Sunday, March 7, 2021
Hawai'i Free Press

Current Articles | Archives

Wednesday, January 13, 2021
DBEDT: Hawaii Defense Spending Outlook Report
By News Release @ 1:59 AM :: 895 Views :: Economy, Hawaii Statistics, Military

NEW DBEDT REPORT PROVIDES ECONOMIC INSIGHT & OUTLOOK FOR HAWAII’S DEFENSE SECTOR

SWOT Analysis and Action Plan Identify Challenges and Opportunities for Economic Growth

News Release from DBEDT, Jan 11, 2021

HONOLULU – The State of Hawai‘i’s Department of Business, Economic Development and Tourism (DBEDT) has released its Hawaii Defense Economy (HDE) Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis Report and Action Plan, which identifies the strengths, weaknesses, opportunities and threats to Hawai‘i’s defense sector, as well as proposes strategic initiatives to expand opportunities for more local businesses and contractors to engage in, and benefit from military contract spending.

“Hawai‘i’s military defense sector continues to remain strong and is helping to stabilize our economy during this pandemic,” said Mike McCartney, director of DBEDT. “As the second largest sector of the State’s economy, military procurement spending has generated $4.5 billion in economic impact this year, with $2.3 billion in federal contracts throughout the state, helping to sustain more than 30,000 jobs statewide. Our Hawaii Defense Economy project SWOT Analysis Report and Action Plan allows us to identify and determine initiatives that will help us to diversify and strengthen our state’s economic resiliency, which is now more important than ever.”

Major highlights from DBEDT’s HDE SWOT Analysis Report include:

Strengths & Opportunities

Financial Health (overall financial performance) and Defense Market Outlook (market growth potential) received the highest survey ratings, indicating that Hawai‘i’s defense market has been, and is expected to continue to be financially rewarding with more opportunities in the future.

Weaknesses & Threats

Market Flexibility received the lowest rating indicating difficulty for defense firms to serve both public and private (commercial) markets, with an exception to construction, which appeared to be more resilient in its ability to serve both defense and private sectors.

DoD Dependency ranked relatively high (46% among all respondents), indicating a potential threat should there be a downturn in defense spending in Hawai‘i.

Business Climate (of the defense market) and Labor Market (skilled labor availability) were considered significant challenges and threats, especially in the professional services sector, like IT services and cybersecurity, ship building and repair, and program/project management across many industries.

Focus Areas

The following were identified as sectors with the greatest potential for sustaining Hawai‘i’s defense industry and building economic resiliency. All areas have experienced growth in military contract awards over the past five years.

IT Services & Cybersecurity is an important industry sector given the: size of annual defense spending ($128 million in 2020 contracting awards and $240 million in economic impact); high growth rate (+32% in terms projected from 2018-2028); relatively high-paying occupations; and DoD mandates for cybersecurity.

Engineering Services receives large annual defense spending ($293 million in 2020 contracting awards and $569 million in economic impact), offers high paying occupations within the state, and opportunities beyond missile defense, including system repair, maintenance and facility construction.

Ship Building/Repairing plays a vital role in supporting Pearl Harbor Naval Shipyard (PHNSY) – the nation’s largest most comprehensive fleet repair and maintenance facility between the U.S. West Coast and Asia, and the state’s largest industrial employer – and provides the opportunity for local workers to work in high paying trade and technical fields and pursue additional career opportunities.

The SWOT analysis survey was deployed to 507 military prime and subcontractors in Hawai‘i. Responses were gathered online from February through April 2020. DBEDT received 107 responses (21% response rate) from a wide range of industries, including small businesses (89%), service providers (84%), DoD business contractors for 10+ years (77%) and prime contractors (65%). For detailed survey results, and to view the full SWOT analysis report, visit here.

Utilizing data from the SWOT Analysis Report, HDE website and additional stakeholder surveys, a comprehensive Action Plan was developed to propose and guide strategic areas of focus for a potential Phase III of the HDE project. The main initiatives proposed in the Action Plan include:

HDE DoD Industry Alliance: Establishing a Hawai‘i-focused DoD industry-specific organization to identify current and future industry challenges and develop solutions and actionable initiatives that may include, but not be limited to: workforce/curriculum development; small business mentorship and support; and regulatory/legislative advocacy to improve the business climate of the defense sector.

Cybersecurity Compliance Support: Partner with the State’s NIST Manufacturing Extension Partnership (MEP) National Network Center, INNOVATE Hawaii, to provide outreach, support and technical assistance to Hawai‘i-based DoD contractors and small businesses to ensure they meet new cybersecurity mandates required to do business with the DoD.

The DoD Office of Local Defense Community Cooperation (LDCC) has funded the previous Phase I and current Phase II of the Hawaii Defense Economy (HDE) project as part of its mission to support the readiness and resiliency of states and communities invested in the defense mission. DBEDT is currently in the process of applying for an OEA grant to support a Phase III of the project to implement proposed initiatives and select deliverables based on the Action Plan recommendations. To access the Action Plan, visit the HDE project website or click here.

For more information about DBEDT’s HDE project, and to access data and information about Hawai‘i’s military defense sector, visit http://defenseeconomy.hawaii.gov/.

# # #

About Hawaii Defense Economy

The Hawaii Defense Economy project is developed by the State of Hawai‘i through the Department of Business, Economic Development and Tourism (DBEDT) with the support from the U.S. Department of Defense (DoD) – Office of Local Defense Community Cooperation. The project uses data from DoD contracts and grants awarded to the state of Hawai‘i to better understand the defense industry supply chain and improve the state’s response to future changes in military requirements and spending levels.

About the Department of Business, Economic Development & Tourism (DBEDT)

DBEDT is Hawai‘i’s resource center for economic and statistical data, business development opportunities, energy and conservation information, and foreign trade advantages. DBEDT’s mission is to achieve a Hawai‘i economy that embraces innovation and is globally competitive, dynamic and productive, providing opportunities for all Hawai‘i’s citizens. Through its attached agencies, the department fosters planned community development, creates affordable workforce housing units in high-quality living environments, and promotes innovation sector job growth.

KITV: Effort to expand local share of Hawaii's military spending

PBN: Hawaii defense report includes action plan to boost military spending

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Life Alliance

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT