Ohio State to share in $8M project to reverse effects of defense downsizing

Michigan, Ohio and Indiana have lost more than 6,800 defense supply-chain positions in recent years—cuts spurred largely by the ending of two foreign wars and the current federal fiscal environment. 

Based on a successful pilot project, the U.S. Department of Defense's Office of Economic Adjustment has awarded $8 million to the University of Michigan's Institute for Research on Labor, Employment and the Economy and its partners, The Ohio State University and Purdue University, to assist communities and companies impacted by these job losses.

"When communities are faced with the type of sudden and severe economic dislocation that can result from a defense plant closure or a mass layoff, it is necessary, but often difficult to create an effective community response," said Lawrence Molnar, IRLEE associate director and the project's principal investigator. "Our community-based scope of work combines assistance from both the public and private sectors in communities and regions experiencing or anticipating adverse impacts of defense downsizing."

Since 2014, University of Michigan has operated the Defense Manufacturing Assistance Program in partnership with Ohio State and Purdue. The new funding, of which Ohio State will receive $2.24 million, will allow DMAP to increase collaborations with regional defense industry research institutions in order to ensure defense supply chain readiness. A two-year project will generate diversification plans for 72 communities and companies across the region to be more resilient and attract new business, while retaining and growing existing enterprises.

"The DMAP program helps fulfill our land grant mission with many companies and communities positively impacted," said Caroline Whitacre, Ohio State senior vice president for research. "We are helping 30 companies and 6 communities in this phase of the project and will support more than 4,500 employees and help retain $2.4 billion in sales statewide through the DMAP grant."

With each company and community, DMAP assesses many factors, including their financial health and market placement. DMAP then works with each company and community to implement diversification plans, which are jointly fund by all parties.

The DMAP team from Ohio State worked with UES, a small Dayton, Ohio-based manufacturing company, to diversify its technical product. With DMAP assistance, UES conducted primary market research, which helped the company identify a source of new customers beyond the defense industry.

"DMAP provided the impetus to go back and engage with our customers," said Veeraraghavan Sundar of UES.

The Purdue DMAP team helped Wirth Machine secure special certification, which created new market opportunities for the Evansville, Ind.-based custom machining company.

The U-M DMAP team worked with Assem-Tech, a Michigan-based contractor that provides engineering, manufacturing and integrated assembly services. The U-M team conducted market research, managed a website redesign and helped Assem-Tech secure aerospace quality certification.

Today, Assem-Tech is growing and they expect their custom enclosure, wire harness and circuit board sales to more than double from 2014 to 2017.

The Department of Defense's Office of Economic Adjustment, under the Defense Industry Adjustment Program, funds DMAP. More information about the DMAP program is available at http://defensemap.org.
 

from Ohio Manufacturing Institute and University of Michigan sources