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Factory slowdown also hurts Arsenal partners

When work slows at the Rock Island Arsenal, civilian businesses, like Rock Island’s Mandus Group, also hurt. “We have to let people go when there...

When work slows at the Rock Island Arsenal, civilian businesses, like Rock Island's Mandus Group, also hurt.

"We have to let people go when there's no work," said Fred Smith, who serves as president at the adjoining Spirit Partners.  "We have to manage our overhead when there's no work."

A popular partner with the arsenal's Joint Manufacturing and Technology Center, its workforce has dropped from 50 to just 20.

"It's very easy when there's a lot of work," he continued. "It's not so easy when the workload diminishes."

To reverse a typical peacetime downturn, the arsenal needs more projects.

An $84 million deal to build ambulances for the National Guard is a good start.

"The people who work here at the Rock Island Arsenal have an incredible capability to serve not only the green-suiters, but also the people of America," said Col. David Luders, JMTC commander, back in January.

While the arsenal repositions itself, private clients now face a Catch-22.  When there's less work to go around, prices go up for the arsenal services.

As the factory works on a major upgrade, it must also find a way to increase workload.  That will ultimately bring down the cost of doing business.

"You have to stop that death spiral," Smith said. "You have to bring in more work.  One way to do  that is through public-private partnerships."

To adapt, Mandus Group must be even more creative.

The company continues to build hydraulic repair systems for the Army.  It's also marketing a custom-designed Mack truck that's outfitted with a special gun.

"Eventually, we believe, the defense budget will come back up," Smith concluded.  "It's managing the downturn that's critical for all of us."

It's critical for civilian companies and the Rock Island Arsenal.

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