Defense Industry Adjustments Implications & Strategies for
Communities By Denny Coleman President & CEO, St. Louis County
Economic Council Immediate Past Chair, International Economic
Development Council
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2012 ADC ANNUAL CONFERENCE| PAGE 3 3 The Challenge & Impact
St. Louis Defense-Driven Economy (1990) 1 in 7 jobs tied to defense
industry $4.4 billion in total wages McDonnell Douglas Largest
United States defense contractor Largest employer in region (42,000
employees) 720 prime defense contractors In less than six months
10,000 McDonnell Douglas employees displaced McDonnell, Boeing and
other direct, defense-related jobs lost (1990-1994): 25,000+ 59,000
estimated employment loss from defense downsizing in St. Louis
region
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2012 ADC ANNUAL CONFERENCE| PAGE 4 4 Response, Leadership &
Governance St. Louis Defense Adjustment Program Broad-based
involvement by private and public entities Regional focus
Action-oriented Two-tiered Steering Committee Working Committee
Inclusive Many functional sub-communities
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2012 ADC ANNUAL CONFERENCE| PAGE 5 5 St. Louis Defense
Adjustment Committee Civic Progress Defense Logistics Agency
Development Strategies East-West Gateway Coordinating Council ESCO
Essex Industries Franklin County Jefferson County Madison County
McDonnell Douglas Mo Dept of Job Development & Training Mo Dept
of Economic Development Mo Office of Employment Security St. Louis
County St. Louis Economic Conversion Project State of Illinois
State of Missouri U.S. Army Aviation & Troop Command RCGA Scott
Airforce Base Southern Illinois Leadership Council Southern
Illinois University St. Charles County St. Clair County St. Louis
City UM-Rolla UM-St. Louis Washington University Worker Re-Entry
Program
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6 2012 ADC ANNUAL CONFERENCE| PAGE 6 Financial Partners Plus
state, local and private funding Company surveys Worker surveys
Regional Economic Adjustment Plan Impact Analysis
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7 2012 ADC ANNUAL CONFERENCE| PAGE 7 Strategic Direction Worker
re-training for new skills Company re-orientation for new markets
New economic development initiatives International trade: World
Trade Center St. Louis Innovation: Critical Technology Partnership
Entrepreneurial support: finance, incubators, mentoring and
training
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8 2012 ADC ANNUAL CONFERENCE| PAGE 8 Results 12% unemployed
rate, (22% nationally) 66% retained/increased earning level 93%
re-employed in St. Louis region 10% of laid-off workers operating
their own business 75% of laid off workers re-employed 102,000 net
NEW jobs gained!
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9 2012 ADC ANNUAL CONFERENCE| PAGE 9 Lessons Learned Create
regional public-private partnerships Use win-win strategies Create
broad-based participation and support Focus on strategic versus
reactionary Utilize available federal resources OEA, EDA, DOL, NIST
Develop replicable processes with lasting economic development
benefits Celebrate and promote successes
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10 2012 ADC ANNUAL CONFERENCE| PAGE 10 Financial Analysts
Approve St. Louis County received AAA bond ratings during Defense
Adjustment Period Highest possible ranking of economic stability
Analysts recognized value of aggressive approach toward a stronger
and more diverse economy
Slide 11
11 2012 ADC ANNUAL CONFERENCE| PAGE 11 St. Louis Defense
Adjustment Program As one of the first regions to confront weapons
cutbacks and develop plans for dealing with them, the St. Louis
area is emerging as a national laboratory for the post cold-war
economy. St. Louis responded quickly with government and private
sector efforts to help laid-off workers and further the
diversification of the regions economy.