Where Security Fits In

As Puerto Rico sees a growing aerospace presence, security pros might benefit from keeping close watch

• By Karina Sanchez
• Jan 03, 2008

Deemed the rum capital of the world and the birthplace of salsa music, Puerto Rico has reason to celebrate. The commonwealth’s most recent initiative is to promote itself as being the location of choice for aerospace-related enterprises, and the aerospace industry is reacting positively. In late November, the Puerto Rico Industrial Development Co., PRIDCO, invited aerospace industry executives to the island for its first-annual Aerospace Vision Conference. Key executives from Honeywell, Hamilton Sundstrand and Infotech Aerospace Services, a division of Pratt and Whitney, all took part in the conference, as well as professors of engineering from local universities. The conference’s focus was clear—to bring aerospace professionals together from the private sector and academia to discuss how the two segments can work together to facilitate the industry’s growth within the island.

Puerto Rico, which has been a pharmaceutical powerhouse for years with 13 of the 20 leading U.S. prescription drugs being manufactured there, now looks to boost its aerospace and defense presence.

“[Aerospace] is an industry that receives more orders than it can produce,” said Vicente Nazario, general manager of Hamilton Sundstrand.

The industry’s most recent figures show that it produced $184 billion in sales, and Puerto Rican officials are keeping a close eye on the industry’s growth as its aerospace presence flourishes. In 1999, Sundstrand merged with Hamilton Standard to create Hamilton Sundstrand, and in 2001, the company started doing electronics in Puerto Rico. Infotech set up shop in 2003, and companies like Honeywell’s aerospace division, Florida Turbine Technologies and Essig Research followed suit.

WHAT’S ALL THE FUSS ABOUT? So what’s the big attraction—minus the beautiful beaches and mild climate? The main factors are the island’s cost-competitiveness, its strong ties to the United States and its skilled and loyal workforce. According to the World Bank, Puerto Rico is ranked among the 20 most-favorable countries in the world to do business. And KPMG’s Competitive Alternatives study ranks it as the No. 1 cost-competitive location in the United States. But what aerospace professionals value most about the island is its people.

“We were attracted to the island for the abundance of an educated workforce,” said Rita Peralta, president of Infotech Aerospace Services. “Here, there’s an abundance of business skills, and it gives us an opportunity to expand our business beyond aerospace.”

Infotech is a near-shore facility providing engineering outsourcing and other professional services to the ITAR, military, defense, aerospace and power generation industries. It has recently begun work for non-aerospace customers as part of its strategy to diversify its business. The company boasts services that range from mechanical design and aerodynamics to software and control systems and electronic hardware systems. And its portfolio of services is only increasing.

INCREASING BUSINESS “One of our key factors for success is that we know how to partner,” Peralta said. “And diversification is key to us.”

Peralta expressed interest in the security industry and its offerings. Like so many within the security industry, those in other verticals are looking to broaden their portfolios, as well. And in this network-centric world, network security proves to be a rising concern.

“Security of Internet protocol is very critical,” Peralta said. Though that’s a sentiment felt across multiple disciplines, Infotech, in its partnership with the University of Puerto Rico, Mayaguez, is doing something about it. The University of Puerto Rico’s college of engineering is working to create a network security certificate, much like a network security minor in the states.

“In our conversations with the industry, there are talks of what will be the specialized needs of the future,” said Ramon Vasquez Espinosa, dean of the University of Puerto Rico, Mayaguez, college of engineering. “We take into consideration their input and then take into consideration the knowledge of our professors, and we then decide what type of certificate to create.”

EDUCATE THE MASSES With Puerto Rico’s drive to grow its knowledge-based workforce, a close relationship between industry executives and universities is paramount. The more informed a student is in a specialized field upon graduation, a more skilled employee they will be in the industry. And because networks are so vital to a global economy today, it’s no wonder that industry executives are pushing universities to embrace a network security focus.

“1999 to 2000 showed how old computer systems really were,” said Steve Witalis, IT manager for Infotech. “But 9/11 really made things happen.”

Today, many companies work to educate their IT workforce on security competencies. And many aerospace enterprises in Puerto Rico are honing in on local universities to jump start those competencies, resulting in what is evident to be a staff of much younger employees. But with an aging workforce and the ripple effects felt by the loss of talent, starting at the college level may not be such a bad idea.

“It’s not so much an issue of national security, but a workforce issue,” said Brenda Santiago, economic and workforce development advisor for the Department of Labor. “Newer generations want innovation.”

With fresh, energetic minds populating the Puerto Rican workforce, more and more big players are embracing the move.

“There’s a culture of energy and warmth here. It’s a mix of skill and culture that wants to drive change,” said Honeywell’s Mario Coracides.

And change is exactly what drives growth and presence in any industry. It might just be a change of perspective from the security front that may lead to security’s own growing presence in Puerto Rico. The island’s calling, but is the industry ready to answer?