Home to seven large military installations, several significant command posts, more than 42,000 Department of Defense personnel and more than 3,000 firms or corporations that supply goods and services for military use, South Carolina maintains a rich military history dating back to Colonial days. In a June 2011 defense industry profile, the S.C. Department of Commerce reports that total military employment is expected to exceed 45,000 this year, paying approximately $1.5 billion in labor income and creating an additional $2.4 billion in business sales. According to that same profile, more than $4.3 billion in Department of Defense contracts were obligated to South Carolina establishments in FY2010. From defense to manufacturing, the military sector is a crucial part of the state’s economic health.
“Manufacturing continues to be an important part of our state’s economy, and given our state’s strong ties to the military it’s no surprise that defense-related products are an important sector of manufacturing here. We look forward to seeing more defense-related manufacturers and suppliers set up shop here, as well as growth amongst our existing businesses in that sector,” says Secretary of Commerce Bobby Hitt.
“Most people know that South Carolina has a long and rich military history, but many overlook the fact that South Carolina’s craftsmanship is concurrently felt throughout the world via the products we manufacture for America’s men and women in uniform,” says Lewis F. Gossett, president and CEO of the South Carolina Manufacturers Alliance. “From mine-resistant vehicles built by Force Protection in Ladson to MREs from Mullins’ Sopakco, to Spartanburg-based Milliken & Company’s military clothing fabric, to the weapons that FN Manufacturing offers, the Palmetto State’s manufacturing base ensures that regardless of where our soldiers, sailors, airmen and Marines are stationed, they will likely be carrying or working with something made by South Carolinians.”
“South Carolina’s combination of geography, relationships, a military-friendly Congressional delegation, and its business climate keep the state’s manufacturers on the map when it comes to providing the Department of Defense what it needs to fight and win the wars of today and tomorrow,” says Gossett. Although there are several more to choose from, here are profiles of three such manufacturers in the Midlands.
FN MANUFACTURING, LLC
Arming Our Soldiers
www.fnmfg.com
FN Manufacturing, LLC, is a precision machining manufacturer specializing in the production of small arms for military and law enforcement use. Weapons training and subcontract services (including machining, heat treating and surface finishing) are also available. The U.S. manufacturing division of parent company FN Herstal – founded in 1889 in Herstal, Belgium (FN stands for Fabrique Nationale) – the Columbia facility covers 177,000 square feet and employs almost 500 people. In June 2011, FN Manufacturing was recognized by the Defense Logistics Agency for the third consecutive year as one of their top one percent of suppliers in the nation. Ralph Young has been with the company for 22 years. As vice president of human resources, he also oversees security, environmental and safety issues at the Columbia plant.
“For the military, we produce M240 medium machine guns, M249 squad automatic weapons, M16 rifles and a large number of components for ATK (one of the world’s largest aerospace, defense and commercial products companies, based in Minneapolis) for their production of the MK19 grenade launcher,” says Young. “Our primary customers are the U.S. Army, the U.S. Marine Corps and Special Forces. For the military and law enforcement, we also produce the FN303 Less Lethal Launcher. For our sister company, Browning Firearms, we produce the Winchester Model 70 rifle. For another sister company, FNH USA, we produce our own line of 9mm, 40 and 45 caliber FNP and FNX pistols.”
“Many of the components that go into the assembly of our final products start off as raw castings, forgings or bar stock,” says Young. "We have the capability for a wide array of chip-cutting operations, as well as surface finishing and heat treating operations. The positions in our organization include gun designers and engineers, machinists, CNC machine operators, welders, quality technicians, surface finishers, assemblers, weapons testers and more. We’ve built an excellent reputation with our customer base for on-time delivery of the highest quality products.”
FN’s firearms are used by the armed forces of more than 100 countries, and nearly all U.S. orders are produced right here in Columbia. Young is uncertain how or if business will be affected by President Obama’s recent plans to withdraw about a third of the 100,000 U.S. forces in Afghanistan by 2012.
“There are a number of significant factors that affect the demand for products coming from our facility. Obviously the overall demand by the Department of Defense is a major factor,” says Young. “In addition, the majority of our contracts are the result of full and open competition. We have, on occasion, lost business to a competitor who has bid a lower price than ours. There has also been a trend within the DoD to set aside more work for small businesses, on which we are not allowed to bid.” Overall, Young says the company remains dedicated not only to the superior quality and improvement of their own work but that of the surrounding community as well.
“Over the years we’ve developed a strong corporate culture of continuous improvement through employee involvement and individual accountability,” says Young. “FN Manufacturing has a strong community involvement with a focus on supporting public education. At the local level, we’re heavily involved with the Midlands Area Business and Education Alliance. We participate in Lexington District One’s Machine Tool Technology program, with various middle and high school STEM (Science, Technology, Engineering and Math) initiatives, and with the National Defense Industrial Association’s STEM Division as well. On the state level, we’re members of the S.C. Chamber’s Excellence in Education Committee.”
ALPHA MANUFACTURING COMPANY, INC.
Supporting the Aerospace Industry
www.alphamfg.com
Producing on a much smaller scale but well-poised for continued growth, Alpha Manufacturing Company, Inc., in West Columbia is a woman-owned company and precision machine shop engaged in several areas of industrial machining including tooling, fixtures, gaging, jigs and other machined parts. Founded in 1973, Alpha has served many industries, including aerospace, defense and nuclear. The shop is ISO 9001-2008 and AS9100 Certified (required by major vendors of aerospace/aviation) for working with materials like titanium, inconel, stainless steels, zirconium, carbon steels, aluminum alloys and tool steels to produce parts and components for a wide variety of applications. President and CEO Pat Young has held 100 percent ownership since 2006.
“In terms of military contracts, Alpha Manufacturing is proud to be a STAR supplier to Lockheed Martin in support of their F-16 and C-130 aircraft programs. It’s a very prestigious honor and means that the parts we send to Lockheed go directly to the production line without inspection,” says Young. “It speaks to the level of quality we provide for all the industries we serve. We also continue to produce components for the F-35 Joint Strike Fighter, first introduced in 2005. The Strike Fighter is an aircraft that lifts like a helicopter as well as the conventional take-off method – we supply the parts that allow the lift and take-off.” Alpha is also certified to serve the nuclear industry, and holds a federal firearms license to produce and sell weaponry and ammunition for military and law enforcement use.
“It’s a very extensive process for a plant to receive a federal firearms license,” says Young. “Law enforcement administrative inspectors came out and spent half a day interviewing staff. We had to go down to the Lexington County Sheriff ’s Department to be fingerprinted. Everybody on staff must understand the requirements of safety and security as a firearms producer.” Alpha’s current staff of about 15 includes office staff, machinists and several engineers, one of which previously worked for NASA.
“We’re always looking for good qualified people who care about their work: CNC (computerized numerically-controlled) machine operators, engineers, shipping and receiving managers and the like. We may be a small operation, but we continue to bring in new, state-of-the-art machining equipment and embrace new technology to grow our production capabilities and make things more cost-effective. Above all, quality assurance is our top priority. All of our employees are quality inspectors. We’re excited to be in negotiation with some major customers that will define the future of our company, and we look forward to securing additional military contracts to serve South Carolina and beyond.”
AQUA PRODUCTS COMPANY, INC.
Keeping Things Cool
www.aquaproducts.us
Incorporated in 1993, Aqua Products Company, Inc., has grown from humble beginnings – according to President and CEO John W. Seppamaki, his daughter’s bedroom was the first office, and the laundry room his first production facility – into a 15,500-square-foot facility in Newberry serving customers worldwide. With just 11 employees, this small, locally owned business is well known for producing industrial chillers: half-ton to 30-ton air conditioning systems that also produce chilled water. What sets Aqua Products Co. apart from about 400 chiller producers throughout the United States is their capacity to handcraft specific designs to solve unique problems.
“Chillers have hundreds of industrial applications: dry cleaning, medical applications, breweries and wineries, agribusiness applications and many more,” says Seppamaki. “Our Reverse Cycle Chiller™ systems provide green heating and cooling options for homes and businesses at a fraction of the price of standard heat pump systems. We typically produce between 350-450 units a year – the time frame depends on the size of what we’re building.”
“In addition to high-quality chillers, we’ve also developed a line of modular chillers, a new line of hydronic heating and air conditioning and a successful line of industrial spot cooling. Products for military use include a device for cooling aircraft hydraulic fluid, a cooling gun turret for firearm practice ranges, large-scale data center cooling units and our latest project, something we call ‘the Camel’ – a large potable water system that keeps drinking water cool.”
“We recently shipped the first prototype for another neat project with the Armed Forces: a unit designed to cool and heat large MASH and command tents for soldiers in the Middle East,” says Seppamaki. “The temperatures of the desert are so extreme, but it’s especially difficult to keep cool. This industrial spot cooling system dehumidifies the air and cuts temps by about 22 degrees, all with less noise and greater energy efficiency than traditional units. It will be a big boost for our troops overseas.”
“After almost 20 years in business, Aqua Products Co. has become a leader in developing new niche products designed to improve our quality of life both at home and at work. Our chillers have been sold around the world – throughout the United States as well as Canada, Russia, Asia and elsewhere. As green energy trends become mainstream, I’m looking forward to continuing the development of innovative products related to comfort heating and cooling with an emphasis on energy conservation.”