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Northrop Grumman Selects Brevard County for Expansion

The Economic Development Commission of Florida’s Space Coast announced that Northrop Grumman Corporation has selected Brevard County for a significant expansion that could add 1,800 jobs at full program capacity at an average annual salary of $100,000.

The project, known as Project Magellan throughout the due diligence phase, is the largest economic development project in the country in terms of job creation numbers and average wage associated with employment. Northrop Grumman plans to invest approximately $500 million in new capital investments at the Melbourne International Airport.

“This is a huge victory for families on the Space Coast,” said Governor Rick Scott. “We are excited that Northrop Grumman has decided to expand here in Florida, which could bring up to 1,800 new jobs to Brevard County. We’ve worked to grow jobs and opportunities for Florida families by cutting taxes, paying down debt and cutting government waste – and this announcement is a testament to our success in creating an opportunity economy. This is a huge win, and we’ll continue to build on this success with our recently completed legislative session where we cut $500 million in taxes and fees and made higher education more affordable for every family.

These victories will attract more and more businesses to the Sunshine State. We must continue to grow our opportunity economy so that companies like Northrop Grumman can continue to create jobs for Florida families.”

The project will be broken down into two phases. Phase One will consist of the construction of an approximately 220,000-square foot building and the addition of 300 jobs by the end of 2015. If successful in obtaining desired business objectives, the company will move on to Phase Two with the construction of an additional approximately 500,000-square foot facility and 1,500 more jobs.

“Northrop Grumman’s ultimate decision to choose the Space Coast for this competitive project would not have been possible but for the outstanding support of Governor Scott, Enterprise Florida, Space Florida and the EDC team,” said Lynda Weatherman, president and CEO of the Economic Development Commission of Florida’s Space Coast. “Our success in bringing this project to Brevard demonstrates just how important economic development incentives are to winning a game changing project such as this. The EDC is continuously fighting for the Space Coast and we are thrilled with this win of one of the country’s largest economic development projects in the last decade.”

The project opportunity started over a year ago, but activity on the project picked up dramatically in the Fall of 2013 as the EDC led negotiations with the site selection team and coordinated State, Enterprise Florida and Space Florida, as well as local economic development partners including Brevard County, Career Source Brevard, the City of Melbourne and the Melbourne Airport Authority:

“Brevard County has had a long-standing relationship with the aerospace industry, and this latest announcement means we’ll continue that relationship for many years to come,” said Brevard County Board of County Commissioners Chairman Mary Bolin Lewis. “Our reputation is that we expect and deliver big things, and we have the know-how and the available workforce to take on these great challenges and achieve success at the highest levels. We welcome this news today with open arms.”

Current District 5 Brevard County Commissioner and former Brevard County Board of County Commission Chairman at the time of the initial Project Magellan proposal, Andy Anderson added: “It is a great day to see the culmination of this highly competitive project and how far things have come since this was first presented to the County Commission nearly a year ago. I am elated that Northrop Grumman will be growing in District 5 and proud to have worked alongside a team of economic development professionals to make this a reality for Brevard County.”

“This partnership is an investment in improving and sustaining a high quality of life in the City of Melbourne and Brevard County,” said Melbourne Mayor Kathy Meehan. “In addition to bringing up to 1,800 new high-wage jobs to our community, this large expansion of Northrop Grumman demonstrates the City’s business-friendly ability to attract corporate investment to Melbourne in a highly competitive economic development environment.”

“Melbourne International Airport is bursting its buttons with pride to welcome Northrop Grumman,” said Richard E. Ennis, Executive Director of the Melbourne International Airport. “To attract corporations of the caliber of Northrop Grumman is a feather in the cap of this community. We are Space Coast Proud.”

Added Melbourne Airport Authority Chairman William “Bill” Potter: “The Airport Authority is delighted that this complex project has come to fruition. We are extremely grateful to Northrop Grumman for its decision to make this very substantial investment in our community. We are also grateful to all of those organizations and individuals who have worked diligently and positively to bring together the resources to achieve this success. The Airport Authority is proud that its staff has been an essential part of the team that has brought this about. From the Governor, to the Department of Economic Opportunity, to Spaceport Florida, to Brevard County, to the City of Melbourne and to the Economic Development Commission, we extend our appreciation for the manner in which we have been able to work together to bring about this extraordinarily important accomplishment for our community.”

The economic impact from expected job creation will have a significant impact in a number of areas of our local economy. With up to 1,800 jobs anticipated by the completion of Phase Two, this will lead to a direct total net new wage impact of $180 million, $22 million indirectly and $38 million induced for a total impact of more than $241 million. These initial jobs will lead to the creation of 527 indirect and 22 induced jobs for a total of 2,349 new jobs for the community. The contribution of direct, indirect and induced totals results in a $293 million contribution to the gross domestic product.

The facility is expected to be operational by 2015.

Project By the Numbers:

  • Total direct jobs: Phase 1 – 300; Phase 2 -1,500 = 1,800 Total
  • Average Wage: $100,000, To put that in perspective, Brevard County’s average wage is $44,159
  • Anticipated Capital Investment for this project: $500 million
  • For every employment position created by Northrop Grumman approximately 0.87 additional jobs will be developed to support the operation of the facility, for a total of 557 new indirect jobs.
  • For every payroll dollar paid to Northrop Grumman employees approximately $0.34 cents will be generated for consumer spending
  • Total gross domestic product impact: $293,854,336 annually
  • Total net new wage impact: $241,095,864 annually

 

Originally published by the Economic Development of Florida’s Space Coast

 

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