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Defense Industry Adjustment (DIA)

Success Stories

Long Island, New York

Long Island Map

Overview:

In the 1990s, Long Island, New York, saw a significant decrease in defense industry activity from its peak of $4 billion.

OEA Support:

OEA awarded a planning grant to the State of New York to help Long Island address the needed economic diversification and worked with educational, research, and high-tech institutions to develop business.

Overview

In the 1990s, more than 40 percent of Long Island’s manufacturing work was dependent on defense spending. From 1987 to 1991, Defense Prime Contract Awards over $25,000 dropped by 26 percent, and future defense cutbacks threatened more jobs. The projected cuts in the defense budget at the time were estimated to cause New York State an additional 56,000 defense-related jobs, adding to the 45,000 jobs lost since 1986.

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St Louis and McDonnell Douglas Corporation

St. Louis McDonnel Ariel View

Overview:

In St. Louis, Missouri, McDonnell Douglas had a large presence, employing more than 40,000 employees. Within a six-month period, close to 10,000 employees were laid off.

OEA Support:

An OEA-funded planning effort identified the impacts of the downsizing and helped the community develop a strategy for community response.

Overview

The McDonnell Douglas Corporation, now The Boeing Company, is one of the largest aerospace manufacturers and defense contractors in the United States.

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