Despite a struggling economy, the Tooele Army Depot is reporting an upswing in its business.

The depot’s operating budget increased from $67.2 million in 2007 to $68.7 million in 2008 — an unusual increase according to depot officials.

Although the increase only amounts to about 2 percent, depot officials say it’s significant because it means the depot is being utilized by the Department of Defense more for shipping, receiving, storing and maintenance of conventional ammunition. In addition, officials say private partnerships are on the increase as well.

“We will always have our main mission, but we are bringing in more work from private partnerships,” said Kathy Anderson, public information officer for the depot. “We are very busy. Before we acquired additional igloo space at Deseret Chemical Depot, we used to be completely full.”

Anderson said an increase in workload hasn’t brought different kinds of ammunition — which range from 5.56 mm rifle shells to large bombs, land mines and missiles — to the base, but has meant an increase in ammunitions that have a higher turnover rate for use in training exercises.

Additionally, the increased workload has enabled the depot to fill positions that have been vacant for quite some time, Anderson said. Filling all of these positions and keeping current workers busy during tough financial times is something, Anderson said, the depot is keen on to help Tooele County’s economy.

“As a major power projection ammunition depot for the Department of Defense, we’re delighted to see increases in operations as it directly effects growth both inside and outside the depot,” said Col. Yolanda Dennis-Lowman, TEAD commander.

More than 74 percent of TEAD employees call Tooele County home, bringing in an average annual salary of $52,784, according to Anderson.

“The salaries our employees take home have an even greater impact on economic development as they shop for goods and services,” Dennis-Lowman said.

One recently acquired depot contract has led to the building of a drill and pin machine for the military’s Pine Bluff Arsenal, a projectile manufacturing facility based in Arkansas. The equipment is designed to secure a flare inside a canister, which will later be inserted into the projectile. Currently Pine Bluff operates using 1950s and ‘60s equipment with workers manually securing the lids of the canisters by hand.

“The idea is to modernize and automate their assembly line,” said Don Fanning, a supervisory engineer working on the project.

John Rowley, an equipment specialist, said originally Pine Bluff had asked an outside contractor to complete the project, but the contractor said it would take two years and cost 20 percent more than TEAD estimated. TEAD began designing the machine in January of last year, with fabrication starting in late summer. Now the project is near completion.

Additionally, TEAD has been chosen as the location where Safety Management Services, a company specializing in sensitivity and reactivity of propellants, explosives and pyrotechnic materials, will test services such as in-process simulation, shielding and barricade validation for clients like the Department of Transportation, the Department of Defense, and the federal Bureau of Alcohol, Tobacco and Firearms. The contract was finalized in March.

In July, TEAD shed its khaki-drab, Cold War image by incorporating a sleek new branding campaign including a redesign of its logo, signage, Web site and in-house newsletter. Anderson said the changes were made to help promote the depot’s expertise to potential private sector clients — which depot officials hope will bring continued growth in years to come.

Although these changes have yet to yield any new partnerships, Anderson said the depot has a lot of feelers out and officials are hoping to see the results in increased marketing very soon.

“We’re pursuing a very proactive approach to our business development opportunities for his fiscal year,” Dennis-Lowman said. “The depot’s success has been clearly tied to the growth within Tooele County and the entire state of Utah. I look forward to continuing our work with local, regional and state representatives to pursue this growth and make this fiscal year even better than the last.”

Jamie Belnap: jamieb@tooeletranscript.com