Leonardo DRS Signs Land Lease to Build State-of-the-Art Naval Propulsion Manufacturing and Test Facility Near Charleston, SC

Leonardo DRS, Inc. (NASDAQ: DRS) said it has signed a ground lease in the Charleston, South Carolina, metropolitan area to develop a state-of-the-art manufacturing facility, allowing the company to grow its naval propulsion capability and streamline its support of priority U.S. Navy programs.

When complete, there will be over 140,000 square feet of purpose-built advanced manufacturing, assembly and testing space representing an approximate net investment of $120 million by DRS.

Officials said the new capabilities made possible by the investment will play a key role in the continued expansion of propulsion system integration and testing for the company.

Initial occupancy is targeted for 2026.

“We are proud to be building the next-generation electric propulsion system components for the new Columbia-class ballistic missile submarine,” said Leonardo DRS CEO Bill Lynn.

Lynn added, “This new facility in South Carolina expands our capability to support our U.S. Navy customers on this and other critical programs that enhance the nation’s submarine industrial base.”

When completed, officials said the facility will have the capability to manufacture, integrate and test large components for DRS’s advanced naval electric propulsion systems.

The components include solid-state drives, designed and manufactured in the new DRS Menomonee Falls, WI. facility; electric motors designed and manufactured in the DRS facility in Fitchburg, MA.; control systems designed and manufactured in the DRS facility in Danbury, CT., and cooling equipment designed and manufactured in the DRS facility in High Ridge, MO.

The South Carolina facility will have direct access to barge transportation on the local waterway and out to the open ocean for shipping these large assemblies to the company’s shipbuilding customers.

“This facility represents a significant milestone in our ongoing collaboration with the U.S. Navy. We expect the unique capabilities in this new facility to be a national asset capable of addressing the Navy’s current and future needs,” said Jon Miller, senior vice president and general manager of the Leonardo DRS Naval Power Systems business.

Additionally, officials said the new facility will also play an important role in spurring economic growth in the region through building a network of regional business partners, universities and other organizations that will work closely with DRS.

Officials said Leonardo DRS partnered with a team across state and local governments, as well as regional economic organizations and the private sector to bring the project to the greater Charleston area.

Headquartered in Arlington, VA, Leonardo DRS, Inc. provides advanced defense technology to U.S. national security customers and allies around the world.

Regional Surveys of Business Activity

Fifth District manufacturing activity, which includes South Carolina, was flat in February, according to the most recent survey from the Federal Reserve Bank of Richmond.

The composite manufacturing index increased and, of its three component indexes, shipments remained solidly negative, new orders increased, and employment rose notably.

Firms were slightly more optimistic about local business conditions. The index for future local business conditions edged up and most firms continued to report declining backlogs.

The capacity utilization index rebounded notably.

The average growth rate of prices paid decreased in February, while the average growth rate of prices received was nearly unchanged. Firms expect both growth rates to moderate over the next 12 months.

Meanwhile, Fifth District service sector activity slowed in February, according to the most recent survey by the Richmond Fed.

The revenues index decreased notably while the demand index decreased.

However, the indexes for future revenues and demand both increased and remained firmly in positive territory. Firms’ optimism about local business conditions fell slightly.

The index for expected local business conditions, however, increased slightly into positive territory in February.

Firms continued to report wage increases and little change in their ability to find workers with necessary skills.

Over the next six months, many firms expected to continue hiring and anticipated little improvement in their ability to find workers with the necessary skills.

Most firms plan to continue wage increases.

The average growth in prices paid inched up very slightly in February, while growth in prices received decreased slightly.

Firms expect both growth rates to moderate over the coming year.

Gnosis Freight Expands Operations in Charleston County

Gnosis Freight, a leading provider of supply chain and logistics software, said it is expanding its operations in Charleston County.

The company’s $438,500 investment will create 51 jobs over the next several years, according to Gov. Henry McMaster’s office.

Founded in Charleston in 2017, the company’s Container Lifecycle Management platform combines supply chain visibility and execution software to help companies track and manage shipping containers from booking through empty return.

The company recently doubled its existing facility in the Charleston Tech Center located at 997 Morrison Drive in Charleston.

Officials said the 7,000-square-foot office space offers additional room for the company to grow its data science, software engineering and commercial teams.

Those interested in joining the Gnosis Freight team should go to the company’s careers page.

GSP Breaks Ground on New Parking Garage, Consolidated Rental Car Facility

Greenville-Spartanburg International Airport (GSP) on Feb. 27, 2024, broke ground on a new parking garage and consolidated rental car facility.

Officials said the two-year, $97 million project will be open to the public in early 2026.

Parking Garage C, located adjacent to the terminal building, will offer 750 new public vehicle parking spaces and 750 ready-return rental car spaces.

Officials said the garage’s public parking section will offer time-saving Park Assist technology allowing customers to quickly locate available spaces.

The rental car portion will include a transaction lobby, and reserved spaces for premium rental car customer vehicle pick-ups, quick drop off, fueling and car wash capabilities. 

“GSP has announced eight new airline routes that will start later this year, as a result, we expect to have a record number of passengers travel through GSP in 2024,” said GSP’s president and CEO Dave Edwards.

He added, “To accommodate expected growth in the years to come and continue to provide exceptional customer amenities, we need to bring additional vehicle parking online and enhance our rental car operations. We believe that this new facility will not only meet our current demand but also position us for sustained growth in the future.”

Parking Garage C is one of a series of projects designed to provide additional parking capacity, enhance rental car operations, reduce roadway congestion, and enhance the airport’s ability to accommodate future growth.

In 2021, two new surface parking lots were constructed and in 2023 the airport’s terminal roadway system was redesigned allowing for future airport expansion.

The design of Garage C and Consolidated Rental Car Facility was led by Greenville-based firm, LS3P. Brasfield & Gorrie was selected as the construction manager for the project.

A recent report revealed that GSP contributes $4 billion in economic impact on the region each year.

With $427.3 million in capital improvements planned over the next six years, officials said GSP's positive effect on the local economy is expected to increase significantly in the coming years.

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