Insight on Business

February 2014

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42 | I nsIgh t • F e b r u a r y 2 0 14 w w w . i n s i g h t o n b u s i n e s s . c o m Help for hard-hit industries Federal grant worth $837K aids New North regional businesses affected by defense spending cuts B y M a r y B e t h M a t z e k I t's no secret Oshkosh Corp. was hit hard in the past year as the U.s. Department of Defense curtailed its spending aer a decade of supporting two wars. Last spring, the manufacturer laid off about 900 people in Oshkosh. Area companies that help Oshkosh fill all those orders also are feeling the pain. But help is on the way for the dozens of Fox Valley companies that make up Oshkosh Corp.'s massive supply chain. e region recently received a grant of $837,316 from the Department of Defense's Office of Economic Adjustment to help businesses affected by the decline in military spending. e grant, which is being administered by the East Central Regional Planning Commission, will help companies in Calumet, Fond du Lac, Outagamie, Waupaca and Winnebago counties that work with the Department of Defense to diversify and find new business opportunities, says Eric Fowle, executive director of the East Central Wisconsin Regional Planning Commission. e commission wrote the grant with assistance and support from the Wisconsin Economic Development Corp. Defense spending cuts cost an estimated 1,437 jobs in the Oshkosh- neenah Metropolitan statistical Area, according to the grant proposal. at equates to $91 million in lost earnings. "is is about helping companies affected by defense spending cuts to look at other opportunities and industries that are available," Fowle says. "We have an opportunity here to put this part of Wisconsin on the map in regards to advance manufacturing, thanks to our skilled workforce. ere's a lot of planning and work that's going to happen in the next 16 months." In fiscal 2013, state companies, led by Oshkosh Corp. and Marinette Marine, did $3.4 billion in federal business, down from $3.98 billion in fiscal 2012, according to the Wisconsin Procurement Institute. Both those numbers are down considerably from 2011, when Wisconsin companies did $7.2 billion worth of business with the U.s. government. ose higher numbers were tied to Oshkosh Corp.'s incredible growth in the late 2000s as it filled orders for the U.s. Department of Defense, which was supporting wars in Iraq and Afghanistan. As the war ended in Iraq and troops began to come home from Afghanistan, the need for the equipment produced by Oshkosh Corp. decreased. e East Central Regional Planning Commission is working with a host of partners and mapped out four key goals they want to achieve in the next 16 months: » Align current economic development plans and update them with diversification strategies. » Promote growth of new and existing businesses in targeted industries through workforce and supply chain initiatives. » Map defense industry supply chains and provide technical assistance to suppliers. » Identify emerging aerospace industry opportunities for the region. USS FREEDOM: The first Littoral Combat Ship built for the U.S. Navy at Marinette Marine, pictured above, has interceded in numerous drug smuggling operations. C O U R T E S Y O F L O C K H E E D M A R T I N

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