This week I am going to switch gears a little bit. I am still going to be talking about how the military can affect local businesses, but in a more positive way than before. (I told you I would try to find a more uplifting story!) I want to talk about military contracts with local businesses and how they help, or sometimes hurt. (Come on! It couldn't be all positive.)
Both sides are fairly obvious. These contracts can be very helpful, because it is fueling jobs and work in the local economy. However, it is worth mentioning that the downside of this would be the businesses which get "left out in the cold" to fend for themselves. This does not mean these companies are not worthy of working alongside the military, but there is only so much demand for outside contracts.
An article in the Baltimore Business Journal, written by Gary Haber, illuminates the brighter side of the military helping local businesses. The article talks about three local companies who received contracts from the military. One company was even able to expand and open more jobs by catching this contract. This particular scenario seems to be short-term versus long-term and ongoing, which is another tangent all together. Leaving that aside, more times than not, at least for the time being, contracts between a local business and the military are a plus.
Even though small local companies can sometimes get overlooked when there is military in the area, there are opportunities given to some which help the local economy flourish. So I encourage you to read the article above, then leave a comment - maybe about companies in your area that have benefited from having a contract or deal with the local military organization. I can't promise another story with a happy ending next time, but you will just have to wait and see!
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I would say that there is no downside to local contracts with the military. Contracting is a business...no one gets "left out in the cold". If a company can't put out the lowest bid then they aren't chosen to complete the contract, simple as that. If a company finds themselves repeatedly getting passed over then perhaps they should review their viability in their chosen field (construction, weapons systems, etc), because they're obviously not as competitive as they need to be (lower overhead, leaner processes, etc). The government is not in the business of just giving money away because they feel sorry for them (contrary to some of their bailout practices), business and/or survival 101: stay competitive or die.
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