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Business Expansions and Contractions, 07/2008

Business Expansions and Contractions, LI Region, July 2007

 LONG ISLAND

July 2008

EXPANSIONS and OPENINGS


Commercial Fishing industry in Montauk Harbor (Suffolk) is affected by the rising costs of diesel fuel for boats that threatens to undermine an already fragile industry.  The cost of a  four-day fishing trip costs $6,000.00  State and federal fishing quotas limit catch size and total allowable catch poundage that frustrate fishermen.  Ice, critical for keeping the catch fresh, was once a peripheral expense but in the past two years has doubled in price from $35 a ton to $70 a ton.  One mariner said if record fuel costs keep climbing, many fishermen will leave Long Island’s costly shores.  (Newsday – June 14, 2008)

 

Edgewood (Suffolk) based - CPI Aerostructures Inc. landed a $70 million award from Boeing Co. to build parts for the Air Force’s A-10 Thunderbolts, attack jets manufactured decades ago by long gone Fairchild-Republic Co. of Farmingdale.  CPI will hire 12-15 workers, increasing its workforce by 20%.  (Newsday – July 2, 2008)

 

CPI Aerostructurers Inc. announced another large contract to build parts for a company that aerospace industry sources identified as Northrop Grumman.  The company values the long-term agreement as $98 million over an eight-year period, with potential to be in excess of $150 million over the life of the aircraft program.  CPI will add six workers to its 70 member workforce because of the contract.  (Newsday – July 11, 2008)

 

Excel Technology Inc., an East Setauket (Suffolk) based manufacturer of laser system equipment is being bought by GSI Group of Massachusetts for $360 million.  The company does not anticipate layoffs and the facility will remain on Long Island.  Excel employs 719 people with 100 on Long Island.  The two companies plan to expand Excel’s facility and “possibly” add jobs.  (Newsday - July 11, 2008)

 

A new start-up bank called Heritage Bank plans to open in the fall of 2008, opening branches in Manhattan, Melville (Suffolk), and Brooklyn.  Daniel Healy, former chief financial officer and executive vice president of the former North Fork Bank, will be president and chief executive of the bank.  Heritage will target small to midsize corporate clients.  (Newsday – July 9, 2008)

 

The House Appropriations Committee has approved $2 million in federal funding for the Applied Science Center for Innovation and Excellence in Homeland Security Research Center in Bethpage (Nassau).  When funded, the research centre will attract high-paying jobs as members of the industrial and scientific communities unite to move ideas from national labs to Long Island applications in technologies such as improved global positioning systems and radiation-detection sensors that would be available for police and first responders in the field.  The Center would be located in the old Grumman complex. (Newsday – July 5 and July 8, 2008)

 

The East Meadow (Nassau) Nassau University Medical Center will receive $19 million over 10 years to train students from a Caribbean medical school for clinical training.  The deal will guarantee the school 64 clinical slots per year and provide the hospital with funding to hire more staff and expand its medical library and amphitheater/auditorium.  (Newsday – July 7, 2008)

 

The Pall Corp., the maker of high-tech filtration systems for medical, industrial and other uses has sold its current headquarters in East Hills (Nassau) and expects to open new offices by next year.  The company was awarded $500,000 incentive from the Empire State Development Corp. to expand their Port Washington (Nassau) 238,000 square-foot facility by 24,000 square-feet, expanding research and development space.  (Newsday – July 11, 2008)

 

Riverhead Resorts placed a $4 million irrevocable down payment toward construction of a theme park featuring a 350 foot tall indoor ski mountain, a 2,000 room hotel and a 100,000 square foot convention hall.  Also in the plans are eight separate resorts, each with its own theme, clustered around a 90 acre man-made lake.  The company said the project would create 3,000 union construction jobs and provide million of dollars in sales tax revenue for the county and additional taxes for the town and school district. The project is expected to begin in 2010 and open spring 2013.  (Newsday – July 16, 2008)

 

Telephonics Corp., based in Farmingdale (Suffolk) was awarded a $72 million contract by Lockheed Martin Corp. to develop a radar system for the Navy’s MH-60R Maritime Strike Helicopter.  The contract is an enhancement to an existing $18 million Navy development award issued in 2006.  (Newsday – July 15, 2008)

 

The Urban League of Long Island’s is starting its first business incubator, building a 33,000 square-foot three story community center in Central Islip partly for incubator services to promote entrepreneurs and develop minority-owned businesses.  Funding for the center and incubator is from a $750,000 state grant and is expected to be completed in 12 to 15 months. (Newsday – July 1, 2008)

 

 

LAYOFFS and CONTRACTIONS


Employees of IndyMac, a California-based retail mortgage company with branches in New Hyde Park (Nassau) and Islandia (Suffolk) are awaiting their fate as the company announced it would stop taking new loans and would lay off more than half of its workforce.  The scale back at IndyMac is the latest aftershock from the subprime mortgage collapse.  Indy failed to attract new capital and states they need to balance their finances by downsizing and focusing on federally backed reverse mortgages targeted to seniors.  (Newsday – July 9, 2008)

 

Roosevelt Raceway Center in Westbury (Nassau) was bought by The Mattone Group in Queens for $100 million.  The company has no specific development plans right now.  (Newsday – July 17, 2008)

Starbucks will close a total of 14 Long Island stores, up from the closing of 2 stores announced earlier in the week.  The company said closing will begin this month and are to be completed by the middle of next year.  In addition to the previously announced closing in Central Islip near the state and federal court complex and on Route 25 in Southhold the 12  Long Island Starbucks to be closed include:
426 Central Ave., Cedarhurst
2330 Hempstead Tpk., East Meadow
1946 Jericho Tpk., Elwood
123 Fulton Ave., Farmingdale
385B Broadway Mall, Hicksville
1750 Veterans Hwy., Islandia
106 Old Country Rd., Mineola
1441 Jericho Tpk., New Hyde Park> 1 Railroad Ave., Roslyn Heights
20 North Highway, Southampton
467 Old County Rd., Westbury
1504 Old Country Rd., Westbury

The Port Washington (Nassau) –based Steve & Barry’s clothing retailer (with stores throughout Long Island) has filed for Chapter 11 bankruptcy protection.  The firm will close 100 of its 270 stores, saying the volatile credit markets and shopper discretionary spending cutbacks are to blame.  Financial analysts say the company could not turn a profit due to their rock bottom prices, high celebrity licensing fees, and high real estate and operating costs.  (Newsday – June 8, 2008)

 

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