a.bowman.jcci.1.26.2011

The Navy and Northeast Florida

JCCI

26 Jan 2011

aabowman34@comcast.net

Today’s Discussion Topics

• Current NE Florida Navy plans and Issues

• Address questions provided by JCCI

– What is current economic impact and expectations for growth

and decline?

– How does Navy impact Economic Effectiveness of NE Florida?

– Why is NE Florida attractive market for Vets? What could be

done to leverage veteran workforce?

– Is NE Florida maximizing its potential for attracting military and

defense contractors in the area?

• Question and Answers

Navy Presence will Remain Strong in NE Florida

Status

• NAS Jacksonville (stable to possible slight growth)– P-8 Aircraft

– Helo Realignment

– Broad Area Maritime Surveillance (BAMS)

– Hospital Expansion

• NS Mayport (Yoyo, see next slide)

– Losses

• JFK

• Frigates decommissioning

• Helo Realignment

– Plusses

• Fourth Fleet

• CVN?

• LCS?

• BAMS?

Mayport Manning

Does not include Civilian labor force, Contractors, or Dependents

What is current economic impact and expectations for

growth and decline?

How does Navy impact Economic Effectiveness of NE

Florida?

• Annual Defense Spending in region– ~$4.5B per year (Does not account for visitors, construction,

contracts, etc.)

• Military Construction possibilities/realities (>$1B):– CVN ~$500M

– LCS facilities

– BAMS

– Underwater Range

– Gymnasium

– Pier upgrades and repair

– Housing

• Ship Repair Decline likely

• Fleet Readiness Center (slight growth)

• Navy concern with Economic Livelihood of NE Florida?

Why is NE Florida attractive market for

Vets? What could be done to leverage

veteran workforce?

• Cost of Living

• Taxes

• Weather

• Support Structure (Medical, Exchange, Commissary)

• Friendliness of community towards military

• Large percentage of retired military are doing work supporting the military bases-----that needs to change

Is NE Florida maximizing its potential for

attracting military and defense contractors

in the area?

• Nearly all retirees to NE Florida are people who have had duty in the area– Speaks well of satisfaction with NE Florida

– Speaks poorly that we are not drawing in vets who are still in the workforce

• Defense Contractor presence is very small in relation to other defense hubs (Norfolk, Washington DC, San Diego, Los Angeles, Orlando, etc)– Orlando Defense contracts 2000-2009> $24B

– Unlimited opportunity to increase defense contractors in area

– Cecil Field is a good starting point

Summary

• Navy presence will continue to be strong in

NE Florida

• Expect continued budget pressures across

DoD for many years

• Navy looking at ways to reduce force

– 65% of budget goes to payroll of active duty and

retirees

– Perform to Serve (PTS)

– Chief Continuation Boards

– Captain and Commander Continuation Boards

Questions?

Backups

• CVN Homeporting

• UnderSea Warfare Training Range (USWTR)

• Littoral Combat Ship (LCS)

• Broad Area Maritime Surveillance (BAMS)

Dredging

Massey Ave

Corridor Road

Improvements

Controlled

Industrial

Facility

Wharf F

Improvements

Maintenance

Support Facility

Ship

Maintenance

Facility

Parking

Garage

• Dredging (Funded in FY10)

• Foxtrot Wharf Improvements

• Controlled Industrial Facility

• Ship Maintenance and

Maintenance Support Facilities

• Parking Garage

• Road Improvements

CVN Homeporting Project

USWTR

~500 Square Nautical Miles, about 50 miles offshore

LCS

USS Freedom

LCS-1

Lockheed Martin

USS Independence

LCS-2

General Dynamics

BAMS

Northrop Grumman