The City of Sealy and the Katy Area Economic Development Council (KAEDC) Monday announced the formation of a task force to address the potential closure of the BAE Systems plant in Sealy that could result in a multi-million loss to the state economy.
A key economic driver in the region, the plant and its employees contribute an estimated $500 million to the state’s economy each year through employee salaries, contractor costs and vendor partnerships.
The plant currently employs 3,000 people from Austin, Harris and surrounding counties and manufactures the Family of Medium Tactical Vehicles (FMTV) for the Army.
BAEhas been manufacturing the FMTV for more than 17 years in its Sealy plant, recently losing a contract bid to build more vehicles to Oshkosh Corp. [OSK] in Wisconsin. BAE has filed a protest and two supplemental protests, appealing the Army’s decision, citing a flawed bidding process. Another loosing bidder, Navistar International Corp. [NAV], has also filed a protest (Defense Daily, Aug. 28, Sept. 17, Oct. 6, 22).
“The purpose of this task force is to show support and appreciation for the local men and women who work in the plant as well as to educate and mobilize the community in a grassroots effort to keep these 3,000 jobs in Sealy and the surrounding areas,” Mayor of Sealy Nick Tirey said in a statement.
Lance LaCour, president and CEO of the Katy Area EDC, said: “While the implications of losing this contract are substantial,” he said, “there is so much we as a community can do to impact the final chapter of this story. From sending letters and meeting with politicians and government officials to generating awareness among the media and general public, this task force will draw on all possible resources to show that Texas is the right place to continue to manufacture these life-saving tactical vehicles.”
LaCour said about 1,000 of the 3,200 jobs are held by residents of Katy.
The task force is currently comprised of representatives from the City of Sealy, Sealy EDC, the Katy Area EDC, CenterPoint Energy, the Greater Houston Partnership, Rep. Michael McCaul (R-Texas) and Texas State Rep. Lois Kolkhorst, Austin County.
“Sealy has always had a strong manufacturing base,” Kim Meloneck, executive director of the Sealy Economic Development Corp, said. “Sealy clearly has the most experienced workforce, and most advanced facilities and infrastructure to support the production of these highly specialized vehicles needed to protect the lives and work of our nation’s Army.”
Sealy City Manager Chris Coffman will hold a workshop Oct. 29 at Sealy City Hall to mobilize volunteers.
The task force plans to meet every two weeks starting Oct. 30.