to top

FY 2015 Defense Spending By State report now available for download.

Ohio Defense Industry Adjustment Project


Regional Background

Defense contracts in Ohio totaled $10.3 billion in 2009, which is more than 2.2 percent of the Gross State Product. Using DoD and Census sources, an independent analysis of exposure to defense procurement reductions was conducted by the Office of Economic Adjustment (OEA) in 2012. This analysis revealed two concentrations in Ohio likely to be impacted by defense procurement reductions from Fiscal Year 2013 on. These impending reductions along with the likelihood of continued DoD budget cuts, reinforced Ohio’s need to understand the exact extent of its dependence on DoD expenditures. Additionally, Ohio needs to gather and analyze industry information to develop plans to mitigate economic risks by developing alternate markets for defense-related contractors.

Project Overview

In 2014, DoD’s Office of Economic Adjustment awarded a Defense Industry Adjustment grant to the Ohio Development Services Agency to assist in completing an economic analysis designed to plan
for and mitigate risks associated with a reduction in defense spending. Under the grant Ohio will:

  • Complete a defense contractor’s supply chain analysis.
  • Organize an effective response to anticipated reductions in DoD expenditures (at both state and regional levels).
  • Develop courses of action and detailed plans to respond to the risk imposed by over-reliance on defense expenditures.
  • Implement recommendations developed from the detailed planning process.

Projected Outcomes

Ohio expects the results of this economic analysis to drive efforts at the state and local levels to respond to DoD budget reductions. An extensive supply chain analysis will be mapped and displayed to the county level via a web-based portal. The map will be available both on the web and through mobile apps. Building off the economic analysis, local and regional economic development officials will be trained to use this economic modeling tool to better assist regions in developing action and response plans. Using this data, business and counseling services will be specifically tailored for Ohio defense contracting firms impacted by defense budget cuts as well as specialized programs to address workforce training and job placement for dislocated defense workers.