Military Economy in North Carolina

1. Military Economy in North Carolina Presented by the North Carolina Military Business Center to North Carolina Military Affairs Commission September 10, 2013

2. Agenda • Military presence and military impact • Defense business in North Carolina • Business support structure • Grow the military economy! • Questions 10 SEP 2013

3. Military Presence • 3rd highest active duty military presence in US • 6 major installations (5 DoD/1 DHS) • 116 NC National Guard facilities statewide • 40 Army Reserve facilities statewide • 139,000 active, Guard and Reserve personnel • 18,000 annual transitions 10 SEP 2013

4. Military Presence 10 SEP 2013

5. Fort Bragg • Largest Army base by population • Workforce: over 80,000 • Commands: • US Army Forces Command (FORSCOM) • US Army Reserve Command (USARC) • US Army Special Operations Command (USASOC) • Joint Special Operations Command (JSOC) • XVIII Airborne Corps, 82d Airborne Division • 440th Airlift Wing/43rd Airlift Group (Pope AAF) Data: Fort Bragg Data Sheet, FY2012 10 SEP 2013

6. Camp Lejeune, MCAS New River • Workforce: over 59,000 • Commands: • II Marine Expeditionary Force • 2nd Marine Division • Marine Corps Installations East • Marine Corps Forces Special Operations CMD • Marine Aircraft Groups 26 and 29 Data: MCIEast Economic Impact Report, FY2011 10 SEP 2013

7. MCAS Cherry Point • Workforce: over 14,000 • Commands: • 2nd Marine Aircraft Wing • Fleet Readiness Center East (FRC East) • FRC East • Major aircraft depot maintenance facility • Largest civilian employer east of I-95 Data: MCIEast Economic Impact Report, FY2011 10 SEP 2013

8. Seymour Johnson AFB • Workforce: over 7,200 • Commands: • 4th Fighter Wing (94 F-15E) • 916th Air Refueling Wing (16 KC-135R) • Air Force “Home” for F-15E Strike Eagle Data: Seymour Johnson Economic Impact Statement, FY 2012 10 SEP 2013

9. US Coast Guard • USCG Base Elizabeth City • Aviation Logistics Center • Center for all depot maintenance of USCG aircraft • USCG Sector North Carolina (Wilmington) 10 SEP 2013

10. Military Impact • Total annual military impact, over $23.4 billion • 7% of NC State GDP (second largest sector) • Over 416,000 jobs statewide military impacted (8% of state workforce) • Military/civilian payroll: $19.2 billion* • Veteran payments: $2.4 billion* • Defense contracts: • Prime contracts: $3.43 billion • Subcontracts: additional billions • *North Carolina Military Footprint,” NC Department of Commerce, 2008 10 SEP 2013

11. Agenda • Military presence and military impact • Defense business in North Carolina • Business support structure • Grow the military economy! • Questions 10 SEP 2013

12. Procurement • Prime contracts, DoD in CONUS: $316 billion • Prime contracts, DoD in North Carolina(83 Counties): • Prime contracts, federal in NC (100 Counties): • $5.39 billion (135k contract actions) Data: Federal Procurement Data System, FY2012 10 SEP 2013

13. Procurement, DoD DoD Prime Contracts, by County (FY2012) 10 SEP 2013

14. Procurement, DoD Top 10 Counties, DoD Prime Contracts (FY2012) 10 SEP 2013

15. Procurement, DoD DoD Prime Contracts in NC, By Type (FY2012) 10 SEP 2013

16. Procurement, DoD Top DoD Prime Contractors in NC (FY2012) 10 SEP 2013

17. Agenda • Military presence and military impact • Defense business in North Carolina • Business support structure • Grow the military economy! • Questions 10 SEP 2013

18. Support Structure, State • Develop businesses: • Small Business Centers (Community College System) • Small Business and Technology Development Center • Procurement Technical Assistance Center (SBTDC) • Business Development: • North Carolina Military Business Center (NCMBC) • Policy and Coordination: • Military Affairs Advisor, Office of the Governor • North Carolina Department of Commerce 10 SEP 2013

19. Support Structure, Non-State • Federal: • Small Business Administration (SBA), US Commerce • Local: • Chambers, economic developers • Non-Governmental Organizations: • Local: Raleigh DEFNET, Charlotte counterpart • North Carolina Defense Business Association • North Carolina Military Foundation 10 SEP 2013

20. Support Structure, Functional Opportunity Development: NCMF Strategic Operational/ Tactical Business Development (Current/Future): NCMBC Develop Businesses: NCCCS/SBC, UNC/SBTDC, Ec Dev Tactical Connectional NCDBA, Wake DEFNET, Charlotte Policy/Coord.: Military Affairs/NC Commerce Foundational 10 SEP 2013

21. Agenda • Military presence and military impact • Defense business in North Carolina • Business support structure • Grow the military economy! • Questions 10 SEP 2013

22. Challenges • Decline in defense budgets ($487 billion plus sequestration – impact on bases, businesses) • Anti-competitive acquisition environment • Market intelligence, positioning for future wins • Consolidation among defense contractors • High competition – companies surging to market (and NCMBC/other services) 10 SEP 2013

23. Opportunities • NC bases are important in DoD force structure • Federal market is still strong (high demand) • In-state, DoD and federal agencies nationwide • Small business opportunities: 23% goal • Driving prime and sub opportunities • Regulatory environment: FAR levels playing field • Transitioning military & spouse workforce • Great business capacity in NC (high supply) 10 SEP 2013

24. Opportunities • Sustaining sectors: • Construction, fac. maintenance, services, energy • Emerging/growing sectors: 10 SEP 2013

25. Strategies • Sustain current infrastructure and bases • Sustain world-class business support structure • Engage public statewide on importance of military • Reinforce relationship w/Congressional delegation • Support legislation that sustains training areas, enhances QOL, strengthens base partnerships • Establish best environment for bases to sustain mission readiness – aggressively defend in BRAC and leverage relationship to BuyNC! 10 SEP 2013

26. Strategies • Grow businesses in the federal market • Develop statewide database of existing businesses • Engage businesses statewide in federal market • Support initiatives in key technology sectors (UAS) • Support export and on-shoring initiatives • Leverage tech transition and other opportunities 10 SEP 2013

27. Strategies • Grow businesses in the federal market • Leverage untapped federal buying sources • Expand ties with major in/out-of-state primes • Build relations with “big money” commands in US • Develop market intelligence on emerging contract opportunities in targeted sectors • Resource business support structure to execute above 10 SEP 2013

28. Strategies • Transition infrastructure for future growth • Create and sustain the best business climate • Establish “Defense” as an industry – and resource it • Create tax structure to grow defense industry • Target and enhance defense industry recruitment and development of NC businesses 10 SEP 2013

29. Agenda • Military presence and military impact • Defense business in North Carolina • Business support structure • Grow the military economy • Questions (and transition to Commerce) 10 SEP 2013

30. Contact Information, NCMBC • Scott Dorney, Executive Director, 910-678-0190, dorneys@ncmbc.us • Courtney Smedick, Integrated Marketing and Government Relations, 910-678-0193, smedickc@ncmbc.us 10 SEP 2013