South Carolina launches business support program for in-state defense firms

Partnership between DEW, Commerce to help companies diversify in face of federal defense budget cuts

COLUMBIA, SC – The State of South Carolina is launching a new program aimed at helping defense-related businesses in the state broaden into new markets and position for future success.

The South Carolina Department of Employment and Workforce (DEW) and the South Carolina Department of Commerce have partnered to launch a defense firm diversification initiative, which offers business consulting services on an application basis to firms that could be adversely impacted by U.S. Department of Defense (DOD) budget cuts.

This support program will assist defense firms in reducing their dependency on DOD procurement activity by encouraging them to diversify into other growing industries, primarily the aerospace and automotive industries. By diversifying portfolios, the goal is that South Carolina-based contractors will be impacted less by cuts in federal defense spending.

“South Carolina is proud to be called the most patriotic state in America, and taking care of our eight military installations and the businesses that serve them is important to us,” said Gov. Nikki Haley. “With these two jobs agencies collaborating, programs like this one will help make sure that defense contractors continue to operate successfully and grow jobs in our state.”

Under the program, firms in the state with DOD contracts may apply for consulting services in four areas: strategic planning, sales and marketing, lean product development and quality certifications. The South Carolina Manufacturing Extension Partnership (SCMEP), Dilks-Simone Enterprises, Inc. andkglobal (aZenetex company) have been selected as approved vendors to provide consulting services for defense firms in South Carolina.

Positioning defense firms for success is important to the state’s economic health. According to a recently released report commissioned by the South Carolina Military Base Task Force, there are more than 600 defense-contracting firms in the state. Average wages for employees involved in the defense industry are around $47,280, 21 percent higher than the state’s average income of $38,990, according to data derived from the report.

“Our defense firms play a vital role in supporting the missions of our military, but they also bring big impact to our state’s economy,” said Secretary of Commerce Bobby Hitt. “With our growing aerospace and automotive sectors, there are more and more opportunities for defense-related businesses to expand into new areas.”

DEW is administering the program with a $700,000 defense industry assistance grant from the Office of Economic Adjustment within the DOD. An eligible firm selected for the program could receive up to $75,000 in the value of services. Funds must be expended by August 31, 2015.

“South Carolina is serious about being the most military-friendly state in the nation,” said Cheryl Stanton, director of DEW. “This new partnership with the Department of Commerce will ensure that defense-focused employers are able to diversify their products and markets so they continue to thrive in the Palmetto State. Proactively working with businesses to diversify their economic opportunities is integral to creating a prosperous economic future for workers, jobseekers and businesses.”

Interested defense-related firms may access the application online. Click here to immediately download or find the application in Commerce’s publications directory. Eligible firms must first conduct an assessment that evaluates the product or service offering, the manufacturing or service process, finance, sales, marketing, and quality control. Applications will be accepted on an ongoing basis until the grant funds are fully committed.