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Program assisting defense manufacturers delivers strong ROI

November 29, 2018

Faced with one of the largest drawdowns in defense spending in American history, the Defense Manufacturing Assistance Program (DMAP) targeted affected companies and communities across Michigan, Ohio and Indiana for assistance. The program aimed to support economic stabilization and diversification across the region during the five-year period from 2013 to 2018. After five years of projects, an evaluation of DMAP found that for every one dollar that went into the program, companies obtained an average of $18 new dollars in additional revenue.

The effort was funded primarily by the Department of Defense’s Office of Economic Adjustment and led by the University of Michigan in partnership with Ohio State and Purdue. DMAP practitioners worked with more than 300 companies over this time, which led to approximately 20,000 jobs created and retained – including 662 new jobs – and $183 million in new sales. The program also helped drive innovation in these companies, resulting in 139 new products and 26 commercialized technologies.

Manufacturers eligible for DMAP support were those that experienced at least a 5 percent decline in sales, production or employment due to decreasing defense contracts. In addition to offering advisory services, DMAP worked with companies on co-funded projects in areas such as financial management, market analysis, and other diversification projects, and partnered with outside experts as needed. DMAP also worked to leverage the IP and technology stemming from the involved research universities into these companies.

At the community level, DMAP focused on activities that helped with economic stability and growth. To be eligible for DMAP support, communities were recognized by a state agency as defense-dependent or were home to eligible defense contractors. Examples of projects included accelerator feasibility studies, supply chain leakage analyses, and workforce development programs, among others.

For more information on the DMAP program, visit: http://economicgrowth.umich.edu/dmap/

 

Indiana, Michigan, Ohiodept of defense, economic impact