Defense spending's impact on DFW reaches beyond Lockheed Martin or Bell Helicopter
Posted Friday, Feb. 18, 2011

BY BOB COX
rcox@star-telegram.com

When Defense Secretary Robert Gates or Congress get upset with Lockheed Martin over the lack of progress on the F-35 joint strike fighter, it worries James Fultz and lot of other folks like him.

Fultz is president of the H.M. Dunn Co. of Euless, a relatively small, precision machine shop that is a subcontractor to Lockheed on the F-35 and numerous other defense programs.

Headlines about defense programs, as well as most of the angst over them, naturally focus on the big prime contractors, like Lockheed and Bell Helicopter in Fort Worth, or on big budget projects like the F-35 or Bell's V-22 Osprey.

But the impact of defense spending in North Texas encompasses far more than just those large, high-profile projects. It is also spread among numerous companies, many of them relatively small and often privately owned.

H.M. Dunn was selected by Lockheed early in the F-35 program to manufacture key structural parts for the warplane. That program was expected to have orders for 100-plus planes a year by now.

Fultz invested more than $20 million in equipment to upgrade his company's machining capabilities. He's still waiting for returns on that investment, and will wait longer, given that Gates has ordered that F-35 purchases be cut back dramatically. Gates instead has shifted funds to complete the F-35's development and testing.

"If it [the production schedule] ever breaks loose, we're still ready," Fultz said.

The 180-employee company, whose revenues grew 6 percent last year to about $45 million, has a broad base of defense and commercial aerospace work. Dunn makes parts for Lockheed, Bell's V-22, Triumph Group-Vought Aerostructures' C-17 cargo plane, F-16s for Israeli Aerospace Industries and the Boeing 787 airliner.

The subcontractor level in the defense world is very competitive. As work on the F-35 and the 787 -- two of the biggest programs in aerospace -- has failed to ramp up, competitors have sharpened their pencils and cut their prices to try and win work. Fultz's company lost contracts it had to build parts for Boeing 737s.

Still, Fultz says, "We're grateful for the work we have."

The $671 billion that the Pentagon requested in the 2012 budget proposal it sent to Congress last week includes $128 billion for airplanes and helicopters, ships and trucks, and rockets, missiles, bullets and bombs.

Here's a quick look at some of the lesser-known defense programs and companies in North Texas that would benefit:

American Eurocopter, Grand Prairie -- A division of EADS North America, the European-owned company produces UH-72A Lakota utility helicopters for the Army and National Guard. The aircraft are assembled in Columbus, Miss., but support and training are provided from Grand Prairie.

Safran Turbomeca USA, Grand Prairie -- Provides engines and parts for the UH-72A, as well as for Coast Guard helicopters funded by the Homeland Security Department.

Triumph Group-Vought Aerostructures, Dallas -- Formerly Vought Aircraft Industries, Vought produces major structures for military and commercial aircraft, including tails for the V-22 and the C-17 cargo plane, cabin structures for Sikorsky's H-60 Black Hawk helicopters, and the wings for Northrop Grumman's RQ-4 Global Hawk unmanned aerial vehicle.

Progressive, Arlington -- A division of Canada's Heroux-Devtek aerospace company, it machines large, complex structural components for military aircraft, including the F-35.

EFW, Fort Worth -- A subsidiary of Elbit Systems, based in Haifa, Israel, it produces defense electronics. Projects and programs include systems and components for the F-35, V-22 and Boeing's AH-64 Apache helicopter.

H.M. Dunn, Euless -- Privately owned machine shop that specializes in precision machining of structural parts for military and commercial aircraft. Projects and programs include the V-22, F-35, F-16 and C-17.

Essner Manufacturing, Fort Worth -- Manufacturing of sheet metal, machined and composite parts for military and commercial aircraft. Programs include the Boeing F/A-18, F-35 and V-22, as well as commercial aircraft.

L3 Link Simulation and Training, Arlington -- Major supplier of various flight and other training simulators and systems for military aircraft. Its L3 Integrated Systems operations in Greenville and Waco overhaul and equip military aircraft.

Lockheed Martin Missiles & Fire Control, Grand Prairie -- Produces the U.S. Army's Patriot PAC-3 anti-missile missile and the Multiple Launch Rocket System, including launchers and various guided and unguided weapons fired by the system.