Expansion Management

Rolls Royce Makes Largest Investment in US Since 1995

Oct. 6, 2015

Rolls-Royce (IW 1000/193) is investing nearly $600 million to modernize its manufacturing operations in Indianapolis, the company announced on Oct. 5.

This investment – the largest by Rolls-Royce in the U.S. since the company bought the former Allison Engine Company in 1995 – will include a major renovation of the existing facilities. Upgrades will include new manufacturing and assembly operations that will match standards already present in many other Rolls-Royce facilities in Indiana and globally.

“Our new facility will be a state-of-the-art manufacturing center that combines modern production systems and machinery with a highly skilled workforce,” said Marion Blakey, CEO, Rolls-Royce North America. “This investment ensures that we can increase our competitiveness in the market, which will benefit both our customers and Rolls-Royce. The company employs 4,000 people in Indianapolis, with 1,050 working in production and nearly 1,400 engineers

Engines designed, assembled and tested at Rolls-Royce in Indianapolis power U.S. Department of Defense aircraft, civil helicopters, regional and business jets, and power systems for U.S. Naval vessels. These include the F-35B Lightning II; C-130J Super Hercules; V-22 Osprey; Global Hawk and Triton UAVs; various commercial helicopters and the new naval Ship-to-Shore Connector program. Also at this location is an advanced aerospace technology research and design unit which is known as LibertyWorks.

The five-year modernization plans will also consolidate operations and significantly reduce utility costs.

“We want to express our sincere appreciation to the State of Indiana, the City of Indianapolis, the UAW, and our employees for helping us make this investment in our future possible,” said Phil Burkholder, president of Rolls-Royce Defense Aerospace, North America.

Rolls-Royce will receive approximately $35 million in State and City incentives. They include conditional tax credits and a skills enhancement grant. Rolls-Royce and the City have agreed to amend Rolls-Royce’s existing real and personal property tax abatement agreement. All of these incentives apply to the facility investment and technology development that will be incorporated into future Rolls-Royce products.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.