Mississippi Defense Diversification Initiative2018 ARC Summit
Tupelo, MS September 13, 2018Defense Transportation Infrastructure
Session II Transportation Infrastructure and Economic Growth
Supported byUnited States Department of Defense Office of Economic Adjustment (OEA)
Promoting economic stability of defense-dependent companies and communities
Connecting
Appalachia to Global
Defense Markets
Global Defense spending highest since Cold War with $1.74 trillion
$143b in US Defense exports with 26% increase in last 5 years
Leverage Network Appalachia to increase Economic Growth through increased exports
Agenda
1. Overview of the Mississippi Defense Economy
2. The Defense Economy in Appalachia Mississippi
3. Governor’s Defense Initiative Task Force
4. Defense Infrastructure Opportunities 1. Military Bases2. Strategic Ports
Appalachian States Making Defense Sector more Resilient
Defense Spending is Large Part of State Economy• $5.2b in DoD spending
• 4.9% of State GDP
• 37,006 personnel
• Over 3,000 direct and supply chain companies in the state
• Two defense labs
• $26m DoD funded University Research
Inventoried Mississippi-Based Defense Contractors. DoD contract dollars
have been declining since peaking in 2012.
6
• Initial list of over 3,100 defense contractors back to 2008. o Removed service and
non-tech companies
o Around defense tech 200 companies
Top Defense Industry Sectors
Aerospace
National Security
Blue Economy
Defense Contracts in Mississippi ARC Region
0
500
1000
1500
2000
2500
2012 2013 2014 2015 2016 2017
In M
illio
ns
DoD Spending in MS ARC Counties
Source: USASpending.gov
Avg $650m per year
Avg 10% of State
Major Defense Contractors in Region
Columbus AFB
Military Bases as Important Economic Development Infrastructure
1-Build a network of companies and communities interested in diversifying into new markets and creating defense base resilience.
2-Support technology acceleration and innovation spinouts into commercial applications at universities, defense labs, and companies.
3-Incorporate defense diversification/resilience into business assistance network
4-Add new academic courses focused on defense-related economic development.
5. Collaborate with Ole Miss (mfg workforce) and MSU (cybersecurity & aerospace)
6. Assist the State of MS in writing a pro-defense, pro-business comprehensive plan: The Mississippi Defense Initiative
USM’s OEA Mission
Develop a strategy to protect, grow, and diversify defense and national security as an economic driver for Mississippi.
Governor's Defense Initiative Task Force
Subcommittees:1. Defense Industry & Workforce2. Defense Technology & Innovation3. Military Bases & Infrastructure
Can We Create Innovative Public Private Partnerships (P3) with our Military Bases?
Growing trend• Energy (e.g., solar farms)• Cyber Security • Intergovernmental support agreements
(IGSAs) • Training facilities access• Access to infrastructure (e.g., rail) • Joint economic development efforts
Proposed I-14 Linking “Forts to Ports”
Can Appalachia Leverage Strategic Ports?
Source: DEFENSE LOGISTICS: The Department of Defense's Report on Strategic Seaports Addressed All Congressionally Directed ElementsGAO-13-511R: Published: May 13, 2013.
Gulfport Strategic Port Designation in 2015
Mobilizations and demobilizations
of military within 400 miles
Also certain foreign military sales
(FMS) must be handled by the port
http://www.bizneworleans.com/Biz-The-Magazine/November-2014/Oh-Yes-We-Have-Some-Bananas/155th first Army unit to use Port of Gulfport
Source: NAVAIR
Defense Importer & Exporter
NAVISTAR (formerly International Harvester)
West Point, Miss
40 armored vehicles for
Pakistan
upgrade 1,085 armored
vehicles for the UAEwww.armyrecognition.com/international_maxxpro_variants_mrap_vehicle_uk/international_maxxpro_navistar_mrap_mine_protected_vehicle_data_sheet_specifications_information_uk.html
MRAP armored vehicles
Shipping Routes for MS Defense Exports
Gulf East Coast Ports for MS Defense Exports
Chad R. Miller Ph.D. Professor of Economic DevelopmentCollege of Business & Economic DevelopmentTel: [email protected]
Shannon Campbell Ph.D.DirectorTrent Lott National Center for Economic Development and EntrepreneurshipTel: [email protected]
Haimes (Andy) Kilgore LTC(R), MBAProgram Director,Mississippi Defense Diversification InitiativeTrent Lott National Center Office: [email protected]
MDDI Contacts:
How can we expand opportunities from the defense economy in Appalachia?
