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 3 rd 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 440 th Airlift Wing/43 rd Airlift Group (Pope AAF) 10 SEP 2013 Data: Fort Bragg Data Sheet, FY2012

6. 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 10 SEP 2013 Camp Lejeune, MCAS New River Data: MCIEast Economic Impact Report, FY2011

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

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

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) 10 SEP 2013 Data: Federal Procurement Data System, FY2012

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

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

15. Procurement, DoD 10 SEP 2013 DoD Prime Contracts in NC, By Type (FY2012) Services $1,824,111,982 Supply/Equipment $402,701,511 Construction $1,187,943,041 RDT&E $10,485,144

16. Procurement, DoD 10 SEP 2013 Top DoD Prime Contractors in NC (FY2012) ContractorType Sodexo ManagementServices Whiting Turner ContractingConstruction RQ Construction, LLCConstruction M. A. Mortenson CompanyConstruction General Dynamics ATPSupply and Equipment Old North Utility ServicesConstruction, Services TCOM Limited PartnershipServices Dixon Marketing AssociatesSupply and Equipment

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

19. 10 SEP 2013 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

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

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)

23. 10 SEP 2013 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)

24. 10 SEP 2013 Opportunities Sustaining sectors: Construction, fac. maintenance, services, energy Emerging/growing sectors: Advanced materials/manufacturingMedical technologies Tactical energy solutionsCyber security Ground vehicles & roboticsBiotechnologies Aerospace & unmanned systemsHuman factors & advanced analytics

25. 10 SEP 2013 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!

26. 10 SEP 2013 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

27. 10 SEP 2013 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

28. 10 SEP 2013 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

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 dorneys@ncmbc.us Courtney Smedick, Integrated Marketing and Government Relations, 910-678-0193, smedickc@ncmbc.us smedickc@ncmbc.us 10 SEP 2013