Thanks to a substantial contract with Rolls-Royce and a $2.4-million loan from the state, Windsor-based aerospace supply manufacturer Aero Gear is launching a three-phase, multimillion-dollar expansion project.
The endeavor, to be completed over the next few years, is expected to boost employment at the company from 130 employees to more than 200.
Phase one of the project is estimated to cost about $3.25 million and will add 16,000 square feet to the company’s existing 52,000-square-foot facility on Day Hill Road. Construction is slated to begin this week, with a completion date set for October.
Aero Gear, which manufactures aircraft gears and gear assemblies, has already begun advertising for the new job openings it’s looking to fill.
Although it’s charging hard now, Aero Gear President Douglas Rose said his company was initially reluctant to take on the contact with Rolls-Royce, one of the world’s leading producers of power systems for use on land, at sea and in the air.
Tempting, But Risky
Rose said he saw the contract as a great opportunity, but one that would involve building more space and purchasing millions of dollars in equipment. It was tempting but too risky an investment for Aero Gear to shoulder on its own, he said.
That’s when the Department of Economic and Community Development stepped in.
The DECD works with the Connecticut Center for Advanced Technology to provide loans and technical assistance to aerospace companies, said DECD Commissioner Joan McDonald. “And it’s not just the big companies that come to mind,” she said. “It’s also the supply side.”
Part of that technical assistance involves facilitating meetings between companies to attract more business to the state, McDonald said. In fact, the contract Aero Gear secured with Rolls-Royce came from a meeting the DECD made happen.
“That’s what we do on a day-in, day-out basis,” McDonald said. “It’s certainly important, especially to the supply side.”
The DECD then supplemented that meeting with a $2.4 million, low-interest loan to Aero Gear. That covers about half of the total plan, which carries a projected cost of about $5 million, Rose said.
“We all have some skin in the game,” said Rose. “We really wouldn’t have taken this on without their support.”
In order to approve a loan for a company, the DECD looks at projected job retention associated with the proposed project. It also looks at capital investments.
The loan amounts it offers run the gamut, from several thousand dollars to several million. The amount depends on the number of jobs retained and the jobs expanded, McDonald said.
Aero Gear has committed to bring 20 permanent jobs to the area, and Rose said he hopes to add even more than that. Ultimately, the three-phase expansion could boost employment at Aero Gear by more than 70.
Major Expansion
Phases two and three of the project will require additional construction, which will more than double the size of Aero Gear’s existing facility.
The DECD has maintained a strong interest in the state’s aerospace industry “partly because it’s always been a driver,” said McDonald. There are more than 1,000 aerospace supply companies in the state, she said.
Several years ago, the department brought together a network of 46 small- to mid-sized aerospace companies located within about a 20-mile radius of Hartford to create an industry cluster: Aerospace Components Manufacturers.
The cluster gets companies to work together to attract employees and business to the state, Rose said.
In addition, the DECD and CCAT participate in the Farnborough International Airshow, a global showcase for all things aerospace. This year, the event will take place from July 14 to 20 in England.
The state’s aerospace companies can attend the event to promote the advantages of doing business with companies from Connecticut’s aerospace industry, McDonald said.
