Kentucky Aerospace, Aviation, & Defense Industry

Kentucky Aerospace, Aviation, & Defense Industry

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Defense Industry Supply Chain Flows

The Sankey diagrams below display supply chain flows from Kentucky’s defense supplier industries to purchasers.

Kentucky’s contracting industries are shown as purchasers on the right side of each diagram, with their suppliers on the left. Supply chain flows are based on industry purchasing estimates from Economic Modeling Specialists International (Emsi), weighted by actual contracting activity between FY12 and FY15. Unless otherwise noted, all industries displayed are based on the 3-digit NAICS level. The first diagram displays the supply chains of industries that are highly dependent on DoD contracts for their Kentucky-wide sales, while all other diagrams show the supply chains of the top 20th percentile of contracting industries—broken up into broad industry groups.

80+ Percent Dependent Purchasers

These are the six-digit contracting industries that are more than 80% dependent on DoD contracts.

Durable Goods Manufacturing

The Durable Goods Manufacturing Supply Chain is quite varied, with no supplier having more than $7.5 million in defense-driven sales to contracting industries.

Non-Durable Goods Manufacturing

The Nondurable Goods Manufacturing Supply Chain includes three primary defense-related purchasing industries.

Administrative Support and Waste Management

The Administrative and Support Services and Waste Management and Remediation Services industry group demonstrates a highly dispersed supply chain.

Finance Insurance and Management

The Finance, Insurance, and Management Supply Chain is dominated by one purchaser—Insurance Carriers and Related Activities—and 74% of defense-driven Finance, Insurance, and Management purchases are internal to that sector.

Other Services and Trade

The Other Services and Trade Supply Chain is one of the more dispersed supply chains in the defense sector; it is a collection of defense industries that do not fit well in another group.

Construction and Extraction

For the Construction and Extraction Supply Chain, no industries supply more than $10 million to construction and extraction contractors.

Information Professional and Scientific

Overall, Kentucky’s Information, Professional, and Scientific defense activity is largely related to Professional, Scientific, and Technical Services rather than Telecommunications.

Transportation Wareshousing and Utilities

The Transportation, Warehousing, and Utilities Supply Chain is another highly dispersed supply chain in the defense sector.