Access to quality labor, cost of doing business, lucrative incentives, and friendly local and state governments have made the state of Alabama popular with numerous automotive companies. Now, aerospace and defense industry companies are targeting the state for the same reasons.
In July, GKN Aerospace announced that it will expand its facility in Tallassee by 120,000 square feet, providing about 250 new jobs upon completion in 2007.
With the closing of Mount Vernon Mills, believed to be the oldest continuously running textile mill in the country, the news of GKN’s expansion brought some relief to area workers.
Paul Cocker, vice president and general manager of GKN Aerospace in Alabama, said the state has contributed $1.5 million toward the expansion, the city of Tallassee has contributed $250,000 and GKN has contributed $20 million.
“The work force in Alabama is about the best I’ve worked for in 35 years,” he said. “And the work ethic of the whole work force is tremendous. They work hard and they work well.”
Meanwhile, Northrop Grumman, a global defense company, will construct a new five-building complex in the Huntsville metro area to accommodate its growing presence there. The company plans to break ground on the first 110,000 square foot building in October for the $80 million project.
Northrop Grumman employs about 1,200 people in more than 20 facilities in the Huntsville metro. Most current operations will be consolidated in the new complex, which will house offices, laboratories and research and development centers.
“Northrop Grumman’s considerable growth during the past few years has made us one of Huntsville’s largest employers,” said Daniel L. Montgomery, vice president and corporate lead executive in the region for Northrop Grumman. “We project even more growth in the years ahead, with Huntsville supporting or managing several major programs and new contract wins.”
Crestview Aerospace Expands in Fairhope
Among those programs is Kinetic Energy Interceptors (KEI), a mobile, land-based missile-defense system that, when deployed, will be able to destroy a hostile threat during its boost and ascent phase of flight. The team managing the KEI battle-management portion of the program is in Huntsville.
Huntsville-based employees also support other missile-defense programs, including providing the fire control and communications subsystem for the Ground-Based Midcourse Defense System.
Crestview Aerospace Corp., a Florida-based aerospace manufacturing company with revenues forecasted to grow to more than $100 million in 2007, will open a new facility in Fairhope to accommodate its need for additional space to house increased manufacture and modification of rotary wing aircraft, along with existing contracts. The company currently employs more than 1,000 workers in two divisions in Okaloosa County, Fla.
“Size and location of the building fits perfectly for our immediate manufacturing and aircraft modification needs,” said Charles E. Shanklin, CEO of Crestview Aerospace. “The availability of a skilled work force in the Baldwin County area, and the support we received from the city, alliance, county and the state of Alabama were also factors that drew us to the conclusion that an expansion at this time was a wise choice.”
The war on terrorism has spurred the high-tech modification of military aircraft, which is one of Crestview Aerospace’s primary business segments. Company officials said the growth is because of due to advantageous partnering arrangements with Boeing, Lockheed Martin, Northrop Grumman, Bell Helicopter and others to provide the “touch labor” necessary for upgrades to the military fleet.
The Aerostructures Group of Crestview Aerospace makes the majority of sheet metal structures and assemblies for Bell Helicopter and multiple parts, sub-assemblies and major aircraft assemblies for Boeing, Gulfstream, Lockheed, L-3, Vought and others. Some new areas of manufacturing for the company, such as composite work, will be considered for the Fairhope plant.
In addition, considerable personal interest by the owners of Crestview Aerospace in new emerging technology has spurred the company to provide research and development space to emerging technologies such as biomedical devices, nanofiber technology and energy-efficient gas turbine engines.
France-based European Aeronautic Defence and Space Co. (EADS) was also drawn to Alabama’s growing aerospace cluster as it searched for a U.S. site to establish operations for aerial refueling tanker production. The company decided to located the facility in Mobile. The metro was chosen over two other sites in the South.
EADS North America’s decision was based on Mobile’s easy accessibility to a deepwater port, and the extensive support pledged by Alabama’s congressional delegation, as well as strong state and community support, according to the company.
Ralph Crosby Jr., chairman and CEO of EADS, said the most important issue in determining where the company would locate was answering the fundamental question, “Is this the best place with the best capabilities and the best resources to do this job?”
He said that was the defining factor in the company’s decision to locate in Alabama.
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