Utah seeks bigger cut of defense spending

State economic development officials want to strengthen Utah's defense industry, to the tune of doubling Department of Defense spending in the state during the next five years.

Defense Department spending in 2004 was $3.2 billion, a far cry from 1997's $1.2 billion but only a portion of the state's potential, according to Gary R. Harter, in charge of the defense and homeland security clusters for the Governor's Office of Economic Development.

"We think that looking at what's available in the state, the opportunities that are up and coming and where the defense budget is going, that we can grow it from $3 1/2 billion to $7 billion by 2011," Harter told the GOED Board on Friday.

"It basically doubles in those five years. ... We can do this. Some have suggested, as I talk to industry, that we should be shooting for $20 billion. That might be, but let's get that $7 billion first and we'll assess as we go along."

By 2011, Utah could have 35,000 to 50,000 defense industry jobs; be recognized as a national and world leader in certain defense capabilities; and have defense industry partners, said Harter, former commander of Dugway Proving Ground.

While the 2004 Department of Defense spending total of $3.2 billion in Utah may sound impressive, $1.1 billion was for Hill Air Force Base, and the total put Utah 29th among states and 39th among states per capita. Plus, the total accounted for less than 1 percent of the department's overall budget.

"While the defense budget goes up, we still stay stagnant at the 1 percent level," Harter said.

The state's strategies include:

• Increasing the Hill Air Force Base workload, both for maintenance and missions.
• Expanding the scope of military assets, including those outside Hill.
• Increasing the number and effectiveness of Utah defense contractors, including a more aggressive strategy to help them land military contracts.
• Developing new opportunities, perhaps in areas such as autonomous vehicles, light cargo aircraft, very light jets, composite materials, bioterrorism medical countermeasures and linguistic training.
• Recruiting key defense companies to Utah. Five already have been identified, Harter said.
• Develop industry associations and "champions."

Already, Harter said, industry representatives have expressed interest in being involved, either through meeting other defense-related companies, learning about requests for proposals or learning more about homeland security or the Defense Department.

"This partnering is already happening, with the folks that are here in GOED ... and a lot of other folks that are going out and talking to the entire defense industry," Harter said.

Board member Molonai Hola commended Harter's "great vision" for the state but emphasized he preferred to see the industry growth occur through the expansion of existing Utah companies rather than strictly having companies moving in from outside the state.

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E-mail: bwallace@desnews.com