NewHavenBIZ

14 n e w h a v e n B I Z | F e b r u a r y 2 0 2 3 | n e w h a v e n b i z . c o m Turbulence Ahead Sikorsky faces uncertain prospects aer Army contract loss By Liese Klein T hree generations of employees in one family. Two workers with 42 years each on the job. One hundred years in business as of this year. Sikorsky Aircra's commem- oration of the 5,000th Black Hawk helicopter to roll off its Stratford production line in January was all about the company's storied past and loyal workers. But what about the future? Quizzing President Paul Lemmo at the event, a reporter called it "the white elephant in the room" — Sikorsky's loss of the contract bid for the U.S. Army's Future Long Range Assault Aircra, a program seen as the successor to the Black Hawk helicopter. Texas-based Bell Textron's V-280 Valor tiltrotor was chosen over the Defiant-X, a dual Sikorsky-Boeing cra "purposefully designed for the U.S. Army's Future Long Range Air Assault competition, a top modernization priority," according to a joint statement. e contract will initially be worth up to $1.3 billion and eventually replace about 2,000 Black Hawks. e significance of the contract loss to both Sikorsky and the state was evident in the spate of "I am disappoint- ed" statements from lawmakers that were issued within hours of the Dec. 5 announcement. "I will continue to fight like hell to en- sure Sikorsky, and other organizations and companies in Connecticut, receive funding opportunities that support our workers and our economy — and that ultimately preserve jobs," said U.S. Rep. Rosa DeLauro, then House Appropria- tions Chair. In subsequent days, workers at coffee shops and restaurants near the Stratford plant were quoted in local media as fearing loss of business due to potential layoffs resulting from the U.S. Army's contract decision. Meantime, Sikorsky has filed an official protest with the Government Accountability Office, a watchdog agen- cy for Congress, seeking a debriefing for elected officials on details of the Army's decision-making process. Parent company Lockheed Martin did little to allay fears about Sikorsky's future with its Jan. 24 announcement that it would be cutting 800 jobs across its national Rotary and Mission Systems workforce — a division that includes Sikorsky. So how real is the risk to the 7,900 jobs at Sikorsky's Stratford facility and its overall 13,000-person workforce? It's not totally clear but there's a lot at stake for Sikorsky and the state's economy. In addition to the main Stratford plant, Sikorsky maintains administra- tive offices in Shelton and Trumbull and a Bridgeport assembly facility. Not to mention the 250-plus suppliers the company buys from across the state. Also on the line is the $50 million in incentives the state of Connecticut pledged to Sikorsky if it won the U.S. Army contract. e funding was con- tingent on a commitment by Lockheed Martin to keep Sikorsky's headquarters in Stratford. Speaking at the Black Hawk event in January, Lockheed Martin President and CEO James Taiclet – a veteran Air Force pilot – expressed confidence in the future of Sikorsky's signature aircra. "I think we can really take the Black Hawk to the next level and make it even more valuable than it is today," he said. "No other aircra can do the breadth of missions that this helicopter can do," Lemmo said of the Black Hawk. "at's why we see Hawk aircra continuing to have a global impact for decades into the future." Production on the platform will continue for at least the next five years, he added, with Sikorsky just starting its 10th multiyear contract with the Army. High demand Lamont, U.S. Sen. Chris Murphy, Rep. DeLauro and an array of local officials have expressed support for Sikorsky's Army contract award appeal, the company's workforce and the future of Black Hawk production in Stratford. "I served on the [Senate] Foreign Relations Committee and so I spent a lot of time traveling the world listening to other militaries that want to get their hands on these helicopters," Murphy said. "We only sell it to our friends. But our friends make it clear that they are in high demand." In a Jan. 24 conference call with investors, Taiclet said that a 10% boost in the national defense budget would translate into increased Black Hawk orders. "We view this funding outcome as positive for the future, and our current expectation is that growth will mate- rialize over the longer term starting in 2024," Taiclet said. Sikorsky officials said the company has plenty of work manufacturing the Black Hawk platform in the short and medium term. In addition to its domestic business, the Black Hawk is flown in 34 countries with increasing demand from Pacific militaries like those of Australia, Japan and ailand. Easy to modify, sturdy and compati- ble across a range of fighting forces, the Sikorsky President Paul Lemmo speaks at a January event commemorating the 5,000th Black Hawk helicopter to roll off the company's Stratford production line. PHOTOS | GARY LEWIS

• Cover