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FY 2015 Defense Spending By State report now available for download.

Long Beach, CA


Regional Background

In April 2014, Boeing Corporation announced layoffs and plant closings due to the ending of production of the C-17 Globemaster, a large military transport aircraft. More than one-third of the 2,714 layoffs anticipated will be at the Long Beach California production facility. Additional economic impacts across the supply chain are likely to affect Long Beach and its surrounding areas. Aside from manufacturing, engineering, and project management jobs within the aerospace/defense sector, other job losses will occur in the service realm, including health care, retail trade, professional, accommodation and food services, and more.

Project Overview

In 2015, DoD’s Office of Economic Adjustment awarded the city of Long Beach a Defense Industry Adjustment grant to develop and implement a comprehensive economic transition program in the wake of the C-17 production facility closure. The grant, which is managed by the Long Beach Workforce Development Bureau, focuses on implementing the first of a two-phase transition effort to ensure the region can retain its regional skills base, competitiveness, and sector expertise.

The three tracks envisioned for Phase 1 include:

Economic Development Planning – to adjust effectively to impacts from Boeing facility closures and identify opportunities to advance the site, the supply chain, and the regional cluster.

Land Use and Infrastructure Planning – will focus on assessment of existing conditions of the Boeing C-17 facilities and land, public facilities (i.e., public infrastructure), and conceptual reuses with the goal of ensuring compatibility with future economic development strategies.

Assistance to Impacted Defense Firms and Workers – including establishment of a Boeing and defense dislocated worker case management tracking platform that incorporates customized training modules and providing direct assistance to impacted suppliers.

Projected Outcomes

As a result of this project, the City of Long Beach and its surrounding area expects to:

  • Transition its displaced workers successfully;
  • Minimize the economic impact of the plant closure by supporting the re-employment of as many as 3,000 defense workers directly dislocated;
  • Conduct a compatibility study of the site with respect to the Long Beach Airport (LGB);
  • Produce a C-17 Transition Master Plan as a guiding economic and land use / infrastructure planning strategy by use for the region.
  • By working alongside a local university and leveraging industry partnerships, the grant will have the ability to reach more citizens and assist them in becoming gainfully employed once again.