Impact of Grissom runway shutdown
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Baldwin Painting has a facility at the Grissom Air Reserve Base. (photo courtesy: Dean Baldwin Painting)
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Barbara Baldwin-McNulty is president and CEO of Dean Baldwin Painting, an aircraft painting company based in Texas. (photo provided)
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Baldwin Painting has a facility at the Grissom Air Reserve Base. (photo courtesy: Dean Baldwin Painting)
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Texas-based aircraft painting company Dean Baldwin Painting has a facility at the Grissom Air Reserve Base. (photo courtesy: Dean Baldwin Painting)
When the Grissom Air Reserve Base runway in Bunker Hill shuts down for a $60 million upgrade starting in April, the long overdue project will affect not only Grissom’s fleet of KC-135 Stratotankers. It also means disruption and loss of revenue for a major tenant of the Grissom Aeroplex business park that also relies on the 12,501-foot runway.
Dean Baldwin Painting, one of the largest, independent painting companies of commercial and cargo aircraft in the U.S., will be forced to suspend operations for about five months.
“It’s quite expensive, to say the least. Plus a loss of income, loss of profits,” Dean Baldwin Painting President and CEO Barbara Baldwin-McNulty in an interview with Inside Indiana Business.
In 2013, the Texas-based company signed a long-term lease with Miami County economic development officials to operate a four-bay hangar. There, the company strips, sands, and repaints a variety of aircraft, ranging from 737s to 777s, including the jumbo 747 that is still used by UPS Airlines. UPS and American Airlines are Dean Baldwin’s two major customers at the Grissom paint shop.
The hangar in Peru is the only one the company owns that can accommodate a wide-body 747.
“UPS usually brings their 747s in the summer, which is one thing that they weren’t too happy about because they had three 747s coming here in the July-August timeframe. They asked if I had any other place to put them. I don’t,” said Baldwin-McNulty.
The company also has facilities in Georgia and New Mexico. Baldwin-McNulty explains she cannot simply shift production to those other locations, as they’re booked out for at least a year.
Baldwin-McNulty says the summer season is probably the best time to shutdown operations as commercial airlines keep many aircraft in the air during the busy travel season.
“They don’t put airplanes down for painting. They have to for maintenance, but they don’t have to for painting which can be delayed,” explained Baldwin-McNulty.
She says commercial aircraft far exceed the number of cargo planes the company paints.
While the company will suspend painting operations beginning next week, the Indiana workers are not losing their jobs. The company has instituted what it calls heavy training to improve the skills of the current workforce.
“I told the employees in January that this is happening. But we already had a plan of what we were doing, which is maintaining,” said Baldwin-McNulty. “We’re doing everything under the sun, including heavy training, to try to elevate their levels.”
The workers will remain on the payroll and work a 40-hour, four-day workweek.
“Plus, we’re retrofitting the building and retrofitting all our equipment. I want to keep them busy for five months,” said Baldwin-McNulty.
She says it’s not only about keeping workers employed, but it’s also about maintaining the current workforce of 90 people. But the company is about 50 people short right now and is looking to fill those spots by June 1 to allow for sufficient training time before reopening in September.
“I can only do three lines even though I have a contract for four lines, because I don’t have enough people. That’s how short I am. We have the work in hand but [I’m] not able to provide the labor to do it,” said Baldwin-McNulty.
In support of the company, the Miami County Economic Development Authority is waiving lease payments for one year, plus it is paying Baldwin’s real property taxes. Executive Director Jim Tidd says that will save the company approximately $620,000. In addition, the county has approved a $750,000 grant to help cover wages and salaries during the runway closure.
“This county has always demonstrated its dedication to its residents by working with all industries in locating them in their townships,” Baldwin-McNulty said. “Dean Baldwin Painting would not be here if it wasn’t for their efforts and love of their citizens that they demonstrate.”
The company is also waiting for a final decision from the Indiana Economic Development Corp. on training grants to support the new hires and training during the shutdown.
However, with all of the appropriations from county and state government, she said the company is still impacted by more than $1 million in costs, plus the loss of profits from lost revenues.
The shutdown is the latest challenge for the company. While Dean Baldwin Painting still has other facilities currently in operation, it was a different scenario during the pandemic. Baldwin-McNulty says her company was booked solid for 2020 and 2021.
“When that announcement came out of the pandemic [in March 2020], within 10 days, my floors were bare,” said Baldwin-McNulty. “I was geared up for a full year of work. It was bare.”
She says none of the airlines painted their aircraft in 2021.
“They hardly started in 2022,” said Baldwin-McNulty. “And thank God, Grissom had UPS. UPS kept us going that 2021.”
The 434th Air Refueling Wing and the U.S. Air Force Reserve Command have been planning for the runway project for several years. But federal funding didn’t get appropriated until last year.
Baldwin-McNulty credits the military for giving her plenty of advance notice to develop a plan. But she says September cannot come soon enough.