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|Articles - February 2014|
|Tuesday, January 21, 2014|
Page 4 of 4
In Hood River, Cloud Cap Technology’s components for small, unarmed drones offer another example of niche military products developed commercially. “We believe we’re not only creating great new products that our country’s defense requires and needs, but we’re also helping to pave a way for procurement in the 21st century that involves the supply base innovating and being able to offer ideas and products that meet the military halfway, to ultimately get what they need developed quicker and less expensively,” explains general manager Jim Siekkinen. That can mean taking the investment risk to create a new technology and then approaching the DOD with it, rather than waiting two to three years for a branch of the service to define its needs and develop its own specifications.
Drone technology became ideal for this contracting approach, as soldiers’ needs for intelligence, surveillance and reconnaissance (ISR in military speak) evolved rapidly over the last decade. Siekkinen equates today’s small unmanned aircraft to a pair of binoculars — if binoculars could search for combat hazards 20 or 100 miles over the next ridge. Founded in 1999 by two friends working at drone developer Insitu, just across the Columbia River, Cloud Cap provides the makers of unmanned aircraft with parts like autopilots, motors and stabilized camera systems.
Now a subsidiary of UTC Aerospace Systems, the company employs about 100 people and ships 100 to 200 systems each year. Siekkinen, a tall, former Minnesotan dressed in jeans and a blue vest on a cold afternoon, joined the company when Goodrich purchased it in 2009. He’s optimistic about the growth potential for unmanned systems, even as the company had to freeze some research and development projects last year because of uncertainty surrounding the 2014 federal budget.
In response, Cloud Cap is placing a greater focus on commercial markets and military spending abroad. That, too, provides a challenge because of the strictly enforced International Traffic in Arms Regulations. Every foreign sale involving a restricted item requires a detailed license outlining exactly what the customer will do with it. Smaller companies stretched in normal times to spend three to nine months completing that paperwork, then dealt with 2013 furloughs among the federal employees who review it. Restrictions have loosened in recent years. But Siekkinen says they still represent a significant competitive disadvantage in international sales, which represent about half of the market for small, unmanned systems.
Taking in the broader picture, though, Siekkinen says the outlook for unmanned aerial systems has nowhere to go but up. They’re significantly cheaper than manned planes, and they fit well within a larger shift in U.S. military strategy emphasizing special forces. “Dull, dirty, dangerous jobs are what UAS do best. So in that sense, they hold great promise for DOD to be saving money in the coming years,” says Siekkinen, who compares the technology’s current development to advances made in aircraft after their combat debut in World War I.
Oregon will be a part of that. While the state has earned a reputation as a frequent enclave of antiwar politics, Siekkinen and leaders at several companies contracting with the Pentagon described their communities and Oregon’s elected officials as entirely supportive of their businesses. For example, the PNDC recently brought its agenda to reduce export restrictions and revamp procurement practices to a meeting at the office of Rep. Earl Blumenauer. “I think he would identify as the most progressive member of the Oregon delegation,” PNDC executive director Hunt says, “and that was just not a factor at all.”
With billions of federal spending in play, politicians tend to focus as much on the jobs that money creates as they do on the military clout it enables. Recent years have seen Oregon companies grow more coordinated and assertive in pursuing that business, even as the industry overall faces a shrinking defense budget. DOD spending cuts forced many to innovate in ways that may well bring more military business to the state in the form of exports and products developed commercially by nimble technology companies like Eid Passport and Cloud Cap. Looking ahead, the defense industry will remain a sliver of Oregon’s economy. Nonetheless, this niche market will continue to offer thousands of contracting opportunities to businesses across the state willing to take on the challenge.
Monday, July 13, 2015
BY KIM MOORE
A conversation with Greg Lambert, president of Mid Oregon Personnel Services.
Wednesday, July 15, 2015
We asked readers to weigh in on the fossil fuel-green energy equation.
Monday, July 13, 2015
BY JACOB PALMER
Dean of the Atkinson Graduate School of Management, Willamette University
Friday, August 21, 2015
Renee Spears, founder and owner of Portland-based Rose City Mortgage, is hot to trot to sell pot.
Friday, July 10, 2015
BY LINDA BAKER
Market of Choice is on a tear. In 2012 the 35-year-old Eugene-based grocery chain opened a central kitchen/distribution center in its hometown. The market opened a third Portland store in the Cedar Mill neighborhood this year; a Bend outpost broke ground in March. A fourth Portland location is slated for the inner southeast “LOCA” development, a mixed-use project featuring condos and retail. Revenues in 2014 were $175 million, a double-digit increase over 2013. CEO Rick Wright discusses growth, market trends and how he keeps new “foodie” grocery clerks happy.
Wednesday, August 26, 2015
BY KIM MOORE AND LINDA BAKER
Child care in Oregon is expensive and hard to find. We delved into the numbers and talked to a few executives and managers about day care costs, accessibility and work-life balance.
Thursday, August 13, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
Portland-based startup ImpactFlow recently announced a $5.7 million funding round. CEO and co-founder Tyler Foreman talks about matching businesses with nonprofits, his time at Intel and the changing face of philanthropy.
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|University of Oregon plans facility named after Marcus Mariota|
|Facebook doesn't need to know everything about you|
|Hackers access more than 225k Apple accounts|
|Companies offer wearables for your dog|
|Umatilla targets homeless camps|
|Obama has votes for Iran deal|
|A Bouquet of Beer in Bend|
For good or ill, gay marriage inspires many people. They have strong feelings about it. Sometimes those strong feelings are grounded in religion and sometimes they are not. When the workplace is added to the mix, emotions tend to run high. After giving an overview of two current situations, The Bullard Edge is going to outline three key points for consideration and clarity.
Yesterday, a divided National Labor Relations Board dropped another hammer on the employer community. In a long-awaited and much debated move, the Board jettisoned the decades old standard for determining when two independent businesses should be considered joint employers of an individual worker for collective bargaining purposes.
Transforming the culture of Oregon’s educational leadership.
Attendance, breakfast buffet, materials, certificate of attendance and parking are all complimentary on behalf of the firm.
New regulations are in effect and more updates are on the horizon, are you prepared?
The Oregon Entrepreneurs Network (OEN) is pleased to announce 16 finalists — from over 60 nominees — for the 2015 OEN Tom Holce Entrepreneurship Awards.