Lockheed Martin Corp.’s recently inked deal to develop the Pentagon’s Joint Strike Fighter program – a contract expected to be worth $200 billion – could provide a needed boost to area aerospace companies.
Jet engine maker Pratt & Whitney of Hartford captured $4 billion worth of work from Lockheed. Now small companies in Rhode Island and Connecticut are eager to jump on board with Pratt, whether it’s providing nuts and bolts or engine parts.
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“This military contract has been on our radar screen for the past two years. We’ll continue to work aggressively to be included in it,” said Kip Brockmyre, general manager of Laser Fare Inc, a Smithfield laser machining company.
Laser Fare makes engine parts for the aerospace industry, including parts for Pratt.
Brockmyre said Pratt is in the development phase on the military project, so it could take several years before they’ll need parts like those manufactured by his company. When they do, Laser Fare will be ready.
“If this project grows like the way it is expected at this point, then it could require us to bring on more people. However, there’s a lot that needs to be determined before that happens. A lot could change two (Presidential) Administrations down the road,” he said.
Manufacturers in the aerospace industry have been hit hard in recent months, because of a slowing economy and the repercussions from the Sept. 11 terrorist attacks.
“Lousy is the only printable word I can use to describe business lately,” said Geoff Grove, president of Pilgrim Screw Corporation of Providence, which makes fasteners for the aerospace industry. “Anything that the government does in the way of purchasing military or aerospace equipment is good news for us.”
The contract was especially big news for Pratt, whose commercial business has suffered a slowdown in recent months. In fact, the company reportedly plans to cut 2,500 jobs globally in the next year.
Pratt worked closely with both Lockheed and Boeing Co., as the two giants battled for the Joint Strike Fighter contract, which the Bethesda, Maryland-based Lockheed won two weeks ago. So, no matter who won the contract, Pratt stood to benefit.
The Joint Strike Fighter program calls for building as many as 3,000 of the multi-purpose aircraft, a warplane that would replace Air Force, Navy and Marines F-16, A-6 and F-14 fighters in the U.S. and the GR-7 in Britain’s Royal Navy.
Lockheed, the biggest defense contractor, will begin a $19 billion, eight-year development phase. Initial production may begin in 2005 with 465 aircraft. Full production would start in 2008 and continue into the 2020s.
The program, expected to be the last big military contract awarded for manned aircraft, makes Lockheed the world’s leading maker of fighter jets for the foreseeable future and positions it to sell as many as 3,000 more aircraft to other foreign nations.
The JSF F-35 is designed to be “the world’s premier strike platform beginning in 2008 and lasting through 2040,” Edward Aldridge, the Pentagon’s top acquisition official, said in announcing the decision.
Lockheed Martin’s top industry partners are BAE Systems PLC., Northrop Grumman Corp., TRW Inc., General Electric Co., Alcoa Inc., Litton Guidance and Control Systems and Honeywell International Inc.
Rhode Island-based Textron, another large military contractor, is not involved in the Joint Strike Fighter program. Raytheon, which worked closely with Boeing on its bid to get the contract, could gain work if Lockheed shares work with Boeing – something politicians and government officials hinted Lockheed should consider.
Meanwhile, hundreds of smaller businesses throughout the country will be looking for a piece of the pie.
“There will be large companies, as well as manufacturing companies – some that you never heard of – that will do different piecesall of those pieces will require fasteners. That’s where we will come in,” said Grove, whose company makes everything from screws to bolts to pins for the aerospace industry.
Brockmyre said companies will have to do their homework in wooing Lockheed and its partners. For example, companies will need to be sensitive to the fact that it’s a military project.
“Companies will need to hold this type of work close to their vests,” he said.
Grove and Brockmyre don’t expect to profit from the contract anytime soon. It could take several years down the road to capture work from Pratt, they said.
Jean Robertson of the Rhode Island Economic Development Corporation pointed out that along with the “spin-off” benefits for area businesses of having Pratt nearby, Rhode Island workers stand to benefit.
She said that residents of Rhode Island and Massachusetts could get high-paying jobs with Pratt, if the company expands to handle the government’s order.
“That company usually has a lot of high-end engineering jobs. Don’t forget, if you live in Rhode Island, but work in Connecticut, you still pay your taxes here in Rhode Island,” she said.
