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  • “Mission-Ready Workforce” — the power of veterans behind U.S. defense manufacturing

    “Mission-Ready Workforce” — the power of veterans behind U.S. defense manufacturing

    Veterans are not only essential to national defense in uniform but remain mission ready as part of the civilian manufacturing workforce. Their leadership, discipline, and technical precision are cornerstones of the defense supply chain. 

    Across the country, millions of veterans are contributing to the civilian economy. Current labor force data show steady employment participation among both men and women veterans, with women veterans continuing to close long-standing participation gaps. The percentage of women veterans in the core working age group reached a high at the start of 2022 and again in 2024, reaching 80%, almost matching the participation rate of men. Labor force participation among veterans closely mirrors the national rate for all workers in the same age group, which has remained between 80% and 84% over the past 15 years.1 

    Changes in Labor Force Participation for Core Working-Age Veterans Over Time 

    Source: U.S. Bureau of Labor Statistics Current Population Survey. 

    While women’s participation rates have declined over the past year, women veterans continue to represent an increasing proportion of the veteran workforce overall. The growing involvement of women veterans indicates a broadening talent pool, reflecting wider participation across the workforce. 

    Women’s Share of the Veteran Workforce Over Time 

    Source: U.S. Bureau of Labor Statistics Current Population Survey. 

    This trend is echoed in unemployment data: in 2025, the veteran unemployment rate stood at just 2.9%, well below the 4.3% rate for nonveterans, which is clear evidence of an active and resilient veteran labor pool.2  

    Generally, the location of employed veterans reflects regional defense activity, with Virginia, Texas, California, and Florida consistently leading in veteran employment. Major metropolitan areas in these states lead in essential defense manufacturing industries. Los Angeles and Dallas serve as key hubs for aircraft manufacturing, Norfolk is central to shipbuilding and repair, and Houston is a major center for petroleum refining. Despite significant regional strengths in defense manufacturing,  close to two million manufacturing jobs could remain unfilled by 2033 if talent gaps are not resolved.3 This underscores the importance of veterans as a ready, technically trained, and mission-oriented workforce that can help close critical gaps. 

    Veteran Unemployment Rate by State 

    Source: U.S. Census Bureau American Community Survey, 1-Year Estimates, 2024. 

    Regional strengths are reinforced by national partnerships designed to align veteran skills with cutting-edge manufacturing technologies. Manufacturing Innovation Institutes—such as BioMADE in biomanufacturing, NextFlex in flexible electronics, and the ARM Institute in robotics—routinely partner with veteran training centers to build advanced-skills pipelines that connect transitioning service members to critical industry roles. 

    The training that defines military service, like mechanical maintenance, electronics, cybersecurity, and logistics translates naturally to defense-relevant manufacturing. Veterans’ experience with supply-chain integrity, secure systems, and quality control gives them a unique advantage in facilities operating under export controls or classified production requirements. Their understanding of mission success translates directly into reliability on the factory floor. 

    National initiatives are closing the gap between service and industry. The DoD SkillBridge program enables service members to work in civilian companies during their final 180 days of service, often with advanced manufacturers.  

    Rockwell Automation, a provider of industrial automation and digital transformation technologies, is a participant in the SkillBridge program. The 12-week program trains veterans for high-tech careers in advanced manufacturing, then places them in roles at manufacturing sites. As of 2023, 373 veterans graduated from the program, and of those, 90% go-on to work for Rockwell’s manufacturing customers.4 

    Additionally, partnerships via Hiring Our Heroes and the America’s Manufacturing Competitiveness Coalition link veterans to technical apprenticeships and certifications. Combined with apprenticeship tax credits and Department of Labor hiring incentives, these efforts make veteran hiring both a strategic and an economic advantage for defense contractors. 

    States are also stepping up to expand veteran opportunity, with 33 states offering incentives that support veteran-owned businesses, encourage veteran hiring, or develop veteran skills. Programs like South Carolina’s Veteran Apprenticeship Credit, New York’s Hire-A-Veteran Credit, and Minnesota’s Reservist and Veteran Business Loan Program demonstrate how states are strengthening the role of veterans in their regional economies, linking service experience to entrepreneurship and workforce participation. 

    Veterans represent a uniquely skilled and values-driven segment of the U.S. workforce. Their technical experience, leadership, and familiarity with secure, mission-critical operations make them indispensable to sustaining the nation’s defense industrial base. As manufacturers face mounting workforce shortages, continued investment in veteran hiring, training, and entrepreneurship is not just a matter of gratitude—it is a matter of national competitiveness. The next generation of innovation in critical defense industries will depend on people who understand what readiness means. Veterans embody that readiness, ensuring that the country’s manufacturing strength remains mission-ready as well. 

    Sources:

    1 https://fred.stlouisfed.org/series/LNS11300060

    2 https://www.dol.gov/agencies/vets/latest-numbers#:~:text=Annual%20Employment%20Situation%20of%20Veterans,the%20full%20report%20for%202024. 

    3 https://themanufacturinginstitute.org/wp-content/uploads/2024/04/Digital_Skills_Report_April_2024.pdf?

    4 https://www.forbes.com/sites/jimvinoski/2023/10/05/rockwell-automation-manpowergroup-offer-us-vets-advanced-manufacturing-training/ 

  • Building Globally Ready Communities: Tools to Attract Investment and Exports

    International Engagement Ready Communities Initiative

    From 2017–2018, CREC collaborated with SRI International’s Center for Innovation Strategy and Policy (CISP) and Stone & Associates to equip regions with tools to attract foreign direct investment (FDI) and foster export promotion.

    Building a Best Practices Toolkit

    The International Engagement Ready Communities (IERC) Initiative began with qualitative and quantitative analyses of successful international strategies. Insights from experts, practitioners, and regional partners shaped a Best Practices Toolkit—complete with “how to” guides, case studies, checklists, and briefings to help regions implement effective strategies.

    Equipping Regions Nationwide

    As part of this initiative, CREC developed and evaluated an Assessment Tool and Toolkit, which was widely deployed across the United States. By providing actionable strategies, the IERC Initiative gave regions practical methods to leverage their unique strengths, attract investment, and expand into international markets.

  • Strengthening Pennsylvania’s Local Development Districts

    Pennsylvania Local Development District System Strategy

    In 2019, CREC and EntreWorks Consulting partnered to help Pennsylvania’s seven Local Development Districts (LDDs) strengthen coordination and effectiveness. Each LDD provides technical and programmatic assistance in business finance, export and international marketing, government procurement, and transportation planning—while also responding to unique regional needs.

    Evaluating Strengths and Limitations

    Through the system strategy, the CREC/EntreWorks team worked closely with Pennsylvania’s LDDs to evaluate their strengths and limitations. This assessment ensured resources were used in the best manner possible to support community growth and regional economies.

    Promoting Regional Coordination

    The project’s purpose was clear: better promote effective regional coordination, public sector performance, accountability, and efficient service delivery. By helping the LDDs align their approaches, CREC contributed to more impactful and sustainable development across Pennsylvania.

  • Building Resilience in the Kankakee-Iroquois Region

    In May 2021, the Kankakee-Iroquois Regional Planning Commission (K-IRPC) launched an effort to strengthen its ability to withstand and recover from economic disruptions. Working with Kimley-Horn and Associates, Inc., the Center for Regional Economic Competitiveness (CREC) contributed expertise to create a regional Economic Resilience Strategythat ran through February 2022.

    Project Purpose

    The project’s goal was clear: enhance the region’s ability to respond to and recover from economic disruptions, especially those highlighted by the COVID-19 pandemic. To achieve this, the strategy assessed local assets and vulnerabilities, examined community priorities, and laid out a roadmap for strengthening recovery and long-term resilience.

    CREC’s Role

    CREC provided critical support throughout the process, including:

    • Designing and administering stakeholder surveys and focus groups
    • Facilitating strategy sessions with regional partners
    • Conducting research into existing regional assets, strategies, support programs, and outreach efforts
    • Identifying threats to recovery, gaps in support, and opportunities for collaboration

    Methodology

    The work combined qualitative engagement and quantitative analysis. CREC facilitated interviews and focus groups to surface regional concerns such as infrastructure gaps, broadband access, and public service needs. At the same time, data on employment, commuting, and income levels was analyzed to pinpoint strengths and vulnerabilities. Prior planning documents were also reviewed to ensure alignment with community goalsNew Quals Descriptions.

    Outcomes

    The result was a COVID-19 Recovery Plan that provides a step-by-step guide for building resilience, supported by objective performance measures. Key recommendations included:

    • Improving broadband and transportation infrastructure
    • Supporting agribusiness diversification
    • Expanding collaboration among jurisdictions
    • Developing protocols for economic shock recovery
    • Advancing quality-of-life initiatives
    • Supporting entrepreneurship
    • Leveraging state and federal partnerships

    By adopting this strategy, K-IRPC positioned itself as a central convener and coordinator of regional development and resilience efforts

  • Strengthening State-Regional Alignment Through a National Learning Cohort

    Economic resilience requires more than good ideas—it requires alignment. State economic development agencies and regional Economic Development Districts (EDDs) often work in parallel, but not always in sync. CREC’s designed a nine-month national learning cohort (known internally as the Policy Academy), which is funded by the U.S. Economic Development Administration (EDA) and designed to close that gap.

    Launched in April 2023, the nine-month Academy brought together teams from Colorado, Idaho, Kansas, Louisiana, Michigan, and Wisconsin. Each state formed a Core Team (state and EDD leaders) supported by a broader Home Teamof stakeholders from universities, nonprofits, and local organizations. Together, they built frameworks for collaboration, created new tools, and tested strategies to align planning cycles, policies, and initiatives.

    From Kickoff to Cultural Change

    At the Academy’s kickoff, states crafted shared visions for alignment—ranging from rural prosperity and statewide CEDS integration to climate resilience and rural development. With CREC facilitation, they analyzed assets, set goals, and mapped critical partners. The message was clear: alignment isn’t a one-time project, but a cultural shift requiring openness, trust, and intentional relationship-building.

    Midway Momentum

    By summer 2023, teams had gained traction through in-person site visits and regular coaching. Subcommittees formed to tackle communications strategies, asset mapping, shared planning calendars, and MOUs to institutionalize collaboration. Teams reported that engaging Home Teams was vital—broadening buy-in and ensuring sustainability beyond leadership changes.

    Key Takeaways

    1. Be intentional about relationships. Sustained alignment requires coalitions of partners who understand and support the mission.
    2. Cultural change sustains progress. Teams must break silos, expand networks, and embrace new ways of collaborating.
    3. Simple doesn’t mean easy. Structural change takes time, resources, and persistence.
    4. Secure staff-level buy-in. Leadership sets the tone, but staff commitment drives the work forward.

    Results and Reflections

    By the Academy’s conclusion in early 2024, teams reported tangible successes:

    • Colorado announced a statewide framework aligning regional and state CEDS planning.
    • Idaho formalized inclusive planning processes and created an asset map.
    • Kansas advanced the Kansas Association of Regional Development Organizations (KARDO) as a hub for collaboration.
    • Louisiana used the Academy to unite historically siloed PDCs, REDOs, and LED around shared resiliency and quality-of-life initiatives.
    • Michigan piloted a Superior Economic Development Strategy in the Upper Peninsula as a model for statewide planning.
    • Wisconsin advanced rural development alignment, building stronger ties between EDDs, REDOs, tribes, and universities.

    Lasting Value

    The initiative showed that while great work can be done individually, transformational progress requires collaboration. For participating states, the Academy provided not just tools and strategies, but a new culture of alignment—laying the foundation for more resilient economies nationwide.

  • Modernizing State Data Systems to Power Better Decisions

    At a time when regions rely on accurate, timely, and actionable labor market information, CREC has been at the forefront of modernizing state data infrastructure. Through our leadership of the Labor Market Information (LMI) Institute and partnerships with states across the country, CREC has worked to strengthen how workforce and economic data are collected, shared, and used.

    Our efforts focus on three core areas:

    • Building capacity for state LMI agencies by providing training, technical assistance, and peer networks.
    • Modernizing infrastructure by helping states upgrade outdated systems, adopt cloud-based platforms, and integrate new methodologies for projections and wage data.
    • Expanding access by advocating for public use of labor, education, and economic data—ensuring policymakers, employers, and communities can act on trustworthy information.

    This work has had national impact. CREC has guided multi-year modernization efforts that resulted in more accurate state and local employment projections, improved occupational data, and better alignment with federal reporting requirements. Through initiatives like the Projections Managing Partnership and Data User Insights Academy, CREC ensures that states have not only the tools but also the expertise to use them effectively.

    By strengthening state data ecosystems, CREC helps regions move beyond outdated reporting toward a future where decisions are informed by robust, accessible, and real-time information. The result: more effective workforce planning, smarter policy, and stronger economies.

  • Helping Workforce Leaders See the Big Picture — and Take Action

    Data is only powerful when it’s actionable. That’s why CREC developed the Corporation for a Skilled Workforce interactive dashboard that allows regional workforce boards and economic developers to track, compare, and improve local outcomes.

    Developed in collaboration with national partners, the dashboard supports evidence-based planning around key workforce indicators, offering peer comparisons and intuitive visualizations that help leaders quickly understand where they stand — and where to focus.

  • Strengthening Defense Communities Through Local Economic Resilience

    CREC plays a pivotal role in helping communities that host U.S. military installations access the funding and planning tools they need to thrive. Through partnerships with the U.S. Department of Defense’s Office of Local Defense Community Cooperation (OLDCC), CREC supports regions in designing and implementing projects that enhance infrastructure, workforce readiness, and long-term economic sustainability.

    From broadband planning to strategic regional assessments, CREC helps ensure that defense communities are not only mission-ready but also economically strong and resilient. These projects often serve dual purposes — improving quality of life for civilians while supporting national security priorities.

  • CREC Launches “Mobilizing Data for Talent Development” Program to Strengthen Career Pathways

    CREC Launches “Mobilizing Data for Talent Development” Program to Strengthen Career Pathways

    Arlington, VA, June 23, 2025 – The Center for Regional Economic Competitiveness (CREC) is excited to announce the official launch of our Mobilizing Data for Talent Development program! Funded by the Gates Foundation, this program aims to strengthen education and workforce pathways at the local level and develop data infrastructure for workforce professionals. The program elevates the need for localized results and provides tailored solutions to help regions tell their story more effectively, focused on the organizations who are leaders in data collaboration and insights.

    CREC will collaborate with the following seven organizations over the next year to help them strengthen post-secondary pathways and improve data systems in their regions:

    “This program seeks to bridge gaps between education and employment in new ways by leveraging data,” said Ken Poole, CEO/President of CREC. “By equipping these organizations with the tools to track and share outcomes effectively, we’re not only strengthening regional talent development systems but also ensuring that investments in education and training lead to meaningful career opportunities.”

    Organization projects include tracking non-degree credential ROI, building secure regional data-sharing systems, and implementing strategies to connect individuals to high-demand career pathways. Learn more about the program by clicking on this link.

    Project leaders aim to ensure their communities have reliable and consistent information about which industries, skills, occupations, and education provide pathways to well-paying careers.

    For more information, please contact:

    Sarah Edwards, CREC Project Manager, sedwards@crec.net, 703-504-2867

  • What the FY 2026 Federal Budget Proposal Signals for Regional Economic Development

    What the FY 2026 Federal Budget Proposal Signals for Regional Economic Development

    The White House’s FY 2026 discretionary budget proposal outlines a significant shift in how the federal government approaches economic development. It suggests a move away from place-based and regionally responsive investments toward more centralized priorities, such as national defense and strategic infrastructure. For regional leaders and development practitioners, this moment raises important questions about the future role of federal partnership in supporting local economic resilience and growth.

    Cuts to Key Regional Development and Entrepreneurship Tools

    The potential elimination of two key Department of Commerce investment programs—the Economic Development Administration (EDA) and the National Institute of Standards and Technologies Manufacturing Extension Program (MEP)—represent two of the most consequential proposed changes. EDA has been a cornerstone of federal support for regional planning, innovation, and infrastructure investment since the 1960s. MEP, created more than a generation ago as a stalwart against the loss of American manufacturing, has touched a significant share of small and medium-size manufacturers across the U.S. While past administrations have proposed eliminating both EDA and MEP, Congress has consistently reaffirmed their value. Should this proposal gain traction, state and regional entities could lose key partners in capacity-building and long-range strategy.

    The proposed budget also would reduce U.S. Department of Agriculture Rural Development Administration spending by more than $700 million, narrowing its focus to water and wastewater infrastructure. Support for broadband, rural business development, and rural housing—longstanding building blocks for small-town economic strategy—would be eliminated. In parallel, proposed changes to the Small Business Administration would consolidate resources into the Small Business Development Center program, scaling back technical assistance efforts that serve entrepreneurs representing typically underserved communities.

    Institutional Continuity, Programmatic Uncertainty

    Some institutions remain in place. The budget maintains staffing support for the Appalachian Regional Commission (ARC), for instance, recognizing the agency’s continued importance. However, the absence of dedicated funding for ARC’s infrastructure, business development, and workforce training grant programs reflects a broader theme in the proposal: reduced federal support for discretionary, locally administered development tools.

    Other regional commissions face a more immediate threat. The budget recommends eliminating six entities (including the increasingly influential Delta, Denali, and Northern Border commissions) designed to address deeply rooted economic challenges in distressed areas. These cuts would shift the burden of response almost entirely to states and localities, many of which lack the fiscal flexibility or infrastructure to address these challenges on their own.

    Implications for Workforce, Housing, and Revitalization

    The proposed removal of the Community Development Block Grant (CDBG), HOME Investment Partnerships, and Job Corps programs would strip communities of tools critical to local revitalization, affordable housing, and youth workforce development. These programs provide flexible support that many jurisdictions rely on to close equity gaps, attract investment, and provide upward mobility pathways.

    Additional structural changes—such as block-granting rental assistance or scaling back Department of Commerce research and innovation programs—may reduce access to data, insights, and support for local economic strategies. Taken together, these moves suggest a pivot away from federal-local collaboration in favor of more centralized or narrowly targeted national initiatives.

    What This Means for Regional Leaders

    While the proposed budget is not final—and Congress will ultimately shape the outcome—it sends a clear message: regions may need to prepare for more limited federal engagement on the economic development front. This has strategic implications for practitioners working in diverse settings, from urban innovation districts to rural towns navigating economic transition.

    Key considerations include:

    • Inventory Your Dependencies: Identify which local strategies rely heavily on federal funding and evaluate scenarios where those supports may shrink or disappear.
    • Diversify Your Partnerships: Strengthen engagement with state agencies, private-sector allies, philanthropic partners, and higher education institutions to broaden your resource base.
    • Quantify Your Impact: Use clear, compelling data to document how past federal programs have driven measurable results in your region.
    • Invest in Collaboration: Regional coalitions, consortia, and peer networks will become increasingly important for shared service delivery and coordinated funding strategies.

    A Call for Adaptation and Leadership

    The FY 2026 budget proposal presents real challenges—but it also creates space for regional innovation and leadership. Economic development has always been an evolving field, and those who adapt first often lead the way.

    CREC remains committed to supporting leaders across the country in navigating this uncertain terrain. Our shared mission—building data-informed, economically vibrant regions—is not dependent on any single agency or line item. It is rooted in a belief that local and regional actors, when equipped with the right tools and insights, can drive sustainable growth from the ground up.

    Let this moment serve as a catalyst: to rethink, to collaborate, and to recommit to the work of building strong regional economies—no matter the fiscal or political climate.