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December 22, 2014 Economic Forecast

Aerospace manufacturing faces 2015 ramp-up

Q&A talks with Colin Cooper, CEO of Eastford manufacturer Whitcraft Group, which will play a key role in the aerospace supply chain as the industry ramps up production in 2015.

Q: What will be the major focus of Connecticut aerospace manufacturing in 2015, particularly at Whitcraft?

A: For the Whitcraft Group companies, the focus in 2015 will be execution. We've been fortunate to have secured a significant amount of work on the two leading next generation commercial jet engines, Pratt & Whitney's geared turbo fan engine family and GE/Snecma's competing Leap family of engines. The number of orders for these engines is extraordinary and the corresponding ramp-up required as these move into production next year is unprecedented. We're in the foothills of that ramp-up now, and we see the mountain coming at us as we enter 2015.

Q: There is a seven-to-eight year backlog for the next generation of commercial jet engines, particularly coming from Pratt & Whitney as well as GE and its partners. How will that impact what you do?

A: The past two years have been challenging with the steep decline we've experienced in our largest military programs. At the same time, we've needed to invest in new product development and revamp our manufacturing processes. The huge and growing backlog for commercial engines bodes well for our business and gives us confidence that the changes we've been making to our production processes and the investments we've been making in staffing, training, and equipment will yield long-term benefits for our employees, customers, and businesses.

Q: How will United Technologies' commitment to stay in Connecticut long-term impact you, if at all?

A: UTC's commitment to stay in Connecticut is great news for companies like the Whitcraft Group and the scores of other small manufacturing companies in the state that supply Pratt, Sikorsky, and United Technologies Aerospace Systems. Regularly, we have UTC engineers in one of our three Connecticut-based facilities working with our engineers and technicians to optimize component design. The close proximity to these customers has been critical during the development phase of new programs and gives us a competitive edge to secure the work longer term as these programs move into production.

Q: While the commercial engine business has been on the rise, the military side has been volatile for a number of reasons. What do you expect from military in 2015?

A: We expect to see continued weakness in most of our military programs in 2015. We saw steep declines in a number of our largest military programs in 2012 and into 2013 due to the lower tempo of operations in Iraq and Afghanistan coupled with the military funding challenges due to sequestration. The rate of decline in most programs has abated, but we don't anticipate any significant rebound in 2015. One bright spot for us on the military front has been the F-35 Joint Strike Fighter program. This program has held up well for us, and the longer-term prospects appear bright.

Q: Workforce development has been a major issue of local and national manufacturers for several years. Will 2015 start to see progress toward resolving the issue?

A: Access to a skilled workforce has been a concern for us for a long time now. We continuously hold onsite classes in technical areas such as shop math, blueprint interpretation, and geometric dimensioning to strengthen the skills of our technicians. More than 10 years ago, we developed our own 2,000-hour apprenticeship, and the graduates of that program are helping drive the business today. The state has come a long way in supporting technical training at the vocational high school, community college, and state university level, and we're seeing the benefit of that now. For example, in the past few years we've hired graduates of programs at Ellis Tech, Quinebaug Valley Community College, Manchester Community College, Central Connecticut State University, and UConn, among others. We also have over a dozen interns from these institutions working in our businesses bringing fresh perspectives and providing us a pipeline of young talent.

Q: Will Connecticut be a good place to do business in 2015?

A: To be successful in a global market such as aerospace, we need to rely heavily on the skills, knowledge, and abilities of our workforce. We are working diligently to compete with companies from low-wage regions by increasing the efficiency of our workforce and improving our production and business processes. The state can help by supporting workforce training while lowering the cost of doing business in Connecticut. Progress is being made on the training front, but much work needs to be done on easing the burden and lowering the cost to doing business.

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