As the home of the Rock Island Arsenal, businesses in the Quad Cities region are a vital part of the Department of Defense (DoD) supply chain that connects suppliers with customers. Supply chain is crucial: from multinational original equipment manufacturers to sub-contractors providing individual pieces, every part in the chain plays an important role.
The DoD is the largest employer in the United States and has a budget of over $500 billion, purchasing goods and services ranging from information technology and translation services, to aircraft and food for troops overseas. Many of our area businesses depend on defense contracts, or support other companies that do. Reductions in DoD spending can have a vast ripple effect, requiring companies to quickly adapt by diversifying their operations, products or customer base to remain competitive.
DoD spending has decreased over the years, and this is having a significant impact on many defense-related businesses. When businesses aren’t diversified, it places strain not only on their resources, but also the entire DoD supply chain. Our region has an exciting opportunity to strengthen and diversify our defense supply chain, ensuring that we can serve our national defense and potentially gain more business locally.
The Quad Cities Manufacturing Innovation Hub, in partnership with the Illinois Defense Industry Adjustment (DIA) Program, is leading the state by developing a defense supply chain diversification strategy for our region. With funding from the U.S. Department of Defense, Office of Economic Adjustment, and a partnership between the University of Illinois, the Quad Cities Chamber of Commerce, and the Voorhees Center at the University of Illinois at Chicago, we are strengthening the region’s supply chain.
How you can impact the supply chain:
- Become more resilient to cyclical spending by diversifying your client base.
- Think nationally and globally; discover import and export cost-savings opportunities through the Quad Cities Foreign Trade Zone.
- Expand products and/or services available from your business.
- Explore more modern, efficient and technology-based ways to do business to increase your bottom line.