Aeronautics legend Northrop Grumman has won the battle. It took four years, but officials at the Virginia-based firm announced last week that it will build the nation’s new fleet of long-range stealth bombers, a project that may create thousands of new jobs in Southern California.
The announcement reportedly took industry experts by surprise. The U.S. Air Force decided to select the the old Hawthorne-based firm over the much larger combined team from Boeing Co. and Lockheed Martin Corp. to build 80 to 100 strategic bombers over the next decade at an estimated cost of $60 billion.
Northrop built the iconic bat-winged B-2 stealth bomber 20 years ago, but the company was seen as an underdog in the battle against the world’s largest airplane manufacturer, Boeing Co., which has long been considered better funded and more politically connected. Northrop launched an aggressive—and rare—advertising campaign this year to help sway the decision.
The bomber has no name yet, but will be manufactured in Palmdale. Suppliers throughout Southern California will help to produce parts for the new bomber which is designed to replace jets built during the Cold War. Lawmakers in Sacramento passed bills last year to authorize about $500 million in tax breaks to the winning team, if they agreed to build a significant portion of the bomber in Palmdale.
Fifty years ago such news about an aviation or aeronautics contract was common place in Los Angeles County. Since then, however, most of the big firms such as Northrop, Lockheed, McDonnell-Douglas, Hughes, Rockwell, etc. have moved out of the state; this has left a considerable void in the number of high-paying jobs within the county. The Antelope Valley is considered the world’s premier destination for aeronautics research, development and testing.
“With the hiring potential of [more than] 5,000 employees in our region, the announcement of Northrop Grumman’s Long Range Strike Bomber being built at Plant 42 is exciting news for the Antelope Valley and County,” said Los Angeles County Mayor Michael Antonovich. “We appreciate Congressman Steve Knight’s efforts to secure the project, which will be a vital component in our region’s economic growth.”
According to estimates outlined in the contract, each long-range bomber will cost $511 million (in 2010 dollars) which meets the $550 million maximum threshold set by the Pentagon. Engineering and development costs are estimated at $21.4 billion (again in 2010 dollars) over the life of the program. The first part of the contract covers the engineering and manufacturing development phase of the aircraft and includes incentives to reduce the contractor’s profit, if it does not control costs and stay on schedule. A second part of the contract will cover the costs that go into building each of the supersonic aircraft projected as part of the program.
“The Air Force has made the right decision for our nation’s security,” said Wes Bush, chairman, CEO and president of Northrop Grumman. “As the company that developed and delivered the B-2 Spirit stealth bomber, we look forward to providing the Air Force with a high-capable and affordable next-generation Long Range Strike Bomber.”
Rep. Steve Knight (CA-25) has a history of involvement with the Long Range Strike Bomber program. This dates back to his time in the California State Senate, when in 2014, he pushed forward multiple pieces of legislation that provided tax credits to whichever company won the contract and based on how many in-state jobs would be created. Many of the expected new jobs will be in the Antelope, Santa Clarita and Simi valleys.
“Moving forward with this contract is a victory for the American people, because it means that the United States will continue to produce high-quality aircraft that will give us an advantage in protecting our citizens and our way of life,” said Knight whose father, the late State Assemblyman William “Pete” Knight, was an aeronautical engineer and test pilot working primarily in Palmdale. “It is also a victory for California, because it will expand our aerospace manufacturing sector and bring thousands of quality jobs to our communities.”
Assemblyman Tom Lackey (R-Palmdale) had this to say about the big news: “This is a huge win for the Antelope Valley and California’s aerospace industry. Hundreds of new jobs will be created and will provide a badly needed injection into our local economy. Winning this contract would have not have been possible without Congressman Knight’s work to create a state tax incentive for aerospace jobs.”
