The Industry Resilience program assists communities as they respond to defense changes, specifically a cancelled contract or the failure to proceed with a previously approved weapons system. On a larger scale, since the enactment of the Budget Control Act, defense spending decreased by $119B from Fiscal Year 2012 to 2018. In many cases, these reductions in defense spending directly affect the defense manufacturing base and can also trigger assistance provided under this program.
With Industry Resilience assistance, state and local partners can help defense manufacturers develop and manufacture new product offerings, capture new investments, and develop new technologies. These efforts help modernize our military and maintain a technological edge against its adversaries.
In addition to assistance with economic adjustment and recovery, the Industry Resilience program helps communities strengthen the economic and cyber resiliency of local defense industry supply chains. In today’s globalized marketplace, the defense industrial base is a core national security asset. By supplying military forces with the best equipment, most advanced technologies, and the highest level of service, local defense suppliers are critical to the modernization and readiness of the warfighter.
Many Industry Resilience projects deal with similar issues and common local economic development challenges. Each grantee follows its own unique strategy and implementation road map, but many Industry Resilience grantees have focused their programming and investments in similar areas. These varied strategies all share a common goal – helping local defense suppliers and their surrounding regions to become more competitive and resilient.
Five common strategy areas are:
The Office of Economic Adjustment's Industry Resilience program supports a number of important objectives. Helping communities recover from major defense contract reductions and lost jobs is a primary goal. Industry Resilience projects also support critical military missions by building a more competitive and resilient defense industrial base and creating closer civilian-military partnerships. To achieve this goal, the Industry Resilience program partners with other Federal agencies as well as other Department of Defense entities focused on the defense industrial base, on an as-needed basis, and brings that insight and expertise directly into communities.
The Industry Resilience program of assistance seeks to bolster and support key military missions. The program helps communities support military missions in several ways:
The first step in developing a response is to define the problem. To begin the process, the Office of Economic Adjustment uses an Organize, Analyze, Plan, and Implement approach. This model provides useful guidelines for important steps to help local defense suppliers to build a more resilient defense industrial base.
The Industry Resilience program assists communities to plan adjustments and resiliency required by the cancellation or termination of a Department of Defense contract, the failure to proceed with an approved major weapon system program, or by a publicly announced planned major change or reduction in Department of Defense spending that would directly and adversely affect a community. Communities can use Industry Resilience resources to help respond to a local downturn or to invest in strengthening local defense industry capabilities.
Eligible recipients for the Industry Resilience program are states, counties, municipalities, tribal nations, and other political subdivisions of state, special purpose units of a state or local government, or other instrumentalities of a state or local government.
Because eligibility determinations for the Industry Resilience program require access to specialized data, communities should contact the Office of Economic Adjustment early in the process of considering a local response effort.
The relevant Catalogue of Federal Domestic Assistance listings are:
See Terms and Conditions for more information.
For more information about the Office of Economic Adjustment and the Industry Resilience program of assistance, please contact:
Program Director, Industry Resilience