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Senate Democrats Lead Passage of Legislation to Keep & Grow Sikorsky Jobs in CT

Senate Democrats led a historic vote in the state Senate today to retain and grow approximately 8,000 jobs at Sikorsky Aircraft until 2032, keep the Sikorsky headquarters here in Connecticut, and substantially increase Sikorsky’s spending with its network of 302 in-state suppliers.

Under terms of the new agreement between Sikorsky and the state – an agreement which is still pending U.S. Navy and labor union approval — Sikorsky will build nearly 200 CH-53K King Stallion helicopters in Connecticut for the United States Navy until at least 2032.

The King Stallion is approximately the size of two passenger buses; it is capable of lifting 36,000 pounds and can carry a fully loaded Humvee and a platoon of 48 Marines. During the construction and testing of four King Stallion prototypes at Sikorsky’s West Palm Beach, Fla. facility, Connecticut subcontractors provided more $161.4 million worth of product design, development and parts.

The agreement with Sikorsky will infuse an estimated $69 billion into Connecticut’s economy, generate $384 million per year in annual tax revenue, generate $21 billion in employee wages and benefits, and directly and indirectly support 24,600 jobs.

This agreement presents an opportunity to strengthen one of three critical components of Connecticut’s defense industry sector and to shore-up the state’s standing as a leader in fields of aerospace technology and manufacturing. The increased spending by Lockheed Martin in Connecticut’s supply chain alone will exceed the totality of the state’s full incentive package.

“This proposal represents a landmark victory not only for the eight thousand workers at Sikorsky/Lockheed Martin but for the small businesses, machine shops and workers across the entire supply chain,” said Senate President Martin M. Looney (D-New Haven). “Hundreds of suppliers throughout the state will benefit from a strong Sikorsky/Lockheed Martin partnership with the State of Connecticut, and that means keeping good-paying jobs here in Connecticut for today’s workforce and tomorrow’s graduates.”

“The King Stallion helicopter is the only helicopter of its type in the world, and it is being built right here in Connecticut because we have the skilled workforce capable of producing the next generation helicopter,” said Senator Bob Duff (D-Norwalk). “The economic impact of this project will create and sustain thousands in the manufacturing supply chain across all corners of the state for years to come. Sikorsky has agreed to increase its spending with Connecticut subcontractors from $300 million per year beginning in 2019 to $470 million per year beginning in 2030 – an impressive increase that will benefit workers and support thousands of jobs.”

“It is truly exciting to have so many positive things happening in Connecticut that confirm the trajectory on which our state’s economy is travelling. While it has been difficult to navigate our way out of the recession, we are finally seeing the results of our determination to invest in Connecticut’s future,” Senator Dante Bartolomeo (D-Meriden) said. “As Senate Chair of the Higher Education and Employment Advancement Committee, I have been working very hard with my colleagues to prioritize state investments in our technical high schools as well as our community colleges and state universities in order to have a highly skilled and trained workforce for the jobs of our future economy. Sikorsky’s commitment to remain in Connecticut and grow with us means there will be real opportunities for the next generation of students who want to live here, learn here and work here.

“More than anything else, this agreement today for me represents an investment in Connecticut’s future,” Senator Eric Coleman (D-Bloomfield) said. “We’re seeing enormous job growth in our manufacturing sector, with Sikorsky staying here and Pratt & Whitney and Electric Boat hiring, as well as our bioscience industry getting stronger by the day. I’m very confident in Connecticut’s economic future, and that’s very good news for the young men and women who are working their way through Connecticut’s school system today and who are looking to live and work in Connecticut.”

“I can still remember one of my first jobs, working on a Bullard lathe at Pratt & Whitney in East Hartford,” Senator Steve Cassano (D-Manchester) said today. “That was 50 years ago, and we’re still making airplanes and helicopters and submarines right here in Connecticut. That says something about our people, about Connecticut’s public education system, about our community colleges and technical schools. I’m very proud today to have cast a vote to continue that tradition of making things, to continue to grow the types of good-paying middle class jobs that make Connecticut such a great place to live and raise a family, and that the next generation can take advantage of.”

“Sikorsky’s front door is literally 10 miles from my home, and I know a lot of people in my district – Ansonia, Bethany, Hamden, Naugatuck – who either work at Sikorsky or who work at one of its many subcontractors in the region,” Senator Joe Crisco (D-Woodbridge) said. “This is a great deal for Connecticut; we’re getting back nearly a billion dollars in economic impact for a pretty modest state investment of grants and sales tax exemptions. And we’re doing this while beating competing offers from South Carolina and Florida and other states. That shows Connecticut’s economy is on the upswing, and the legislature is working hard to keep it moving.”

“When you combine this agreement today with the recent announcements by Electric Boat and Pratt & Whitney about their intention to hire thousands of new employees over the next few years, and you look at what’s happening with bioscience and entrepreneurship in Connecticut, and our efforts to bring gigabit internet to every city and town, we are very well positioned to keep our college graduates in Connecticut, working here and raising a family here,” Senator Beth Bye (D-West Hartford) said. “We’ve got to keep this good momentum going. One of the ways we do that is to keep looking forward, keep investing, and ensure that we are creating the educational opportunities that our children and college students need to succeed and secure high-tech employment.”

“We’re making a strategic investment in our economy that will benefit businesses all the way down the supply line and infuse $385 million a year in tax revenue into our state,” said Senator Cathy Osten (D-Sprague), who noted that retention of Lockheed secures Connecticut’s defense industry ‘triad,’ anchored by Electric Boat in eastern Connecticut.

“This builds on the great news that Electric Boat and Pratt & Whitney will be growing thousands of jobs in Connecticut in the next year, and is the responsible thing to do for our workforce and the state’s bottom line,” said Sen. Osten. “Lockheed is responding to a change in demand for their products, and if we dismiss their needs as a company, we would be missing out on a huge opportunity to not only retain and grow good paying jobs, but to build a lasting relationship with a Fortune 500 company where the average salary will be $94,000 a year.”

“This is going to have a generational impact on jobs and other businesses in our state. East Hartford, for instance, has thirteen Sikorsky suppliers. Sikorsky will potentially be doubling its purchases from those companies, and as someone who grew up in East Hartford, I know what this will mean for businesses in the supply chain,” said Senator Tim Larson (D-East Hartford. “The agreement we came to with UTC has launched ‘Aerospace Alley’ into the stratosphere and this agreement with Lockheed Martin/Sikorsky will do the same. It is undeniable that Connecticut is the single greatest place in the world for aeronautics, defense and engineering companies and we are proud of that.”

“Any state in the country would be thrilled to reach a deal like this, but Lockheed Martin chose Connecticut thanks to our strong manufacturing and STEM education programs and commitment to making smart business investments,” said Senator Terry Gerratana (D-New Britain). “The agreement I cast my vote in support of will preserve and create new, good-paying jobs at Sikorsky while also ensuring that this company increases its commitment to Connecticut by expanding the amount of business it does with in-state companies. Thirteen businesses in New Britain, Berlin and Farmington already supply Sikorsky with goods and services, and each of them will benefit greatly from the passage of this deal. The landmark agreement that Connecticut reached with Sikorsky solidifies our state’s reputation as a place where people make things and lays the ground work for a much stronger state economy.”

“This is great news for Connecticut and even better news for the hundreds of people in my district who rely on Sikorsky for their jobs,” said Senator Gayle Slossberg (D-Milford). “There are 34 companies in my district who do business with Sikorsky, and over 300 around the state of Connecticut. The agreement we passed today guarantees that Sikorsky will greatly increase its business with those suppliers, while also growing its own full-time employment to over 8,000 jobs. This is not only an investment in Sikorsky, it is also an investment in every business in my district and across Connecticut that supports or supplies Sikorsky. The positive benefits to Connecticut’s economy are monumental.”

Today’s agreement with Sikorsky comes on the heels of recent announcements by Pratt & Whitney and Electric Boat that they plan on hiring thousands of employees in the next several years and expanding operations in Connecticut, thereby reinforcing Connecticut’s standing as a leader in fields of aerospace technology and manufacturing.

Under the terms of the new agreement, Sikorsky/ Lockheed Martin will:

• Keep the Sikorsky headquarters in the state and maintain Connecticut as a primary production facility for its government-based helicopter business
• Retain and grow its full time employment in Connecticut from a minimum of 6,500 employees in 2019 to just over 8,000 by 2032
• Increase its spending with Connecticut subcontractors from $300 million per year beginning in 2019 to $470 million per year beginning in 2030.
• Increase its capital spending for machinery and equipment by 22 percent.

In exchange, Connecticut will provide financial incentives totaling up to $220 million over the term of the agreement:

• Sikorsky will earn grants of up to $8.57 million on an annual basis over the term of the agreement by meeting certain benchmarks, such as retaining at least the minimum level of each category; growing jobs; payroll spending; utilizing in-state suppliers; and deploying capital for machinery, equipment, and other long term investments
• Sales and use taxes will be exempted up to $5.7 million per year over the term of the agreement
• If Lockheed Martin exceeds the target level employment by 100 to 550 jobs in any given year of the agreement, it will be eligible for a performance incentive grant of up to $1.9 million, for a total of up to $20 million

Sikorsky presently has 7,855 employees at its facilities in Stratford, Bridgeport, Shelton and North Haven. Those employment figures will decline slightly, then grow, over the next several years as Sikorsky transitions its work in Connecticut from building the Blackhawk helicopter for the U.S. Army to the new, larger King Stallion helicopter for the U.S. Navy.

Adam Joseph
Director of Communications
Senate Democrats
860-240-8641 (office)
203-627-5915 (mobile)
@CTSenateDems
http://www.senatedems.ct.gov/

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