These are heady times for Sikorsky Aircraft.
Over the past few weeks, the division of Lockheed Martin, based in Stratford, delivered its first Connecticut-built CH-53K helicopter to the U.S. Marine Corps; submitted, in partnership with Boeing, a formal proposal for the U.S. Army”™s program to eventually replace the Black Hawk helicopter; and received approval from the U.S. Department of State for a potential Foreign Military Sales (FMS) deal whereby the Royal Australian Navy would purchase 12 Sikorsky MH-60R Seahawk submarine-hunting helicopters for an estimated $985 million.
All of this ”” and more ”” is taking place under Paul Lemmo, who”™s been president Sikorsky for all of 10 months. But he”™s hardly a newcomer to the industry ”” or indeed the corporation.
“I”™ve been with Lockheed Martin (which acquired Sikorsky from United Technologies Corp. in 2015 for $9 billion) for about 34 years,” he told the Business Journal. “I started as a 19-year-old intern, got my bachelor”™s and master”™s degrees in engineering, and decided that I loved working there so much that after graduation I came back permanently.”
Lemmo”™s Lockheed journey led him to various positions of increasing responsibility in business development, engineering and program management, with stops in Florida, Maryland, New Jersey among others. In 2018, he was named vice president and general manager, Integrated Warfare Systems & Sensors, followed this past November by the announcement that he would become Sikorsky”™s president starting in January.
“When it was offered to me, I didn”™t have to think about it for very long,” he said.
For its second quarter, Lockheed Martin ”” the world”™s largest defense company, with nearly $62.6 billion in revenue last year ”” announced that net sales had increased year-over-year by $203 million, or 5%, while Q2 operating profit was up $29 million, or 7%.
The corporation credited Sikorsky for being a significant factor in both results: Net sales benefited from approximately $230 million for Sikorsky helicopter programs due to higher production volume on the Black Hawk, Combat Rescue Helicopter (CRH), and CH-53K programs, while most of the gains in operating profit ”” $20 million ”” was attributed to the same programs.
The CH-53K heavy-lift cargo helicopter ”” a behemoth at 99 feet long and 18 feet high ””costs $87 million each and is touted as the largest and most powerful helicopter built in the West. The U.S.M.C. ultimately plans to receive 200 helicopters at a total cost of $25 billion; Sikorsky expects to deliver its second Stratford-built chopper early next year.
A Sept. 24 ceremony celebrating the delivery was held at the Stratford facility, featuring Lemmo, Lockheed Martin Rotary and Mission Systems Executive Vice President Stephanie Hill, Gov. Ned Lamont, U.S. Sen. Richard Blumenthal, and various other state and local officials.
“This delivery is a testament to our local workers and the continued innovation right here in Stratford that enables the production of the best goods and services to keep our nation and those who serve it safe,” remarked State Senate Republican Leader Kevin Kelly.
“This helicopter can help our Marines, save refugees and provide humanitarian aid all around the world,” he continued. “The production of this helicopter was made possible through the partnership between the state, Sikorsky and Lockheed Martin, the Teamsters and labor. This shows the type of teamwork we need to rebuild our economy.”
In June, the U.S. Navy ”” which has received three CH-53Ks ”” awarded an $878.7 million contract to Sikorsky that calls for nine more of the helicopters, with an option to buy another nine for $852.5 million, according to a Naval Air Systems Command statement.
And in August, the U.S. State Department approved Israel”™s request to acquire 18 of the helicopters through a potential $3.4 billion sales transaction.
Not bad ”” for a company that nearly left Stratford just a few years ago.
Staying in CT
In 2016, Sikorsky announced plans to lay off over 100 of its Stratford employees and was widely rumored to be considering an exit from Connecticut, especially in the wake of GE”™s move from Fairfield to Boston. Then-Gov. Dannel Malloy swung a deal to keep Sikorsky”™s headquarters in Stratford through 2032, involving $220 million in financial incentives. In return, the defense manufacturer agreed to build 200 CH-53Ks here and double its spending on in-state suppliers to about $700 million.
Though that all took place well before Lemmo became president, he acknowledged that there was talk about relocating its Stratford operations to Palm Beach.
Today, he said, “There”™s no comparison with the amount of interaction we have with the governor and the Congressional delegation here. They care about Sikorsky. They”™ll call and ask what they can do.”
As opposed to some other states, he said, “It”™s not just about having discussions in a time of crisis. These are continuing discussions with the governor and others, which is a better way of building relationships.”
Lemmo said that Sikorsky”™s value to the state is not limited to the eyepopping dollar figures.
“Lockheed Martin as a whole does a lot of community outreach,” he said. “And when it comes to our employees, most of them say they enjoy getting involved with their communities.” After all, he added, “We”™ve been embedded here for decades.”
Sikorsky has been based in Stratford since 1929, having been founded near the former Roosevelt Field airport on Long Island by Igor Sikorsky in 1923. Lemmo noted that the company is working on ways to celebrate its 100th anniversary.
In 2020, the company donated over $700,000 to 30 different local organizations, Lemmo said, with STEM and veterans”™ programs being high on the list. Most recently, on Oct. 6, Sikorsky and Teamsters Local 1150 celebrated the 11th annual Homerun for Heroes fundraising effort by presenting a check of $175,000 raised to support four local benefitting veterans”™ organizations.
Sikorsky also provided support for a number of Covid-related causes last year, producing 2,500 units of PPE and giving $910,000 to local charities and hospitals, he added.
Lemmo further noted that over the last 12 months, Sikorsky has spent $450 million with Connecticut-based suppliers. And unlike some manufacturers who have been having a difficult time finding qualified workers, Sikorsky hired 1,000 people last year and has added another 600 so far in 2021. That brings its Connecticut total to over 8,000 employees and its worldwide staff to over 13,000.
He identified Sikorsky”™s ongoing digital transformation efforts ”” including digital tools that can help customers troubleshoot and fix problems with their aircraft ”” and “a better quality of service, which reduces costs substantially” as key priorities moving forward.
“Innovation and reduced costs don”™t always go together,” Lemmo acknowledged. “But they”™re very much a real part of our heritage. As the leader of this organization, my plan is to strengthen our operations wherever I can.”
