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News from State Senator Tim Larson
     

September 29, 2016

Capitol address
Legislative Office Building
Room 3600
Hartford, CT 06106-1591

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On the Web
www.SenatorLarson.cga.ct.gov

Phone
Capitol: 860-240-0511
   
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Historic Vote to Keep & Grow Sikorsky Jobs in Connecticut

sikorsky CH 53 helicopterThis week I voted 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 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 proposal represents a landmark victory not only for the 8,000 workers at Sikorsky/Lockheed Martin, but also for the small businesses, machine shops and workers across the entire supply chain 22 of which are located in our district. 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.
 

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. 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 should all be extremely proud of that.
 

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.

This is a good deal for Connecticut, our small businesses and a generation of workers.
 

 
 

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My mailing address is:
Senator Tim Larson, Legislative Office Building, Room 3600, Hartford, Connecticut 06106
Capitol telephone: 860-240-0511

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