economic challenges,” Dyer said, “but it is blessed to have the Army presence, which has been not only sustained but growing. And we’re lucky to be a part of that defense market.”
Dyer, a retired vice admiral in the U.S. Navy, said that he has been impressed with Michigan’s strategy for enticing outside companies to expand in the state. Though iRobot hasn’t committed to a major Michigan expansion, Dyer said the company is in an ongoing dialog with representatives from the governor’s office and the Michigan Economic Development Corporation.
Indeed, the defense sector is one of several areas of the Michigan economy that state officials have targeted for major growth. The state has claimed several recent victories on the defense front. General Dynamics (NYSE:[[ticker:GD]]) plans to invest $10 million to expand its land systems unit in Sterling Heights and Shelby Township, MI, while adding 1,149 jobs there. And BAE Systems, another giant defense contractor, is working on a five-year, $58.4 million initiative that includes the construction of a prototyping center on its Sterling Heights campus.
IRobot, which expects annual revenue of $395 million to $400 million for its fiscal year 2010 that ends January 1, 2011, is a small player in the defense market compared with multibillion-dollar behemoths such as BAE and General Dynamics. But iRobot’s leadership says the emerging field of unmanned vehicles makes its modest presence in Michigan worth watching—especially for other technology companies who might want to partner with it as a way into the defense market.
For example, iRobot became a member of Automation Alley in January 2009 and has established a presence in the tech industry association’s facility in Troy. This affiliation helps the company find potential partners in Michigan, such as small providers of sensors and other technologies that might fit into iRobot’s military robots.
Dyer also sounded open to continued talks with Michigan officials about the firm’s further growth in the state. “Michigan is doing a number of things in terms of real estate prices to tax advantages that do cause us to look at opportunities,” he said. “We haven’t embraced any of those yet, but it is of interest.”
