Raytheon era begins at Collins Aerospace

CBJ Editorial 

The merger of Raytheon Co. and United Technologies Corp. on April 3 ushered in a new era for Collins Aerospace, the Corridor’s largest private employer.

The new Raytheon Technologies will be in the top ranks of global aerospace and defense suppliers, alongside giants Boeing, Airbus and Lockheed Martin, with $75 billion in 2018 pro-forma aerospace and defense sales.

While this merger of equals has its pros and cons for the region, we see more of the former. Combining two of the biggest players in aerospace and defense technologies gives Collins Aerospace access to even more technological and financial resources, and the ability to compete successfully on the largest and most complex projects.

Raytheon Technologies, with its strong balance sheet, should be better able to handle the downturn in the global air transport and aerospace industry resulting from the COVID-19 pandemic, and in a position to accelerate innovations driving the industry, such as digitally-connected aircraft and advanced analytics to help airlines reduce costs.

With the downturn in aviation, it would not be a surprise to see austerity measures at the new Raytheon Technologies. However, we’re fortunate Collins Aerospace has President Steve Timm, who has Iowa roots and understands the strong workforce and support Collins Aerospace has in Iowa.

Let’s define ‘small business’

We continue to hear that small businesses are bearing the brunt of this economic calamity.

Small business are the overwhelming majority of U.S. businesses and employ nearly half of all employees. Firms with fewer than 500 workers account for 99.7% of businesses. Firms with fewer than 100 workers accounted for 98.2% and firms with less than 20 workers made up 89%.

According to the Small Business Administration, a small business is defined as any business with less than 500 employees.

The difference between a company with a few dozen employees and another with several hundred is significant.

When this Covid-19 pandemic is over, the federal government should consider modifying its size definition, perhaps into micro, small, medium and large. This will help allocate and prioritize stimulus money in the next economic catastrophe.

More grants needed quickly

Last week, Gov. Kim Reynolds announced that 503 small businesses out of nearly 14,000 that applied will be receiving business relief grants of between $5,000 and $25,000. The businesses with the greatest revenue disruption received awards in this first round, and unfortunately that is just 3%.

The grants were created to act as a short-term stopgap to help until federal aid, which is still uncertain, became available. It appears that $20 million more in state money will be added to the initial $4 million amount so future rounds of grants will be forthcoming.

This money is critically important for most of these small businesses. Let’s hope most of the 14,000 can get financial relief. CBJ