Lawmaker: Sikorsky Deal a Boon to Area Aerospace Suppliers

SOUTHINGTON, CT — A new financial incentive package for Sikorsky Aircraft approved by the state Legislature on Wednesday trickles right down to local suppliers, House Majority Leader Joe Aresimowicz said.

In all, the deal with Sikorsky parent Lockheed Martin that will keep Sikorsky and about 8,000 jobs in Connecticut through at least 2032, he said.

“This agreement will keep thousands of good paying manufacturing jobs at Sikorsky and local companies like Cambridge Specialty Company,” Aresimowicz said. “With the company’s commitment to nearly double their spending among local Connecticut suppliers, we could potentially see significant economic growth, because the benefits to the local suppliers are only the start of the domino effect that could extend to many other Connecticut businesses throughout the state.”

Aresimowicz and Gov. Dannel P. Malloy recently visited Cambridge Specialty Co. to tour the business and speak with its executives about how the agreement with Sikorsky could potentially benefit local companies like their own.

Cambridge Specialty Company, which serves as a manufacturer of jet engine service tools and precision aircraft parts, is one of five Sikorsky suppliers in Berlin.

Sikorsky suppliers are scattered throughout north central Connecticut.

Over the term of the agreement, the helicopter giant will be eligible for financial incentives in exchange for building nearly 200 CH-53K King Stallion helicopters in Connecticut, Aresimowicz said.

The incentives, worth up to $220 million, include exemption from sales and use taxes and annual grants during the term of the deal. The deal will:

• Build nearly 200 CH-53K King Stallion Helicopters – the largest maritime helicopter in the world - in Connecticut for the United States Navy until at least June 2032.
• Keep the Sikorsky headquarters in the state and maintain its Stratford site as a primary production facility for its government-based helicopter business.
• Nearly double its spending of $350 million per year with local Connecticut suppliers throughout the state.
• Increase its capital spending for machinery and equipment by 22 percent.
• Drive an estimated $69.2 billion between 2016 and 2032 into the Connecticut economy.
• Inject an estimated $384.4 million in direct and indirect average annual tax revenue into the Connecticut economy, totaling $6.54 billion from 2016 and 2032.

In turn, Sikorsky and Lockheed will keep its headquarters and primary manufacturing in the state, retain and expand its full-time staff, increase capital spending and give top priority to its Connecticut-based suppliers, Aresimowicz said.

He said "positive impacts" to Connecticut’s jobs market include:

• Retaining and growing its full time employment in Connecticut to more than 8,000 by the end of year 14.
• Supporting approximately 24,601 jobs directly and indirectly.
• Investing an estimated $744.8 million in contractor employment.
• Allowing Sikorsky to spend an estimated $21.1 billion on wages and benefits between 2016 and 2032.

The deal was approved in a Special Session held Wednesday by the General Assembly.

Photo Credit: Photo and YouTube video by Sikorsky Aircraft