70 likes | 219 Vues
Defense Industry Downsizing: Lessons from the 1990s and New Directions. Erik R. Pages EntreWorks Consulting ADC Annual Conference June 13, 2013. Our Last Defense Downsizing Experience: Lessons from the 1990s. Don’t Sweat the Big Stuff Don’t Focus on Needs of Large Contractors
E N D
Defense Industry Downsizing: Lessons from the 1990s and New Directions Erik R. Pages EntreWorks Consulting ADC Annual Conference June 13, 2013
Our Last Defense Downsizing Experience: Lessons from the 1990s • Don’t Sweat the Big Stuff • Don’t Focus on Needs of Large Contractors • Focus on the Supply Chain • Worry About the Industrial Base • Support Worker Transition • Recovery Happens! 2013 EntreWorks Consulting
What’s Different Today? • Less Painful Cuts • 2 million defense jobs lost (1985-1995) • But, Less Federal Support • 1990s: TRP ($900 million/$1.4 billion-2011)/large budgets for EDA, DOL, NIST-MEP, etc. • Defense Industry More Consolidated • Yet More Diverse • Supply Chains More Complex & Important • Different Workforce Needs • Diverse pools of workers to be affected 2013 EntreWorks Consulting
Defense Industry Transition Questions • How much mgmt. focus on affected communities, subcontractors and workers? • Squeeze affects mid-sized firms most? • Subs now account for 60-70% of contract value • Evolution to new industry structure? • Mix of large primes and small suppliers? • Defense primes as holding companies (e.g. SAIC) 2013 EntreWorks Consulting
Defense Workforce Questions • Skills Mismatch Issues • Engineers vs. Production Workers • Combination of Worker Shortages and Major Downsizing? • How will retirement wave affect transition? • 15% of defense workforce retirement-eligible • But only 1.2% took retirement in 2011 • Health of 401Ks/Pensions a factor? • Impacts on DoD Civilian Employees vs. Contractors? 2013 EntreWorks Consulting
Suggestions for Communities • Follow the BRAC Response Model • As suggested by OEA, ADC, & others • Understand Industry/Supply Chain Dynamics • Address Business Support Issues • Business Dev., Entrepreneurial Support, etc. • Invest in Workforce Transition Services • Look for new market opportunities • Supplier Scouting • Export Promotion • Reshoring 2013 EntreWorks Consulting
Thanks!! For More Information: Erik R. Pages EntreWorks Consulting 703-237-2506 Epages@entreworks.net www.entreworks.net www.entreworks.net/blog Newsletter Sign-Up: http://www.entreworks.net/Newsletter.php