Today’s announcement that GE Aviation is going to build a jet-engine assembly plant in Lafayette, Ind., is not just good news for the local community, it also provides some valuable lessons about what it takes to compete and win in today’s highly competitive global marketplace.
Education, a global presence and strong export tools make a critical difference.
GE Aviation’s $100 million, 225,000-square-foot facility will assemble the new LEAP engine from CFM International, a joint company of GE and Snecma (Safran) of France.
The project will create an estimated 200 jobs by 2020, while also giving a boost to hundreds of businesses that work with GE Aviation. The company has more than 1,500 active suppliers that support more than 23,000 domestic jobs. (More details from Indiana Economic Development Corporation news release.)
Education and workforce training are always big factors in siting decisions, and the new facility will be just a few miles from Purdue University. General Electric, which employs more than 1,200 of the university’s alumni, has financed more than $2.5 million in research projects at Purdue over the last five years. The school and company plan to work together on further research and talent recruitment.
At the same time, the company is partnering with the pioneering Ivy Tech Community College to make sure its significant training needs are met.
GE CEO Jeff Immelt joined Purdue President Mitch Daniels on campus last October for a discussion of innovation and talent development. (News coverage here.) Immelt also spoke about the importance of education and training at the National Governors Association winter meeting in February, foreshadowing today’s announcement.
GE Aviation’s assembly plant will produce engines for planes sold around the world by manufacturers like Boeing, Airbus and COMAC (China). CFM has already logged orders with airlines for more than 6,000 LEAP engines. The kinds of global sales reinforce the importance of opening markets to U.S exports through such agreements as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. The plant is more proof of why Congress should act now to renew the Trade Promotion Authority to allow the effective negotiation of such high-standard trade agreements.
The new jet-engine assembly facility also serves as a reminder of the importance of the Export-Import Bank, which aids in the financing of U.S. exports. Congress needs to reauthorize the bank so U.S. companies can compete effectively around the world.
We asked Business Roundtable President John Engler for a comment. He says, “GE’s new jet-engine assembly facility shows how working partnerships are key to succeeding in today’s highly competitive global marketplace. Start with the private-sector investment decision, add in the proper education and training, develop your global markets and have the tools to compete with other nations. When we work together we win.”