Tag Archives: defense

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Lockheed Martin signs lease in Goodyear

Lockheed Martin, a publicly traded aerospace and defense company, announced on Monday, Aug. 11 that it has signed a two-year lease for 31,540 square-feet of office space in Buildings 12 and 13 at 1300 S. Litchfield Road in Goodyear.

Jones Lang LaSalle acted as Lockheed’s broker in the transaction.

The landlord, Reliance Management, is pleased to have a new lease insuring that Lockheed employees will continue to work at the historical site, keeping slightly more than 50 jobs in Goodyear, including its Flight Operations Group and Synthetic Aperture Radar (SARS) program. For more than 80 years, 1300 S. Litchfield Road has been the home to Goodyear Aviation and other aviation companies, and home to the GS & IS Division of Lockheed Martin since the 1990s.

Presently, Lockheed occupies more than 400,000 square feet of space at 1300 S. Litchfield Road (1300 SLR) in eleven buildings which they intend to vacate over the next two years.

The announcement came as good news as the high-paying jobs retained at the Goodyear site will allow Lockheed Martin to maintain its aerospace presence in the city.

“We are pleased and excited that Lockheed Martin has come to an agreement with the property owner to continue working at the Goodyear site,” said Goodyear Mayor Georgia Lord. “Lockheed Martin’s commitment to keep part of its operations here underscores that Goodyear remains a great place to do business. The aerospace and defense industry will be key to Goodyear’s future, and we will continue to support those businesses, like Lockheed Martin, who provide quality jobs for our residents.”

A Lockheed Martin official echoed Mayor Lord’s sentiments.

“Lockheed Martin Mission Systems and Training is excited to be part of the Goodyear community today and into the future,” said Jeffrey Paul, manager of Airborne Ground Surveillance Radar Systems for Lockheed Martin.

“Our Airborne Ground Surveillance Radar Systems have a legacy going back to the invention of Synthetic Aperture Radar at the Goodyear site more than 50 years ago,” Paul added.

Reliance Management working with brokers, Brian Gleason, SIOR and Bonnie Halley, CCIM of Phoenix West Commercial of Litchfield Park have been marketing space in four buildings previously occupied by Lockheed. There are three office buildings totaling 22,837 square feet as well as a 13,138 square foot data center available for immediate occupancy. Phoenix West Commercial is also actively marketing the remaining 11 buildings totaling 412,160 square feet.

Aerospace and defense industry - AZ Business Magazine March/April 2012

Aerospace & Defense Forum launches Arizona Chapter

The Aerospace & Defense Forum, a global aerospace and defense organization promoting collaboration and commerce among industry leaders, has established an Arizona chapter which will launch in October.

An impressive line-up of Arizona business leaders will lead the Arizona Chapter Steering Committee and host monthly meetings and networking events. The Phoenix meetings will be hosted by the international law firm Greenberg Traurig and the Tucson meetings will be hosted by law firm Snell & Wilmer. Monthly chapter meetings will take place the second Tuesday of each month, alternating between Phoenix and Tucson, and include networking opportunities, presentations by aerospace and defense industry experts and small group discussions and at least once a year, a tour of an A&D facility not generally available to the public.

Ivan Rosenberg, President and CEO of Frontier Associates is the Executive Director and Co-Founder of A&D Forum. Stephane Frijia, Director, Research and Strategy at the Greater Phoenix Economic Council will serve as Chapter Chair of the Arizona A&D Forum.

In addition, those serving on the founding Arizona A&D Steering Committee include:
* Jerry Fellows, Shareholder, Greenberg Traurig, Phoenix
* Brett Johnson, Partner, Snell & Wilmer, Phoenix
* Richard Katz, Counsel, Snell & Wilmer, Tucson
* Bruce Macdonough, Co-Managing Shareholder, Greenberg Traurig, Phoenix
* Peter Vedder, Director, Civil Space and Space Services, General Dynamics C4 Systems

“We’re thrilled to bring this proven collaborative format to the Arizona A&D community,” said Rosenberg. “A&D companies have discovered that A&D Forum membership and group involvement provides an unmatched source of new ideas for improving both their top and bottom lines, as well as a forum for learning best practices and solving problems.”

The inaugural meeting of the Arizona chapter will take place Oct. 8, with a keynote presentation by Lt. Gen. Gene Tattini, Deputy Director, NASA Jet Propulsion Laboratory (JPL), entitled,  “Dare Mighty Things: Turning Around Two A&D Organizations.” Tattini is also former Commander of the United States Air Force Space and Missile System Center.

Currently, there are more than 700 international leaders involved in the A&D Forum. Other A&D Chapters are located in Los Angeles, San Diego and Orange County, Calif. In Arizona, there are more than 2,000 companies in the aerospace and defense industry providing more than 43,000 jobs and significant positive economic impact.

“The Greater Phoenix Economic Council reported more than $13 billion in defense contracts with Arizona ties in 2012 alone. These high-paying jobs make a significant economic impact in our state and we are proud to support and encourage industry growth,” said Greenberg Traurig Co-Managing Shareholder Bruce Macdonough. “We also look forward to raising the visibility of Arizona a top-tier destination for the best aerospace and defense companies to grow and prosper.”

Each monthly meeting is free of charge, but registration is required. To RSVP for the Oct. 8 meeting, visit: https://adfazoct13.eventbrite.com.

Aerospace and defense industry - AZ Business Magazine March/April 2012

Aerospace & Defense Forum launches Arizona Chapter

The Aerospace & Defense Forum, a global aerospace and defense organization promoting collaboration and commerce among industry leaders, has established an Arizona chapter which will launch in October.

An impressive line-up of Arizona business leaders will lead the Arizona Chapter Steering Committee and host monthly meetings and networking events. The Phoenix meetings will be hosted by the international law firm Greenberg Traurig and the Tucson meetings will be hosted by law firm Snell & Wilmer. Monthly chapter meetings will take place the second Tuesday of each month, alternating between Phoenix and Tucson, and include networking opportunities, presentations by aerospace and defense industry experts and small group discussions and at least once a year, a tour of an A&D facility not generally available to the public.

Ivan Rosenberg, President and CEO of Frontier Associates is the Executive Director and Co-Founder of A&D Forum. Stephane Frijia, Director, Research and Strategy at the Greater Phoenix Economic Council will serve as Chapter Chair of the Arizona A&D Forum.

In addition, those serving on the founding Arizona A&D Steering Committee include:
* Jerry Fellows, Shareholder, Greenberg Traurig, Phoenix
* Brett Johnson, Partner, Snell & Wilmer, Phoenix
* Richard Katz, Counsel, Snell & Wilmer, Tucson
* Bruce Macdonough, Co-Managing Shareholder, Greenberg Traurig, Phoenix
* Peter Vedder, Director, Civil Space and Space Services, General Dynamics C4 Systems

“We’re thrilled to bring this proven collaborative format to the Arizona A&D community,” said Rosenberg. “A&D companies have discovered that A&D Forum membership and group involvement provides an unmatched source of new ideas for improving both their top and bottom lines, as well as a forum for learning best practices and solving problems.”

The inaugural meeting of the Arizona chapter will take place Oct. 8, with a keynote presentation by Lt. Gen. Gene Tattini, Deputy Director, NASA Jet Propulsion Laboratory (JPL), entitled,  “Dare Mighty Things: Turning Around Two A&D Organizations.” Tattini is also former Commander of the United States Air Force Space and Missile System Center.

Currently, there are more than 700 international leaders involved in the A&D Forum. Other A&D Chapters are located in Los Angeles, San Diego and Orange County, Calif. In Arizona, there are more than 2,000 companies in the aerospace and defense industry providing more than 43,000 jobs and significant positive economic impact.

“The Greater Phoenix Economic Council reported more than $13 billion in defense contracts with Arizona ties in 2012 alone. These high-paying jobs make a significant economic impact in our state and we are proud to support and encourage industry growth,” said Greenberg Traurig Co-Managing Shareholder Bruce Macdonough. “We also look forward to raising the visibility of Arizona a top-tier destination for the best aerospace and defense companies to grow and prosper.”

Each monthly meeting is free of charge, but registration is required. To RSVP for the Oct. 8 meeting, visit: https://adfazoct13.eventbrite.com.

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GPEC analyzes impact of potential defense cuts

The Greater Phoenix Economic Council today released findings and recommendations from its Aerospace and Defense Market Intelligence Program, a two-phase initiative that took an in-depth look at the region’s aerospace and defense companies to determine their strengths, weaknesses and readiness for the sequestration, federally-mandated automatic spending cuts scheduled to take place on March 1 unless Congress intervenes.

As a result of the sequestration, the Department of Defense (DoD) must cut $1 trillion from its budget. Arizona has the sixth largest share of DoD contracts, and stands to lose as much as $2.3 billion in annual revenue on account of sequestration-based cuts.  Until it happens, however, the size or effects of the cuts in Arizona remain ambiguous.

In anticipation of these massive cuts, the Greater Phoenix Economic Council (GPEC) – along with its Economic Development Directors Team and the Greater Phoenix Chamber of Commerce – last year undertook a major market intelligence initiative to determine the existing strengths and weaknesses of Arizona’s aerospace and defense companies. Based on this data snapshot, the analysis also sought to understand the potential impact of sequestration on our local companies, communities, workforce and innovation base.

“As part of GPEC’s program, I personally sat down with several aerospace and defense companies located in Phoenix. The message I heard from them was resoundingly clear – the uncertainty over the timing and severity of these cuts has many of them paralyzed, and they want guidance,” said Phoenix Mayor Greg Stanton. “With 49,000 Arizona aerospace and defense jobs at stake, it’s critical that our federal leaders work together to avert this crisis or at least provide a strategic direction for where we go on March 2 and beyond.”

“Sequestration is a bad way to budget. Local companies and individuals get caught up in a political game that does little to solve our nation’s long-term financial challenges,” Mesa Mayor Scott Smith said. “Washington should follow the example of cities and make smart cuts to fix the budget rather than making arbitrary cuts that do more harm than good.”

The program consisted of two main components. The first developed an in-depth profile and analysis of 114 local companies identified by GPEC using data from the Office of Management and Budget. The second was an extensive door-to-door outreach effort to these companies, conducted by mayors, local chambers of commerce, GPEC Ambassadors (volunteers from GEC’s member companies) and municipal economic development directors and their teams.

“As a top-ranked defense state, Arizona has much to lose with the budget cuts associated with the 2011 Budget Control Act. The West Valley, proud home to Luke Air Force Base, has worked tirelessly to protect the mission of the base and to secure the F-35 aircraft,” Avondale Mayor Marie Lopez Rogers said. “Sequestration and the drastic budget cuts to defense and aerospace will undermine the efforts of the communities in the West Valley and negatively impact our local economy, which is tied closely to Luke Air Force Base and the defense-related industry.”

It’s also important to note that nearly 75 percent of the state’s research and development expenditures are housed within Arizona’s corporate infrastructure – companies like Intel, Boeing, Raytheon and Honeywell. As such, drastic reductions in their DoD contracts could result in losses in some of the state’s most significant research programs, which affect Arizona’s science position, its universities, and opportunities for increased investments and exports.

“These looming cuts represent a crossroads for our region,” GPEC President and CEO Barry Broome said. “The region’s corporate, science, civic and government partners must convene to not only mitigate job loss but also to support and protect the region’s physical assets, workforce talent and innovation from being moved out of the market.”

The findings represent a snapshot of the Greater Phoenix region’s aerospace and defense industry for a specific period of time, from May through December 2012 when the data was collected. During this time period, sequestration was considered more of a threat and less of a reality.

Top-line analysis revealed that 76 percent of the companies reported to be either stable (52 percent) or expanding (24 percent). Twenty-six percent reported that their businesses were contracting – primarily companies and operations where DoD contracts represent the largest share of their revenue base. Those that were expanding focused on diversification, including commercial and international markets, or DoD growth areas like intelligence, surveillance and reconnaissance, cyber technology, space technology and counterterrorism.

Because 2,000 companies throughout Arizona were awarded $13 billion in defense contacts in 2012 – and the industry represents 43,000 direct jobs – even a 25 percent contraction could be detrimental to one of the state’s major employment bases. For larger, Tier 1 companies, the short-term outlook is more stable as many have expanded products and services in anticipation of the cuts. However, Tier 2 companies that generally represent the industry’s supply chain are less likely to withstand the cuts due to their reliance on Tier 1 companies for contracts and subcontracts. Some of these companies have neither the access to capital or the working capital to wait it out – meaning they could be forced to lay off workers or cease operations.

Based on the program’s findings, GPEC’s five recommendations include:

1. A federal-level strategy from Arizona’s congressional leadership to either fully reverse sequestration or provide a “go forward” strategy to ensure Arizona’s aerospace and defense assets – including R&D and skilled workforce – are retained and redeployed.
2. Public and bilateral support for Governor Brewer and the Arizona Commerce Authority in their efforts to secure an FAA-designated test site.
3. A major commitment to science and technology to ensure the aerospace and defense industry’s existing knowledge and technology assets are leveraged to generate new and higher-value economic growth opportunities for our existing workforce talent while also attracting new, skill ed workers to Greater Phoenix.
4. Increased support for regional export opportunities from state and regional leaders.
5. An ongoing commitment to business retention and expansion, particularly with regards to sequestration.

To view the Aerospace and Defense Market Intelligence Report in its entirety, as well as all five recommendations, please visit http://www.gpec.org/aerospace.

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GPEC puts together a science and technology strategy

Even when the state was known for copper, cattle and citrus, Arizona has relied on being an innovator to drive its economy.

“Arizona’s economic position has historically been defined by science and technology,” says Steven M. Shope, president of Mesa-based Sandia Research Corporation, “especially if you look back to the 1940s and 1950s, when the state put a wealth of resources into attracting new technologies.”

Those efforts, Shope says, paid off and made Arizona a leader in the electronics, semiconductor, aerospace and defense industries.

“Now, we need more science and technology to transform Arizona into a knowledge economy and lift our productivity and export growth from below national average,” Shope says.

To help make that happen, the Greater Phoenix Economic Council (GPEC) has directed its Innovation Council — which is co chaired by Shope and Todd Hardy, associate vice president of economic affairs for Arizona State University — to study the community’s high-potential assets, look for commercialization opportunities and put together and science and technology strategy that will help drive a knowledge-based economy in Arizona. The backbone of that strategy will be building on the state’s existing strengths.

According to Sethuraman Panchanathan, senior vice president at ASU’s Office of Knowledge Enterprise Development, those strengths include the state’s world-class research universities, research centers and institutes, a large highly trained workforce, a vibrant entrepreneurship ecosystem, a concerted effort on improving business climate in the cities and the state, plans for rapid growth by existing science and technology businesses, and an enhanced quality of life.

“Our best strengths come from the companies already here — established businesses like Intel, Avnet, Boeing and Honeywell,” Shope says. “Arizona also has lower workforce costs and good transportation connectivity to other markets, both of which are attractive for science- or technology-based businesses.”

So how does Arizona tranlate those assets into further expansion and enhancement of the science and technology sectors?

“We’re already world leaders in solar research and development and manufacturing and there is still strong potential for innovation within our aerospace and electronics industries, as well as in healthcare and personalized medicine,” Shope says. “However, we need to fill in the gaps with regards to access to capital, markets and talent in order to realize that potential. GPEC’s Innovation Council is working to develop a strategy that leverages these resources, harnesses new ones and further diversifies our economy into these areas.”

Panchanathan says the key to creating a successful strategy will be, “Convergence of purpose between the various economic development entities in Arizona, securing investments that can be deployed to attract new businesses to Arizona, and creating incentives for attracting local and global businesses to Arizona.”

Already driving Arizona’s electronics sector is Intel, with its recent $5 billion expansion, and companies like Boeing and Honeywell are fueling the aerospace sector. Those three companies are driving innovation within our communities and their local supply chains, Shope points out.

Top develop its science and technology strategy, Shope says says GPEC’s Innovation Council is conducting a deep market analysis to identify long-term opportunities in science and technology, and learning how to target growth from initiatives in other regions. GPEC is building the business case among private leaders to establish focus and build resources around a few select initiatives.

“A well thought-out strategy should include building up each community’s unique assets and driving growth into new markets by establishing centers of excellence around emerging products and technologies,” Shope says. “Increasing funding to the universities for R&D is also critical, as is developing funding and resources for entrepreneurs. Educating the entrepreneur is also an important goal. In particular, R&D funding from federal sources, such as (Small Business Innovation Research) SBIR and (Small Business Technology Transfer Program) STTR, is an ideal mechanism for launching new technologies. However, this funding is becoming increasingly competitive. We need to be sure that Arizona small businesses can be highly competitive in these funding programs.”

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Trade official outlines importance of aerospace, defense to Arizona

Under Secretary of Commerce for International Trade Francisco Sánchez will highlight the importance of aerospace and defense industry exports to strengthening the American economy and creating jobs during his “Made in America” tour stop in the Phoenix area, on August 21.

Sánchez will discuss export opportunities with local aerospace industry leaders at a roundtable hosted by the Arizona District Export Council in Scottsdale. He will tour the Kaiser Aluminum Alexco facility in Chandler, and the Nivisys Industries manufacturing plant in Tempe, to see first-hand how exporting can help Arizona companies. Sánchez will present U.S. Department of Commerce Export Achievement Certificates to both firms to recognize their recent export successes.

Aerospace is an important export industry that will help achieve the goals of President Obama’s National Export Initiative to double U.S. exports by the end of 2014. The U.S. aerospace industry supports more jobs through exports than any other manufacturing industry.  According to the Arizona Commerce Authority, in 2009, Arizona’s aerospace and defense companies employed 39,400 individuals with a total payroll of $4.3 billion. Purchases of goods and services by aerospace and defense companies from Arizona suppliers generate 17,000 jobs and labor income of $1.1 billion.

F-35-Wallpapers-by-cool-wallpapers-2

Luke Air Force Base Gets F-35 Mission

Glendale officials say the Department of Defense has chosen Luke Air Force Base for the new training center for F-35 fighter jets.

“The goal of our statewide initiative was to send a clear message to the decision makers in Washington D.C. that Arizona strongly supports Luke Air Force Base continuing to serve as our nation’s premier fighter pilot training facility,” said Glendale Mayor Elaine Scruggs, co-chair of the Luke Forward campaign.

The 71-year-old base in west Glendale was competing with bases in Tucson, New Mexico and Idaho for the F-35 mission.

“Arizona’s military industry is one of the largest industries in our state, and Luke serves as the anchor,” Scruggs said. “This new F-35 training mission will bring with it decades of tremendous military value to our national security and sustainable economic benefits to our region and state. I want to thank and recognize all the elected officials and citizens of the West Valley cities and Maricopa County for standing firm in their unwavering support of Luke Air Force Base all the way through to the end of the F-35 basing process.”

The Luke Forward campaign was developed by the West Valley Partners and Fighter Country Partnership to generate awareness and support of the positive impacts the Air Force’s next generation strike fighter will bring to the state. The partners include the cities of Avondale, Buckeye, El Mirage, Gila Bend, Glendale, Goodyear, Litchfield Park, Peoria, Phoenix, Surprise, Tolleson, Wickenburg and Youngtown, as well as Maricopa County.

Fighter Country Partnership Chairman Charley Freericks, who co-chaired the campaign with Scruggs, believes the widespread community support garnered for the F-35 by Luke Forward elevated Arizona from states in other parts of the country where the Air Force was considering placing the F-35.

“Through Luke Forward, we were able to engage nearly 10,000 residents to attend public hearings, send emails or phone Air Force representatives in support of Luke and to get 21,000 citizens from throughout the state to register their support of the F-35 at LukeForward.com,” said Freericks. “This tremendous support, from state and local officials, business partners, homeowners associations, residents, retirees and others, really made us stand out among the competition.”

The Air Force will initially place three squadrons, totaling 72 F-35s, at Luke AFB starting as early as next year to replace two of Luke’s F-16 squadrons allocated for Air Force training – keeping Luke’s ramps full, along with the 26 F-16s at Luke dedicated for foreign military training. The new F-35s will most likely arrive at Luke AFB in phases over the next couple years.

The decision ensures Luke’s 56th Fighter Wing will now be the Air Force’s F-35 pilot training  site, or “school house,” as well as continuing F-16 training for fighter pilots in the foreseeable future. The Air Force may station up to six F-35 squadrons totaling 144 aircraft at the Glendale base as F-16s are retired.

In addition to ensuring the long-term viability of Luke AFB, the F-35 training mission will also serve as an economic stimulus for the Valley’s beleaguered construction industry as the new fighter will require construction projects, facility improvements, infrastructure upgrades and other maintenance and repairs.

As a result, Luke can anticipate receiving an infusion of $100-$125 million within months from the federal government to pay for these construction-related projects. Much of this federal investment will positively impact the regional and state economies with local labor and suppliers of construction material. Nearly 3,000 construction jobs are estimated to be created in preparation of the F-35’s arrival.