Snohomish County aviation firms awarded $3M in federal grants
Published 2:35 pm Friday, February 11, 2022
EVERETT — Nine Snohomish County aerospace businesses will soon see an extra $3 million in their bank accounts, thanks to a federal program that will help keep 185 workers on the payroll.
A third round of Aviation Manufacturing Jobs Protection Program grants was awarded this week to businesses throughout the United States.
The competitive U.S. Department of Transportation program is tied to the Biden administration’s American Rescue Plan, which launched last spring.
The money is sorely needed.
Before the COVID-19 pandemic, the nation’s aviation industry employed about 2.2 million. Washington’s aerospace industry supported 130,000 jobs and produced 1,400 aircraft and satellite systems. Annual exports totaled $50 billion.
The pandemic and the subsequent decline in air travel cut deeply into the aviation manufacturing, maintenance, repair and overhaul industries. At some firms, revenue dropped 50% or more, forcing mass layoffs.
Since then, 100,000 U.S. aerospace industry jobs have been lost, including 30,000 jobs in Washington, said U.S. Sen. Maria Cantwell, who led an effort to secure funds for the jobs protection program. Cantwell chairs the Committee on Commerce, Science, and Transportation.
“Once high-skilled jobs leave a community, it’s not easy to get them back,” Cantwell said in a statement. “Supporting aerospace manufacturing employers during an unprecedented aviation industry slowdown is not only the right thing to do, it’s the best way to keep local economies diverse and thriving.”
So far, the competitive grant program has awarded $57 million to 68 aviation manufacturers throughout Washington, saving 3,200 jobs. Of the total, $28 million was awarded to 27 Snohomish County companies, saving an estimated 1,500 jobs.
The state is home to more than 1,500 aerospace companies, including some 200 in Snohomish County.
Third-round grant recipients include Global Machine Works, which received $500,000 that was expected to save 24 jobs. The Arlington company manufactures aircraft components. In Everett, aerospace parts manufacturer Royell Manufacturing received $756,000, protecting 47 jobs.
The health of the aerospace supply chain is critical to the nation’s aviation industry as a whole, Cantwell said.
“We have to continue to focus on our airline sector, which is basically about 5% of our GDP,” Cantwell said. “We need to focus on aviation manufacturing.”
The Aviation Manufacturing Jobs Protection program offers up to $3 billion to help companies in the aviation manufacturing and repair industry. Since the program’s inception, it has delivered $673 million in payroll protection support, saving an estimated 31,000 U.S. jobs.
First and second rounds of the aviation jobs protection funding were announced last year in September and November, respectively.
More than half of the 593 companies that have received program funds are small businesses with fewer than 100 employees, according to the Department of Transportation.
Job protection grants can be used to pay half the wages of specific aerospace employees for up to six months. In return, the business must document spending and agree not to furlough or lay off those workers during the six-month period.
The broader American Rescue Plan includes $15 billion in payroll support for passenger air carriers and contractors, as well as $8 billion in economic assistance to U.S. airports.
Janice Podsada: 425-339-3097; jpodsada@heraldnet.com;
