< Previous48 NOVEMBER 2018 SI T E S E L E C T IO NYou Don’t Know What You Don’t KnowWhat specifically don’t investing aerospace companies know?They often don’t know where to begin when it comes to greenfield operations in foreign locations. At the onset, the perceived risks can often outweigh the apparent gains. Both are perceptions that need to be turned to facts. Unlike the electronics or automotive industry, fewer than a half a dozen in the U.S. aerospace community have “been there and done that” in Thailand in any meaningful way. For most, it’s a leap of faith. How does one take that leap of faith and turn it into a calculated business decision? Thailand is not a low-cost market (LCM) venture for a U.S.-based operation to service the U.S. market. Rather, with all the advantages the Thai government has laid out and the market access that this location has to offer, Thailand is the best location from which to capture the MRO “aerospace business of Asia” in Asia.Many investors have qualms about doing business in Asia due to real or perceived notions surrounding business practices. There can be a “perceived feeling,” or real lack of “business trust” in Asia. In Thailand, however, an investor can establish a wholly U.S. owned business or engage a Thai partner to reduce cultural risk. This requires numerous visits by corporate decision-makers, taking them away from (continued on 55)Airbus and Thai Airways International (THAI) in June signed an agreement to establish a new joint venture maintenance and overhaul (MRO) facility at U-Tapao International Airport near Bangkok.Rendering courtesy of Airbus50 NOVEMBER 2018 SI T E S E L E C T IO NRocket Lab, a California-based company, has chosen Virginia Space and the Mid-Atlantic Regional Spaceport as the location for Launch Complex-2 (LC-2), Rocket Lab’s first launch facility located in the United States. The company develops and launches advanced rocket technology to provide rapid and repeatable access to orbit for small satellites. Already launching from its facility on the Mahia peninsula of New Zealand, LC-2 will help Rocket Lab meet growing launch demand from commercial and government customers.Construction will begin immediately for Launch Complex-2 and a Launch Vehicle Integration and Assembly Facility at the Mid-Atlantic Regional Spaceport (MARS), which will be located nearby in Wallops Research Park. The space complex is located on the Eastern shore of Virginia, on the Delmarva Peninsula. “The development of Rocket Lab’s Launch Complex-2 strengthens our existing position as the industry leader providing frequent and tailored access to orbit for small satellites,” said Rocket Lab Founder and CEO Peter Beck. “Launching from U.S. soil adds an extra layer of flexibility for our government and commercial customers, offering an unmatched ability to rapidly deploy space-based assets with confidence and precision.” Rocket Lab will launch its 57-foot-tall (17-meter) Electron rocket from LC-2, the dedicated launch site to be constructed at MARS. The Electron rocket can launch approximately 500 pounds (225 kg.) of payload to orbit. The rocket launch industry has shifted recently as commercial spaceflight has matured and satellites have gotten smaller and less expensive to manufacture. The first EXPANSIONS GET UNDER WAY AT VIRGINIA, TEXAS SPACEPORTS Rocket Lab Electron ‘It’s Business Time’ on the pad at LC-1Photo by Kieran Fanning(continued on 52)52 NOVEMBER 2018 SI T E S E L E C T IO NElectron rocket to be launched from the Virginia site is slated for summer 2019.“We are pleased with Rocket Lab’s decision to launch its Electron rocket from Wallops,” said NASA’s Wallops Flight Facility Director Bill Wrobel. “Wallops, as a multi-tenant, multi-user facility, has been supporting the commercial launch industry for more than 30 years and, partnering with Virginia Space and its Mid-Atlantic Regional Spaceport, we look forward to continue this effort with Rocket Lab.”The Launch Vehicle Integration and Assembly Facility to be located in the Wallops Research Park (WRP) will be designed and built to accommodate the simultaneous integration of three to four Electron vehicles, will contain a control room with connectivity to LC-2 and will include customer office and conference room space. This new facility, in tandem with the purpose-built gantry located at LC-2, will provide dedicated vehicle processing capability and flexibility to meet Rocket Lab’s launch cadence.Texas Project Secures FundingMeanwhile, the Houston City Council has approved more than $18.8 million in funding for Phase 1 of the Houston Spaceport project at Ellington Airport. The completion of work on the design-build agreement with Texas Sterling-Banicki, JV LLC will provide infrastructure vital to the development of the 90 acres (36 hectares) set aside for Phase 1, including streets, water, wastewater, electrical power distribution facilities and communications facilities necessary to attract future development.Granted the 10th commercial spaceport license in June 2015, the Houston Spaceport will become a focal point in the region for aerospace operations, such as the launching of micro satellites, astronaut training, zero gravity experimentation, spacecraft manufacturing and a host of other potential activities.“Houston offers a booming economy with a strong aerospace industrial base, a well-educated workforce with experience in the high-tech demands of space exploration and plenty of room for growth at a strategically located airport facility,” said Houston Mayor Sylvester Turner. “The Houston Spaceport project looks to the future and embraces our city’s spirit of adventure and innovation.”Phase 1 of the Houston Spaceport project will offer tenants and partners (continued from 50)(continued on 54)Rocket Lab’s first launch complex is in the Asia Pacific, on the Mahia peninsula of New Zealand.Photo courtesy of Rocket Lab54 NOVEMBER 2018 SI T E S E L E C T IO Na unique environment in which to collaborate as well as an operational platform to achieve critical business objectives. By housing organizations from across several industries and disciplines on one campus, the 10th licensed commercial spaceport located in the United States will foster and accelerate key aerospace engineering activities, including:• Component and composite development and fabrication• Space vehicle assembly• Zero-gravity scientific and medical experiments• Microsatellite deployment• Astronaut training and development• Space tourism.Construction in Phase 1 will eventually include a co-working space located near the Houston Aerospace Support Center, as well as land for several aerospace companies, and more. Innovation is at the very heart of aerospace and the core of the Houston Spaceport project. The innovative enterprise is designed to support growth and expansion across a highly diverse range of industry clusters, like drone technology, and foster and accelerate key aerospace engineering activities like component and composite development and fabrication and beyond.The majority of the funding — more than $13.1 million — will go to pre-construction and design services, and construction phase services. Funding for the project will come from the Houston Airport System Airport Improvement Fund.(continued from 52) S I T E S E L E C T I O N NOVEMBER 2018 55their primary business responsibilities in the U.S. This is one area where the Aerospace Council committee and the experience of the membership can assist. Without the travel, it can answer questions about to measure variable costs, for example, and what it actually costs to run a business in Thailand. These are Council members’ core competencies.Expertise for the TakingThe Thai government’s ministerial offices will be helpful in fielding questions, too, but Council members have been through the process of establishing aerospace operations in Thailand. Take advantage of their expertise in such areas as business license options and the advantages and disadvantages of each; builders and the sourcing of suppliers for construction; certifications — ISO, DCAA, FAA, EASA and NADCAP; regulations and compliance with the BOI, Customs, environmental and taxing entities; workforce, including engineers and skilled labor; product training; financial services; and questions of process and product line scalability that immediately come into play upon market entry. The objective, again, is not to export American jobs overseas to take advantage of lower labor costs. Airlines in the region want to work with local partners — logistics suppliers and other service providers. A physical presence in Thailand makes it possible to take advantage of the booming Asia-Pacific aerospace market. The AMCHAM Aerospace Council will facilitate every step of the way. John Brasch and Jim Grunewald are advisors for TRIDENT Aviation Services Group (www.tridentasg.com) and Co-Chairmen of the AMCHAM Thailand Aerospace Council (www.amchamthailand.com).(continued from 48)In Thailand, an investor can establish a wholly U.S.-owned business or engage a Thai partner to reduce cultural risk.56 NOVEMBER 2018 SI T E S E L E C T IO NThe Ocean State’s Enduring Location Acehode Island can punch above its weight — and win — thanks to business location assets like the Quonset Business Park. It’s not a new location — more than companies already employ more than , people at the ,-acre park that was once the Quonset Point Naval Air Station. What’s new is its escalating appeal to investors in some of Rhode Island’s most strategic industries, including renewable energy and the defense, maritime, shipbuilding and composites sector. ese are among the industries deemed strategic priorities for the state by the Brookings Institution for Gov. Gina Raimondo, who took offi ce in . “ at inter-related set of industries is extremely important within Rhode Island,” says Stefan Pryor, Rhode Island’s Secretary of Commerce. “From a historical perspective, they have been great contributors to our economy, and they continue to be front and center.” e United States Navy has its Naval Undersea Warfare Center in Rhode Island, he notes. What’s more, the U.S. Naval War College is based in Newport and General Dynamics Electric Boat already operates a major manufacturing facility — at Quonset Business Park. It’s one of two companies to announce headline-making projects at the park in recent months. Deepwater Wind, a leading developer of off shore wind solutions, is the other. “We have a strong heritage in, and we fervently believe there to be an even stronger future in, these industries,” says Pryor.At Quonset Business Park, Electric Boat will invest nearly $ million in a .-million-sq.-ft. expansion for construction of submarines. e project will create more than , new jobs. It also operates a submarine manufacturing facility across the state line in Groton, Connecticut, adding buoyancy to the region’s shipbuilding labor supply.“Electric Boat needs to signifi cantly increase its capacity at both the Groton location and its location in Quonset Point,” says Liz Power, director of communications at the defense contractor. “ e Quonset Point portion of this expansion represents an investment of nearly $ million into our Rhode Island location. At Quonset, we will build a series of facilities that provide additional module fabrication and outfi tting space to support construction of Virginia class and Columbia class submarines. ese facilities will be constructed progressively over the next six to seven years, with the fi rst two buildings already under construction,” she explains.“It’s advantageous that the region has such a heavy concentration of marine and related activities,” says Secretary Pryor. “Our defense companies include multiple nodes of activity within the larger region, and the investments are synergistic.” ey help by MARK ARENDmar k .ar end@ site s ele c tion.c omINVESTMENT PROFILE:QUONSET BUSINESS PARK, RHODE ISLANDRProvidence skylinePhoto courtesy of Rhode Island Commerce Corporation S I T E S E L E C T I O N NOVEMBER 2018 57This Investment Profile was prepared under the auspices of Rhode Island Commerce Corporation (RICC).For more information, call 401-278-9100 or visit https://commerceri.com.expand the cluster beyond shipbuilding, he explains, with the support of state resources designed to foster startup and entrepreneurial activity in general. “A lot of exciting and high potential work is bubbling up from our innovation-oriented smaller ventures,” he relates. “For example, a company called Siren Marine makes and attaches sensor technology to all manner of ships and sailing vessels.” e company, a recipient of a $, Innovation Voucher Grant from the Rhode Island Commerce Corporation, is a pioneer in so-called Connected Boat technology. “I predict they will continue to grow and that we will see increased activity and job creation in Rhode Island.” Sixty such innovation vouchers, which are intended for R&D conducted with state research institutions, have been awarded to companies to date.The Onshore Site for Offshore InnovationMeanwhile, Deepwater Wind is investing $ million and will hire more than to build a utility-scale off shore wind farm, the Block Island Wind Farm, that is projected to produce MW of energy. Proximity to Interstate and the Port of Davisville at the Quonset Business Park are critical logistics factor behind Deepwater Wind’s operation at the park. “It’s only fi tting that the Ocean State is home to America’s fi rst off shore wind farm,” says Deepwater Wind CEO Jeff rey Grybowski. “One of the country’s best off shore wind resources is located just off Rhode Island’s coastline and has a long history in innovative marine trades. e state is home to great port facilities at Quonset Point and ProvPort that were each essential to the development of the Block Island Wind Farm and are well-positioned to support future off shore wind development.“Rhode Island staked out an early leadership position and has been a model for other states up and down the East Coast for the right way to develop off shore wind energy,” says Grybowski. “From workforce training to the fi rst-of-its-kind Ocean Special Area Management Plan that guides the siting of off shore wind, Rhode Island has set a high bar for responsible off shore wind development. We’re proud to be headquartered in Rhode Island and to be partnering with the state of Rhode Island on a new, larger off shore wind farm that will keep Rhode Island ports and workers busy for years to come.” e signifi cance of the Port of Davisville to park tenants specifi cally and the region in general cannot be overstated, says Steven King, P.E., managing director of Quonset Development Corporation. “ e Port celebrated a record-breaking month for auto imports this past August, importing , cars,” he relates. “It has seen percent overall growth in auto imports over the last years. ese stats indicate that despite our smaller size relative to other East Coast ports, we handle the needs of our larger tenants.” e Port of Davisville recently received over $, through a Maritime Administration grant to increase barge services. e grant will help position the port as a stop on a new marine highway, joining the ports of Brooklyn, New York, and Newark, New Jersey. “ is grant will enable the port to remove traffi c from I- to the Business Park and off er further transportation service to these larger ports,” King elaborates. “ e effi ciency that we can off er our clients in shipping directly from the Port of Davisville or to other ports in the region sets us apart from other business parks in the region.” QUONSET BUSINESS PARK AT A GLANCE• 3,200 acres; pre-permitted sites available ranging from 1.3 to 53 acres• Home of the Quonset State Airport—7,500- and 4,000-ft. runways• Port of Davisville: 4 berths, 5 terminals, 58 acres of laydown and terminal storage; one of the top auto and frozen seafood ports on the U.S. East Coast• The Quonset rail network is over 14 miles of track, including onto Pier 2 at the Port of Davisville; direct connection to Rhode Island’s Freight Rail Improvement Project (FRIP) track on the Northeast Corridor for the rapid movement of freight to the national rail network.Next >