"We had proposals from various states and cities," EDO's director of investor relations and corporate communications William A. Walkowiak, CFA, tells GlobeSt.com. "Locations that provided synergies with other existing EDO operations were given serious consideration."
EDO will invest a total of $48.8 million in real estate acquisition and improvements, machinery and equipment, employee training and relocation costs and retain 450 jobs in the state. The company has also committed to creating 375 new jobs here over the next five years. "The new space will house a modern manufacturing space, more suited for our current and expected production," notes Walkowiak.
Other than financial, the key factor in EDO's decision was its skilled workforce, who would be very difficult to replace, according to Walkowiak. "As an engineering-driven company, our people are essential to our long-term success." The company's heritage as a Long Island-based company goes back to 1925 when it was founded.
A site has not yet been selected for EDO's Antenna Products and Technology division which is also currently based in Deer Park. EDO's DPT division, which produces aircraft electronics defense systems, and APT, a producer of high-performance antenna products, are currently co-located in a 726,000-sf facility, which was obtained through a merger with AIL Technologie and recently sold. Walkowiak points out that for many years, it was fully utilized by AIL. "In recent years, however, a good portion was unused because of the changing business of the two operations located there. For example, the completion of the B-1B bomber program resulted in significant downsizing during the 1990s."
EDO is eligible to apply to Empire State Development for a nearly $2-million capital grant for costs associated with the project. In addition, both the Long Island Power Authority and the Town of Babylon are considering additional incentives in the form of energy cost savings and real property tax abatements. In his budget proposal, Gov. George Pataki included a new plan to attract and retain jobs in the manufacturing sector. Items include a new "single sales factor" tax benefit for manufacturers, a power for jobs rebate initiative, in addition to job-training programs.
EDO provides military products and professional services to the US and allied governments and their prime defense contractors. The company employs approximately 2,800 at facilities in California, Louisiana, New Jersey, New York, Pennsylvania, Utah, Virginia and the UK.
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