Waco: U.S. Coast Guard ‘missionizes’ $93M turnaround for L-3 Communications
WACO – Hit hard by layoffs and cuts in defense spending in
recent years, the L-3 Communications plant has received good news in the form
of a $93 million contract to “missionize” at least two aircraft for the U.S.
Coast Guard in a deal that could grow to include ten more planes.
Crews at the local L-3 facility, which is the largest
private employer in Waco, will install what the Coast Guard calls next-generation
equipment on two C-130J aircraft. Options include placing the same items on
three more C-130J planes and modifying seven HC-130J aircraft.
The Waco facility is hiring to fill positions scattered
across several job descriptions. Employment stands at about 1,500 people, which
is between 300 and 400 employees fewer than worked at L-3 less than five years
ago.
The massive facility at Texas State Technical College (TSTC)
airport laid off 115 people in February 2015, more than 6 percent of its local
workforce, due in part to the completion of several projects. That was in
addition to layoffs totaling 200 in 2014, which the company blamed on the
lingering effects of congressional budget sequestration.
To further cope with the effects of a limited federal
defense budget, L-3 has announced it will sell its government services
division, National Security Solutions, to a smaller defense contractor, CACI International,
for $550 million.
Michael Strianese, L-3’s chairman and CEO, said the sale is
part of what he called the company’s “business transformation.” He said L-3
plans to focus more attention and resources on markets “where we have leading
positions.”
These target areas include
defense electronics, communications and
intelligence/surveillance/reconnaissance, which are functions carried out in
Waco, as well as at a handful of other plants in the extensive L-3 system that
includes dozens of facilities in the United States and overseas.
In This Article
You might also like
Publications
Receive our economic and housing reports and newsletters for free.