Michigan could dodge defense cuts

Michigan is home to the tenth largest defense economy in the U.S. // Source: fitzpatrickmfgco.com

With Congress seeking to make potential cuts in defense spending and contractors bracing for reductions across the country, Michigan’s $385 billion defense industrial base remains optimistic as it could get by unscathed.

Key lawmakers say the types of services that Michigan’s defense industry provides could keep it from becoming the target of the newly formed Joint Selection Committee on Deficit Reduction.

Senator Carl Levin (D – Michigan), the chair of the Senate Armed Services Committee, explained that U.S. bases abroad would be the first to see budget cuts, while the research and development of weapons and other equipment for the post-Afghanistan War military would be the last to see cuts.

Michigan primarily specializes in research and development, and two of the Army’s key research and development arms, TACOM and TARDEC, are located in the state, making it an unlikely target for potential spending cuts.

Representative Candice Miller (R – Michigan) echoed Levin’s sentiments, stating, “There’s always going to be a percent of the budget spent on defense and homeland security.”

“It’s not as though border security is going to go away. If anything, we are going to continue to ratchet it up,” she added.

Michigan is home to the tenth largest defense contracting industry in the United States, and the defense and homeland security sectors are one of the few growing areas in the state’s economy.

Macomb County alone has more than 500 defense related companies including giants like General Dynamics and BAE that employ an estimated 20,000 people. The county is expecting 1,100 more jobs to be added by the end the year.

Mark Vanderpool, the city manager of Sterling Heights, said TACOM recently moved thousands of jobs from Illinois to Michigan and BAE brought jobs to the state that were previously in California and Minnesota.

“That’s significant to the local economy because just like the automotive sector, they buy homes, they buy cars,” Vanderpool said.

The latest increase in jobs comes as part of the Army’s efforts to develop a new ground combat vehicle, which it will do regardless of budget cuts.

“The focus is going to be on a new ground combat vehicle with new technologies on it, and that’s where our great strength is,” Senator Levin said.

General Dynamics and BAE are expected to be major competitors for the contract, and even if they do not win the bid they will likely receive subcontract work to help develop the next generation of vehicles.

“We’re going to have a couple of good competitors in that effort, and the parts suppliers will be involved as well,” Levin said.

In addition, Senator Levin said that there will also be an emphasis on creating new technologies for increased energy efficiency for everything from military vehicles to facilities.

TARDEC recently opened a major new battery testing and energy facility in Macomb County, and the Pentagon recently struck a partnership with the Department of Energy to help improve vehicle fuel efficiency.

Michigan is also situated to avoid any deep cuts to its homeland security operations as the Selfridge Air National Guard Base, which oversees security operations along the U.S.– Canada border, is located within the state.

In March, the National Guard base became home to an Operational Integration Center to coordinate data from the various agencies involved in border and security operations and Representative Miller is seeking to have an unmanned aerial vehicle based out of Selfridge.