oeing announced in September it will consolidate the majority of its defense services and support-related activities from Washington State to other locations in the US as part of efforts to improve the competitiveness of its Boeing Defense, Space & Security unit.
The majority of the work will be relocated to Oklahoma City and St. Louis, where similar activities are performed today. Some additional work will be shifted to Jacksonville, Fla., and Patuxent River, Md. The transition could take up to three years to complete and affect about 2,000 employees. Once completed, approximately 900 positions could be added to Oklahoma City and potentially up to 500 positions to St. Louis.
"The decision to consolidate these activities was difficult, because it affects our employees, their families and their communities," said Chris Chadwick, Boeing Defense, Space & Security president and chief executive officer in a press statement. "However, this is necessary if we are going to differentiate ourselves from competitors and stay ahead of a rapidly changing global defense environment."
To the greatest degree feasible, the company will leverage Boeing Commercial Airplanes' presence in Puget Sound to mitigate the impact of this decision on individual employees. Additionally, the company will provide assistance and resources for employees to help them throughout this transition, including job search resources, retirement seminars, and career counseling services.
" We are committed to the long-term success of Boeing in Puget Sound. Both the P-8 and the KC-46A Tanker have decades-long production runs in front of them."— Chris Chadwick, Boeing Defense, Space & Security president and chief executive officer
Even with the announced moves, Boeing Defense, Space & Security continues a robust presence in the Puget Sound region due to production of the P-8 maritime patrol aircraft and KC-46A Tanker, which are based on the company's 737 and 767 commercial airplanes. Today the company's defense business has approximately 5,200 employees in the Puget Sound region.
"We are committed to the long-term success of Boeing in Puget Sound," said Chadwick. "Both the P-8 and the KC-46A Tanker have decades-long production runs in front of them."
Programs that will be relocated include services and support work for Airborne Warning and Control Systems, Airborne Early Warning & Control and the F-22 Raptor.
"Consolidating this work will allow the business to more efficiently use the resources and capabilities across the company," explained Jim O'Neill, president of Global Services and Support for Boeing Defense, Space & Security. "Our goal is to minimize disruption to program execution by making the necessary changes in an orderly transition."
Embraer Breaks Ground in Brevard County
Embraer broke ground October 9th on its Legacy 500 and Legacy 450 assembly complex in Melbourne, Fla. At the ceremony, which included Florida Governor Rick Scott, Brevard County and city officials, the Company celebrated this significant addition to its existing 212,000-sq.-ft. (19,700-sq.-m.) campus at Melbourne International Airport.
The new 236,000-sq.-ft. (21,900-sq.-m.) facility is expected to be operational by 2016. It will feature four new buildings: an assembly hangar, a paint facility, a completion center and flight preparation facility, and a new dedicated delivery center. Embraer will add 600 new hires to its almost 400 employees in the area in a ramped up mode over a period of four years beginning in 2016.
" Embraer's creation of 600 jobs is great news for Melbourne families and the surrounding community."— Governor Rick Scott
"Surpassing all original expectations during certification tests, the clean sheet design Legacy 500 and Legacy 450 represent a new, game changing generation of business aircraft" said Marco Tulio Pellegrini, President & CEO, Embraer Executive Jets. "With this state-of-art facility at the heart of an important aeronautical center in the region and the engagement of all stakeholders, we are very confident in the future of these programs."
Governor Rick Scott attended the ground breaking, noting: "Embraer's creation of 600 jobs is great news for Melbourne families and the surrounding community. With the creation of 643,100 jobs since December 2010, it's important that we remain focused on continuing Florida's economic momentum. By removing the sales tax on manufacturing equipment, Florida's businesses, like Embraer, will have a more competitive advantage over other states and countries, which will help businesses create more jobs for families."
Edge Aerodynamix Chooses Bay County
Edge Aerodynamix, Inc., specializing in erosion protection and paint protection products for aircraft, will locate its operations near the Northwest Florida Beaches International Airport (ECP) in Bay County. The project will create a $77.92 million in capital investment, including land, and create 120 manufacturing, research and development, and marketing jobs.
Edge Aerodynamix, Inc. has developed a product that will generate significant fuel savings for all types of aircraft. The company plans to continue research and development (R&D) on additional products aimed at reducing drag and increasing fuel efficiency. The company has chosen to locate the manufacturing of these products, in addition to its R&D and marketing operations, in Bay County after a competitive site search that included domestic and international sites.
"Edge Aerodynamix is very excited about locating in Bay County, Florida. This area gives our company plenty of room for future growth, an aviation-centric workforce and offers a business friendly environment for our operations," said Zana Ireland, President of Edge Aerodynamix, Inc.
As the project expands from phase-one, it will bring a significant capital investment and construction of multiple new facilities near the airport. ECP was strategically planned to act as a tremendous driver for economic development, with aerospace sites offering runway access, as well as surrounding acres for development to accommodate companies such as Edge Aerodynamix, Inc.