CEO: Melbourne will be 'center of gravity' for Embraer
Just prior to breaking ground on a $76 million project to open a new business jet assembly complex at Melbourne International Airport, the chief executive officer of Embraer jets promised a big role for this area in the company's future.
"Melbourne will be the center of gravity for Embraer Executive Jets," Frederico Curado, president and chief executive officer of the Brazil-based Embraer S.A. said Thursday.
Curado's comments came as he and other Embraer executives held a a ceremonial groundbreaking at Melbourne International for the company's Legacy 450 and 500 business jet. About 300 people were on hand for the event, including Gov. Rick Scott.
Already Embraer operates an assembly production facility for its Phenom 100 and Phenom 300 business jet, as well as an engineering and technology center and a global customer center.
The Legacy will mean four business jets will be assembled at Melbourne International. When everything is completed, Embraer will have 1,000 employees in Melbourne.
Embraer's latest groundbreaking comes as Brevard County witnesses a flurry of activity related to aerospace and aviation, both in Melbourne and at the Kennedy Space Center. Aerospace and aviation jobs are particularly attractive to communities because it means a bump in skilled, well-paying jobs.
Local officials used the Legacy event to show that public economic incentives can pay off, and lead to new investment and jobs. Other communities use them, they say, and Brevard needs them to stay competitive to attract companies like Embraer.
"We have never once taken you for granted," Brevard County Commissioner Robin Fisher told Embraer executives. "We know you had other options."
Lynda Weatherman, president and chief executive officer of the Economic Development Commission of Florida's Space Coast, said the Space Coast's relatively quick economic comeback through the aviation industry's growth following the recession and the end of the space shuttle program "is unique in the world."
The Legacy is expected to start production in 2016, which also will be when the first delivery of the Legacy is made. Company executives said the Legacy facility will mean 600 new jobs for the local economy.
That figure doesn't include spinoff jobs at places like restaurants, service businesses or suppliers.
Those would be on top of the estimated 400 employees that Embraer already has in Melbourne for its other operations.
The Legacy's price tag starts at $20 million.
"In terms of performance, we designed it to beat all the competitors," said Marco Julio Pellegrini, president of Embraer Executive Jets.
"These guys are superstars," said Florida Sen. Thad Altman, R-Melbourne. "I call them the Michael Jordans — maybe the Peles" of aviation companies, the latter a reference to the Brazilian soccer legend.
Brazilian connection grows
Greg Weiner, senior director of business development for the Economic Development Commission of Florida's Space Coast, said Embraer has done business with more than 200 local companies since opening operations in Brevard County — many of them relatively small local businesses.
Additionally, Embraer — with its worldwide reputation as an aviation leader — has given the Space Coast a leg up in getting other companies to consider this region for their own expansions.
"Companies in Brazil that are thinking about an American footprint are more likely to see this as a site they will look into," Weiner said.
Weiner said he is aware of at least six Brazilian companies that have scouted out locations in Brevard County in the last 11/2 years. They range from an industrial-parts supplier to a company that makes shoe-care products.
Similarly, with Embraer as part of an aviation cluster at Melbourne International Airport that also includes such companies as Northrop Grumman and AAR Airlift, the area rises to the first rung of potential locations for other aviation companies.
"In my mind, it's clearly a positive," Weiner said. "I think it creates opportunity. It certainly gets us on the list."
View from Tallahassee
Wednesday's hourlong groundbreaking ceremony also served as an opportunity for the parade of speakers to thank the political leaders who they said worked to make it happen.
In his remarks, Scott, a Republican who is in a tight race with Democrat Charlie Crist, noted that, when it comes to economic expansion projects, "We get to announce a lot of things in Melbourne. This is really great."
Noting Embraer's latest expansion, Scott said, "This is another big step for us."
Contact Price at 321-242-3658 or wprice@floridatoday.com. Follow him on Twitter at @Fla2dayBiz
Contact Berman at 321-242-3649 or dberman@floridatoday.com Follow him on Twitter at @ByDaveBerman and on Facebook at facebook.com/dave.berman.54
BY THE NUMBERS
These are the projected economic impacts from the three Embraer projects in Melbourne:
1,000 direct jobs
1,337 spinoff jobs
$118.21 million total annual payroll from direct and spinoff jobs
$141.45 million total capital investment
-- Economic Development Commission of Florida's Space Coast