Johnstown, PA is one of the best locations in the U.S. for establishing a presence in the U.S. defense sector.

1. Johnstown:
Pennsylvania’s Defense
Hub
Presenters
Johnstown Area Regional industries (JARI)
Wessel & Company
01 May 2012

2. Today’s Topics & Takeaways
Who is Johnstown?
 A Cost-Effective Workforce That is Second
to None
Key Johnstown Defense Highlights
 Proximity to Defense Dollars and Decisions
 An Established, Deep, and Broad Private
Sector Defense Capability
 Expert Support for Defense Companies
A Johnstown Success Story
Presentation Wrap-Up

3. Who Is Johnstown?
A Cost Effective Workforce That is
Second to None
Johnstown, PA

4. On the Map
Close to major
eastern ports
via air, rail,
and road.
New York, NY
State College, PA
Philadelphia, PA
Johnstown, PA
Pittsburgh, PA Baltimore, MD
Washington, DC
Within 500 mi 160 km
/ 800 km of
50% of US
population and 320 km
60% of
Richmond, VA Norfolk, VA
Canadian
population

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 Comparison
120
(U.S.) 100
80
60
40
20
0
Johnstown MSA LA – Long Beach MSA Washington, DC MSA
Notes: 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 Life”
LA / Long Beach Income vs. COL Ratio
= 107 / 155.8 = 0.69
Washington Income vs. COL Ratio
= 105 / 140.0 = 0.75
Johnstown Income vs. COL Ratio
= 84 / 87.4 = 0.96
Johnstown workers can be paid considerably
less than their respective counterparts, yet
still enjoy a significantly higher financial
quality of life (40% higher than LA, 28%
higher than DC).

9. Johnstown Workforce Personality
Large 3rd generation
European immigrant
component.
“Can Do” attitude.
“Quality Proud.”
Reliable & Stable.
Legacy “rust belt”
jobs – coal and steel
– being replaced
with diversified,
high-tech careers. Click here.

10. Key Johnstown Defense Highlights
Proximity to Dollars and Decisions
Johnstown, PA

11. U.S. DOD Spending vs. The World
source
Notes: 2009 U.S. data here does not include supplemental budget requests to support the
wars 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)
Johnstown
radius
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 map’s development in 2005. The
Coast Guard was placed under the Department of Homeland Security in 2003.

13. DOD/DHS Johnstown Proximity
Service Installation State
Coast Guard U.S. Coast Guard Academy CT
Navy Naval Submarine Base New London (1) CT
Coast Guard Coast Guard Headquarters DC
Navy Naval Research Laboratory DC
Air Force Dover Air Force Base (2) DE
Air Force Andrews Air Force Base MD
Army Aberdeen Proving Ground MD
Army Fort Detrick MD
Army Fort George G. Meade MD
Navy U.S. Naval Academy MD
Navy Portsmouth Naval Shipyard (3) ME
Army Tank Automotive and Armaments Command (TACOM) MI
Army Fort Bragg NC
Marine Camp Lejeune Marine Corps Base NC
Air Force McGuire Air Force Base NJ
Army Picatinny Arsenal (4) NJ
Army Fort Dix NJ

14. DOD/DHS Johnstown Proximity
Service Installation State
Army Fort Drum NY
Army U.S. Military Academy NY
Army Watervliet Arsenal NY
Air Force Wright Patterson Air Force Base (5) OH
DLA Defense 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
DLA Defense 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 Jackson SC
Marine Parris Island Marine Corp Recruit Depot SC

15. DOD/DHS Johnstown Proximity
Service Installation State
Air Force Langley AFB (17) VA
Army Fort A.P. Hill VA
Army Fort Belvoir (18) VA
Army Fort Eustis VA
Army Fort Lee VA
Army Fort Myer VA
DLA Defense Logistics Agency Aviation (19) VA
Joint Pentagon (20) VA
Notes: RED numbers indicate entities depicted on the map on the following slide.
The Defense Logistics Agency (DLA) is the Department of Defense's 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 America’s 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 military’s spare parts.

16. DOD/DHS Johnstown Proximity Map
3
1
15
4
14
8
9
13 11 16
6 10 7
5 Johnstown, PA
12
2
20
18
19
17
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
Rank State Total $ (B) Total $ %
1 Virginia 42.8 11.4
2 California 40.3 10.7
3 Texas 32.2 8.6
4 Arizona 13.0 3.5
5 Maryland 12.4 3.3
6 Florida 12.3 3.3
7 Connecticut 12.3 3.3
8 Pennsylvania 12.3 3.3
9 Massachusetts 12.1 3.2
13 New York 7.6 2.0
15 New Jersey 7.5 2.0
20 Ohio 5.5 1.5
22 Maine 5.1 1.4
23 District of Columbia 4.8 1.3
24 North Carolina 4.1 1.0
26 Michigan 3.6 1.0
Notes: 2011 by place of performance, not recipient location. Several nearby states are
ranked highly as well.

18. DOD Prime Contracts by PA County
Total $
# County Pop Per Capita $
(B)
1 Delaware 2.45 558,979 4,383
2 Allegheny 1.74 1,223,448 1,422
3 York 1.02 434,972 2,345
4 Montgomery 1.08 799,874 1,350
5 Dauphin 0.70 268,100 2,611
6 Bucks 0.61 625,249 976
7 Chester 0.47 498,886 942
8 Lackawanna 0.38 214,437 1,772
9 Cambria 0.35 143,679 2,436
10 Philadelphia 0.31 1,526,006 203
Notes: 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
Rank State Total $ (B) Total $ %
1 Virginia 5.7 10.71
2 California 5.4 10.22
3 Georgia 4.6 8.61
4 Texas 4.3 8.10
5 Missouri 3.0 5.59
6 Tennessee 2.7 5.11
7 Massachusetts 2.7 5.03
8 South Carolina 2.6 4.91
9 Florida 2.0 3.75
10 Washington 2.0 3.72
11 Illinois 1.7 3.29
12 Pennsylvania 1.6 3.04
16 Ohio 0.9 1.73
17 New York 0.9 1.66
18 North Carolina 0.7 1.25
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 Facts
In the Greater Johnstown region, over
750 organizations are actively
registered to do business with the U.S.
Government.
Several, large prime contractors have
facilities here.
Prime contractors that don’t have
facilities have significant supply chain
components here.
Companies work in aerospace, ground
vehicles, electronics, IT, applied R&D,
telecom, cancer research . . .

22. Accipiter Systems Hamill Manufacturing Martin-Baker America
MountainTop
Alkab H & W Global
Technologies
Argon ST/ Boeing Jet Aerospace MTS Technologies
Augustine Die & Mold JWF Defense Systems Northrop Grumman
Penn State Electro-
BAE Systems Kennametal
Optics Center
Booz Allen Hamilton Kitron Penn State Tool & Die
Kongsberg Protech Precision Defense
Clark Metals
Systems Systems
Concurrent
API Technologies Quintech
Technologies
DRS Finmeccanica L. Robert Kimball RNDT
Lockheed Martin
Dynacom Industries Spark Technologies
Aeroparts
Lockheed Martin Global Windber Research
Global SFC Valve
Supply Chain Services Institute

23. Don’t Just Take Our Word For It . . .
Australian Defence Business Review
Australian Defence Magazine
VAYU (India)

24. Forbes Magazine
Click here.

25. Key Johnstown Defense Highlights
Expert Support For Defense Companies
Johnstown, PA

26. JARI Business Support Services
Broad-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 Services
A coordinated, collegial network of
defense contractors:
 JARI Defense Business Council
 Government Business Development Forums
Unique expertise in establishing global
companies in the U.S. marketplace:
Martin-Baker Gamesa
Höganäs Kitron
Kongsberg Caervision
DRS Finmeccanica

28. Wessel Business Support Services
Defense Niche Team:
 Established network of
professionals dedicated
to government contracting.
 Years of extensive
experience with all branches
of the U.S. government and
military.
 Detailed understanding of
contracting regulations.
Click here.
Outcome:
 Wessel clients have successful, long-term
relationships with their Federal government
buyers.

29. Wessel Business Support Services
Contract Compliance Experts:
 Bid & proposal process, cost analysis – modeling -
budgeting, accounting system, internal control
processes, regulatory (e.g., “FAR”)
interpretation, DCAA audits and desk
reviews, ITAR, contract closeout, training
workshops . . .
 Collaborative philosophy on sharing best practices.
Facilitation of the Johnstown Chapter
of the National Contract Management
Association (NCMA):
 Over 150 contracting professionals who meet on a
monthly basis to share expertise in government
contracting.
 National Educational Series hosted locally.

30. The Johnstown Defense Capstone
You’re Invited!
BRING
YOUR
FRIENDS!
22/23/24 May 2012
www.showcaseforcommerce.com

31. A Johnstown Success Story
Martin-Baker America
Johnstown, PA

33. A Johnstown Success Story
Kongsberg Protech Systems
Johnstown, PA

35. Presentation Wrap Up
Johnstown, PA

36. Takeaways
Johnstown is one of the world’s best
locations for international investment
in the defense industry sector:
 A Cost-Effective Workforce That is Second
to None
 Proximity to Defense Dollars and Decisions
 An Established, Deep, and Broad Private
Sector Defense Capability
 Expert Support for Defense Companies
Johnstown Will Support PA Trade Reps
Better Than Anyone to Bring Defense-
related FDI to PA.

37. Contact Information
Johnstown Area Regional Industries (JARI)
245 Market Street, Suite 200
Johnstown, PA 15901
814.535.8675
www.jari.com
Linda Thomson Bob Shark
President VP
lthomson@jari.com bshark@jari.com
Wessel & Company
215 Main Street
Johnstown, PA 15901
800.669.9057
814.536.7864
www.wesselcpa.com
Bob Eyer Pat Bearjar
Managing Partner Partner
rje@wesselcpa.com pbearjar@wesselcpa.com
Martin-Baker America Kongsberg Protech Systems
423 Walters Avenue 210 Industrial Park Road
Johnstown, PA 15904 Johnstown, PA 15904
814.262.9325 814.269.5700
www.martin-baker.com www.kongsberg.com/en/kps/
Mike Santoro Greg Platt
General Manager VP & General Manager
msantoro@m-bamerica.com greg.platt@kongsberg.com