Danny Di Perna Speaks at Supplier Resource Workshop

EAST HARTFORD, Conn., Monday, January 25, 2016

Pratt & Whitney hosted a supplier resource workshop at its hangar in East Hartford, Connecticut, on Monday. The goal of the event was to raise awareness of government resources that are available to help suppliers succeed. Danny Di Perna, senior vice president, Engineering & Operations, was among the featured speakers at the event.

Full text remarks, as prepared for delivery

Good morning! It's my pleasure to welcome you today to this supplier resource workshop. We at Pratt & Whitney are pleased to host this event.

Our goal this morning is to raise the awareness and visibility of government resources that are available to help our supply-chain partners improve and succeed.

Before I get started, we have among us very distinguished and honored guests whom I'd like to now introduce:

  • • Governor Malloy — who has been a valued supporter of manufacturing in Connecticut, and his administration deserves credit for creating an environment dedicated to redeveloping the highly skilled work force needed to continue to make many of the innovative components for our leading-edge products in our home state.
  • • Senator Blumenthal and Senator Murphy, Congresswomen Esty and Congresswoman DeLauro – you have all been strong supporters of Pratt & Whitney, our GTF, Tanker and F135 programs, and manufacturing here in Connecticut and the U.S.
  • • Finally, Congressman Larson— who has been a trusted and dedicated advocate for Pratt & Whitney for many years and in many areas – doing all he can to "keep the Eagle flying," and we appreciate his friendship and support.

As I mentioned, the goal of this event is to help raise awareness of government resources available to help suppliers like you be more competitive and gain more business with leading manufacturers like us.

A few months ago, members of our executive team attended a manufacturing summit with White House and Commerce Department officials in D.C.

They had an opportunity to see the large number of government agencies available to help suppliers succeed and be more competitive.

We discussed this with the staffs of our delegation, who agreed it would be valuable to help highlight the resources available at the federal and state level to support suppliers.

Manufacturers and suppliers in Connecticut and New England enjoy a strong partnership between the public and private sectors in developing resources.

I'd like to highlight some of the state efforts to support us here in East Hartford and also help our suppliers across the state.

As most of you know, Connecticut has been the home of Pratt & Whitney since it was founded in 1925, and the state continues to play a very important role in our future.

It's been almost two years since we announced our agreement leading up to the Connecticut Aerospace Reinvestment Act.

It is because of this legislation that we are building Pratt & Whitney's new headquarters and engineering building in East Hartford, and making other investments at our Research Center and at our UTC Aerospace Systems facility in Windsor Locks.

Special thanks go to Governor Malloy and the state legislature for their support of Pratt & Whitney's facilities expansion through this Act.

This legislation, which requires zero cash layout from the state coffers and zero taxpayer-funded debt, is providing tax incentives to UTC that is enabling the growth that you see around you today.

It allows UTC to invest some $500 million to upgrade and expand our aerospace, research, development and manufacturing facilities over the next five years.

The result, when all this dust settles, will be a new 425,000 sq. ft. Pratt & Whitney World Headquarters and Engineering building that will attract global engineering talent and be a collaboration hub for our facilities around the world.

There is a great deal of support available in government grants, subsidized loans for capital growth and training programs. This includes a number of manufacturing apprenticeships through our local community colleges that ensure a talented, skilled workforce for the future. Wage support and other elements are also offered.

Today's event will help you understand some of the support that is available from government sources and how you can participate.

Pratt & Whitney's suppliers are key to our products' success.

The old business model of the vertically integrated factory is no longer feasible. Today, our next generation of products' success is due to the strong partnerships we are building across our supply base.

Our suppliers are responsible for producing roughly 80 percent of our parts. This is a direct inversion of the formula. The last time the industry saw this level of demand, Pratt produced some 60-80 percent of our components in house – which we now rely on our suppliers for.

As Pratt gets ready to produce more products at a higher rate, it's vital that we work with our supply-chain partners to ensure you are also prepared to deliver components with the perfect quality, on time and on budget.

This is a very exciting time for Pratt & Whitney and the aerospace industry overall.

Incredible airline growth is expected. Major market forecasts anticipate that between 2015 and 2034, air traffic will grow at 4.6 percent annually, requiring some 32,600 new passenger aircraft at a value of 4.9 trillion U.S. dollars.

Pratt & Whitney has a backlog of 7,000 orders and commitments for our PurePower Geared Turbofan engine family.

Just last week, a historic aviation milestone occurred with the delivery of the first A320neo to launch customer Lufthansa, powered by Pratt & Whitney's GTF engine. And this morning in Germany it launched its revenue service flight. This is just the beginning.

On top of this success with our commercial programs, we will build about 3,000 F135 engines for the F-35 Joint Strike Fighter when all is said and done.

We're all tremendously proud of this accomplishment and of our role in redefining aviation, but the work is just beginning.

Pratt & Whitney sees production more than doubling over the next 3-5 years.

We will execute on our commitments. However, we can't do this alone. We need our suppliers.

With production set to increase to levels not seen since the 1980s, it's imperative our supply chain be positioned for success too.

We need suppliers in the U.S. and Connecticut who can meet our quality, cost and schedule requirements.

The limiting factor in finding suppliers who can help us meet this demand is not raw numbers of suppliers.

Rather, it is suppliers capable of reliably meeting our requirements for quality, delivery to schedule and cost.

Pratt & Whitney continues to build its network of high-quality and performance-driven suppliers.

We need suppliers we can count on to deliver on time, ethically and with perfect quality.

To date, we've signed approximately 400 long-term agreements valued at more than $22 billion with key product suppliers, enabling them to invest in capital equipment and hire people.

We have more than 800 key product suppliers (for Pratt & Whitney and Pratt & Whitney Canada) and thousands of indirect suppliers.

Pratt & Whitney and our sister company UTC Aerospace Systems have more than 200 key product suppliers here in Connecticut.

Annual spending with direct product suppliers for our UTC aerospace companies is growing from more than $5.5 billion today to about $13 billion by 2020. In Connecticut, UTAS and Pratt & Whitney spend about $720 million annually.

You can see that there is plenty of opportunity. That is why this event is of mutual importance. We cannot meet our customers' demand without our suppliers, and so we are pleased to offer you this opportunity to make contacts at federal and state agencies and learn about the government resources available to help you grow your business.

We have a number of groups represented here today that can help our suppliers.

Some of the groups represented include the Department of Commerce; the Small Business Administration; the FAA; UConn; the Department of Labor; the Department of Economic and Community Development; the Connecticut Procurement Technical Assistance Program; the Connecticut Center for Advanced Technology; and CONNSTEP.

I encourage you to take some time today to see what they have to offer and understand how they may be able to help you be more competitive and grow your business.

Pratt & Whitney and UTAS are also dedicated to initiatives that will help you become more competitive across your entire customer base and operate successfully. We have some of those people here available for you to speak with as well.

Again, thanks to our state and federal delegation for your support.

Thank you for coming, and now I'd like to introduce the governor.