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On Target
Rural Alabama hits the mark for Lockheed Martin.
By Trisha Ostrowski
The work of Lockheed Martin's Pike County, Alabama plant
has to be right the first time. Mediocrity isn't an option.
Missiles constructed there must be perfect in every way because
Americans will use them on the front lines of war.
"When our products are used, we know the defense of
our country is at stake," said Plant Manager Randy Stevenson.
Realizing the gravity of its work, this aerospace giant approached
the site selection process with all of the seriousness you
would expect. The extensive search took Lockheed Martin officials
to all corners of the Southeast. And it ended in south central
Alabama, 30 miles south of Montgomery, the state capital.
In 1990, the world's largest defense contractor made the
strategic decision to locate a new assembly plant outside
of its Orlando, Florida home. For the previous 35 years, the
company had limited its operations to densely populated Orange
County. But now, Lockheed Martin was ready to hedge its bets
on a rural area.
Pike County, Alabama, population not quite 30,000, fit the
bill perfectly. The company now occupies nearly 4,000 acres
in rural Alabama.
"We could provide a large piece of land in a remote
area," Pike County Economic Developer Marsha Gaylard
said. "The company was also extremely impressed with
our available work force and the work ethic here."
Today, Lockheed Martin's Pike County plant produces a wide
range of weapons for military services. Workers perform the
final assembly, test and storage of missiles including the
Hellfire II anti-armor missile used on the Apache attack helicopter,
the shoulder-fired Javelin, and the radar-guided Longbow Hellfire
anti-armor missile. The plant also assembled the famed Patriot
air defense missile in 1996 and 1997, and is currently producing
the medium range air-to-ground AGM-142 missiles used by B-52
bombers along with the Joint-Air-to-Surface Standoff Missile
(JASSM).
Most recently, in February 2001, Lockheed Martin announced
that it would continue to expand in Alabama. The company again
chose Pike County (after intense competition from other states)
for a $35 million investment in the missile final assembly
and test site for the $3.8 billion Theater High Altitude Area
Defense Weapon System and other projects. The projected growth
over the next 10 years is expected to be 500 jobs, Gaylard
said.
The decision to locate in rural Alabama, six/twelve miles
northeast of the town of Troy, was influenced by a number
of factors including favorable access to transportation, low
land costs, excellent state and local incentives, as well
as proximity to major customers such as the U.S. Aviation
and Missile Command in Huntsville, 250 miles to the north,
and the U.S. Air Force facilities in Fort Walton, Florida
to the south. The fact that Alabama is known for aerospace
success was also a draw. More than 250 such companies call
the state home including Boeing, Raytheon and Honeywell.
"This site absolutely suits all of our needs,"
said Stevenson. "A rural area fit our needs because we
needed a very large piece of land that was a safe distance
from other industry. Here we have an available transportation
network, excellent training and educational facilities in
close proximity, an available work force and a wonderful quality
of life."
Despite its rural locale, Lockheed Martin's Alabama facility
benefits from multi-modal transportation. First, it offers
easy access to major arteries including I-85 and I-65 in Montgomery
as well as close proximity to I-10 for east-west transport.
Secondly, it is located only 30 miles from Maxwell AFB and
within a few miles of a railhead.
In addition to looking for easy access to transportation,
Lockheed Martin officials analyzed each area's work force
for a high level of training before making final site selection.
The company requires a minimum of a high school diploma because
of the advanced nature of its work. In Pike County, it found
an abundance of people to accommodate its needs, Stevenson
said. The State of Alabama has also been committed to providing
specialized training through a partnership with the Alabama
Industrial Development Training program.
In its work force, company officials have also continued
to be impressed with the local work ethic, Stevenson noted.
As he describes, his workers readily get involved in improving
productivity.
"In this organization, the exceptional work ethic has
been proven in our performance," he said. "People
here have the right attitude toward being at work every day.
We have a very low percentage of turnover. People enjoy getting
involved with their employer and stay committed long-term."
Absenteeism at the plant is an enviable one percent.
With a work ethic the company can depend on, Lockheed Martin
leaders have been able to implement some very innovative approaches.
For example, all plant employees are salaried. Also, the company
has been able to utilize a concept called "flexible manufacturing."
This integral work philosophy requires all employees to be
multi-skilled (able to perform multiple jobs) and part of
a Performance Management Team, functioning as a company within
a company. Together employees work to solve problems on the
job, come up with creative ways to save the company and its
customers money, increase productivity and reduce downtime.
Since 1994, when the first missile was delivered from Lockheed
Martin's Pike County plant, the operation has gained an impressive
list of honors. In 1997, Industry Week magazine ranked it
among the 10 best plants in the U.S. In 1998, it won the Defense
Investigative Service Cogswell Award, which recognizes its
outstanding security awareness and performance. According
to Stevenson, this honor is bestowed on only one half of one
percent of all Department of Defense contractors. The U.S.
Navy has also benchmarked the plant for reliability of its
products.
"The Pike County facility has been the leader in the
corporation in terms of production. Through the years, Lockheed
Martin's success here has proven that the work force here
is second to none," Gaylard said.
With the high standard of excellence Lockheed Martin's Pike
County operation has maintained, the plant has experienced
steady, continual growth and an increased curve of productivity.
In the end, quality products, quality people and a rural South
location are helping this aerospace giant remain on target.
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