Defense-Conversion Plan to Be Presented

Predicting more cutbacks in military spending, a consultant today will unveil a long-term strategy to help local aerospace, electronic and other high-tech companies diversify into new areas and wean themselves from defense contracts.

James Gollub of DRI/McGraw-Hill) will present a defense-conversion plan at the Ventura County Hall of Administration, as his San Francisco-based firm has done for other California counties with economies that depend on defense work.

“Defense spending in Ventura County totaled over $1 billion in 1993 and 1994,” according to Gollub’s study, which was written as part of a $118,000 contract approved by the county Board of Supervisors last April.

The study counted 33,900 jobs, directly and indirectly related to the county’s Navy bases and defense contracts. That accounts for about 15% of the county’s nonfarm work force.

“Defense contracting is expected to continue to decline, as well as employment at the bases,” the study said. “The closure of just one of the bases would mean the indirect loss of thousands of jobs. The loss of both bases would take away more jobs than the county would generate in the foreseeable future.”

Although no one is predicting a base closure, the study recommends an array of measures to help defense contractors take their high technologies and apply them to different commercial markets.

“A lot of defense contractors want to stay in defense but diversify into other fields,” said Bill Simmons, chairman of an ad hoc group of public officials and private business leaders called Ventura Defense Partnership. “We are trying to help them be more competitive.”