Baldwin County regroups after tanker loss

Posted 2/28/11

SPANISH FORT, Ala. —Baldwin County sits poised to capitalize on the spotlight a failed multi-billion dollar tanker bid has cast on the area, according to local economic development leaders eager to expand the region’s commercial …

This item is available in full to subscribers.

Subscribe to continue reading. Already a subscriber? Sign in

Local reporters keeping you informed across the Alabama Gulf Coast.

You can cancel anytime.
 

Please log in to continue

Log in

Baldwin County regroups after tanker loss

Posted

SPANISH FORT, Ala. —Baldwin County sits poised to capitalize on the spotlight a failed multi-billion dollar tanker bid has cast on the area, according to local economic development leaders eager to expand the region’s commercial appeal.

“This is an obvious setback, but we will go forward, and the entire experience has brought to the forefront our need to have a balanced economy,” said Darrelyn Bender, president of the Eastern Shore Chamber of Commerce.

Despite the economic disappointment still reverberating through the county six days after Boeing Co. bested European Aeronautic Defence and Space Co. in its bid to replace the U.S. Air Force’s fleet of refueling tanker jets, Bender said the timing is perfect to prepare for the pending upward swing in the national economy.

“It’s very easy to see this decision as a loss, especially considering we all feel EADS has a superior product, but this area is resilient, and there are a lot of projects on the fast-track right now because of the exposure this process brought to the region,” she said. “It’s the perfect time for us to set up workforce-development programs, focus on ways to better market Baldwin County and set ourselves up for when the economy turns. This is definitely preparation time, not sit-back-and-wait time.”

The Air Force announced Feb. 24 its decision to award Boeing the more than $35 billion contract to replace its aging KC-135 fleet, ending an often contentious, decade-long battle between the Chicago-based company and Airbus parent EADS, which had proposed assembling the 179 planes at Brookley Aeroplex.

An EADS victory would have meant the construction of a $600 million facility and the creation of as many as 5,000 direct and indirect jobs for the area.

Rep. Randy Davis, R-Daphne, said the decision deals a heavy blow to plans for creating an aerospace corridor stretching from Louisiana to northwest Florida, but the loss of potential jobs hurts more.

“The multiplier effect would be phenomenal,” Davis said, pointing to the impact Austal USA’s recent expansion plans are already creating across Mobile and Baldwin counties.

“We’re already seeing the potential for upwards of 4,000 jobs in second- and third-tier suppliers, and that’s what (was) at stake here,” Davis said.

Had EADS won the contract, local economists estimate some 40 aviation companies could have justified establishing operations in Mobile and Baldwin counties.

Spanish Fort Mayor Joe Bonner said although the decision might feel “like the end of the world,” it simply means local leaders need to find ways to capitalize on the time and effort already invested in luring the lost project.

“We’re just going to have to pick ourselves up, light a fire somewhere else,” he said.

EADS has 10 calendar days from the Air Force’s decision to file a formal protest after a contract award, but corporate officials have stated repeatedly they would only pursue that recourse if they sensed “egregious errors” had been committed.

Speaking by phone in the moments following the formal announcement, Sen. Jeff Sessions, R-Ala., told the stunned crowd of supporters gathered at the Arthur R. Outlaw Convention Center in Mobile he would personally “scrutinize” the process to ensure it had been fair.

“We’re all disappointed, but we’re going to redouble our efforts for the future,” Sessions said.

Meanwhile, U.S. Rep. Jo Bonner, R-Ala., issued a statement seeking a “full accounting” of the lost contract.

“After having already won the competition three years ago and having brought to the table the best refueling aircraft for our military, it’s deeply disappointing that Mobile and the Gulf Coast were not chosen as the home of the new Air Force tanker,” Bonner said in a written statement.

Deputy Defense Secretary William Lynn stated clearly at the time of the announcement, however, his confidence in a “clear, transparent and an open process” that he does not expect to “yield grounds for protest.”

Local leaders remain convinced, however, that the positives still outweigh the negatives dealt by the economic development blow.

Bender said her discussions with Robert Ingram of the Baldwin County Economic Development Alliance indicate the area is “being looked at harder than it ever has before” because of the favorable exposure the process created.

“Robert and his group know that diversifying the economy is No. 1 on all our lists because we cannot depend on tourism all the time,” she said, pointing to ongoing negotiations with HK Motors that are “moving slowly but still moving forward” as a prime example.

The sentiment was echoed by Mobile County Commission President Merceria Ludgood.

“I think we have put Mobile on the international aerospace map and the Brookley Aeroplex has more potential than ever for economic growth,” Ludgood said in a written statement.