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UNIVERSITIES AS ECONOMIC ENGINES



Taking Flight in the Bluegrass

    Just a year ago, University of Kentucky engineering graduate John Estes had to battle congested rush hour traffic in Houston, Texas to practice his profession at Boeing NASA Systems. As an aerospace design engineer, Estes worked on such exciting projects as the Orbiter Boom Sensor System. Estes also battled the high cost-of-living confronting, him and many other young professionals in Houston. While parked on I-45, he dreamed of returning to his family and roots in Kentucky's Bluegrass Region. Estes' dream of returning to Kentucky could only happen if he abandoned his promising career as an aerospace design engineer — for no similar opportunities existed in the Bluegrass.
      Today, Estes spends just minutes commuting to his 8th floor office in the World Trade Center in downtown Lexington, Ky. He leads a group of junior engineers who design aerospace systems used in Sikorsky helicopters. After opening its doors in mid-February 2005, the Lexington Aerospace Design Center group has grown to approximately 30 engineers, 21 of whom are
Partnership among companies, institutions and governments was the key to attracting Belcan Corp.'s Aerospace Design Center to Lexington, Ky.
graduates of the College of Engineering at the University of Kentucky (UK). The Center has the potential to employ as many as 300 engineers.
      Estes' dream is now a reality due to two successful partnerships. The first is between Sikorsky, the provider of the aerospace design work, and Belcan Corp., which employs Estes and his fellow engineers at the Lexington Aerospace Design Center.
      Estes' new job in Kentucky is the result of the steadfast commitment of Sikorsky's management to buck the trend of outsourcing engineering design work to foreign countries. Sikorsky is looking for creative means to "inshore" this work to parts of the United States where the cost of living is considerably less than that found in Stratford, Conn., Sikorsky's corporate headquarters. Sikorsky's partner, Belcan Corp., founded by UK mechanical engineering graduate Ralph Anderson, proposed an Engineering Design Center to be located somewhere in the heartland that could meet Sikorsky's expansion needs.
      "It has long been a vision of Mr. Anderson, to bring high-technology employment opportunities to his native state, the Commonwealth of Kentucky," explains Phil Combs, CEO of Belcan Corp. "With excellent opportunities from Sikorsky Aircraft and partnership support from the Commonwealth, the City of Lexington, the University of Kentucky and Commerce Lexington, Mr. Anderson's vision is becoming a reality."
      The second successful partnership is between the Lexington-based University of Kentucky, the City of Lexington, Commerce Lexington and the Kentucky Cabinet for Economic Development. Upon hearing of Sikorsky's desire to open an Aerospace Design Center somewhere in the heartland, these four entities assembled a dynamic team that put together a package of incentives too attractive for Sikorsky/Belcan to resist. The Kentucky Cabinet for Economic Development assembled over $7 million in tax incentives for the Sikorsky/Belcan team and even recruited Governor Ernie Fletcher, a UK mechanical engineer graduate and U.S. Air Force pilot, to help. The City of Lexington and Commerce Lexington pitched in as well.


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The Lexington Aerospace Design Center employs college students to work alongside the company's professional engineers. This blended engineering rate allows Belcan to ensure professional quality, while driving down costs.
      "When we heard an undisclosed aerospace company was on its way to Lexington, we put together a presentation highlighting the things we do that might interest such a company," said Bruce Walcott, associate dean for economic development and innovations management for the UK College of Engineering.
      What really sold Lexington as the selection site was a visit with UK's innovative President Lee T. Todd, Jr. A UK College of Engineering graduate and former high-tech entrepreneur, Todd cancelled his speaking engagement for that evening and had dinner with Sikorsky advance team members.
      "When he said that he attributed his companies' successes to the caliber of engineering talent available to him through the University of Kentucky, the Sikorsky advance team took notice," said Walcott.
      "Building partnerships like this is exactly how we all move forward," said President Todd. "Belcan, the university, and the state all benefit from this type of cooperation. One of the reasons I wanted this job [as UK president] was to make an impact on the economy of the Commonwealth of Kentucky," he said. "It's going to be nice to see 300 engineers walking downtown with all those bankers."
      Since the official announcement of this project, inquiries from as far away as Orange County, Calif. have been received about using the Belcan/UK/Sikorsky model to help other engineering and high-tech firms bound by the high cost of doing business expand domestically without resorting to offshoring.
      From the relationship being formed between UK and Sikorsky, Walcott envisions new opportunities.
      "I am confident that once Sikorsky sees what our engineering faculty, students and graduates like John Estes can do, co-op and research opportunities will naturally occur," Walcott said. "All of this pushes UK closer to attaining its goal as a Top-20 public research university by 2020."
     
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