Key Takeaways from the Spring Into Growth Conference
On March 20, more than a hundred manufacturers, defense leaders, and workforce development professionals gathered at the Union League Liberty Hill for DVIRC’s Spring Into Growth Conference. The half-day program brought together experts across federal policy, defense acquisition, workforce readiness, and emerging market opportunities to help regional manufacturers navigate what’s ahead.
DVIRC President and CEO Chris Scafario welcomed attendees, and Rev. Joe Campellone, OSFS, of Father Judge High School delivered the invocation and opening remarks before the program kicked off with four insightful sessions.
Here’s a look at what was covered and what it means for your business.
Federal Policy Update: What Manufacturers Need to Know Now
Matt Herrmann, Principal at The Roosevelt Group, opened the program with a comprehensive federal policy briefing covering the current legislative landscape, tariff developments, and sweeping acquisition reform within the Department of Defense.
Herrmann outlined the FY27 appropriations and NDAA timelines, noting that House Appropriations Committee submission deadlines landed on March 13 and 20, with the President’s Budget and SASC NDAA submission deadlines expected in April. He walked through the full legislative calendar, giving attendees a clear picture of when key decisions will be made and when manufacturers need to be engaged.
A significant portion of the briefing focused on the One Big Beautiful Bill Act (OBBBA), the Republican-led budget reconciliation package signed into law on July 4, 2025. For manufacturers, the highlights are substantial: permanent 100% bonus depreciation for machinery and equipment, an expanded Section 179 deduction (now $2.5 million with a $4 million phase-out threshold), and a new 100% deduction for Qualified Production Property, covering newly constructed manufacturing facilities where construction begins after January 19, 2025 and the property is placed in service before 2031. R&D expensing has also been restored, allowing businesses to immediately deduct eligible domestic research costs.
On the defense side, the OBBBA directs $156.2 billion in mandatory spending, including $29 billion for shipbuilding, $25 billion for munitions, several billion for additive manufacturing adoption, and $1 billion for the Office of Strategic Capital to provide direct loans and technical assistance to companies in the 33 covered technology categories. This funding is mandatory and must be spent within one year, not spread over a decade.
Herrmann also addressed tariffs, noting that while the administration instituted a 15% across-the-board tariff, the Supreme Court ruled the use of IEEPA as a legal basis was not permissible. The administration is now seeking alternative legal authorities, though it remains unclear whether broader tariffs will be implemented.
Finally, Herrmann covered acquisition reform provisions in the FY26 NDAA, which are designed to lower barriers for commercial and nontraditional defense contractors. Key changes include accepting commercial project experience as relevant past performance, expanding the use of Commercial Solutions Openings for follow-on production, limiting unnecessary regulatory flowdown to commercial subcontractors, and exempting nontraditional defense contractors from certain cost accounting standards.
Making Your Workforce Future-Ready
The workforce development panel, moderated by Nico de Sousa Serro of DVIRC, brought together perspectives from welding education, HR leadership, Navy operations, and workforce engagement. Panelists included Joe Williams of the Joe Williams Welding Foundation, Hannah McGarry of DVIRC, Melissa Tarte of DeVal Lifecycle Support, and EMNCS(SS) Neil Dannug of NAVSEA.
The conversation centered on developing the next generation of manufacturers, not just recruiting talent, but building foundational skills and preparing workers for the realities of modern production environments.
Panelists discussed how cobots and automation are reshaping the factory floor, but emphasized that people are still essential to facilitate and maintain manufacturing operations. The challenge isn’t replacing workers with technology; it’s equipping the workforce with the skills to work alongside it.
Winning the Mission: Partnering with the Department of Defense
Moderated by Jim Donahue, DVIRC’s Defense Industry Liaison, this panel featured Amanda Page (DVIRC), Sean Toolan of Merge Plot, and Juan Berrocal, Director of Acquisitions and Contracts for Team Submarine at NAVSEA.
Berrocal provided a direct look at how NAVSEA’s acquisitions and contracts process works, including the role of Partnership Intermediary Agreements (PIAs) in connecting small and mid-size manufacturers with defense opportunities. Panelists discussed key entry points for manufacturers, including DLA contracts, NAVSUP WSS supply needs, and Other Transaction Authorities (OTAs), which allow for prototyping, demos, and procurement of commercial off-the-shelf (COTS) products, with a pathway to production contracts.
Sean Toolan shared how his company, Merge Plot, a digital twin systems provider, leveraged the SBIR/STTR program to build its defense business. The panel also highlighted the importance of organizations like UTIC, a maritime consortium working to strengthen the defense industrial base.
One of the sharpest takeaways: manufacturers should market themselves based on mission impact, not just their technical solution. Understanding the warfighter’s problem and articulating how you solve it is what gets attention in the defense space.
How Manufacturers Can Win in the $245B Data Center Boom
The final panel, moderated by DVIRC President and CEO Chris Scafario, explored the massive opportunity in data center construction and infrastructure. Panelists Jon Kirchner of Perfero Advisory, Vincent Duane of Copper Monarch LLC, and Dean Miller of PACT discussed how regional manufacturers can position themselves to capture work in this rapidly expanding sector.
The discussion touched on Pennsylvania’s position as the number two state for natural gas and oil reserves behind Texas, which makes it a natural hub for energy-intensive data center operations. Panelists encouraged manufacturers to think about on-ramps: giving potential partners a clear sense of your capabilities and readiness level.
Looking Ahead
The Spring Into Growth Conference made one thing clear: regional manufacturers have significant opportunities in front of them, from defense procurement reform to tax incentives for facility investment to the data center infrastructure boom. But capturing those opportunities requires preparation, whether that means understanding the federal acquisition landscape, investing in workforce development, or positioning your capabilities for new markets.
DVIRC is here to help. To learn more about how we can support your business with defense contracting readiness, workforce development, or strategic growth planning, contact us.
For more information about DVIRC events and membership, visit www.dvirc.org or contact info@dvirc.org.