The aerospace and defense industry is a powerful contributor to the economy. According to estimates from Deloitte Development LLC, 2010 aerospace and defense employment stands at more than one million and revenues are nearly $331 billion. The Deloitte estimates place total direct employment by aerospace and defense companies at over 1 million workers.

“If the cuts in the Budget Control Act are enacted, hundreds of thousands of direct and indirect jobs will be lost.” said Marion C. Blakey, AIA President and CEO, “While we need to be part of the solution in addressing our nation’s debt, policymakers shouldn’t make ill-considered cuts that would jeopardize our national and economic security.”

Aerospace and defense supports 2.9 million jobs according to an analysis done for AIA by Barr Group Aerospace. And Secretary of Defense Panetta has warned that the $600 billion cut required under sequestration would have “devastating effects on our national security.” In addition, cuts to NASA and the FAA are threatening our competitiveness in space and ability to lead in the development of the Next Generation Air Transportation System.

“The world remains a dangerous place and our troops are stretched across the globe,” said Blakey. “Now more than ever we need the technologies and programs developed and manufactured by the industry to keep Americans at home and abroad safe, fix our aviation infrastructure and keep the United States a leader in space. “

“The aerospace and defense industry has already absorbed $450-$480 billion in budget cuts. Further budget cuts to defense would be catastrophic,” said Blakey.

For more information, visit www.SecondToNone.org.

Who:
AIA Chairman James F. Albaugh, President & Chief Executive Officer, Commercial Airplanes, The Boeing Company
AIA Vice Chairman David P. Hess, President, Pratt & Whitney, United Technologies Corporation
Marion C. Blakey, AIA President and CEO
Charles A. Gray, Vice President & Chief Operating Officer of Frontier Electronic Systems
Dawne S. Hickton, Vice Chair, President & Chief Executive Officer, RTI International Metals, Inc.
Richard L. McNeel, Chairman, President & CEO of LORD Corporation

What: Press briefing discussing the devastating impact on aerospace and defense jobs resulting from further defense cuts.

When: Wednesday, September 14. Doors open at 9:45am and the briefing will begin at 10:00am.

Where: The Holeman Lounge at the National Press Club

Please RSVP to Dan Stohr at dan.stohr@aia-aerospace.org or (703) 358-1078.

“As you finalize proposals to save and create American jobs, we urge you to consider the vital role that our second to none aerospace and defense industry has played in America’s global leadership, and to keep in mind the many thousands of aerospace and defense workers that face the loss of their jobs in these difficult economic times,” the letter urged.

The enormous contribution of aerospace to our national bottom line—$214.5 billion in sales and a $51.2 billion trade surplus in 2010—cannot be taken for granted, the letter argued. “Doomsday” cuts to defense, the end of the shuttle program and delays to the FAA’s Next Generation Air Transportation System all threaten America’s global leadership.

At a time when Americans traditionally gather to celebrate the contributions of American labor to the economic prosperity and national security of our nation, it is notable that industry and labor stand together to urge President Obama to preserve jobs that are crucial to our security and economic well-being.

The full text of the letter can be read here: http://bit.ly/q9rtxm

Statement by AIA President & CEO Marion C. Blakey

With the retirement of the historic space shuttle, the United States now runs the risk of becoming a supplicant: we will have no choice but to pay the Russians $60 million a seat to send a U.S. astronaut to the International Space Station. Instead of funding Russia’s space program, it would seem to anyone with the long view that these taxpayer dollars would be better spent investing in new NASA programs for commercial space flight and Mars exploration. These initiatives would put thousands of soon to be unemployed aerospace workers back to work and advance science and technology in countless ways.

Indiscriminate cuts in our aerospace research and development programs will have little short-term impact on our deficit but far reaching consequences for our economic health.

“We recognize that tough economic times call for tough choices,” said AIA President and CEO Marion C. Blakey. “However, cutting NASA and NOAA this deeply threatens American leadership in space and impairs our ability to make life-saving weather predictions.”

The subcommittee’s markup cuts NASA’s space programs by 10 percent from the President’s request and nearly 13 percent from the NASA authorization passed last October. AIA acknowledges that many NASA mission areas were adequately supported—but some suffered draconian cuts. Given the current fiscal environment, AIA believes the $18.7 billion in funding proposed by the President provides the minimum required for these important programs. AIA supports appropriations reflecting the policy priorities of the NASA Authorization Act of 2010 as closely as possible and opposes the termination of programs contrary to the priorities of the Authorization Act.

With the imminent retirement of the Space Shuttle, NASA must be adequately funded to continue our visible national commitment to space exploration, science, aeronautics and technology leadership—something that 58 percent of Americans recently polled by the Pew Research Center supported.

“Each ride to the space station that NASA buys from Russia is the annual equivalent of 1000 American aerospace jobs,” Blakey said. “We should be paying Americans instead of Russians.”

In addition, NOAA would get $1 billion less than the President’s request—an 18 percent cut in a year when storms have already taken hundreds of lives and shown the need for accurate forecasts. Our public safety, national security and economic recovery argues for fully funding NOAA to get observing programs back on track and mitigate any loss in coverage due to aging systems.

“The health of our space programs has major implications for the innovation economy, the national maintenance of critical skill sets and fostering math and science education,” Blakey said. “Supporting NASA and NOAA at stable and predictable funding levels is crucial for mission success, impacting lives, the economy and our nation’s security.”

About AIA

Founded in 1919 shortly after the birth of flight, the Aerospace Industries Association is the most authoritative and influential trade association representing the nation’s leading manufacturers and suppliers of civil, military and business aircraft, helicopters, unmanned aircraft systems, space systems, aircraft engines, homeland and cybersecurity systems, materiel and related components, equipment services and information technology.

Former FAA Administrator and current President and CEO of the Aerospace Industries Association, Marion C. Blakey, called for accelerated implementation of FAA’s Next Generation Air Transportation System and increased U.S. investment in research and development to avoid losing our leadership in aerospace and defense.

“It’s important to properly fund and promote our aerospace and defense industry and the research and development needed to sustain it,” Blakey said at a luncheon hosted by the Aero Club of Washington today.

Blakey also said that it was important for the aerospace industry to underscore the critical role of aerospace and defense in supporting our nation and economy, especially during ongoing budget debates. AIA is launching a campaign called Second to None to ensure that Congress and other officials understand that the industry is a perishable national asset.

“The aerospace and defense industry – which is second to none in the world, represents a smart business decision,” said Blakey. “Our products keep the world’s economy moving, our families safe at home and our troops secure and successful abroad.”

Further identifying the issues that place the industry at a crossroads, she said that half of U.S. aerospace engineers will become eligible for retirement by 2015. In addition, for the first time in 100 years, no new manned military aircraft are in design. Outdated export rules are hampering businesses as well as unmanned aerial systems, which Blakey called “game-changers in this century.”

NextGen will help environmental efforts by saving fuel and reducing emissions. The aviation industry has committed to achieve carbon-neutral growth by 2020 through the use of NextGen technologies and green fuel alternatives. However, these initiatives require government support, including R&D funding for FAA and NASA.

The entire speech is online at: http://www.aia-aerospace.org/newsroom/speeches_testimony/.

AIA PRESS RELEASE

AIA is very encouraged that the newly released National Security Space Strategy emphasizes the need for a healthy space industrial base.

“We’ve long supported a more cohesive, strategic approach to managing our nation’s space enterprise,” said AIA President and CEO Marion C. Blakey. “The strategy’s commitment to maintaining a healthy industrial base, including focused science, research and development efforts and promoting STEM education and professional development is crucial to success in the space arena.”

AIA believes it is absolutely critical to establish an open and ongoing dialogue and partnership with the Defense Department and the Intelligence Community to develop and execute the implementation plans needed to move forward. In addition, securing the budgets and funding needed to realize this strategy and to deliver vital space capabilities to our nation is of utmost importance.

“Defense Secretary Gates and Director of National Intelligence Clapper are to be congratulated for the first ever jointly signed National Security Space strategy,” Blakey said. “In today’s contested, congested and competitive space environment having a clearly enunciated plan in which government and industry work together is more important than ever.”

Aerospace Industries Association President and CEO Marion C. Blakey reviews the past year in America aerospace and looks ahead to 2011 in an address to about 400 people on Dec. 15. You can download her address and AIA’s full report here.

AIA PRESS RELEASE

With another solid financial performance in 2010, the aerospace industry has again demonstrated its vital importance to the U.S. economy.

“Aerospace has produced solid results, including a new sales record for the seventh straight year, leading all manufacturers in trade surplus and providing a sense of stability amidst the chaos of economic upheaval,” said AIA President and CEO Marion C. Blakey.

In her remarks to more than 300 members of the news media, government and industry at the association’s 46th annual Year-end Review and Forecast Luncheon, Blakey cited a preliminary total aerospace sales figure of $216.5 billion.

Aerospace orders made a strong bounce back into positive territory, increasing 20 percent over 2009.

“While still off from our high in 2007,” Blakey said, “this increase hopefully marks the bottoming-out of the recent decline in orders.”

Space sales have remained largely static this year. With minimal growth projected for the NASA budget through 2015, opportunities for more substantial growth will likely come from international customers. Developing a more diverse customer base will help the U.S. maintain a strong industrial base, as well as strengthen relationships with strategic partners, Blakey noted.

Rising imports and falling exports led to a five percent drop in the industry’s trade balance, but the surplus of $53.3 billion is still the strongest of any manufacturing industry. Employment declined for the second straight year, but at a much slower rate than initially projected.

“Losing jobs is never good,” said Blakey, “but when viewed in the context of the overall business environment, our workforce is holding its own.”

“Job retention and growth is on everyone’s mind these days,” Blakey added. “This is why AIA and our member companies continue to impress on Congress and the administration the need to invest in the Next Generation Air Transportation System. Improvements to transportation infrastructure benefit a wide swath of American life, from business and tourism to law enforcement, crisis response, freight shipment and family cohesion.”

Expressing concern about the headwinds created by pressure to trim the nation’s deficit, Blakey said that the severe cuts in defense advocated by some of the various deficit-elimination study groups are dangerous.

“The United States’ security relies on maintaining our defense technological advantage. Additionally, if we don’t sustain the investment in the industrial base, opportunities for good jobs will dwindle” said Blakey. “These men and women support more than two million middle-class jobs across all 50 states, and are the muscle – and heart – of the American economy.”

The American Institute of Aeronautics and Astronautics (AIAA) and the Aerospace Industries Association (AIA) have both applauded efforts announced this week by the Obama Administration to continue reforming the nation’s restrictive ITAR export reform laws.

“AIAA applauds President Obama’s recently announced changes to the ITAR policy that will consolidate the export review process under one agency, and will better enable the flow of U.S. products into the international marketplace without compromising national security,” said AIAA President Mark Lewis.

“We are very pleased by the progress the administration is making in reviewing the U.S. Munitions List,” added AIA President and CEO Marion C. Blakey. “The restructured list shows great promise in assigning the appropriate level of protection to technology exports across all levels of risk.”

President Barack Obama outlined the Administration’s strategy for a streamlined and consolidated export review process in recorded remarks played during a Commerce Department conference on export controls on Tuesday. The President said the administration is moving ahead with the reforms that it can pursue without legislative approval:

Eventually, the administration wants to create a single control list run by an independent agency outside of the Commerce Department or State Department. It also wants to create a single enforcement agency. All three goals require congressional approval and are not expected to happen this year.

However, in his videotaped comments, Obama said he would sign an executive order giving U.S. Immigration and Customs Enforcement authority to coordinate enforcement of export controls now divided among several government agencies.

The administration is also moving licensing operations at the State Department, Commerce Department, Defense Department and other agencies onto a single information technology system. It does not need congressional approval for that.

Both the AIA and AIAA praised the Administration’s efforts as being necessary to restore American competitiveness in key high technology fields. Critics have argued that the regulations are too broad and have hurt U.S. manufacturers and built up competition abroard. Many foreign satellite builders are now advertising their products as “ITAR free.”

The AIAA statement reads:

The American Institute of Aeronautics and Astronautics (AIAA) applauds the Obama Administration’s recently announced reforms to national export control policies. The changes made to the International Traffic in Arms Regulations (ITAR) will streamline the technology export process for America’s aerospace and related component manufacturers, allowing them to compete more fairly in the world market.

“AIAA applauds President Obama’s recently announced changes to the ITAR policy that will consolidate the export review process under one agency, and will better enable the flow of U.S. products into the international marketplace without compromising national security,” said AIAA President Mark Lewis.

“Though well intentioned, existing ITAR regulations have sometimes stifled innovation in the U.S., and worked against national interests by encouraging foreign partnerships and creating competing industries overseas. AIAA appreciates the support of like-minded organizations, aerospace companies, and individual engineers and scientists in reaching out to the administration on this issue. In the end, I believe these reforms are a win for all who are concerned about the future of America’s aerospace community, as they will help open new markets while actually strengthening our national defense. We look forward to continuing our work with the Administration on export control policy reform.”

The changes create the Export Enforcement Coordination Center, which will use a single licensing process to review exports, rather than the current process under which exports are regulated by three oversight agencies with conflicting regulations. This will streamline approvals and provide more concise guidelines for product classification, so that up to two-thirds of existing products that ITAR now bars from trade will be allowed into the global marketplace. The reforms also consolidate all ITAR-related trade information into a single IT system, allowing more rapid communication between parties and further reducing the time needed for the review process. Industry experts estimate that the reforms will open up billions of dollars in trade for the American aerospace sector that existing restrictions had denied them.

The AIA also released a statement:

AIA strongly supports the initiatives on export control modernization the White House released today, and believe they constitute an important step in reshaping the export control system to better serve our national security.

“We are very pleased by the progress the administration is making in reviewing the U.S. Munitions List,” said AIA President and CEO Marion C. Blakey. “The restructured list shows great promise in assigning the appropriate level of protection to technology exports across all levels of risk.

In particular, the completed review of Category VII of the USML – Tanks and Military Vehicles – shows that about 74 percent of the 12,000 items licensed last year could have been safely processed under the less restrictive Commerce Control List. This indicates substantial potential savings in time and compliance costs to U.S. exporters in the future, with enormous benefits for our military and closest allies.

“The clarification and eventual consolidation of the Munitions and Commerce Control lists will have a dramatic impact on small- and medium-sized companies,” Blakey said. “These companies rarely have the resources to ensure compliance with the current export control regime. Simplifying the system offers them the opportunity to be more competitive in the international marketplace.”

The president’s initiatives also include consolidating licensing policies, export enforcement and information technology systems to make the export control licensing system more efficient.

“These initiatives will greatly improve our national security,” Blakey said. “Enhanced interoperability with friends and allies will increase our ability to defend our common interests, and better controls for truly sensitive items will help keep them out of the hands of our adversaries.”

Statement by AIA President and CEO Marion C. Blakey on President Obama’s State of the Union Address

We’re very pleased that President Obama is making it a priority this year to double exports, enforce trade agreements and reform export controls consistent with national security. Trade expansion and export control modernization are longtime priorities of AIA and recognition of their importance by the President sets a positive tone for action this year.

In particular, we’re looking forward to seeing the recommendations from the interagency working group that he established in August to undertake a comprehensive review of the U.S. export control system. Reforms of the system will grow high-skill, high-wage jobs, keep America’s defense industrial base competitive and sustain its ability to provide America’s military and our close allies with the best technology at the best price.

Among the notable omissions in the speech was any mention of aviation. In particular, the Next Generation Air Transportation System that will transform the way Americans travel as we replace the 1950s era radar-based system with a precision satellite-based system. It is infrastructure that is a major catalyst for jobs and should be included in any jobs bill.

AIA is squarely on the record with the facts: The total number of direct and indirect jobs generated by an approximate $6 billion investment in NextGen equipment is more than 150,000 through 2012, with 30,000 jobs generated the first year. According to our research, there are already 2,436 manufacturing, maintenance and installation facilities operating in every state of the union. Investment in NextGen will add more jobs to these already established and productive facilities.

Another notable omission was NASA and the future of our manned space program. While President Obama stressed the importance of technology and education to our competitiveness and economy, NASA is a key contributor to those fundamentals for our nation. A robust and well-funded space effort that includes a program of manned exploration beyond Low Earth Orbit is a wonderful source of inspiration for America’s youth to pursue high level science and technical education and careers. We must reach for the stars to provide that inspiration.

Finally, the President’s recognition of the need for small businesses to obtain credit is welcomed by all AIA members, but particularly by our smaller suppliers who have been stymied in their efforts to invest and innovate by a weak credit market. This, along with the tax proposals, will help small businesses boost our economy to health.

Founded in 1919, the Aerospace Industries Association represents the nation’s leading manufacturers and suppliers of civil, military, and business aircraft, helicopters, unmanned aircraft systems, space systems, aircraft engines, materiel, and related components, equipment services, and information technology.

AEROSPACE INDUSTRIES ASSOCIATION PRESS RELEASE

The summary issued yesterday by The Review of U.S. Human Space Flight Plans Committee, chaired by Norm Augustine, points to a crossroads in human space exploration programs, AIA President and CEO Marion Blakey said.

“We agree with the Committee’s conclusion that the U.S. faces a critical need for greater investment in the future of human space exploration,” said Blakey. “American leadership in this crucial international arena is perishable without a national commitment and a program matched with the resources needed for its execution.”

The summary indicates that the current path of the U.S. human spaceflight program is unsustainable, with the resources allocated falling well short of requirements.

Blakey continued, “We need a commitment to invest in space on an ongoing basis. The kinds of technologies developed by the human spaceflight program drive economic growth, adding high-skill, well-paying jobs to our economy. They also inspire the next generation of workers to pursue careers in science, mathematics and engineering – fields which have been crucial to America’s success but which are struggling to enroll sufficient students to meet our needs in the 21st Century.”

The benefits of a strong and robust human spaceflight program have a broad impact on the entire economy, Blakey added. Bio-medical research in the micro-gravity environment of the International Space Station is just one example of the benefits a vibrant space program can bring to the nation.

“American participation in the ISS brings the opportunity to invest further in commercial launch capabilities – assets that can help the U.S. support the ISS as the shuttle program is retired.”

“While international collaboration is a worthy goal in itself, our partners and allies look to us to provide leadership both in terms of direction and funding.  We cannot ignore the benefits of a fully invested U.S. human spaceflight program to our economy, our technological and knowledge growth and our position in the global community.”

Ares 1-X undergoing assembly

 

AIA President and CEO Marion Blakey Statement

Aerospace Industries Association is encouraged by recommendations in the recent space policy report from the National Research Council calling for increased coordination and leadership of our nation’s space capabilities. “America’s Future in Space: Aligning the Civil Space Program with National Needs,” adds another influential voice to the debate on renewing and maintaining U.S. leadership in space.

AIA made a similar recommendation, in a report released this January. “The Role of Space in Addressing America’s National Priorities,” calls for the nation’s space capabilities to be coordinated, at the highest level, as a singular enterprise.

Over the past 50 years, space systems and technologies have increasingly become a vital part of our nation’s economic, scientific and national security capabilities. Given our dependence on space assets and increasing international competition, the seamless integration of space activities into national policy is absolutely necessary.

AIA PRESS RELEASE

Industry leaders from the Aerospace and Defence Industries Association of Europe (ASD) and the Aerospace Industries Association (AIA) exchanged views June 16 on the current economic situation and the impact of government policy responses on the aerospace and defence industry.

Following the exchange, ASD and AIA issued the following statement:

If our respective governments continue to foster a climate in which the aerospace and defence sector can thrive, our member companies will continue to deliver products and services that contribute to global safety, security and economic prosperity. As governments across the globe forge closer partnerships with industry, our industry remains a powerful and reliable source of high tech manufacturing and engineering employment, advanced technological innovation, environmental stewardship, and export revenue. As leaders in the global marketplace, we are weathering the current economic difficulties and will continue to play a major role in the recovery.

ASD and AIA jointly affirm:

• The strength of the aerospace and defence industry is a critical asset in the global economic recovery;

• Keeping this sector strong requires sustained growth in investments in defence, civil aviation and space;

• National governments must avoid adoption of protectionist policies that would stifle our industry’s ability to generate new growth and prosperity.

• To preserve a safe and efficient air transportation system, U.S. and EU lawmakers should ensure that current bilateral maintenance agreements continue to be recognized. In particular, legislation proposed in the U.S. House of Representatives should be amended since the new inspection requirements it imposes contradict the U.S.-EU Bilateral Aviation Safety Agreement (BASA) and could impede its implementation.

Participants included:

ASD:
Allan Cook, President of ASD and CEO of Cobham
Ã…ke Svensson, Past President of ASD and President & CEO of Saab
Pier Francesco Guarguaglini, Next President of ASD and Chairman & CEO, Finmeccanica
François Gayet, Secretary-General, ASD

AIA :
Robert J. Stevens, Chairman of the Board of Governors, AIA and Chairman, President & CEO, Lockheed Martin Corporation
Scott Donnelly, Vice Chairman of the Board, AIA and President & COO of Textron Inc.
Clay Jones, Immediate Past Chairman of the Board, AIA and Chairman, President & CEO, Rockwell Collins
Marion C. Blakey, President & CEO, AIA

ASD, AeroSpace and Defence Industries Association of Europe, represents the aeronautics, space, and defence industries in Europe. ASD has 30 member associations in 20 European countries, and represents over 2000 companies with a further 80 000 suppliers, many of which are SMEs. http://www.asd-europe.org

The European aeronautics, space and defence Industry at a glance:

• Employment: around 649,000 in aerospace & defence
• Industry Turnover: over €132 billion.

AIA, the Aerospace Industries Association, represents the nation’s leading manufacturers and suppliers of civil, military, and business aircraft, materiel, and related components, equipment services, and information technology. Founded in 1919, AIA has over 300 members, representing over 2 million employees. http://www.aia-aerospace.org.

The U.S. aerospace industry at a glance:

• Sales: $205 billion
• Trade surplus: $57 billion.

NASA stands front and center as the most visible representation of the U.S. space program and is critical to our country’s future leadership and competitiveness, AIA Vice President of Space Systems J.P. Stevens said Thursday.

“Over the last 50 years, space technologies have increasingly become an important part of our nation’s economic, scientific and national security fabric,” Stevens said in testimony to the House Science and Technology Subcommittee on Space and Aeronautics. “However, other nations are making rapid advancements, and our leadership in space is no longer guaranteed.”

AIA strongly supports the current proposed NASA budget of $18.7 billion, however, Stevens noted that zero growth is budgeted through 2013.

“This is a real concern. The Chinese absolutely want to send humans to the moon and are putting in the resources to make it happen,” said Stevens in response to a question. “If we continue to delay our programs, it’s quite possible that the Chinese will return to the moon first.”

Stevens made a number of recommendations regarding NASA reauthorization, including treating the U.S. Space Exploration Policy and Constellation Program as a national priority to minimize the impending gap in U.S. human spaceflight.

He also urged funding for NASA in a number of other critical areas be strengthened including aeronautics for timely development of the Next Generation Air Transportation System and education initiatives to attract youth to careers with NASA and the aerospace industry.

Finally, the Commercial Space Launch Amendment, which expires this year, needs to be renewed to keep the U.S. space launch industry healthy.