July 2013 Newsletter: Executive-in-Residence News: Michigan defense-based business planning

How do current and future defense spending plans relate to the local Michigan economy and your business in particular? As there is a vast amount of information on defense plans for current and future spending, it is essential to know your customer’s needs and willingness to fund purchases. The primary local Michigan potential defense customers include TACOM, TARDEC, DLA, Defense Prime Contractors and next tier companies. As in all of business, the key is networking before knowledge. For example, websites state the potential contracting needs, but proper networking places a business in a position to receive recognition and allowable insight.

TACOM Life Cycle Management stated through the Michigan County FY 12 Contract Rankings that Macomb County was the most active, with $2,174 million contract dollars awarded to 51 contractors. Please note that though TACOM is the prime interest area, there are many business opportunities as well with the sub-tier companies that support the company of primary award.

The Michigan Economic Development Corporation provides a “needs” list, with the opportunity to match a company’s products and talents with the needs of companies and Department of Defense (DoD) representatives. In addition, despite sequestration, cyber-security funding is growing, with the DoD intending to spend $23 billion on cyber security over the next five years and is seeking more than $4.6 billion for cyber security in fiscal year 2014 alone, according to John Slye, Advisory Research Analyst for Deltek’s GovWin Consulting.

Jim Ruma is a Macomb OU-INCubator Executive-in-Residence and assists businesses in the defense sector, especially in the development of technology, engineering, manufacturing and sustainment. Jim spent 42 years with General Dynamics Land Systems, where he most recently served as Vice President of Engineering Programs and Project Management. He currently serves on the Board of Directors for the National Defense Industrial Association Michigan chapter. Jim can be contacted at the Macomb-OU INCubator at (586) 884-9320.