3 views of life after lockheed : burbank: entrepreneurs join city officials in expressing their hopes and fears in anticipation of the planned move of the aerospace giant.

by:Pat Hei Gate Hardware     2020-01-24
Lockheed Corp.
The decision to leave Burbank has brought uncertain ripples to the city\'s business community, namely, what will happen after the airline giants pack up their luggage and leave.
Especially in the industrial area around Burbank airport, many small shop owners saw a bleak period of their business.
Even companies with little business with Lockheed may face a difficult period of adjustment as city officials are working on a plan to reinvent Burbank\'s industrial northeast corner as a clean business center
\"Who knows what will happen?
William Twiss, owner of Twiss heat treatment, said the company used to do about half of the work for Lockheed, but now does less than 5%.
Officials at Burbank also said they were not sure how far the ripples would spread as the big fish arrived ---
A company that made $6.
There was 5 million business in Burbank last year. -Leave the pond.
\"Obviously, this will have an impact,\" said City Manager Robert R . \"(Bud)Ovrom said.
\"How big is the impact? We don\'t know.
\"The airline announced on May 8 that it would transfer most of its manufacturing facilities from Burbank to Palmdale, Georgia, and Marietta. , by the mid-1990s.
The company will leave nearly 320 acres of land and is expected to cut 4,500 jobs.
City officials and business leaders agree that the service sector will be the most affected by Lockheed. -
Such as liquor stores, stationery suppliers and dry cleaners--
Meet the needs of the employees of Lockheed, not the family
Having a machine store rarely does a lot of work for aerospace companies.
Zoe Taylor, executive director of the Burbank Chamber of Commerce, said that many businesses will not feel serious austerity, but will notice a slight decrease in business.
\"Everyone will feel this downturn for a while,\" she said . \".
Many owners say machine shops have been able to adapt because they have shifted the focus of production from military to commercial as defense spending has decreased.
Twiss, who used to make parts for Lockheed Aircraft, is now heating up
Closing of equipmentroad vehicles.
In addition, stores with contracts with Lockheed are expected to continue to supply parts.
\"We will stop manufacturing in Burbank, which does not mean we will stop manufacturing,\" said James Ragsdale, spokesman for Lockheed . \".
\"It just means we\'re going to do it somewhere else.
Our plans for Burbank will not affect our dealings with subcontractors.
\"Even stores with little business dealings with Lockheed say they are worried about what will happen in the future.
Some worry that they don\'t have a place in the commercial businesses that city officials envision for the region.
Last month, the City Council imposed temporary development controls on land around the airport, and city officials hope this is the first step in turning the area into a cleaner industry.
Burbank planners envision retail stores along the Golden State Highway, as well as research and development companies close to the airport.
\"I don\'t think we fit in a high
Technology, \"Tevez said.
\"I think they\'re going to make hard work here.
\"Another problem for small businesses is toxic waste.
Many wells in the area were contaminated by industrial solvents, and some areas contaminated the soil.
Although the owners did not blame the problem on Lockheed, they said they felt isolated by the bureaucracy of the Environmental Protection Agency.
For years, Lockheed\'s criticism of groundwater and soil pollution in the southeast valley has been the first.
But the departure of Lockheed cannot solve the toxic problem.
David Bacharwoski, an environmental expert with the state\'s Regional Water Quality Control Board, said cleaning up the area could take years.
The small shopkeepers said that while the Lockheed company can afford expensive testing and cleaning procedures, they can\'t.
However, they will be left to clean up the area, fearing that they may be held responsible for the environmental problems that exist at Lockheed. J.
Wayne Dudley, Vice President of Deakin Screw Products
He said the National Regional Water Quality Control Board was investigating whether his company had contaminated the soil behind his shop.
\"They want us to drill down to the groundwater level and put in a monitoring log,\" he said . \".
\"They say about $30,000 or $40,000. . . .
We just don\'t have that much money.
William twworth: 72-year-
Old business hot
We\'re a business hot-treating plant.
We started in 1941.
In 1947, we moved to next door to Lockheed. We heat-
Processing parts on old P
At the same time, 50% of our business may be Lockheed parts.
\"In recent years, the way they have traveled is in P-3.
Of course, skunk can work.
Recently, sales of Lockheed fell to about 5% of our sales.
5% won\'t kill us.
\"What I want to say is that after the agreement in South Korea, when we were in our 50 s, it was our busiest time.
\"We always get along well with their buyers, quality control staff.
We work closely together.
Once, when Lockheed reception ended up in the old building 85, which no longer existed, we used to just put our parts on an old shopping cart, and if our truck was inconvenient, we leave them on.
\"We have always maintained a good relationship with Lockheed.
It\'s always fair.
Sometimes, when they are short of $0. 35 billion, they are a bit slow to pay their bills.
But they managed to solve the problem.
\"I would say that in the past year and a half, the situation at Lockheed has begun to decline significantly.
When they put L-
1011, this is the main part of their difficult part.
They have a lot of engineers working on paper, but that doesn\'t leave us any parts that can be heated
Dispose of the paper.
\"I would say that most of their business will dry up when they quit 1011.
We are still busy with spare parts etc.
\"In the past, we probably got four or five jobs a week, and now we get about four or five jobs a month.
And they are small, mainly experimental things.
We don\'t have a lot of production parts at all.
\"We did a lot of work in our spare time.
Road racing equipment
There is a lot of work to do to replace the hydraulic components.
\"As far as I know, the city fathers here hope this is a novel study.
Technology fields like Owen.
If so, we might move out.
I don\'t think we fit in a hightech place.
I think they will mess up the manufacturing industry.
If they get to the conference center, maybe everything will pass.
\"Who knows what will happen?
Robert Rosales: 34-year-
The shop owner of old wine was built in 1959.
We bought it in 1980.
There were more employees at Lockheed.
Our business is doing very well.
A little down, down, down.
We used to have people queue up at the deli to buy wine and cash checks.
I mean, we used to have 30 to 40 people at a time.
\"It almost fell down.
It\'s half less than before.
\"I want to get a loan and try to attract residential customers, not the crowd of lockshid companies.
I\'m trying to switch from the person who drinks half.
For more people who buy deli and buy things on their way home, pints.
\"But it\'s hard.
I\'m really short of money now.
This is my big problem.
I bought this store in 1980 and paid for it. -
About $5,000 a month. -
Not going down.
I heard my land was devalued.
It\'s hard.
\"We are still having lunch at 11: 30. m.
And then hurried after work at 3: 30m.
\"We\'re really, really down a lot.
When Lockheed used to have a swing shift or graveyard shift, it was off work at night.
It used to be 11: 30 or 12. I still have a lot of people here.
Now I close around 11 because it\'s empty.
\"I only have myself and a part-time job right now, with three or four cashiers before.
\"This is a big change.
\"I hope to have more stable customers all day long.
But it\'s hard because I\'m in such an industrial zone.
I have no house.
They\'re all about a mile away.
I think I have to advertise.
\"I\'ll sell it if the price is right, but I haven\'t got the right price yet.
I can\'t give it away.
We have worked hard for 10 years.
\"I don\'t know how long we can hold on.
Geno DeVandry: 37-year-
\"My brother and I started working here in our teens --agers.
When my father was very ill, I started running the place.
My brother and I bought the company from my dad about eight years ago.
\"As you know, we have done a lot of defensive work and the defense is falling.
We are trying to make a transition to more business jobs that are happening.
We \'ve only had one job at Lockheed, and I think that could be worth $500.
\"The reason why we are called a screw shop is simply because we have threads installed on things, not because we have made screws.
We use a machine called a spiral machine, which is the biggest problem we have because they use 200 to 300 gallons of oil on each machine.
\"Things were different 25 years ago.
25 years ago, people doing business in a machine shop were not worried about getting oil on the ground.
No one knows about it. Things change.
\"Now, we have worked with the National Water Quality Control Board on the issue of the property, which is a mess.
\"They came out and put a glass cylinder on the ground and put it there for about a week.
Then they take it back and you drill if they find the pollution.
They did it, and we did it.
We spent about $80,000 on testing.
They found petroleum hydrocarbons below.
There is also a certain amount of toluene (
A component of gasoline)
But we don\'t even know where it came from.
We never used it.
\"They want our work plan now.
We can\'t give them a work plan because we don\'t have any money to spend on it unless we close the door and sell things and fix the problem with money.
They told us they didn\'t want us to go out of business, but they were doing things that let us go out of business.
They have a problem with their ideas.
\"Our business is worth $2 (million)
Or 3 million, the property could be worth $500,000.
But who will buy the property with this problem?
It really has no value until we find a way to fix it.
Who would buy a business that is responsible for the Environmental Protection Agency?
All we have now is equipment and assets.
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