Looking for bright spots in the state's economy? It would be hard to miss that giant shaft of light shining on Oshkosh today.

Oshkosh Corp., long known for its heavy duty trucks, has landed a giant contract with the military that could be worth $12 billion in fiscal years 2009 and 2010.

The size and complexity of the deal say a lot about the company's strengths -- it beat out three tough competitors for the prize -- but it also makes an eloquent argument for diversifying a region's economic base and for the need for the state as a whole to attract more federal money.

Oshkosh Corp. has long been a mainstay in the Fox River Valley, but this contract by its very size and timing gives the regional economy a huge and immediate shot in the arm. The company will make some of the parts for the new vehicle at a plant in Pennsylvania, but most of the remaining work will be done in Oshkosh, which means more jobs.

The initial contract is for a little over $1 billion, but the deal could be worth much more in the coming years as the military equips its soldiers with the new armored vehicles that Oshkosh Corp. will make.

The Defense Department says it will buy at least 2,080 of the MRAP All Terrain Vehicles for the Army and Marine Corps and could buy as many as 10,000. The military desperately needs a light, nimble off-road truck -- one that is protected by armor -- for troops exposed to roadside bombs and other violence in Afghanistan.

The deal says something about Wisconsin's historic expertise in manufacturing, which economic development groups such as the Milwaukee 7 hope to exploit. While it's true that manufacturers have been battered by the recession, the state remains a hub for companies that make things. It is, in fact, the leading state for manufacturing employment, with 15.6% of its jobs in such companies.

Wisconsin traditionally has been a laggard in recouping federal dollars. According to one 2005 study by the National Priorities Project, just 89 cents was returned to the state for every $1 we sent in. The state ranked 37th by that measure.

But contracts such as this one can begin to change that performance. And the impact of the deal could be several times greater as money begins to ripple through the region, George Reis of George V. Reis Investment Group in Two Rivers told the Journal Sentinel's Rick Barrett. One analyst Barrett spoke with even compared winning this contract with winning the lottery.

And it's a payout that an entire region can enjoy.

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