Defense spending may spark machine-tool sector

A machine tool and manufacturing sector hurt by the latest recession -- and the one going on for three decades now -- could receive a boost by supplying the nation's robust defense industry.

http://www.vnews.com/06202010/6734885.htm                                      # # # # Published 6/20/2010  •  Aerospace Opportunities  •  By Bret Yager  •  Valley News Staff Writer  •  Springfield, Vt. -- A machine tool and manufacturing sector hurt by the latest recession -- and the one going on for three decades now -- could receive a boost by supplying the nation's robust defense industry.  •  That was the message at an open house held Thursday afternoon at Hartness Airport, hosted by the Vermont Aerospace and Aviation Association and the Vermont Chamber of Commerce.  •  In a hangar with three light airplanes as a backdrop, representatives introduced dozens of companies either based in Vermont or with major ties to the state. The event was partly a networking opportunity for Chamber members, partly a chance for procurement specialists from several of the nation's major defense contractors to say they could be interested in taking on Springfield's small machine shops as suppliers, and partly an opportunity for Republican Lt. Gov. Brian Dubie to show how he’ll support businesses if he’s elected governor.  •  The Chamber says it will offer a similar opportunity to whoever is nominated to run by the Democratic Party.  •  The conversation swung again and again to what many described as a robust aerospace industry with potential for growth, particularly for those capable of working with -- or producing the tools to work with -- the newer and lighter composite material and alloys the industry is trending toward.  •  “Aerospace manufacturing brings $2 billion a year in economic activity,” said Dubie, a pilot and chairman of the VAAA. “It's a growth sector for our state.”  •  Witness Lucas Industries, a Springfield survival story. Started in 1976 as Lucas Pattern Co. with 12 employees, the maker of patterns for machine tools came in just as that industry began its decline.  •  Had the company not reinvented itself and begun building master models for the aerospace industry, it would have disappeared like many others, said the company's president, Robert Byington, in an interview.  •  Today, Lucas has 25 employees and makes a variety of components, many of them for military aircraft, including molds and composite parts for the F-35 fighter and Bell helicopters.  •  “The good thing about military contracts is only a small percent of the work can go overseas, because of the nature of military secrecy,” Byington said.  •  Alan Emerson, director of supply chain and operations support at General Dynamic's Armament and Technical Products Division, said the Virginia-based supplier of the aerospace and defense industry already employs 400 people in Burlington, who buy needed components from Vermont's small machine shops. The massive company, which builds high-performance military weapons, chemical detection systems and other technology of war, invited the companies present to apply to become suppliers.  •  “We're looking for speed. Quality and cost are given,” Emerson said.  •  Added Alan Christensen, vice president of supply chain and partnering for the Land Armaments Operating Group of BAE Systems Inc.: “We recognize small businesses are a rich source of innovation and best value. … On the negative side, you should be prepared to deal with the intricacies of government contracting.”  •  Eric Kram, director of sales and marketing for Lovejoy Tool Co. in Springfield, said he disagrees with the public perception that the machine tool industry in Vermont is a thing of the past. His company employs about 50 people, making the tools used to cut the carbon fiber composite material that increasingly is supplanting metal in airplanes. The company also makes tools for making pumps, farm equipment and power generation components.  •  “I've been here since the 1960s. I've seen the heyday, and it's changed,” Kram said. “It’s definitely declined, but there are a lot of smaller job shops. There is still a lot of machining going on.”  •  His boss, company president Doug Priestley, said the company has had a substantial increase in sales, but the news came with a qualification.  •  ‘We were coming back from a low level, so it doesn't feel good yet,” he said. “The first part of 2009 was strong, but sales declined in the middle of the year. Companies like Caterpillar were cutting back. This year, we're up about a third in sales, but we’re not back to where we were in 2008.”  •