This week we check in with southern Arizona's
largest private employer, Raytheon Missiles Systems.
The company went through a number of changes this year,
including a new president and a much publicized merger.
I spoke with new president, Wes Kremer, to learn more
about the company's future in Tucson.
Wes Kremer took the reins at Raytheon Missile Systems
in late March, putting him in charge of a company
that employs more than 13 thousand people
and did more than eight billion dollars in sales last year.
In Arizona, the company's annual economic impact
tops 2.6 billion dollars, that according to a report
the company commissioned from Arizona State University.
As for Kremer, before rising through the ranks at Raytheon,
he served 11 years as a weapons system officer
in the Air Force.
You were in the backseat of F-111s, F-15s,
interesting position now to be at the top of the company
making a lot of the weapons. Does that change
how you think about your job?
- Well, I think I've always had that focus
since I started out my career in the Air Force to try
to always think about it from the war fighter perspective.
And to now be in this position of leading
a large organization, and of primarily delivering
weapons that go to our war fighters, I think it does give
me a unique perspective on that.
- [Christopher] In addition to developing missiles,
Kremer is eager to advance Raytheon's
ballistic missile defense systems, like it's kill vehicles.
Designed to collide with and destroy
long-range ballistic missiles in space,
something Kremer likens to the type of technology
President Ronald Reagan first called for
more than 35 years ago.
- I call upon the scientific community in our country,
those who gave us nuclear weapons, to turn their great
talents now to the cause of mankind and world peace.
- You know, since President Reagan made his famous speech
in the 80s, around the, you know,
creating a missile defense shield, a lot of that
activity has been here. You know the next new wave
is hypersonics, and we talked a little bit about, you know,
that's weapons that travel, you know, faster than Mach-5,
or five times the speed of sound. The next generation
of stuff, you go from where we are today to Mach-5
is then eventually getting to speed of light weapons.
So, lasers, high-powered microwaves, of course cyber
happens at the speed of light. All of those things like that
are also areas where we're investing and where we're winning
programs and developing new and exciting technologies.
- Kremer will also have an elevated role when Raytheon
completes its merger with United Technologies,
an aerospace company based in Connecticut.
He'll serve as president of integrated defense
and missile systems after the merger closes,
which is expected sometime next year.
A lot of people got worried that Raytheon could go away.
Is that a valid concern?
- No, I mean, Raytheon's not going away.
We have such a large base here, of not only of employees,
but facilities and investment, and so, you know,
there will be an upcoming decision about
where the headquarters goes, but the headquarters
is not a large number of jobs.
The core competency of what we do here in Tucson
will remain in Tucson, regardless of those decisions.
- The merger hasn't led Raytheon Missile Systems
to put the brakes on expanding in Tucson.
It plans for growth, including hiring
a thousand new employees in the coming years
and continuing to build new facilities.
- Over the past several years, we're in the process
of making over 550 million dollars worth
of capital investment, and it includes seven new buildings
on campus, a relocation of a new substation
to provide power to this part of campus,
and really, it's part of our growth here
of needs spaces for all these new employees
and all these new programs.
- [Christopher] Hiring and retaining qualified employees
remains a priority for Raytheon.
It's 2018 annual report details the need
to successfully recruit new personnel as quote
"a significant percentage of its current workforce
is nearing or eligible for retirement."
In Tucson, the company's outreach can begin
as early as elementary school.
Do you have a hard time convincing students
that they want to come to a missile company
and not to an Internet company or something like that?
- So you know, we're not for everybody. (laughing)
I mean that's reality. What we do is
we do national defense. And we tend to see
that the employees that come here and stay here
for a career usually are very patriotic in nature,
often have some connection to the military,
you know, an aunt, an uncle, a father, a mother,
something like that. But the other thing
that we do is we really to connect them
to our overall mission statement, you know, which is
"One global integrated team creating innovative solutions
to make the world a safer place."
- The company also heavily recruits
from Arizona's three public universities
and Embrey-Riddle Aeronautical University
in Prescott. We sat down with three employees,
all who attended college in Arizona
and are beginning their careers with Raytheon.
Including U of A alumni Mari McCarthy and Danny Ybarra,
who both work as software engineers
and combined have less than two years of experience
at the company.
- I always wanted to work in defense
because my cousin, who works here, also was in the Army.
- [Christopher] Originally from Las Angeles,
McCarthy was part of a mentorship program
in college that paired her with a female Raytheon engineer.
- I'm actually first generation college student.
- [Christopher] Ybarra grew up in Tucson
and says STEM-related courses and programs
in high school helped guide her toward engineering.
- It was until I got to college and started
to interact with all the companies and stuff like that
where I found what I wanted to do.
- Defense contractors wasn't really on my mind at the time
when I was in school.
- [Christopher] Three years ago, Raytheon recruited
Roman Biggae at NAU and after graduating,
he moved to its division in Massachusetts
before transferring to Tucson several months ago.
- You know it stuck with me.
Two of my older sisters were in the military.
- [Christopher] All spoke optimistically
about their experience at the company so far.
- I consider my co-workers my family at this point.
- [Christopher] And all volunteer their time
outside of work in different STEM programs,
including at the U of A.
- That's where I'm actually being able to coach on
and mentor students.
- [Christopher] Desert View High School
- Now I'm one of the women that are representing us
for the younger age.
- [Christopher] And San Javier Mission School.
- We're showing these kids that, you know, Native Americans
are in these STEM fields that, you know,
they can make it past high school
and pursue college careers.
- [Christopher] Fostering a sense of service
is part of Raytheon's strategy
to decrease turnover according to Kremer.
- Our data shows that once an employee has been here
five years, then we usually keep them for a long time.
It's really that first five years that's the most critical.
So one of the things is to, you know,
make sure they're engaged not only in work,
but in the local community.
- Where do you see yourself at that five year mark,
that 10 year mark going down the road?
- I still see myself here. Looking forward to staying here
in Tucson and being closer to home.
- I'm planning to start my masters next year
in cyber-security. I'm really interested in trying
to use that degree here at Missile Defense.
- Everybody saw how homesick I was in the beginning,
they all thought like, "Oh, maybe she won't end up staying,"
but the more I got to know the people I worked with,
and the more I got to get into my project,
I realized that I could stay here and actually
make a life in Tucson.