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NC Defense Industry Diversification Initiative (NCDIDI)

The State of North Carolina is home to a diverse military industry, with varied military and defense missions, needs and opportunities.

In a proactive response to changes in federal defense budgets, the North Carolina Defense Industry Diversification Initiative (NCDIDI) was created. The program has been managed through a partnership between NC State Industry Expansion Solutions and the North Carolina Department of Military and Veterans Affairs.

The intended goal is to help companies maximize their growth potential and cybersecurity resiliency while enhancing their strategic development planning and sustainability efforts to see impact beyond the NCDIDI funding period.

This program is funded through a grant awarded by the United States Department of Defense Office of Local Defense Community Cooperation Office.


The North Carolina Defense Industry Diversification Initiative (NCDIDI) and NC State’s Industry Expansion Solutions are pleased to highlight events that will cover topics to assist defense contractors and manufacturers in the DoD supply chain.

North Carolina Defense Manufacturing Community Support Program (NC DMCSP)

On August 13, 2021, the Department of Defense’s (DoD) Office of Local Defense Community Cooperation (OLDCC), following a competitive selection process, announced that the state of North Carolina was selected to receive the designation as one of five “Defense Manufacturing Communities” in the nation during FY2020.

On September 22, 2021, the Department of Defense’s (DoD) Office of Local Defense Community Cooperation awarded North Carolina State University Industry Expansion Solutions (IES) one of the five grants under the Defense Manufacturing Community Support Program (DMCSP). The purpose of the DMCSP is to make long-term investments in critical skills, facilities, workforce development, research and development, and small business support to strengthen the national security innovation base. The grant application process was based upon the competitive ranking of proposals by a Defense Manufacturing Community Review Panel.

The DMCSP grant is being used to undertake a $7,466,588 project to strengthen defense advanced textiles manufacturing capabilities through an industrial production ecosystem that melds cybersecurity, artificial intelligence, microelectronics, biotechnology, and additive manufacturing. The North Carolina DMCSP Consortium will involve 20 entities across the state and build on existing textile manufacturing collaborations in order to establish a best-in-class innovation ecosystem for the research, development, and production of smart textiles and wearable devices in support of warfighter health and performance.

Read the Official U.S. Department of Defense Statement

NCDIDI – Phase I

Phase I of the grant, awarded in March of 2017, was used to develop a supply chain study that prepared service providers and manufacturers for economic diversification. This phase also assisted North Carolina defense industry dependent manufacturers and service providers to transition towards diversifying and becoming more competitive.


In Phase II, the objectives have been to maximize the initial impact of NCDIDI, provide support for advanced manufacturing capabilities to North Carolina companies in the aerospace and defense supply chains, conduct needs assessments and deliver business services to eligible companies.

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