Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, January 7, 1993 TAG: 9301070236
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: DUBLIN LENGTH: Medium
NON-DEFENSE WORK COULD BE HARD TO GET
Securing commercial work at defense-contract companies like the Radford Army Ammunition Plant is a lot easier to talk about than actually do.That's one of the main messages sent Wednesday to the Governor's Commission on Defense Conversion and Economic Adjustment.
The commission, created in August by Gov. Douglas Wilder, held a public hearing at New River Community College to learn how Defense Department cutbacks will affect the area.
"It's very, very difficult to shift from defense to commercial contracts," said Donald Roy, manager of group planning and development for Babcock & Wilcox in Lynchburg, which makes nuclear components for the military.
About 80 percent of the companies that try aren't successful, he said.
Hercules Inc., which runs the Radford arsenal for the Army announced plans last year to pursue commercial contracts. Rep. Rick Boucher, D-Abingdon, has said he is confident Hercules will be successful in attracting commercial work and eventually rehire some of the hundreds of workers who have been laid off from the arsenal.
Cathleen A. Magennis, state secretary of economic development and co-chairwoman of the governor's commission, agreed with Boucher and said she thinks Hercules eventually will secure commercial contracts.
"It's not easy and you can't wear rose-colored glasses . . . but we have high expectations for that facility.
In addition, private companies other than Hercules will be recruited to move into any inactive buildings at the arsenal.
Neil Gallagher, president and general manager of ITT Corp. in Roanoke, said attempting to break into the commercial market has "been a real learning experience."
ITT specializes in making night-vision goggles. With the Cold War over, demand for the product has dropped and ITT has laid off roughly 400 workers since 1989.
And if efforts to market the goggles in the commercial market are unsuccessful, then ITT will lay off about 160 more workers by 1994, Gallagher said.
Gallagher said the company's goal is to have 50 percent of its work in the commercial market by 1997.
"To get into a freewheeling market is a very big change for a defense contracting company," he said.
General John M. Loh, co-chairman of the defense conversion commission, said defense related companies must make big changes in order to compete in the commercial market.
"It can be done, but not if you try and use the same structure," he said. "You must develop a separate entity" to pursue commercial work.
Larry Needs, from Hercules' corporate office in Delaware, said he is heading a company task force set up to help Hercules convert to the commercial industry.
By the end of the month, Need said, Hercules hopes to release plans of what buildings will be available for commercial work.
About 15 people spoke at the public hearing Wednesday, which was the commission's third.
Terry Phillips, political action chairman for the union representing the arsenal, urged the commission not to get bogged down with statistics.
"Take a look at the human factor," he said. "We are proud workers and we don't ask the commission for a handout, but what we do ask for is a helping hand.
"We do not need to be called individuals or lazy, what we do need is understanding and sympathy."
Phillips urged the commission to help provide laid-off workers with health insurance.
"It's great to have ideas, but if these ideas don't get anywhere beyond these doors then we haven't accomplished anything," he said.
Others public hearings have been held in Hampton Roads and Northern Virginia, areas also hit hard by the reduction in defense spending.
Magennis said Richmond will host a fourth public hearing in March with Wilder presiding.