Vermont Composites: Growth potential in 2010
NEAL P. GOSWAMI
Posted: 12/16/2009
   BENNINGTON -- A local company that began the year with layoffs is expecting to see significant growth -- and more jobs -- in 2010.
Aerospace growth
   Vermont Composites, a manufacturer of carbon composite products in the aerospace and medical industries, is forecasting a boost in the company's aerospace business in 2010, according to President Patrick Wheeler. That would be a welcome departure from a difficult 2009 that began with 28 employees being laid off in January as the company, like other manufacturers, looked to ride out a deep recession. The company saw a 20 percent decline in total sales in 2009, from $25 million in 2008 to $20 million, according to Wheeler. But aerospace orders should pick up and drive total sales higher to about $28 million in 2010, he said.
   The aerospace division, which makes lightweight parts commercial and military use, including unmanned aerial vehicles, is expected to drive the growth. It suffered this year because the timing of some programs was postponed, Wheeler said, causing sales to dip within the division from $14 million last year to $11 million this year. But Aerospace products, particular the intelligence and surveillance crafts and unmanned aerial vehicles the company produces parts for, are in demand and should provide a 50 percent increase in sales for the division in 2010, according Wheeler. "Those are really the fastest growing segments of the aerospace industry," he said.
   The uptick in orders should allow the company to hire an additional 20 production employees, but may include some engineers. "We're looking at adding, most likely starting in April or May, probably around 20 people next year," Wheeler said.
Vermont Composites expects to add a total of about 85 jobs over the next three years. The company has secured $5 million in working capital from Peoples United Bank, and the Vermont Economic Development Authority has agreed to insure up to $1 million of the loan to help the company expand production, according to VEDA Chief Executive Officer Jo Bradley.
   Meanwhile, the company's medical division is expected to suffer a bit longer as a direct result of the recession, Wheeler said. It dropped from $11 million in sales last year to $8.5 million this year. "Hospitals continue to have a difficult time financing expensive diagnostic equipment. Hospitals are challenged like everyone else in terms of their ability to borrow," he said. "When the economy turns ... that will be back." The medical division is expected to remain neutral in 2010, and resume a steady growth of 6 to 7 percent in 2011, Wheeler said. He said the company continues to "compete very well in our segment" and continues to attract new customers despite the downturn in the economy.

Contact Neal P. Goswami at ngoswami@benningtonbanner.com