Two big takeovers and a headquarters move to Orange County shook up the local landscape for the largest aerospace and defense contractors with operations here.
The 26 largest companies added 348 jobs in the 12 months through September for a total of 24,126 workers, up 1.5% from a year earlier. The sector, comprised of a mix of global legacy manufacturers and local suppliers, posted slight downticks in employment the previous two years.
The diverse operations here include at least 52 local offices and sites that make various parts and systems for commercial and military aircraft, as well as weapons and testing equipment, among other products.
Companywide employment for the combined group was 937,770, down 1.7% from a year earlier.
Seven companies added local employees, one cut workers, and 18 were Business Journal estimates or didn’t provide enough information for a year-to-year comparison.
• Several companies on the list, including perennial No. 1, Chicago-based Boeing Co., stopped providing local employment figures to the Business Journal amid global consolidation and downsizing—two prevailing themes in the past several years in the aerospace sector.
Boeing had an estimated 6,103 local employees, though the actual number is likely fewer. The company has cut more than 3,500 local employees in the past seven years or so.
• No. 2, Panasonic Avionics Corp. in Lake Forest, had an estimated 2,290 employees. The market share leader for in-flight entertainment and communication systems has added hundreds of local workers in the past few years as demand soared among international customers.
The business boom may now be under a federal probe.
A scandal erupted in early February when the company disclosed it was under investigation by the U.S. Department of Justice and the Securities and Exchange Commission for potentially violating the Foreign Corrupt Practices Act. That same day, Panasonic Aviation announced the ouster of Chief Executive Paul Margis and Chief Financial Officer Paul Bottiaux, and their replacements.
• No. 10 Cedar Rapids, Iowa-based Rockwell Collins Inc., moved up three spots after adding 169 jobs, up 29.8%. The gains followed its $8.6 billion April buy of Florida-based B/E Aerospace Inc., the market leader in aircraft seat production.
The purchase, which included a facility in Anaheim that primarily designs, develops and services chilling systems for commercial aircraft, added 250 to 300 employees. Rockwell’s local operation includes a legacy outfit in Irvine that develops cabin management systems for private and business aircraft, as well as map applications, streaming content services and electromechanical systems for airline and private/business aviation.
The Irvine operation, which employs more than 570, also services and supports airline in-flight entertainment systems it’s installed.
Rockwell agreed last month to a $30 billion sale to Farmington, Conn.-based United Technologies Corp., which plans to combine the company with its UTC Aerospace Systems business to create the Collins Aerospace Systems business unit.
• No. 12, UK-based Meggitt PLC, which operates two units in Irvine, added 47 jobs, ending the period with 677, up 7.5%.
Its parent sold Meggitt Target Systems in December for about $71 million to QinetiQ Group PLC, also based in the U.K. Its local defense unit makes combat and training systems, while the sensing unit specializes in producing and testing sensors for the aerospace, military, automotive and industrial industries.
• Huntington Beach-based EnCore Group edged down one spot to No. 13, despite adding 68 workers for 668 positions, up 11.3%. Its seat manufacturing unit, Lift, established in 2014, has secured three launch customers as it awaits clearance for one of the toughest certification approvals in aviation.
• Ducommun Inc. moved up two spots to No. 24 after adding 50 jobs for 150 positions. The 50% increase was the highest of any company on the list.
California’s oldest continuously running company and Los Angeles’ oldest manufacturer relocated its headquarters in July from Wilmington to Santa Ana.
Ducommun, founded by Charles Ducommun in 1849 in downtown Los Angeles as a watchmaker’s store, closed the $60 million cash buy last month of LS Holdings Company LLC. LS is the parent of Lightning Diversion Systems, a Huntington Beach manufacturer of lightning protection systems for the aerospace and defense sectors.
The relocation also added to OC’s roster of publicly traded companies.
