We continue to hear of the economic impact that the reduction of Department of Defense spending has in Virginia. The country’s recession could have been worse on the Hampton Roads region if it had not been for DoD spending. In 2014, DoD spending will barely exceed the region’s 2011 level and be below the 2012 level. This year, it’s expected that 42.2% of our regional economic activity will be directly or indirectly attributable to DoD spending.
Dr. Christine Chmura, Chmura Economics & Analytics, and Dr. Stephen Fuller, George Mason University, demonstrated the Virginia Department of Defense (DoD) Procurement Economic Impact Evaluation Model to the Virginia Deputy Secretary of Veterans and Defense Affairs and other public officials. The evaluation model is made up of a supply-chain mapping of DoD contract awards, including sales and employment impacts from product service codes to industries and occupations. The model, available at www.chmuraecon.com/DoDimpact, is designed to provide clear and meaningful state, county, and metropolitan statistical area (MSA) level details about the current and projected economic impacts of DoD contract spending.
The Virginia DoD Procurement Economic Impact Evaluation Model was developed by Chmura Economics & Analytics under the direction of the George Mason University Center for Regional Analysis. Community and economic development leaders can use insights from the model to:
- Focus economic development resources on at-risk industries and occupations.
- Direct business retention efforts to firms likely to be affected by changes in spending patterns.
- Provide valuable inputs to workforce organizations to identify or create programs to help unemployed workers.
- Tabulate impact data to support applications for federal or state assistance programs.