Defense & Homeland Security Cluster Initiative

1. Defense & Homeland Security Cluster Initiative Project Update for the BRAC RTF Executive Committee 4/16/09

2. The TDA Team

3. Purpose of the Project • Key objective is to assist in the transformation of the regional economy around Ft Bragg: • from its traditional base of textiles and agriculture TO • a more diverse and resilient economy based on support for the nation’s defense and homeland security needs. • To support this objective, the BRAC RTF needed a means of projecting the shape of this new economy so that plans could be made to promote and attract critical industries to the region. To achieve transformation, those industries linked to the changes that BRAC is bringing must be targeted and attracted to the region

4. Presentation Overview • Preliminary results • Definition and identification of targeted D&HS industries • Identification of key occupations • Military spouses as an asset • Preview of other tasks in progress • Identify regional assets • Identify regional gaps • Develop strategic plan and implementation matrix

5. Step 1: Define & ID IndustriesD&HS Industry Groups and Subgroups 120 industries are in the D&HS Industry Cluster

6. Step 1: Define & ID IndustriesJobs in D&HS Industries

7. Step 1: Define & ID IndustriesJobs in D&HS Industries

8. Step 1: Define & ID Target IndustriesFactors Considered Which industries support a D&HS cluster?

9. Step 1: ID Target IndustriesExisting Fort Bragg Contracts

10. Step 1: ID Target IndustriesExisting Fort Bragg Contracts Local Contracts > $500 thousand (2008)

11. Step 1: ID Target IndustriesFORSCOM/USARC Contracts • Twenty-one contracts valued at over $2B at FORSCOM and USARC • Two contracts are responsible for 96% of the total spend, and one contract alone accounts for 86% of the annual value of FORSCOM contracts. • $75-$80 M in annual contract spending and 750 FTEs are a reasonable assumption of what will move with FORSCOM and USARC to the new Headquarters.

12. Step 1: ID Target IndustriesEmerging Technologies of Interest • Infrastructure Technologies • Access Control • Information Security • Data Transmission and Storage • Battlefield Technologies • Radar and Unmanned Vehicles • Personal Protection • Performance Enhancement • Mobile, Ruggedized Devices • Energy

13. Step 1: ID Target IndustriesRecommended Target Industries • Manufacturing and Repair of Mobile Ruggedized Devices and Unmanned Battlefield Vehicles • Electronic and precision equipment repair and maintenance - 811200 • Navigational, measuring, electromedical, and control Instruments manufacturing – 334510 • Motor and generator manufacturing - 335312

14. Step 1: ID Target IndustriesRecommended Target Industries • Professional/Technical Services • Consulting services (Management/Technical/Process/Logistics) – 541611, 541690, 541614 • Computer systems design/Custom Computer Services (e.g. Training and simulation) -541512, 541511 • Management training - 611430 • Research and development - 541710

15. Step 1: ID Target IndustriesValue Chains • Identify private sector suppliers and markets specific to each of the “core” targeted industries. • Considers two factors: • The structure of the linkages—to whom to does the core industry buy from, and sell to, most directly, and • The strength of the linkages—from what industries does the core industry buy from, and sell to, the most.

16. Step 1: ID Target IndustriesSample Value Chain Map

17. Step 2: Occupational AnalysisTop Jobs – Professional Services

18. Step 2: Occupational AnalysisTop Jobs – Manufacturing and Repair

19. Step 3: ID Regional Assets • Human Capital • Colleges and Universities • K-12 Schools • Research and Development • Connective Organizations • Industrial Base • Physical Infrastructure • Quality of Life

20. Step 3: ID Regional AssetsActive-Duty Military Spouses • Presently there are an estimated 26,328 spouses living locally and26,920 spouses expected in 2013 • In 2008 spouses were married to the following personnel: • 3,977 officers • 766 warrants • 21,585 enlisted • In 2008 spouse labor force characteristics include: • Employed – 11,094 (16% have no college, 50% have some college, 24% have a 4-year college degree, and 10% have a graduate or professional degree) • Unemployed and seeking work – 2,218 • Not in labor force and not seeking work – 11,430 • Active-duty spouse – 1,586

21. Step 3: ID Regional AssetsDoD Civilian Spouses • Presently there are an estimated 5,748 DoD civilian spouses at Fort Bragg and Pope AFB, with an 1,842 expected to arrive in the next five years. Sixty-eight percent of the spouses are female. • Approximately 3,228 are employed with an expected 1,041 that will move into the workforce over the next five years and be employed in the area. • The following occupations are common. • For females, sales and office (34%), and management, professional, and related occupations (33%) • For males, production, transportation, and material moving occupations (24%), construction, extraction, and maintenance occupations (23%), and management, professional, and related occupations (23%).

22. Step 4 & 5: Develop Strategic Plan and Implementation Matrix GAPS

23. QUESTIONS?