Method for Estimating Local Impacts of Cuts in Defense Spending Annex H toAdjusting to the Drawdown Report of the Defense Conversion Commission

摘要

Between 1987 and 1997, under current plans, the Department of Defense (DoD)drawdown is reducing the number of DoD personnel employed throughout the United States by approximately 200,000 civilian workers and 600,000 active military workers. Concurrently, reduced DoD contracting activity will curtail employment in the defense-related industries. The impact of the drawdown at the aggregate national level is expected to be small relative to economic growth. The Logistics Management Institute (LMI) has developed a methodology for estimating the current economic significance of DoD activities to local economies in order to identify communities and metropolitan areas potentially vulnerable to anticipated drawdowns. The methodology estimates only vulnerability of areas and not the impact of potential reductions.