BAE Systems’ facility latest chapter in Cedar Rapids’ reputation as tech leader

A $137 million capital investment; 800 on-site employees; 278,000 square feet on 32.5 acres. More than 1.5 million devices delivered company-wide. An estimated $14.5 million in local and state tax incentives. All heady numbers for BAE Systems’ new military GPS research, development and manufacturing facility, an imposing new presence just west of Interstate 380 at 7825 Sixth St. SW, Cedar Rapids. But for the government and company officials who were on hand for the facility’s Nov. 1 dedication, it represents much more than a new construction project and a consolidated home for BAE’s local operations. Luke Bishop, product line director for BAE’s Cedar Rapids navigation and sensor systems product lines, said Cedar Rapids’ reputation as a leading military and aerospace technology hub was a key factor in BAE’s decision to locate its new facility in the Corridor. “As BAE Systems evaluated where they would put the navigation and sensor systems business, they recognized that our people were one of our strengths,” Mr. Bishop said in an interview with the CBJ. “With a workforce here in Eastern Iowa that’s 800 strong, it was clear fairly quickly that it was important to locate our engineering, manufacturing and all of the other aspects of our business here. They recognized that there's a great, talented local workforce that will help us continue the success of this business that’s been running here in Eastern Iowa for over 40 years.” Mentioned several times in the Nov. 1 dedication was the fact that the first GPS signal ever sent from space was received by a receiver atop a building in Cedar Rapids in 1977.

BAE well-established in global defense industry

BAE Systems may be a relative newcomer in the Corridor, but the company has been a growing force in the global defense, aerospace and security industry since its formation in November 1999 through a merger of British Aerospace and Marconi Electronic Systems. Headquartered in the United Kingdom, the company now has more than 90,000 employees in 40 countries, including more than 34,000 in its U.S. operations. The company generated 2021 sales of nearly $12.5 billion. Locally, BAE Systems completed the acquisition of Collins Aerospace’s former military GPS business in July 2020 in a deal valued at just over $1.9 billion. The military GPS sector was previously owned by United Technologies, which had to sell the GPS business in order to clear antitrust regulatory requirements of its April 2020 merger with Raytheon that formed Raytheon Technologies, now the parent company of Collins Aerospace. After the acquisition, former Collins Aerospace employees, now employees of BAE Systems, worked in facilities leased from Collins Aerospace in Cedar Rapids and Coralville as they awaited completion of BAE’s new facility.

Local operations incorporate several departments

The BAE Systems Cedar Rapids facility includes a large factory, several hundred offices, workstations and flexible workspaces, as well as classified and unclassified labs. In an interview earlier in 2022, BAE Systems navigation and sensor systems business development director Frank Zane said the company’s Cedar Rapids operation focuses on designing, developing and manufacturing military GPS devices. Utilizing different size, weight and power (SWAP) specifications, some of the devices are as small as a postage stamp for use in a handheld radio. In contrast, others are the size of a laptop computer, which may be deployed on aircraft, boats or other military vehicles. Not only are the devices extraordinarily high-tech, but they also serve a critical role in national defense by enabling secure and precise guidance of weapons and equipment. The facility incorporates a number of different functions for end-to-end product management, Mr. Bishop said, including advanced manufacturing operations and teams to manage supply chain, business development, contracts, finance, quality control, human resources, security and engineering functions. “You can think of it like a business within a business,” Mr. Bishop said. “We have a product line here, and we have all the elements that we need to run our business. And then we're tied into the broader BAE Systems enterprise that provides additional depth, support leadership and capability as needed.” He said about 90% of BAE’s local employees are now located at the new facility, with a goal of bringing all local workers on site by the end of 2022. BAE is still hiring for a number of opening positions, and while the company has found many qualified candidates locally, Mr. Bishop said opportunities are available for workers in specialized fields coming to Cedar Rapids from outside the area. “We routinely attend career fairs and hiring events all over the country, and definitely here in Iowa with our state schools,” he said. “But we'll go far and wide looking for qualified candidates with the skills that we need. For people newly entering the workforce out of school (often) that does involve them moving to the area, and that's been a big category as well. We have a good mix of local folks and people coming to the area as they enter the workforce.”

Bringing workforce together improves efficiency

Ever since BAE Systems employees began working at the new facility this year, efficiencies have continued to emerge, Mr. Bishop said, as the company’s operations team, formerly housed in Coralville, merged with the rest of the company’s operations in Cedar Rapids. “The new facility is awesome,” he said. “It's modern, and it's laid out for the needs of our business. It was great to be able to have our team be a part of the design of this facility. For example, as we laid out our manufacturing area, we were able to really think about the production flow of our products to purpose-build and design the facility around how we do what we do. As we come into this new facility, we're finding that we have the tools that we need, the layouts and workflows are streamlined and optimized for the way we do things. And now to have those teams all under one roof is really exciting, because it enhances opportunities for collaboration across our operations.”

Company fulfilling critical mission

At the Nov. 1 dedication, John Watkins, vice president and general manager for BAE’s precision strike and sensing solutions business, stressed the local BAE Systems facility’s vital role in national security. “Cedar Rapids is home to the critical work that we do to design, develop and produce advanced military GPS products,” Mr. Watkins said. “These products ensure our men and women in uniform and our U.S. allies around the world have the most reliable, secure and state-of-the-art navigation and guidance solutions at their fingertips. “This new facility is a symbol not only of a strategic investment in the work we do, but our commitment to ensuring employees have all the tools they need,” he added. “It is now home to more than 800 talented employees who are truly creating technologies that shape the future. "Continuing to strengthen our roots here in Cedar Rapids will allow our business to continue to deliver the best products to our warfighters every day. We strive to fulfill our mission to protect those who protect us, and the Cedar Rapids community is a perfect place for us to continue to deliver on that promise.”