New Stealth Bomber Could Jump the Palmdale and Lancaster Economy Spring 2015

News reports indicate a big Pentagon Project which could be awarded to Palmdale, Ca. Northrop Grumman. They are bidding to make the New Stealth Bomber. Each plane could cost $550 million or more to make. Grumman already has a facility building the earlier bomber at Plant 42. Grumman and Palmdale, Ca. are in competition with Boeing on the project. This means more jobs for Antelope Valley. News reports also indicate that Sacramento legislators have passed bills to provide tax breaks for Lockheed and Grumman last summer in hopes on getting the deal. LA Times quotes Palmdale Ca. Mayor "They've indicated that they can’t talk about it but he can," Mayor James Ledford said the prospects look good. Northrop executives have said they would build substantial parts of the company's proposed bomber in Palmdale, he said, creating an estimated 1,500 jobs. Rival Lockheed Martin Corp. who is a subcontractor to Boeing Co. indicated it also plans to work on a new warplane in Palmdale, Mayor Ledford said. That means more jobs. Military officials say they want the plant to be built for $550 million each, and not the $1 Billion a plane as in the past. Sources indicate their budget is $1.2 Billion per plane, and they want to build 100 new planes starting this spring. Both Grumman and Lockheed have a track record of going over budget. Antelope Valley has a long history with high tech planes. The B-2 was built here, as well as the first Stealth Bomber, U-2 spy plane, and the F-117 stealth fighter. There has been a lot of jobs in Palmdale and LA County from aerospace through the decades of the Cold War. Even today Virgin Galactic tests their space rocket just north in Kern County at Edwards Air force Base. Winning this project will certainly help the local economy and these engineers will have to buy a home and later invest in their community.

BYD Ltd Electric’s Technology for Los Angeles County and Lancaster California’s Jobs Future

The city of Lancaster and BYD (Build Your Dreams) has been in discussion since early last year for a potential electric car manufacturing plant in Lancaster Ca. The city sent a delegation to China for that purpose in 2010. BYD manufactures an electric crossover vehicle called the e6 electric and said it expected to start selling the car in the U.S. The city of Lancaster would like BYD to manufacture and assemble this vehicle and others in Antelope Valley. Also, during the Schwarzenegger administration there was talk of the city of Los Angeles pledging to buy BYD manufactured electric buses if the plant was based in LA County. BYD has yet to make any formal announcements regarding their plans. Although, they have established a US headquarters in the city of Los Angeles, and expect up to 2000 employees over time to administer their US operations in their downtown Los Angeles location.
They further set up roots by establishing a collaborative partnership to develop a grid-scale battery project for renewable energy storage with the Los Angeles Department of Water and Power (LADWP) last year. Also, about a year ago the City of Lancaster, BYD and KB Home announced the completion of a new earth-friendly prototype home utilizing BYD’s solar, battery and LED Lighting systems. The plan is to potentially lead to more affordable solar electricity and energy storage options for homeowners. The city accelerated the development process through the planning department, so KB and BYD could construct the prototype home immediately. The manufacturing and assembly of electric cars and buses would certainly be a boom for the city of Lancaster and Los Angeles County; as such a move would create jobs and future growth to a city that was damaged by the housing crisis.
BYD was founded by Wang Chuan-Fu in 1995 in Shenzhen, China. He is a chemist and part of the Chinese Dream as he raised $300,000 from relatives to manufacture rechargeable batteries. Since then BYD has become one of the world’s largest manufacturers of cell-phone batteries. They have also raised $250 million from Warren Buffet toward their e6 vehicle. They plan on manufacturing 800,000 e6 cars powered by lithium-ion batteries, where they indicate they intend to start selling the e6 in the US at a price of about $40,000.
In addition they have established a solar cell and solar panel technology, where they would like to establish their solar systems in combination with large energy storage systems that they currently develop. Based on news reports they plan on moving rapidly in developing and expanding in the solar panel arena. This relationship with the city of Lancaster works well as solar is expanding in the valley and Mayor Parrish projects that Lancaster will produce more energy than it consumes with its solar expansion.

We will wait and see if BYD expands manufacturing in the Antelope Valley, but the prospect looks promising for real estate and land values if the projects develop here.