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FEATURE

Utah Enjoys Strong Aerospace
Cluster With Rich History

Utah may not be the aerospace capital of the world (yet), but the state's aerospace cluster is certainly on a growth path and two of Utah's leading economic developers would like to keep it that way.

Gary Harter, Managing Director for Business Creation in the Governor's Office of Economic Development (GOED), and Jeff Edwards, president and CEO of the Economic Development Corporation of Utah (EDCUtah), spend a large part of their time focused on this hot industry segment.

If you're not familiar Governor Jon Huntsman's cluster initiative, GOED's website provides a nice overview. As part of Huntsman's 10-point economic revitalization plan, the cluster initiative is to promote growth in seven targeted industries, aerospace being one of them.

Edwards says Utah has a rich aerospace heritage, from the beginnings of Hill Air Force Base in the late 1930s, which began as an air depot with seven permanent stations supplying the Rocky Mountain region, to its present status as one of the top ten states in the nation in the concentration of aerospace employment.

Utah's aerospace cluster covers civilian and military efforts that have to do with aviation, manufacturing and support, procurement, and commercial airlines support. In all, Utah is home to over 25 aerospace companies, including: ATK, Alliant Techsystems, Moog Aircraft Group, Parker-Hannifin Aerospace, Adam Aircraft, FMC Jetway Systems, Rocky Mountain Composites, Barnes Aerospace, and Boeing Company, to name a few. Harter says the state's role is that of a catalyst or facilitator, to help satisfy the needs and growth of Utah's existing aerospace companies, while recruiting additional aerospace companies to the state. "We want to have end-to-end coverage of the aerospace industry, from the supply chain through to the manufacturers," adds Edwards.

Hill AFB, in Ogden, is at the epicenter of Utah's aerospace cluster. Hill is an Air Force Materiel Command base with one of the country's largest Air Logistics Centers. It employs approximately 23,000 military and civilian personnel and encompasses 6,698 acres. The base provides worldwide engineering and logistics management for the F-16 Fighting Falcon, A-10 Thunderbolt II, and Minuteman III intercontinental ballistic missile, and performs depot maintenance for the F-16, A-10 and C-130 Hercules aircraft. Aerospace companies that support Hill's mission include Northrop-Grumman, Boeing, and Lockheed Martin.

In 1990, ATK launched as a Utah spin-off from Honeywell, then expanded into the aerospace market by acquiring Hercules Aerospace Company in 1995 and Thiokol Propulsion in 2001. These acquisitions allowed ATK to become the world's largest supplier of solid propellant rocket motors (providing Space Shuttle booster rockets to NASA) and a leader in the advanced composites industry. The company employs approximately 6,000 workers.

Williams International, the world leader in the development, manufacture and support of small gas turbine engines, has steadily grown its Utah presence for several decades. It currently employs approximately 1,000 workers at its Ogden facility, which is the most modern and efficient gas turbine design-to-production facility in the world. Williams supplies engines for the Air Force cruise missile program and also builds engines for the commercial aviation industry (including Adam Aircraft's A700 and Rocky Mountain Composite's Spectrum 33).

In March 2005, Adam Aircraft announced plans to expand its manufacturing operations to a new facility at the Kemp Ogden Airport Gateway Center. With 430 employees and over 100,000 square feet of manufacturing space, Adam Aircraft looks to ramp up production in conjunction with its current Colorado location. As the company grows, the Gateway Center will add new facilities in phases to accommodate the aircraft manufacturer's expansion.

Rocky Mountain Composites, an aircraft manufacturer in Spanish Fork, is developing the Spectrum 33, a composites-based light business jet powered by Williams International gas turbine engines.

Edwards says the Boeing Company's Utah operation, located at the Salt Lake International Airport, is now the spare parts facility for every Boeing and McDonnell Douglas aircraft ever made. "The facility has the tooling and skilled craftsmen necessary to make parts for all of the old Boeing and McDonnell Douglas planes still in service," he adds. The Boeing facility was originally put in by McDonnell Douglas in the early 90s.

Barnes Aerospace, a business segment of Barnes Group Inc., recently broke ground in Ogden on a new, state-of-the-art, 120,000-square-foot manufacturing facility to produce precision aerospace components for use in a wide range of aircraft engine and airframe applications.

Barnes produces precision machined and fabricated components and assemblies for original equipment manufacturer (OEM) turbine, airframe and industrial gas turbine builders throughout the world. The new facility is designed to accommodate growth in the business, future opportunities and long-term contracts with customers. Construction of the facility, which will nearly double the existing square footage of manufacturing space for the Barnes Aerospace OEM-Ogden operating unit, is scheduled for completion in the first quarter of 2008. The new facility will be located in the Business Depot Ogden Industrial Park.

Utah is also home to the Space Dynamics Laboratory at Utah State University. Edwards says the lab started as a research facility for NASA, but has since become a standalone facility that builds spacecraft payloads for commercial operations, NASA, and the Air Force.

And that's only mentioning a few of Utah's aerospace concerns. What's more, Harter and Edwards can't discuss Utah's aerospace cluster without also talking about the exciting growth within the state's advanced composites industry, which could be called a mini cluster. Harter says there are a lot of cross-overs within Utah's aerospace and composites companies. "Utah is the only state we know of that has an entire supply chain in advanced composites," he adds.

Edwards says Utah is known as the birthplace of the advanced composites industry and the state is now seeing second and third generation composites companies that have spun off from legacy programs started 30 years ago. "Utah has been a pioneer in composites for a long time," he says. "We have a significant advantage from the get go with that history and the experienced people that are all ready here."

Harter and Edwards both participate in monthly advanced composites working group meetings, which Harter describes as a loose group of 15 or so c-level people from within Utah's advanced composites industry and academic institutions, who are all interested in the development and expansion of the industry. Utah has also been an active participant in SAMPE, the annual symposium of the advanced composites industry, and the only state to host a booth there. GOED and EDCUtah have already made commitments to participate in next year's SAMPE conference, which will be held in Long Beach, California. Truly, advanced composites is the cutting edge of the aerospace industry, and Utah is well positioned for an exciting future in this mini cluster.

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The EDCUTAH Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUTAH partners and selected other government and civic organizations interested in Utah's economic development. If you prefer not to receive this newsletter, please use the link below. Subscribe or Unsubscribe Your comments and suggestions regarding this newsletter are always welcome. Click here: Comments

IN THE NEWS

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Economic Development Headlines from the Past Week

Successful Entrepreneurs Keep a Sharp Eye on Risk

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(Morning News)

Conestoga Bucks Trend, Finds Plenty of Workers

- A lack of available workers has slowed some businesses in Tooele County, and that trend may continue for the near future as large companies such as Carlisle SynTec and Allegheny Technologies look to hire en masse over the next few months.
(Tooele Transcript Bulletin)

Logan Conference Center Unveiled

- Logan could be new competition for Salt Lake City and Park City when vying for conventions.
Wasatch Development Associates unveiled the new Riverwoods Marriott Hotel and Conference Center Thursday in Logan. The $60 million project, at 650 S. Main, includes the hotel, conference center, office space, a fitness center and a parking structure. (Morning News) (Standard Examiner)

Commissioners Back Lehi Development

-  There's nothing wrong with Lehi's City Hall, but frankly, it's just not Brandt Andersen's style.
Still, City Hall is the place where planning commissioners met Thursday night and decided to recommend amending the city's master plan to allow for Andersen's development in a brand new zone crafted just for the project. (Morning News) (SL Tribune)  (Daily Herald)

Pleasant Grove Readies for Huge Development

- Hundreds of acres of farmland and hay fields along Pleasant Grove Boulevard are making way for the highly anticipated John Q. Hammons' Embassy Suites Hotel and convention center, which will break ground on Aug. 24. (Daily Herald)

Mayor Anderson to Push Economic Development

- Grantsville Mayor Byron Anderson has a vision. He foresees a day when the small town that's just about to get its first stop light will become a major crossroads for manufacturing, industry and business.
(Tooele Transcript Bulletin)

Summit Offers Glimpse of Future

- To wrap up the 20th annual Utah Rural Summit, community leaders from around the state talked about what may be in store for Utah's rural areas.
(The Spectrum) 

USSA Breaks Ground on $22.5M State-Of-The-Art Training Center

- The U.S. Ski and Snowboard Association broke ground on a $22.5 million training and education center, a state-of-the-art facility certain to entice even more of the country's elite winter athletes to move to Utah permanently or part-time. (SL Tribune)

Sandy ready to Wrap up RSL Deal With $35m Bond

- Real Salt Lake's two-year quest for public funding to help build a soccer stadium is expected to be wrapped up tonight. The Sandy City Council is poised to ink a development agreement that sets the terms for the team to receive $35 million in Salt Lake County hotel taxes.
(SL Tribune)

MacKenzie Follows Amer to Ogden

- A Canadian company that has designed, built and managed trade show exhibits for dozens of companies in the outdoor sports industry over the past 20 years is getting ready to open its first American office at Business Depot Ogden. (Standard Examiner)  (Utah Business Magazine)

UTA Sets Tentative 2012 Date for Provo-Salt Lake Commuter Rail

- The transit agency met Wednesday with a subcommittee of its board of trustees to give an update about the status of the rail projects and outline a tentative financial plan for construction. (Morning News)

Logan City Hall Going Green

- Once complete, Logan’s new City Hall complex will boast more than just brand-new offices for administrators and department heads — it will also be among Cache Valley’s most environmentally friendly facilities.
(Herald Journal)

Commuter Rail Marks Final Weld

- Clearfield’s Mayor Don Wood believes that in a sense, Monday’s final weld on the major portion of the FrontRunner commuter rail line is like the driving of the Golden Spike back in 1869. (Clipper Today)

Utah Economy Booming Despite National Slump

- Economists say Utah stands alone as the nation's best performing economy, despite signs of slowing for the national economy. (KSL)

Davis Business Alliance’s Incubator Program Hatches Fledgling Companies

- Business experts and educational professionals are nurturing seeds for future economic success in northern Utah through the Davis Business Alliance’s (DBA) incubator program. (Utah Business Magazine)

Monthly Joint Luncheon to Explore the Utah Fund of Funds’ Impact on the State’s Entrepreneurs

- Empowering Utah Entrepreneurs: The State’s Fund of Funds Program” will be the topic at a special joint program. The event will include a special panel discussion and update about the Utah Fund of Funds, a major State of Utah-sponsored program created to build the state’s economy by increasing the number and quality of funding options available for Utah companies and entrepreneurs. (Utah Business Magazine)

The State of Small Business

- Utah’s small business sector is ripe with competition. Not necessarily for the money in customers’ wallets – there seems to be plenty to spread around – but for people who are willing and ready to work. While emerging businesses find strength in numbers by leaning on on each other for advice and support, the pining for well-qualified employees is a common refrain from small business owners across that state.
(Utah Business Magazine) (Small Business Informer)

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Save the Date

EDCUtah Annual Meeting August 16

EDCUtah will host its Annual Meeting on Thursday, August 16 at the Downtown Salt Lake City Marriott, located at 75 South West Temple. Registration will begin at 7:30 a.m., with the business meeting beginning promptly at 8:00 a.m. This event will also mark the kick-off of EDCUtah's 20th Anniversary year. As such, we hope you will make a special effort to join us to mark the celebration.

Reservations

Seating is limited this year and reservations must be made in advance. Tables (seating for 10) are available for $250 and individual seats are available for $25. Please RSVP to Trina Stanley at 801-328-8824 or tstanley@edcutah.org.

Parking and Transportation

Parking is available at the Marriott and can be accessed from West Temple. Additional parking is available across the street at the Salt Palace. The Temple Square Station is the appropriate stop for meeting attendees interested in riding Trax. It stops half a block north of the Marriott Hotel on South Temple.