Rep. Jim Oberstar, D-Minn., toured several of Duluth's aviation-related businesses Wednesday alongside Sandy Buruah, assistant secretary of the U.S. Economic Development Association.
It was a time for the Washingtonians to reflect on the progress of local companies operating in the aerospace industry and to consider future needs.
About $1.5 million in EDA funds were used to install sewer lines, water pipes and some of the other basic infrastructure needed to support the expansion of Duluth's Airpark industrial park. This investment helped set the stage for the expansion of businesses such as Northstar Aerospace, a company that today supplies parts not only to Duluth-based Cirrus Design Corp., but also to other distant airplane manufacturers, such as Eclipse Aviation Corp. of Albuquerque, N.M.
Northstar now employs 108 people, and John Eagleton, the company's president and CEO, predicts he will have 140 people on the payroll by mid-2008.
The EDA also provided about $3.5 million in funding to help build an aviation incubation center in 2001 that's now home to Cirrus Design Corp., maker of the world's best-selling single-engine aircraft. Cirrus now employs more than 900 people in Duluth, making it the city's largest manufacturer.
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During his visit Wednesday, Buruah said the EDA's work in support of Duluth's growing aerospace industry cluster is not done. He pointed out that the Duluth Airport Authority has applied for a $1.4 million grant to support additional development on the north side of the airstrip at Duluth International Airport and said funds for the project could be made available yet this year.
Buruah said the EDA tries to focus its efforts on nurturing high-growth industries such as aviation.
Oberstar said the aviation sector holds great potential, both domestically and abroad, particularly as China's middle class begins to emerge. He sees the industry as an excellent economic engine for the region.
"Aviation is the crown jewel of transportation in America and the world," said Oberstar, noting that the popularity of air transport is rapidly growing and already represents 9 percent of America's gross domestic product.
Oberstar believes Northeast Minnesota warrants the EDA's continued attention even as the region becomes better established in the aviation industry.
"In a decade or so you can't erase 50 years of economic decline," said Oberstar. He pointed to Duluth's loss of a steel mill, a cement plant, the Koolerator refrigerator factory, Clyde Iron, Diamond Tool and a host of other large employers since the 1950s.
"You don't replace the 4,000 jobs Duluth has lost overnight, but we're clawing back with the EDA's help," Oberstar said.
PETER PASSI covers business and development. He can be reached weekdays at (218) 279-5526 or by e-mail at ppassi@duluthnews.com .
