Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, January 24, 1993 TAG: 9301260418
SECTION: NEW RIVER VALLEY ECONOMY PAGE: 36 EDITION: NEW RIVER VALLEY
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: FAIRLAWN LENGTH: Medium
ARSENAL PAYS THE PRICE OF PEACE
The worst is over for the Radford Army Ammunition Plant - maybe.Rep. Rick Boucher, D-Abingdon said last week that, although there's a chance that the Army may reduce its funding at the arsenal this year, he hopes it won't mean more layoffs.
"It's all very uncertain at this time," he said.
Boucher said an initial study indicates that the Army could discontinue one line of propellant at the Radford arsenal because it already has so much stockpiled.
"Additional studies will have to take place before that decision will be made," he said.
Last month, Col. Bill Forrester, the arsenal's commander, said 350 jobs could be lost if the Army doesn't fund the propellant line.
With the Cold War over, defense spending has decreased and Hercules Inc., the government contractor for the arsenal, has been forced to cut costs.
Last week, 730 arsenal workers hit the unemployment line, raising to more than 1,300 the total number of laid-off workers since January 1991.
When announcing the last round of layoffs, Skip Hurley, general manager of the arsenal, also said he doesn't expect employment levels to change in 1993.
"But things change," he said. "If our workload goes up, then we might have to hire people. If it goes down, then we may have to lay some people off."
And despite the massive layoffs, the arsenal did get some good news in 1992.
The Fairlawn plant will remain open, while six of the nation's 12 other arsenals will close by 1995.
"I can say without a doubt that its future is secure," Boucher said.
In fact, Boucher is hopeful that congressional legislation encouraging commercial contracts at the nation's arsenals eventually will mean a future increase of workers.
The defense appropriations bill directs the Army to establish a task force - composed of officials from the Army, Hercules and the union representing the arsenal workers - to examine ways the arsenal can attract commercial work.
The bill also provides the Department of Defense with $200 million to try to persuade private companies to use government-owned ammunition plants for production.
But there won't be any such work at the arsenal until at least January 1994, when Hercules will have a contract allowing it to produce propellant for the Army and at the same time work on commercial jobs.
In addition, private companies other than Hercules will be recruited to move into any inactive buildings at the arsenal.
"As commercial work begins to come in, then the employment levels will eventually increase," Boucher said.
However, securing commercial work at defense-contract companies like the arsenal may not be that easy.
"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.
He made his comments this month at a public hearing for the Governor's Commission on Defense Conversion and Economic Development held at New River Community College.
Even so, Cathleen A. Magennis, state secretary of economic development and co-chairwoman of the governor's commission, said she thinks Hercules will be able to attract commercial work.
"It's not easy and you can't wear rose-colored glasses . . . but we have high expectations for that facility," she said.