Harris Corp. will keep HQ in Melbourne

Harris Corp. announced Friday that it will keep its headquarters in Melbourne, a relief to state and local officials who lobbied hard to keep the Fortune 500 company's base here after its recent acquisition of McLean, Virginia-based Exelis Inc.

Harris is one of Brevard County's largest employers and has approximately $8 billion in annual revenue and about 23,000 employees — including 9,000 engineers and scientists.

The announcement means about 400 corporate employees will continue to be based on the Space Coast. The headquarters has been here since 1978. Harris, much larger after its acquisition of Exelis, also announced where it basing its business segments and two of them will be in Palm Bay.

Those segments could mean significant more research dollars and engineering talent flowing into Brevard in the future.

"Florida's strong educational system, available pool of highly skilled talent and pro-business climate — led by Gov. Rick Scott and other state and local officials — help attract and retain companies like Harris," William M. Brown, chairman, president and chief executive officer, said in a statement. "We are pleased to reaffirm our commitment to the state where we have a shared vision to grow Florida's reputation as a center for technology innovation."

Economic development officials in Virginia, including that state's governor, Terry McAuliffe, aggressively lobbied Harris to bring its headquarters there, where it would join other major defense and government contractors that have a corporate base near Washington, D.C.

Harris officials said there were incentives offered by Florida, Virginia and New York related to the headquarters but the company would not disclose the details of those offers.

"Those remain confidential," said Jim Burke, a Harris spokesman. "But incentives were not the key factor in our decision."

Jason Steele, a Brevard appointee to Enterprise Florida – the state's economic development agency – wouldn't discuss specifics of what Harris was offered but he did say Virginia put up a very formidable fight to win the headquarters.

"It was an all-out war with Virginia, but because of the efforts of many we won," Steele said. "I will sleep like a baby tonight. I was worried that Virginia's last-minute incentives may have convinced Harris to leave. A great big thank you our governor and the EFI team."

Locally, the Economic Development Commission of Florida's Space Coast would only say the agency and the state of Florida "worked closely to put together a competitive package that produced the desired results."

"An economic powerhouse, Harris' impact is felt beyond jobs and the prestige its corporate headquarters provides allows us to be globally competitive," said Lynda Weatherman, president and chief executive officer at the EDC. "When we think of the growth and development of Harris, it's a reflection of our own Brevard County economy and we appreciate the confidence demonstrated by the headquarter decision and look forward to our continued economic progress benefiting both Harris and Brevard County."

Scott was quick to seize on the Harris announcement.

"We are excited to announce today that Harris Corp. has chosen Florida as the best place for their business," Scott said in a statement. "Thousands of Floridians are currently employed by Harris Corp. and this decision means they will continue to be able to work and provide for their families."

Locally, Harris has about 6,000 Florida employees, including 3,200 engineers and scientists. It's the only only Top 10 defense contractor headquartered in the state, although Florida boasts many companies with sizable work forces that do government and defense work. Florida also is the primary hub for Harris' $1 billion research and development activity — principally located at its new Harris Technology Center in Palm Bay.

Harris stock on Friday closed at $79.35 a share, up 86 cents from the previous day's closing price.

Harris is a major contributor to the local economy and community — annually conducting $250 million in business with 1,200 Florida suppliers and obtaining half of its new college graduate hires from state schools. In the past five years, the company and its employees have contributed $15 million and volunteered 300,000 hours in support of community charities.

Last week the company announced it was reorganizing the company into four segments — two of which will be based in Brevard. Those are the company's Electronic Systems as well as the Space and Intelligence Systems and they will be operated out of Palm Bay. The Harris headquarters is located across the street from Melbourne International Airport on Woody Burke Road.

Electronic Systems combine multiple operations from Harris and Exelis and involve work on electronic warfare, avionics, wireless technology, undersea systems and aerostructures.

Space and Intelligence Systems provides complete earth observation, weather, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics.

Harris also announced that its newly formed Communication Systems segment will be based in Rochester, New York while the company's new Critical Networks segment will be based in Herndon, Virginia.

"I was skeptical," said Palm Bay Mayor William Capote when asked he if thought Harris would keep its headquarters in Brevard all along.

"But at the end of the day," Capote said, "I think they made the right business decision."

At the Florida Institute of Technology — which has had a long and lucrative relationship with Harris — the news could meaning even stronger ties between the company and the university. Harris has contributed $34.6 million — in both in-kind and financial gifts — to the university over the past 35 years.

"I like to think Florida Tech's presence here and our long historical relationship with Harris Corp. played some role in its decision," said Florida Tech President Anthony J. Catanese. "And of course, we are delighted by the news."

And with the company keeping its headquarters here, as well as locating two key segments in Brevard, it could mean more opportunities for students.

"Now that Harris has become such a larger company I think we can expect our interaction with Harris to increase," Catanese said.

Other local reaction, as might be expected, also was welcoming of the Harris news:

"I'm thrilled that they're staying. They've been such supporters with their volunteers that go into the classroom, help with our robotics team and serve on the board," said Janice Kershaw, executive director of the Brevard Schools Foundation. "One of our priorities is (Science, Technology, Engineering and Math) education and that fits right in with their charitable efforts as well."

Amy Kneessy, chair of the Brevard County School Board added: "that's great news I couldn't be happier. Harris has always been a part of Brevard as long as I've been here. I'm very pleased that Harris is going to continue to make this their corporate headquarters.

"Harris has always been a strong Brevard schools supporter," she said.

And a big civic supporter in general said Rob Rains, president of the United Way. Harris employees are the No. 1 contributor to the organization donating more than $1.3 million, plus volunteering to the organization and its partner agencies.

"My reaction in one word is 'thrilled!' " Rains said. "I think there were people that were nervous about the decision and what it would mean if the headquarters would be relocated. Now that the decision has been made, I think people can move forward. The announcement certainly made my day."

At Melbourne International Airport, Executive Director Greg Donovan said he was "elated" with the Harris decision.

"Harris is a preeminent corporate citizen that has long served as the centerpiece and propellant of Melbourne International Airport's momentum," Donovan said. "We applaud their leadership and pledge our enthusiastic commitment to their continued success here on the Space Coast.

We are rightfully 'Space Coast Proud' today," he said.

Contact Price at 321-242-3658 or wprice@floridatoday.com. You can also follow him on Twitter @Fla2dayBiz.