to large business development and business attraction efforts; federal grant writing and management; export development; and research efforts. John led the BRAC 2005, 1995, 1993, and 1991 processes, coordinating the State’s response with businesses and the RI Congressional Delegation. He secured and managed three DoD ONR grant projects totaling $5M in collaboration with RI Businesses and the Naval Undersea Warfare Center; three DHS Port Security projects totaling $2.8M; and currently manages a MARAD Port project totaling $21M. He is also on the board for the Southeastern New England Defense Industry Alliance (SENEDIA). John C. Beatty LIEUTENANT COLONEL (RET.), U.S. ARMY EXECUTIVE DIRECTOR, MILITARY ASSET AND SECURITY STRATEGY TASK FORCE, COMMONWEALTH OF MASSACHUSETTS A Boston native, John graduated from the U.S. Military Academy and was commissioned into the U.S. Army Field Artillery. During his 23 years of service, he led commanding units in Germany and Kosovo, and deployed twice to the Middle East. John’s operational assignments included tours with the 1st Infantry Division, commanding a cannon artillery battery, conducting missions in support of NATO troops in Kosovo, with the 10th Mountain Division, where he led platoon operations in Haiti, and in Iraq with the 1st Battalion Sixth Field Artillery. In 2008, John was the Deputy Director for the Governance, Reconstruction and Economic Development Cell for Multi-National Division-Baghdad. As the Inspector General for the Maine National Guard, John provided policy advice and counsel to three Adjutant Generals, while serving soldiers, airmen, and civilians of the Maine National Guard and Department of Defense, Veterans and Emergency Management. Nathaniel Nelson INTERNATIONAL TRADE OFFICER, OFFICE OF INTERNATIONAL COMMERCE, STATE OF NEW HAMPSHIRE DIVISION OF ECONOMIC DEVELOPMENT Nathaniel’s experience as a consultant with Booz Allen Hamilton, supporting the U.S. Federal Government and international partners in Washington, D.C., led him to his present position. His focus is to support New Hampshire’s aerospace and defense sectors, mostly through OIC’s involvement with the New Hampshire Aerospace and Defense Export Consortium. He is project lead for the development and implementation of DoD grants and associated programs to assist New Hampshire aerospace and defense companies, and an Adjunct Professor at Rivier University for the Homeland and International Security Program. THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT Leverage Assets. Share Best Practices. Resources. Presenter Biographies MODERATOR Martin Romitti, Ph. D SENIOR VICE PRESIDENT, CENTER FOR REGIONAL ECONOMIC COMPETITIVENESS Dr. Romitti is a Senior Fellow with the Center for Regional Economic Competitiveness (CREC) in Virginia. He specializes in developing regional economic growth and diversification strategies; organizing and overseeing economic data collection and analysis efforts; and managing research projects that evaluate the effectiveness of significant federal resource investments. He also assesses business incentive programs; conducts economic impact analysis; and studies industry clusters, supply chains, high-growth companies, innovation and key supporting assets. Marty is a member of the CREC and EntreWorks, providing technical assistance to OEA’s Defense Industry Adjustment (DIA) program and its grantees to effectively support defense-dependent communities, workers, and businesses. Prior to CREC, Marty served as the Director of Economic and Public Policy Research at the University of Massachusetts Donahue Institute, was past chair of the Labor Market Institute and served on the Board of Directors for the Council for Community and Economic Research (C2ER). Darryl Sargent VICE PRESIDENT, NATIONAL SECURITY AND SPACE PROGRAMS, DRAPER Darryl Sargent is Vice President of National Security & Space Programs for Draper, responsible for developing and executing the business and strategic plans in Defense Systems, Space Systems, and Special Programs. He has led the development of guidance, navigation, control and avionics systems for a wide variety of manned, unmanned and autonomous systems for NASA, DoD, and industry. Previously, Darryl was Director of Space Systems at Draper, responsible for the capture and management of all of Draper’s space programs. Major efforts included Crew Exploration Vehicle, Crew Launch Vehicle, Space Shuttle, Space Station, small explorer class space science missions, and military space missions. He has also developed system concepts and technology for NASA’s space exploration initiatives. Darryl joined Draper in 1979 and has held key management positions in both the programs and engineering organizations. Early in his career, he developed and tested the Space Shuttle’s on-orbit flight control system, and was the program manager for Draper’s efforts on Space Shuttle, Space Station, X-33, X-34, X-38, the Kistler Launch Vehicle, HS-601, HS-702, XSS-11, and Orbital Express and other space protection missions. He recently supported a Defense Science Board Task force on Nuclear Treaty Monitoring and Verification. Joe Marino CHIEF EXECUTIVE OFFICER, RITE-SOLUTIONS Joe has 35 years of experience in technical, financial, and programmatic administration management of both large and small defense and commercial programs. Joe co-founded Rite-Solutions in 2000 with Jim Lavoie (Rite-Solutions Chairman of the Board). The mission of the company is, “Innovate Every Day.” Rite has been recognized in the Hartford Courant, New York Times and Newsweek International. Rite was also highlighted in a CNBC five-part special on the Business of Innovation. Stanford University has incorporated Rite’s creative and innovative leadership and organizational processes into one of their business cases. Joe is responsible for strategic direction and critical relationships. Prior to co-founding Rite-Solutions, Joe had a long and successful career with Analysis & Technology (A&T), a high technology firm in North Stonington, CT and prior to A&T, he was an electrical engineer at Electric Boat. Elliot Ginsberg PRESIDENT and CHIEF EXECUTIVE OFFICER, CONNECTICUT CENTER FOR ADVANCED TECHNOLOGY INC Prior to his present position as President and Chief Executive Officer of the Connecticut Center for Advanced Technology, Inc., Elliot served Congressman John B. Larson as his Chief of Staff from 1998 – 2007. This followed Elliot’s teaching nonprofit and human services administration at the University of Connecticut School of Social Work. His previous work experience entailed serving as a Family Support Magistrate for the Superior Court of Connecticut from 1991 to 1997. At the start of Connecticut Governor William O’Neill’s second term, Elliot was appointed Commissioner of the Department of Human Resources where he managed the statewide human services department for six years. In 1979 he became the Executive Director to the statewide training and advocacy organization of the legal services programs in Connecticut. After law school, Elliot took a position as a Senior Manager of Connecticut Legal Services (1973-1979). David Olchowski PRESIDENT AND GENERAL MANAGER, GKN AEROSPACE ENGINE SYSTEMS, GKN AEROSPACE SERVICES STRUCTURES CORP David has served as President and General Manager since June of 2014. As President of a Tier-1 supplier, he is responsible for managing the company’s rapid growth while improving quality, overall profitability and operational excellence. He has led initiatives to enable disruptive technology innovation in composites manufacturing, which enables the company’s expansion planned in 2017. David has over 28 years of experience including Engineering, Operations, Program Management, LEAN, Supply Chain, and General Management. Prior to GKN, David was Vice President of Operations, and then General Manager at Ultra Electronics in Wallingford, CT. David started his career as a manufacturing engineer at Pratt & Whitney and progressed through roles of increasing responsibility in Operations and Engineering. Ultimately spending a total of 17 years at UTC, David worked at both Hamilton Sundstrand and UTC Fire & Security in Supply Chain, Operations and LEAN roles before joining Ultra Electronics. THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT7 Plan. Diversify. Analyze & Assess The RADE Economic Modeling Platform Developed and supported by Chmura Economics & Analytics, one of the nation’s leading providers of economic research and applied solutions, the RADE Economic Modeling Platform is a unique online tool that provides predictive analytical economic modeling of the influence of DoD spending changes across New England’s aerospace and defense supply chain. Alternative scenarios reflect both differing mixes and magnitudes of DoD spending as well as different scheduling for these spending changes over a five-year period. This datadriven knowledge will enable policymakers to assess and analyze the dependency of the region on DoD spending via contract awards, allowing appropriate time and planning for workforce development and diversification strategies. • measures the direct, indirect, and induced impacts for changes in DoD expenditures in support of contractors; • populates a data bank with analytical modeling capacity at the regional, state and county level to facilitate continuing economic impact analyses relative to changing DoD budgetary conditions and expenditure policies; and • provides a graphical representation of the interconnectivity between defense contractors, subcontractor relationships, and the net values of subcontracts flowing in and out of New England. Where does the data come from? All available DoD prime and sub-prime contract data is derived from USASpending.gov. Chmura conducted an independent survey of the prime contractors and sub-contractors identified by primes for more comprehensive supply chain data. Additional contract award data was obtained via media announcements and identified by state stakeholders. How can the data be viewed? Data can be viewed by state, county or metro area. Future enhancements will include the ability to view data by region as well as by state Workforce Investment Area. The RADE Economic Modeling Platform: • identifies the scope and nature of DoD economic activities in New England that are related to contract awards and their corresponding personnel and business linkages; How can I use this tool? The data presented in the platform provides a unique opportunity to plan for potential occupation impacts, including: workforce transition skills; mitigation strategies to minimize loss of jobs; design and deployment of programs and services for dislocated workers; and development of marketing opportunities to maximize firm attraction. Analysis of the data will also assist stakeholders in generating business plans for startups and entrepreneurs, increasing industry diversification opportunities, influencing state, regional and national policy, and identify firms for business retention and expansion. • installs a DoD economic impact supply chain model to quantify the vulnerability of DoD activities to future reductions in spending from program cutbacks/ eliminations or reconfigurations; 8 THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT Build Consensus. Influence Po Partnerships. Project Profile: Regional Aerospace & Defense Exchange (RADE) Specifically, RADE will: • Add two new state partners (New Hampshire and Vermont) to the existing regional partnerships of Rhode Island, Massachusetts, and Maine. • Augment the existing economic modeling platform to include New Hampshire and Vermont data; improve data visualization; and expand subprime data collection. Point of Contact: Carmen Molina-Rios, Community Development Specialist, Department of Economic and Community Development 860-270-8234; [email protected] Regional Background The aerospace and defense (A&D) sector is a major contributor to New England’s economy as a region, as well as individually to each of its states. However, across the region, there is a deep need to understand the range and capacity of the A&D industry amid potential shifts in defense contracting throughout each state. Project Overview DoD’s Office of Economic Adjustment issued a Defense Industry Adjustment grant to assist the Regional Aerospace and Defense Exchange (RADE) in developing an organizational model that will foster cooperation among key stakeholders and enhance the capacity of the region to assist local communities with economic diversification and workforce development. RADE will develop the necessary strategies to support the New England A&D supply chain and ensure continuity and retention of its skilled talent base. • Expand the RADE Workforce Toolkit to include partner states’ best practice models, programs, and services. • Pilot a Strategic Workforce Planning process for defense manufacturers to position their companies for growth to meet the demand for their products. • Design and execute a New England RADE Conference that will galvanize public and private A&D stakeholders to promote the region’s defense sector. • Evaluate the RADE initiatives to determine effectiveness and impact. Additionally, under this grant Connecticut will establish an Innovation Technology Center (ITC) to address the needs of defense manufacturers to retain and gain competitive advantages through their existing market or the ability to diversity into commercial markets via process innovations and technologies. Projected Outcomes RADE seeks to fortify and diversify the sector, creating a robust regional aerospace and defense community informed by accurate and timely data collection and analysis, dissemination of resources, and best practice models. The community is based on collaboration among key partners such as government, academia, and the private sector, and effective communication among stakeholders including employers, colleges, and industry. THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT9 Plan. Diversify. Analyze & Assess Project Profile: Maine communities, businesses, and workers that may be affected by reductions in DoD spending. The project focuses on a two-year supply chain study and new opportunities program to: • Identify and assess the level of defense dependency among the business community; • Identify key at-risk businesses and industry sectors; Point of Contact: Denise Garland, Deputy Commissioner, Department of Economic and Community Development 207-624-9800; [email protected] Regional Background The Maine economy is highly dependent on defense spending with two major shipyards, numerous defense industry suppliers and support businesses, as well as National Guard and reserve components. With the drawdown of U.S. military forces, major cuts in defense spending and the effects of sequestration, many if not most of these defense related entities are at risk. As of May 2015, there were 20,615 at-risk employees at defense dependent firms in Maine, which represents 41 percent of all manufacturing jobs within the state. With major cuts in defense spending impending, defense suppliers are becoming aware of the vulnerability of their positions. To alleviate these potential effects, a sustainable plan of business diversification and workforce training needs to be implemented. Project Overview In 2015, DoD’s Office of Economic Adjustment provided a Defense Industry Adjustment grant to the Maine Department of Economic and Community Development (DECD) to enhance its capacity to assist Maine 10 •Establish a comprehensive statewide strategy to identify new market opportunities for these businesses and sectors, which leverage the skilled workforce in Maine, core competencies of the business community, and other competitive advantages within the state; and •Design and implement a workforce training program to retrain displaced defense industry workers and enhance the workforce of the defense industry. Working concurrently with this plan, Maine’s DECD will also be pursuing other opportunities in the aerospace and maritime sectors through a pilot program with the Regional Aerospace Defense Exchange (RADE). RADE was established to support the regional aerospace and defense community through a centralized data collection platform, providing resources, best practice models and an effective communication platform among manufacturing community stakeholders who are focused on the defense and aerospace markets. Projected Outcomes As a result, DECD will have a comprehensive analysis of the state’s defense industry. This analysis, along with its concurrent partnership with RADE, will allow the DECD to better implement tools and strategies to insulate the business community, their employees, and the regional economy as a whole from the effects of future reductions in federal defense spending. THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT Resources.Leverage Assets. Share Best Practices. Project Profile: Defense Industry Transformation project in Massachusetts plans to research and evaluate its current market base and map its potential for expanded opportunities outside of the defense industry. The study will identify methods to create new employment opportunities and include: • Conducting a thorough assessment of the existing defense-related economic base. • Conducting asset mapping for the defense industry. Point of Contact: Anne Pierce, Grants Manager, Massachusetts Development Finance Agency • Focusing on the potential for expanding technology transfer and identifying methods to accelerate the commercialization of defense-related products. 978-784-2935; [email protected] • Identifying potential for new applications of defenserelated products and expanding the customer base of the defense industry. Regional Background • Integrating and coordinating response efforts with other defense-impacted areas where practicable. For Massachusetts, the defense sector is a $13.9 billion industry employing over 130,000 people. There are over 2,500 businesses tied to the Department of Defense and Homeland Security through 17,042 contracts. However, with a decline in defense industry spending, Massachusetts faced a $13 million spending cut in Fiscal Year 2014, including an $8 million reduction in Army spending and $5 million reduction in Air Force spending. These cuts will have a catastrophic effect not only for the defense sector, but for the Commonwealth’s economy as a whole. Project Overview To mitigate the adverse effects of defense spending cuts and sequestration on the Commonwealth’s economy, the Massachusetts Development Finance Agency (MDFA) received a Defense Industry Adjustment grant from DoD’s Office of Economic Adjustment. • F ormulating recommendations and an implementation strategy. The study will be conducted in two distinct phases. Phase I, Setting the Stage for Action, will address the assessment and economic diversification approach, while Phase II, Taking Action, will address the implementation strategy and sustainability. Projected Outcomes Through enhanced coordination between the state and localities, MDFA will look to mitigate the effect of the anticipated loss of jobs as a result of DoD budget cuts; support local adjustment and diversification initiatives, which seek to lessen the impact on supply-chain downstream defense companies in Massachusetts; and provide business planning and market exploration services to defense contractors and subcontractors. In order to plan for the impacts of the decrease in defense spending, the Defense Industry Transformation THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT11 Resources.Leverage Assets. Share Best Practices. Project Profile: New Hampshire Defense Industry Partnership Project Overview The DoD’s Office of Economic Adjustment issued a Defense Industry Adjustment grant to the New Hampshire Department of Resources and Economic Development to assist with the implementation of a variety of NHEDC programs. The grant will assist with: • Market Research: assisting companies with understanding their target markets for products. Point of Contact: Tina Kasim, Program Manager, Office of International Commerce, Division of Economic Development, New Hampshire Department of Resources and Economic Development 603-271-8444; [email protected] Regional Background Aerospace and defense are among the fastest growing sectors in New Hampshire. With more than 350 aerospace and defense companies employing 36,000 people, New Hampshire is committed to and dependent on the success of these industries. However, despite innovations and commitment, businesses continue to face challenges and uncertainties due to fluctuations in defense spending. Small businesses that employ less than 50 employees dominate the state’s employers and as such, these companies need assistance in understanding opportunities to expand into new and emerging markets outside of aerospace and defense. • International Trade Summits: statewide and regional New England events that focus on networking and information exchange across stakeholders in the aerospace and defense markets. • Marketing: development of a marketing strategy for the statewide promotion of the aerospace and defense industry. • Export Compliance: assist with training and consultation for companies needing to address export compliance issues. • Commercialization Training: provide training and consultation to companies looking to expand their products to commercial markets. Projected Outcomes The grant will help the NHEDC expand to meet the growing demands of New Hampshire businesses. Projected outcomes include helping aerospace and defense companies diversify and grow operations, markets, and employees. The need for a collective response to business challenges led to the development of the New Hampshire Aerospace and Defense Export Consortium (NHEDC). The Consortium focuses on helping businesses in the global marketplace. 12 THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT Leverage Assets. Share Best Practices. Resources. Project Profile: STEAMengine Additionally, STEAMengine will collect and analyze data and create linkages with resources that will serve defense manufacturers and communities in limiting the impact of defense-related spending cuts and identifying new opportunities for economic diversification. Projected Outcomes Point of Contact: John Riendeau, Senior Project Manager-Client Services, Rhode Island Commerce Corporation 401-278-9162; [email protected] Regional Background Many Rhode Island defense manufacturers provide parts, components, and subassemblies for defense related systems, ranging from communications to weapons to vessels. With a considerable number of defense companies in Rhode Island, state leaders are working with Connecticut and Massachusetts to create an economic model to extract defense related data points necessary for policy decisions. Additionally, Rhode Island looks to assist defense companies in diversifying their products to meet the realities of today’s economy. Project Overview DoD’s Office of Economic Adjustment issued a Defense Industry Adjustment grant for the STEAMengine Defense Industry Economic Diversification initiative. This initiative will help Rhode Island develop a Design Readiness Assessment (DRA) program that allows defense manufacturing companies to pursue an accelerated program of market transformation through intensive use of industrial design, engineering, and innovation. Rhode Island expects that this effort will inform, strengthen, and support local adjustment and diversification initiatives and will stimulate better cooperation between regional, statewide, and local efforts in anticipation of defense procurement reductions. Specific deliverables for the project include: • A database and reports that illustrate weaknesses within the defense company ecosystem with recommendations on how to focus the efforts described in the other tasks. • Creation of a fully operational DRA program and model for ongoing sustainability of services. • An innovation strategy that will guide future actions and investments related to defense technology innovation. The strategy will be summarized in the form of a PowerPoint presentation and a more detailed report will be available as a companion piece. • A set of design, engineering, and innovation curriculum for use by Rhode Island and regional stakeholders that can also be made available to defense manufacturers throughout the country. • Development and publication (via web) of a directory of all equipment that is available for use by defense contractors. • The development of a short and long-range space usage plan. THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT13 Resources.Leverage Assets. Share Best Practices. Project Profile: Vermont contracts. The funds from this grant will be used to enhance the capacity of Vermont, and its businesses, workers, industries, and communities to respond to defense-related downsizing activities. Under the grant, the Vermont Agency of Commerce & Community Development has designed a program to: • Assess the impact of the defense industry in Vermont, which will help to determine where to deploy resources for new initiatives, identify at-risk companies and also bring other economic development partners into the strategy. Point of Contact: Kiersten Bourgeios, Senior Project Manager, Vermont Agency of Commerce & Community Development 802-793-4899; [email protected] Regional Background In 2013, Vermont defense companies provided $400 million in goods and services to the defense sector. Almost all of these purchases were for manufactured goods supporting approximately 3,000 Vermont workers. These purchases represent more than 4 percent of the manufacturing sector in the state and a similar percentage of the manufacturing workforce. Vermont has been reliant on defense spending, and has struggled to find and pursue new opportunities that can continue to enhance and cultivate its regional economy. Yet, with defense spending decreasing in the state, there have been widespread plant closures and layoffs and now timing is critical. Project Overview In October 2015, DoD’s Office of Economic Adjustment issued a Defense Industry Adjustment grant to the Vermont Agency of Commerce & Community Development to support new opportunities for companies throughout the state that rely on DoD 14 •Understand assets and workforce development needs by developing an analysis of the state workforce and a plan for identifying skills development and training needs. This includes developing training plans for companies looking to expand offerings to new industries. •Enhance business-to-business and export opportunities for defense, by leveraging Vermont’s geographic proximity to Quebec and the unique opportunities this offers for increased cross-border trade and export initiatives. Projected Outcomes As a result of this grant, the Vermont Agency of Commerce & Community Development aims to: • Engage defense companies to participate in statewide efforts for developing new market opportunities; • Enhance employment through this initiative by 5-10 percent; • Increase sales created or retained for participating companies by 5 percent. THE REGIONAL AEROSPACE & DEFENSE EXCHANGE (RADE] 2016 NEW ENGLAND DEFENSE SUMMIT The New England Aerospace & Defense Cluster RADE is creating an organizational infrastructure for the New England defense industry to gain a better understanding of the sector and the consequences of Department of Defense spending decisions. This cluster will support the creation of a thriving, robust regional aerospace and defense community, informed by accurate and timely data collection and analysis, dissemination of resources, and establishment of best practice models. The community is founded on regional collaboration among key partners in government, academia and the private sector, and effective communication among stakeholders including employers, colleges, and workers. This network of state partners will work together to develop consensus on the strategic and tactical actions necessary to maintain and grow the aerospace and defense industry in the region. RADE activities will focus on connecting large and small firms, regional economic organizations, investors, government entities, businesses and university researchers to navigate funding, procurement and supply chain opportunities, and capitalize on shared strengths. rade-commons.org The RADE Industry Commons The RADE Commons is a web-based portal designed to facilitate collaboration by providing a critical community resource for sharing information, technologies, and workforce resources to enhance productivity and build a foundation for regional economic growth. To grow the aerospace and defense sector in the New England region, research and development, engineering, and manufacturing capabilities must collectively join forces to sustain innovation. An innovation infrastructure like a “Virtual Industrial Commons” has the ability to enhance regional productivity through sharing of information, technologies, and workforce resources. The concept of “The Commons” harkens back to New England’s history as shared town lands provided a benefit to the entire community. Industrial Commons takes this concept further by establishing a common gathering place that fosters collaboration and supports the sharing of knowledge and capabilities within a sector or region. In the same way, The RADE Industry Commons does not belong to any one person, group or entity, but has been established as a benefit to be shared by all in our aerospace and defense community. It functions as a virtual presence to facilitate networking and communication for the New England aerospace and defense sector, providing a critical resource that will build a foundation for regional economic growth. The Commons is a repository for resources and tools and serves as a platform for regional collaboration among partners and stakeholders across the states. In addition, it will act as an access point for the Economic Modeling Platform as well as those applications being developed by OEA partner states. Words here. Words here.
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