Showcase for Commerce: Supplier briefing guides businesses along path to defense industry

Jun. 2—JOHNSTOWN, Pa. — With the U.S. government spending more than $700 billion annually on national defense, small businesses see lucrative opportunities if they can get tapped into the industry's supply chain, but that requires myriad certifications, mountains of paperwork and adherence to a stringent quality assurance system for starters.

On Thursday, the Showcase for Commerce, Johnstown's annual defense industry trade show, included a supplier briefing at the Holiday Inn Johnstown-Downtown where two of Johnstown's manufacturing companies in the defense industry, Kongsberg Protech Systems USA and JWF Industries, guided businesses along a path to joining their supply chains.

For about a year, JWF has been building Flyer 72 tactical utility vehicles under contract with Flyer Defense LLC, and that's one of many contracts the company's 400 employees are juggling across multiple industries, not only defense but also energy and commercial industries.

JWF President and CEO Bill Polacek said as the company grows, he's looking for reliable subcontractors for machined parts and weldments.

"I want to create partnerships and jobs," he said. "I want to see businesses in the community grow. The closer you are to Johnstown, the happier I am to have you as a supplier. I consider the Johnstown area a broad region that includes Pittsburgh, Blair County, Somerset, Bedford."

In his presentation, Polacek covered requirements of JWF suppliers. The information was absorbed by audience members including Will Fennell, founder of Xcelicut Precision Machining in Latrobe.

"I own a small CNC (computer numerical control machining) shop," Fennell said. "I'm not currently in the defense space at all, so I wanted to come and learn about being a supplier. ... What really stood out to me was their desire to help grow their suppliers and be a partner rather than just transactional 'you are doing this job for us.'"

Polacek said he eases suppliers into defense work by first involving them in the company's commercial work.

"I recognize that it is really hard for a small company to get work with a big defense company," Polacek said. "With the opportunities within different markets first, we can ease you into the defense side, it's truly not as complicated as you think. ... We want you to grow your business. help you understand what the quality requirements are and make you successful. Our goal is for you to make money and be successful, just like I want for my business."

Kongsberg Protech Systems USA in Johnstown, a division of the European-based Kongsberg Aerospace and Defence Inc., has has delivered 20,000 of its Common Remotely Operated Weapon Stations systems over the past 15 years, Kongsberg procurement manager Shane Slagle said.

The systems, which use software to increase the precision and decrease collateral damage of government-issued guns, equip roofs of armed vehicles in nearly 30 U.S. allied nations.

The 180 employees at the Kongsberg facility in the JARI Business Park assemble six variants of the weapons station, Slagle said. And as the company expands its line of products and its facility, it has a need for new suppliers in logistics support, parts, and possibly circuit board assembly, and light electro mechanical assembly, he said.

Learning about services Kongsberg needed — and didn't need — was exactly what Joe Derouin, Regional Sales manager for Metlab was hoping to learn.

Metlab is a heat treating service company in the Greater Philadelphia region.

"Heat treating is an indirect service that not a lot of people know about, but you can't function without it," Derouin said.

After the briefing, he learned Kongsberg mainly employs assemblers who build the company's products from parts provided by other suppliers. Metlab's services wouldn't pertain to Kongsberg directly.

"So my search after this meeting will be to find out who their machinist subconcontractors are and reach out and let them know about our certifications," he said.

Derouin, originally from Pittsburgh, has attended the Showcase for Commerce in the past and is familiar with the area.

"There are opportunities for work here," he said.

Businesses in Cambria, Somerset, Fayette or Indiana counties can get help in navigating state and federal requirements for all types of defense contracting certifications through a free resource in Johnstown Area Regional Industries' Procurement Technical Assistance Center, program manager Rodney Patterson said.

With a grant from the U.S. Department of Defense's office of small business programs, the center provides no cost assistance to businesses wanting to participate in the Defense industry, he said.

Russ O'Reilly is a reporter for The Tribune-Democrat. Follow him on Twitter @RussellOReilly.