1. Johnstown:Pennsylvanias Defense Hub PresentersJohnstown Area Regional industries (JARI) Wessel & Company01 May 2012

2. Todays Topics & TakeawaysWho is Johnstown? A Cost-Effective Workforce That is Secondto NoneKey Johnstown Defense Highlights Proximity to Defense Dollars and Decisions An Established, Deep, and Broad PrivateSector Defense Capability Expert Support for Defense CompaniesA Johnstown Success StoryPresentation Wrap-Up 3. Who Is Johnstown?A Cost Effective Workforce That is Second to None Johnstown, PA 4. On the MapClose to majoreastern ports via air, rail, and road. New York, NY State College, PAPhiladelphia, PAJohnstown, PAPittsburgh, PABaltimore, MD Washington, DCWithin 500 mi160 km / 800 km of50% of USpopulation and 320 km60% of Richmond, VA Norfolk, VA Canadianpopulation 5. Johnstown Labor Shed 420,000 population 220,000 workforce 202,000 employed 30 mi / 48 km 57/43% white collar vs. blue collar (US & PA ~ 39/61) Johnstown, PA Salaries ~ 84% of the U.S. average. 6. Income Comparison120(U.S.) 100806040200Johnstown MSA LA Long Beach MSAWashington, DC MSANotes: Johnstown MSA includes Cambria County only. 7. Cost of Living Comparison(U.S.) Johnstown MSA LA Long Beach PMSA Washington, DC PMSA 8. Financial Quality of LifeLA / Long Beach Income vs. COL Ratio = 107 / 155.8 = 0.69Washington Income vs. COL Ratio = 105 / 140.0 = 0.75Johnstown Income vs. COL Ratio = 84 / 87.4 = 0.96Johnstown workers can be paid considerablyless than their respective counterparts, yetstill enjoy a significantly higher financialquality of life (40% higher than LA, 28%higher than DC). 9. Johnstown Workforce PersonalityLarge 3rd generationEuropean immigrantcomponent.Can Do attitude.Quality Proud.Reliable & Stable.Legacy rust beltjobs coal and steel being replacedwith diversified,high-tech careers.Click here. 10. Key Johnstown Defense Highlights Proximity to Dollars and DecisionsJohnstown, PA 11. U.S. DOD Spending vs. The WorldsourceNotes: 2009 U.S. data here does not include supplemental budget requests to support thewars in Iraq and Afghanistan, which peaked at $187 B in FY 08 and is $89 B in FY 13. 12. DOD/DHS Location Overview 500 mile (805 km)Johnstownradius Notes: DOD spending is allocated across numerous departments and installations. Johnstown is centrally located to a significant number of these entities. Some of the installations indicated have been closed since this maps development in 2005. The Coast Guard was placed under the Department of Homeland Security in 2003. 13. DOD/DHS Johnstown ProximityService Installation State Coast Guard U.S. Coast Guard Academy CT NavyNaval Submarine Base New London (1)CT Coast Guard Coast Guard Headquarters DC NavyNaval Research LaboratoryDC Air Force Dover Air Force Base (2) DE Air Force Andrews Air Force Base MD ArmyAberdeen Proving GroundMD ArmyFort Detrick MD ArmyFort George G. Meade MD NavyU.S. Naval Academy MD NavyPortsmouth Naval Shipyard (3)ME ArmyTank Automotive and Armaments Command (TACOM)MI ArmyFort Bragg NC MarineCamp Lejeune Marine Corps Base NC Air Force McGuire Air Force Base NJ ArmyPicatinny Arsenal (4)NJ ArmyFort Dix NJ 14. DOD/DHS Johnstown ProximityService Installation State Army Fort Drum NY Army U.S. Military Academy NY Army Watervliet ArsenalNY Air ForceWright Patterson Air Force Base (5) OH DLADefense Logistics Agency Land and Maritime (6)OH Army Carlisle Barracks (7) PA Army Fort Indiantown Gap (8) PA Army Harrisburg Military Post (9)PA Army Letterkenny Army Depot (10) PA Army New Cumberland Army Depot (11)PA DLADefense Logistics Agency Troop Support (12) PA Navy Naval Supply Systems Command (13) PA Army Pittsburgh Army Corps of Engineers (14) PA Army Tobyhanna Army Depot (15) PA Navy Willow Grove Naval Air Station (16) PA Army Fort JacksonSC Marine Parris Island Marine Corp Recruit Depot SC 15. DOD/DHS Johnstown ProximityServiceInstallationState Air ForceLangley AFB (17) VA Army Fort A.P. Hill VA Army Fort Belvoir (18)VA Army Fort EustisVA Army Fort Lee VA Army Fort MyerVA DLADefense Logistics Agency Aviation (19) VA JointPentagon (20)VA Notes: RED numbers indicate entities depicted on the map on the following slide. The Defense Logistics Agency (DLA) is the Department of Defenses largest logistics combat support agency, providing worldwide logistics support in both peacetime and wartime to the military services as well as several civilian agencies and foreign countries. The DLA sources and provides nearly 100 percent of the consumable items Americas military forces need to operate, from food, fuel and energy, to uniforms, medical supplies, and construction and barrier equipment. DLA also supplies more than 80 percent of the militarys spare parts. 16. DOD/DHS Johnstown Proximity Map31 15 414 8 9 13 1116 610 7 5Johnstown, PA122 20 181917 Notes: In addition to major military installations, Johnstown is centrally located among the three DLA Supply Centers in Columbus, Richmond, and Philadelphia. 17. DOD Prime Contracts by State RankState Total $ (B) Total $ % 1Virginia 42.8 11.4 2California 40.3 10.7 3Texas32.2 8.6 4Arizona13.0 3.5 5Maryland 12.4 3.3 6Florida12.3 3.3 7Connecticut12.3 3.3 8Pennsylvania 12.3 3.3 9Massachusetts12.1 3.213New York7.6 2.015New Jersey7.5 2.020Ohio5.5 1.522Maine 5.1 1.423District of Columbia4.8 1.324North Carolina4.1 1.026Michigan3.6 1.0Notes: 2011 by place of performance, not recipient location. Several nearby states areranked highly as well. 18. DOD Prime Contracts by PA County Total $# County Pop Per Capita $(B)1Delaware2.45558,979 4,3832Allegheny 1.74 1,223,4481,4223York1.02434,972 2,3454Montgomery1.08799,874 1,3505Dauphin 0.70268,100 2,6116Bucks 0.61625,2499767Chester 0.47498,8869428Lackawanna0.38214,437 1,7729Cambria 0.35143,679 2,43610 Philadelphia0.31 1,526,006 203Notes: 2010. Place of performance. Also, the Federal government (DOD included) spent$1.2B in procurement in Cambria County during 2010. Click here for details. 19. DOD Subcontracts by State RankStateTotal $ (B) Total $ % 1Virginia 5.710.71 2California 5.410.22 3Georgia4.68.61 4Texas4.38.10 5Missouri 3.05.59 6Tennessee2.75.11 7Massachusetts2.75.03 8South Carolina 2.64.91 9Florida2.03.7510Washington 2.03.7211Illinois 1.73.2912Pennsylvania 1.63.0416Ohio 0.91.7317New York 0.91.6618North Carolina 0.71.25 Notes: 2011 by place of performance, not recipient location. The amount of subcontracting is a rough indicator of the robustness of supply chains. 20. Key Johnstown Defense Highlights An Established, Deep, and Broad Private Sector Defense Capability Johnstown, PA 21. Fast FactsIn the Greater Johnstown region, over750 organizations are activelyregistered to do business with the U.S.Government.Several, large prime contractors havefacilities here.Prime contractors that dont havefacilities have significant supply chaincomponents here.Companies work in aerospace, groundvehicles, electronics, IT, applied R&D,telecom, cancer research . . . 22. Accipiter Systems Hamill Manufacturing Martin-Baker AmericaMountainTop Alkab H & W GlobalTechnologies Argon ST/ BoeingJet Aerospace MTS TechnologiesAugustine Die & Mold JWF Defense Systems Northrop Grumman Penn State Electro- BAE SystemsKennametal Optics CenterBooz Allen HamiltonKitron Penn State Tool & Die Kongsberg Protech Precision DefenseClark Metals SystemsSystemsConcurrent API Technologies Quintech Technologies DRS FinmeccanicaL. Robert Kimball RNDTLockheed MartinDynacom Industries Spark Technologies Aeroparts Lockheed Martin GlobalWindber ResearchGlobal SFC ValveSupply Chain ServicesInstitute 23. Dont Just Take Our Word For It . . .Australian Defence Business ReviewAustralian Defence MagazineVAYU (India) 24. Forbes Magazine Click here. 25. Key Johnstown Defense HighlightsExpert Support For Defense Companies Johnstown, PA 26. JARI Business Support ServicesBroad-spectrum approach: Site location, debt & equity financing, business consulting, workforce development, technology transfer . . .An in-house PTAC.Strong interaction with allies: U.S. Congressman Mark Critz (PA 12th) U.S. Senators Bob Casey & Pat Toomey Pennsylvania elected officials Pennsylvania government agencies Local elected officials National & regional economic development groups 27. JARI Business Support ServicesA coordinated, collegial network ofdefense contractors: JARI Defense Business Council Government Business Development ForumsUnique expertise in establishing globalcompanies in the U.S. marketplace: Martin-BakerGamesa Hgans KitronKongsberg CaervisionDRS Finmeccanica 28. Wessel Business Support ServicesDefense Niche Team: Established network ofprofessionals dedicatedto government contracting. Years of extensiveexperience with all branchesof the U.S. government andmilitary. Detailed understanding ofcontracting regulations.Click here.Outcome: Wessel clients have successful, long-termrelationships with their Federal governmentbuyers. 29. Wessel Business Support ServicesContract Compliance Experts: Bid & proposal process, cost analysis modeling -budgeting, accounting system, internal controlprocesses, regulatory (e.g., FAR)interpretation, DCAA audits and deskreviews, ITAR, contract closeout, trainingworkshops . . . Collaborative philosophy on sharing best practices.Facilitation of the Johnstown Chapterof the National Contract ManagementAssociation (NCMA): Over 150 contracting professionals who meet on amonthly basis to share expertise in governmentcontracting. National Educational Series hosted locally. 30. The Johnstown Defense CapstoneYoure Invited! BRINGYOURFRIENDS!22/23/24 May 2012 www.showcaseforcommerce.com 31. A Johnstown Success Story Martin-Baker AmericaJohnstown, PA 32. A Johnstown Success StoryKongsberg Protech SystemsJohnstown, PA 33. Presentation Wrap Up Johnstown, PA 34. TakeawaysJohnstown is one of the worlds bestlocations for international investmentin the defense industry sector: A Cost-Effective Workforce That is Secondto None Proximity to Defense Dollars and Decisions An Established, Deep, and Broad PrivateSector Defense Capability Expert Support for Defense CompaniesJohnstown Will Support PA Trade RepsBetter Than Anyone to Bring Defense-related FDI to PA. 35. Contact InformationJohnstown Area Regional Industries (JARI)245 Market Street, Suite 200Johnstown, PA 15901814.535.8675www.jari.comLinda Thomson Bob SharkPresident VPlthomson@jari.com bshark@jari.comWessel & Company215 Main StreetJohnstown, PA 15901800.669.9057814.536.7864www.wesselcpa.comBob EyerPat BearjarManaging PartnerPartnerrje@wesselcpa.com pbearjar@wesselcpa.comMartin-Baker AmericaKongsberg Protech Systems423 Walters Avenue210 Industrial Park RoadJohnstown, PA 15904 Johnstown, PA 15904814.262.9325814.269.5700www.martin-baker.comwww.kongsberg.com/en/kps/Mike SantoroGreg PlattGeneral Manager VP & General Managermsantoro@m-bamerica.com greg.platt@kongsberg.com