sign in sign up
<<
Home , Goodrich Corporation, Michael Mullen, Triumph Group

4th quarter | 2011

Executive Report A Quarterly Digest from the Industries Association

American Aerospace and Defense Workers Rally for Second to None Campaign

Albaugh Reflects on the

2011 BOARD OF GOVERNORS of Aerospace Officers Jim Albaugh, Chairman of the Board David P. Hess, Vice Chairman of the Board Marion C. Blakey, President & Chief Executive Officer At the Fall Board of Governor’s meeting Ginette C. Colot, Secretary-Treasurer in Scottsdale, Az., AIA Chairman Jim Executive Committee Albaugh addressed the membership. An Jim Albaugh President & Chief Executive Officer, excerpt of his remarks is below. Commercial Airplanes, The Company Marion C. Blakey President & Chief Executive Officer, Aerospace Industries Association Futuree’ve got a great story to tell. We’re Wes Bush part of an industry that has always Chairman, Chief Executive Officer & President, W Corporation enabled America’s greatness — driving our Scott C. Donnelly Chairman & Chief Executive Officer, economy, exports, innovation and security. Textron Inc. (Ex-Officio) Until we have more scientists and engineers Charles A. Gray Vice President & Chief Operating Officer, running Washington, we need to educate Frontier Electronic Systems Corporation David P. Hess policymakers and the public that aerospace President, Pratt & Whitney, Corporation our nation’s success. Dawne S. Hickton The capability to tell our story and Vice Chair, President & Chief Executive Officer, RTI International Metals, Inc. influence policies is more critical than Linda P. Hudson President & Chief Executive Officer, ever. We are at a unique moment in time. BAE Systems, Inc. (Ex-Officio) After the worst economic downturn since the Great Depression, the commercial aviation Jay L. Johnson Chairman & Chief Executive Officer, market is coming back. Over the next 20 years, we see a need for 33,500 new airplanes. Dynamics Corporation David L. Joyce That’s a $4 trillion dollar market — one that many countries and companies covet. President & Chief Executive Officer, GE Aviation On the defense side we face the steepest budget cuts in two decades. And still worse Neal J. Keating may lie ahead. Chairman, President & Chief Executive Officer, Kaman Corporation These cuts threaten America’s lead in aerospace and are part of a broader, more important Howard L. Lance Chairman, President & Chief Executive Officer, conversation we need to have about keeping America the great country that it is. Harris Corporation America still leads in aerospace. Keeping that lead should be a national priority in Steven R. Loranger Chairman, President & Chief Executive Officer, this century — just as it was in the last. ITT Corporation Tim O. Mahoney We can do great things in the years ahead. Opportunity abounds. There is a dynamic President & Chief Executive Officer, Aerospace global market that U.S. companies are working to win. But our government needs to play Robert J. Stevens a supporting role because other countries are making inroads. Chairman & Chief Executive Officer, Lockheed Martin Corporation The question is…will the next century of aerospace be made in America? Michael T. Strianese Chairman, President & Chief Executive Officer, continued on page 3 L-3 Communications Corporation William H. Swanson Chairman & Chief Executive Officer, Raytheon Company About the Cover: More than 300 employees gathered at BAE Systems’ U.S. Combat Systems plant in Jeffrey L. Turner York, Pa., November 21 for the first Second to None rally supporting the aerospace and defense industry. President & Chief Executive Officer, Spirit AeroSystems Executive Report

President’s

So much of the debate in hile a traditional year-end Washington is about the deficit. Wmessage might reflect on We need to change our focus in this AIA’s accomplishments in 2011, country from what to cut…to how a nostalgic look back will have to grow. to wait. This year was just the Getting our financial house in Mesbeginningsage of an ongoing debate order is important, but it can’t that continues to bring focus be the only thing that defines our and around one of the nation or our future. What will greatest threats to our industry in a it take? You’ve heard me say this generation. before. In my view, it requires: In 2010, I used the term “headwinds” to describe our challenges in Washington. • Policies that promote In 2011, those headwinds increased to hurricane strength. In the midst of a faltering innovation and economy, we are now bracing for $450 billion in defense cuts with more than $500 competitiveness, billion in cuts spring-loaded by the sequestration trigger for 2013. • The ability to attract and It’s hard to overstate the impact these cuts would have on our national retain the kind of talent that’s security and industrial base. More than a million jobs are at stake, along made our country great, with our ability to provide American warfighters with the technologies and • A strong defense industrial capabilities they need to keep our country safe. base that preserves the If this sounds like hyperbole, don’t take my word for it. The million-plus continuum of capability that’s job loss estimate comes from a study commissioned through George Mason taken us decades to build, University in Virginia. Michael Mullen, Chairman of the Joint • A level playing field, Chiefs of Staff, said this year that if lawmakers “cut too deeply…we will burn • A quality public education the very blanket of protection that we have been charged to provide our fellow system. citizens.” Secretary of Defense Leon Panetta said that proposed cuts would We need to think big and be bold. result in “hollowing out the force.” The need for our industry to have If sequestration takes effect as scheduled in 2013, FAA’s budget would a powerful voice has never been be reduced by seven percent, falling disproportionately on the investment greater. accounts, significantly delaying the Next Generation Air Transportation System. NASA’s charge to continue to develop space exploration programs to replace the retired shuttle program would also be at risk. As an industry, our response has been unprecedented. In September, we continued on page 6

e x e c u t i v e r e p o r t  3 American Aerospace Workers Rally

hile Washington’s attention in November ask for a better customer than our men and women in Wwas on the supercommittee’s failure to reach the armed forces.” agreement on the national debt, a compelling story was Smith is just one of 1,292 workers at BAE Systems being told in York, Pa., by those with the most to lose if whose jobs are at stake in the current battle over budget another $500 billion in defense cuts becomes a reality as cuts in Washington. According to an AIA-sponsored a result of the committee’s impasse. analysis, more than an 1 million jobs are estimated to Steve Smith was among more than 300 local workers be at risk if sequestration triggers a $600 billion defense gathered at a BAE Systems’ U.S. Combat Systems cut on top of the $480 billion cut already in motion. In plant in York on November 21 for the first Second to Pennsylvania, that’s about 36,000 jobs. None rally in support of the aerospace and defense Robert Murphy, BAE Systems’ executive vice president industry. of Product Sectors, put it succinctly at the rally: “If York is As reported by the York Daily Record, Smith began at risk, American soldiers and Marines are at risk.” work for BAE Systems right out of high school, and has While the York facility focuses primarily on refurbishing gone from a union worker to a management position combat vehicles, BAE Systems is a leader in the at the company during a career spanning 34 years. The design, development and integration of advanced weapons, 54-year-old said that his daily commute to BAE Systems sensors and control systems for aerospace platforms is a small price to pay for the work his company does to including the Chinook, Black Hawk and Seahawk. support America’s military. “We’re here to add our voices to people across the “It’s worth it,” Smith told the Record. “We couldn’t nation who are concerned about what could happen

4  a e r o s p a c e i n d u s t r i e s a s s o c i a t i o n American Aerospace Workers Rally

Left to right: 1. BAE Systems’ Robert Murphy and AIA’s Marion Blakey on stage; 2. Murphy addresses the crowd; 3.-4. BAE Systems’ workers; 5. BAE Site Executive Todd Harrold on stage; 6. Congressman Todd Platts addresses the crowd.

to jobs, to national security and to the safety and facilities like this one?” said Murphy. “Is this a risk we effectiveness of Americans in uniform if defense are willing to accept?” spending cuts go too far,” said Todd Harold, BAE “If history has any lessons, more than half of the expected Systems’ site executive at York. “It’s easy to think that cuts will come from investment programs that buy what happens in Washington doesn’t impact the lives of equipment off lines just like this one,” said AIA President ordinary people. But it does. These cuts could eliminate and CEO Marion Blakey, who also spoke at the rally. up to a million defense-related jobs.” “And the risk is even greater because much of our Speaking to BAE Systems employees waving Second equipment is old and worn out and there’s not a lot in to None signs inside the company’s cavernous assembly development,” she said. “Our troops are going to start facility, U.S. Rep. Todd Platts of Pennsylvania’s 19th coming home from and , but we’re still District said that solving the nation’s financial woes a nation at war and our troops need the best equipment must not be “on the backs of the defense industry” that that we can send them.” supports the U.S. military. Echoing the voices of BAE Systems’ employees in “When you get on this , you do York, AIA’s answer is a resounding “no.” As the Second it as Americans,” he said. “Not Republicans. Not to None campaign continues in 2012, we will ensure Democrats. But Americans.” that our industry continues to speak with one voice and “Given the state of global affairs and the fragile take this battle against defense cuts to those who will condition of our economy, can we really afford to ultimately decide how to balance the budget and restore mothball our industrial base, eliminate jobs and close America’s economic security. 

e x e c u t i v e r e p o r t  5 continued from page 3 launched the “Second to None” campaign, a nationwide insufficient, and will push for cuts above agreed-upon levels. initiative to speak with one voice about the importance of Our only option for 2012 is to keep fighting. That means the U.S. aerospace industry. We took our message about new rallies, more outreach to the press and ongoing efforts job creation, national security and technological superiority to educate policymakers and stakeholders across the to the media, the Internet, Capitol Hill, and to anyone who country about the disastrous consequences of gutting the would listen along with a warning: cutting into the bone of U.S. aerospace and defense industry. the aerospace and defense budget is not the answer to our To prevail, we will need your ongoing support. We country’s budget woes. need to activate employees, suppliers and other partners. Lawmakers and the American people are taking notice. Whether it’s holding a rally, meeting with a member of Since the campaign started, we’ve held Congress, pushing an email out to two major press briefings, generated your employees, or simply posting more than 100 news articles, and the Second to None link on your prompted the publication of more company’s website, there is a role for than 100 op-eds and letters to the everyone to play. editor. I personally visited 70 members As I close this message, I must of Congress, and 100 AIA members take the opportunity to thank our joined us for the March to the Hill Chairman Jim Albaugh and the entire during National Aerospace Week. 2011 Executive Committee for their In November, we helped show the support. Jim has been a strong force in country where the impact of defense bringing to the forefront critical issues cuts will be most acutely felt, with a for our industry, particularly the huge employee rally at BAE Systems’ Tom Buffenbarger, president of the International Association fragility of our industrial base. U.S. Combat Systems plant in York, Pa. of Machinists and Aerospace Workers, participated in a press We’ll look forward to his continued briefing at the National Press Club in October on the impact But 2011 was just the beginning. One of defense cuts on America’s aerospace workers leadership on the Executive Committee of the biggest myths out there is that the supercommittee in 2012 as the gavel is handed over to David Hess, the failure gives us a definitive understanding of defense, space president of UTC’s Pratt & Whitney. As I’ve written, there and civil budget threats for 2013. That’s just not the case. are many challenges ahead and I’m particularly grateful With the possibility of a new administration in 2013, Dave is with us leading the charge. everything is on the table. In addition, any budget control legislation eventually signed into law in 2012 can be repealed or amended — leaving us at risk for additional cuts. Plus, some Marion C. Blakey in Congress will see any future agreement on cuts as being President & Chief Executive Officer AIA Continues Record Growth IA has added 31 full members and 28 associate members to our roster this year — nearly 60 percent Agrowth since January 2010. Not only are our numbers growing, but attendance at major meetings and events, and council and committee meetings, continues to break records, including the November Board of Governor’s meeting in Scottsdale, Az., which was our largest in history with more than 300 attendees. The following members were approved at the meeting: The following associate members were also welcomed to AIA: Align Aerospace, LLC Asia-Pacific Consulting Services, LLC (APECS) Alion Science & Technology BRPH Architects Engineers BRS Aerospace Future Metals LLC Sugasawa Corporation Fluor Corporation Sugawara Corporation  ITT Exelis -USA, Inc.

6  a e r o s p a c e i n d u s t r i e s a s s o c i a t i o n Aerospace Industries Association Members of the Board of Governors

David C. Adams David C. Dobson Tariq Jesrai Cathy L. McCarthy James Randall Co-Chief Operating Officer, President, Alcoa Defense Chief Executive Officer, McKechnie President & Chief Executive Officer, SM&A President, Allfast Fastening Systems, Inc. Curtiss-Wright Corporation Steven F. Gaffney Aerospace Ulick McEvaddy Anthony Reardon Robert P. Barker Chairman & Chief Executive Officer, Clayton M. Jones Director, Omega Air, Inc. President & Chief Executive Officer, President, Aerospace, DynCorp International LLC Chairman, President & Chief Executive Michael J. McGuire Ducommun Inc. Parker Aerospace, and Executive Vice Thomas A. Gendron Officer, Sr.Vice President, Aerospace & Defense Ronald S. Saks President & Operating Officer, Parker Chairman of the Board & Chief Executive Robert J. Khoury Business Unit, Celestica Corporation Chief Executive Officer, LMI Aerospace Inc. Hannifin Corporation Officer, Woodward Governor Company Board of Directors, B/E Aerospace Richard L. McNeel Kevin M. Sandkuhler David E. Berges Paul L. Graziani Christopher Kneizys President & Chief Executive Officer, President, Chief Executive Officer Chairman & Chief Executive Officer, Chief Executive Officer, Analytical President, Micro-Coax, Inc. Lord Corporation & Director, Pinkerton Government Hexcel Corporation Graphics, Inc. Mark Kokosinski Laurans A. Mendelson, Services, Inc. Robert T. Brady David Groen Senior Vice President, HITCO Carbon Chairman of the Board & Chief Executive Scott J. Seymour Chairman & Chief Executive Officer, Chairman, President & Chief Executive Composites Officer, HEICO Corporation President & Chief Executive Officer, Aerojet MOOG Inc. Officer, Groen Brothers Aviation, Inc. John S. Langford Gregory F. Milzcik Gwynne Shotwell Kenneth Bram James M. Guyette Chairman & President, Aurora Flight President & Chief Executive Officer, President, Space Exploration Technologies President, AUSCO, Inc. President & Chief Executive Officer, Sciences Barnes Group Corporation James Callan Rolls-Royce North America Inc. Marshall O. Larsen Bradley J. Morton Randy Snyder General Manager, Aerospace & Defense, Guy C. Hachey Chairman, President & Chief Executive President, Aerospace Group, Eaton President, Wesco Hardware Timken Aerospace Transmissions, LLC President & Chief Operating Officer, Officer, Corporation Corporation Kevin J. Carter Bombardier Aerospace Stephen R. Larson Frank W. Pace Robert R. Sprole Chief Executive Officer & Chief Financial Walter P. Havenstein Vice President of Strategy & Technology, President, Group, President & Chief Executive Officer, Officer, Timco Aviation Services Inc. Chief Executive Officer, Science Esterline Technologies General Atomics Aeronautical Therm, Inc. Colin P. Combs Applications International Corporation Armand F. Lauzon Systems, Inc. Gary J. Spulak President, Advanced Engineering & Raanan L. Horowitz Chief Executive Officer, Chromalloy Anthony W. Patti President, Embraer Aircraft Holding Inc. Technological Group, Belcan Corporation President & Chief Executive Officer, John S. Lenyo Chairman, Global Aerospace & Defense Terry D. Stinson Pinaki Dasgupta Elbit Systems of America President & General Manager, CAE Council, CSC Group Vice President, Structures & Executive Director, Aerospace & Defense, Richard C. Ill USA, Inc. Paul J. Pendorf Systems, AAR , Inc. Accenture Chairman & Chief Executive Officer, Terence W. Lyons President, AMT II Corporation Charlie Stuff Mark W. DeYoung Triumph Group, Inc. President & Chief Executive Officer, Art Prangley Executive Vice President, Cobham President & Chief Executive Officer, AmSafe Global Holdings, Inc. Director, HP Enterprise Services, Alliant Techsystems, Inc. (ATK) Aerospace AIA Member Companies AAR Manufacturing, Inc. ANSYS, Inc. Computer Sciences Esterline Technologies HITCO Carbon Marotta Controls, Inc. Pinkerton Government Sanmina-SCI TIMCO Aviation Services Accenture Aurora Flight Sciences Corporation (CSC) Exostar LLC Composites Meggitt-USA, Inc Services, Inc. Corporation Inc. Acutec Precision AUSCO, Inc. Comtech AeroAstro, Inc. Flextronics International Honeywell Aerospace Metron Aviation Inc. Plexus Corporation SAP Public Services Timken Aerospace B&E Group, LLC Crown, Inc. USA HP Enterprise Services, Micro-Coax, Inc. PPG Aerospace-Sierracin Satair Transmissions, LLC Aero-Mark, LLC B/E Aerospace, Inc. Cubic Defense FlightSafety International Aerospace Moog, Inc. Corporation SCB Training Center, Inc. Triumph Group, Inc. Aerojet BAE Systems Applications, Inc. Inc. Hydra Electric Company Natel Engineering PRTM, LLC Science Applications Aerospace Systems AeroVironment, Inc. Barnes Group Curtiss-Wright FTG Circuits, Inc. IBM Corporation Co. Inc. PTC International Group AGC Aerospace & Belcan Advanced Corporation Galactic Ventures LLC IEC Electronics Corp NobleTek PWC Aerospace & Corporation Aftermarket Services Defense Engineering and Curtiss-Wright General Atomics Infotech NORDAM Defense Advisory Siemens PLM Software Group AirDat LLC Technologies Controls, Inc. Aeronautical Systems, Integral Systems, Inc. Northrop Grumman Services Sierra Nevada UFC Aerospace Alcoa Defense Boeing Company Metal Improvement Inc. ITT Exelis Corporation Qwaltec Corporation, Space United Technologies Align Aerospace, LLC Bombardier Aerospace Company General Dynamics Jabil Defense & NYLOK Corporation RAF Tabtronics, LLC Systems Corporation Alion Science & Broad Reach Deloitte Consulting LLP Corporation Aerospace Services O’Neil & Associates Raytheon Company SIFCO Industries, Inc. Pratt & Whitney Technology Engineering Company DigitalGlobe General Electric Aviation LLC Omega Air, Inc. Realization Technologies Sila Solutions Group Sikorsky Allfast Fastening BRS Aerospace Ducommun Gentex Kaman Aerospace Oracle USA, Inc. Inc. SITA Hamilton Systems, Inc. CAE USA Inc. Incorporated Goodrich Corporation Corporation OSI Systems, Inc. Remmele Engineering, SM&A Sundstrand Alliant Techsystems, Inc. Castle Metals Aerospace DuPont Company Groen Brothers Aviation KEMET Pacifica Engineering, Inc. Inc. Space Exploration Valent Aerostructures (ATK) Celestica Corporation Eaton Corporation Inc. KPMG LLP Pall Aeropower Rhinestahl Corporation Technologies Vermont Composites Inc. Allied Barton Security Certon Software, Inc. Elbit Systems of America Guardsmark, LLC L-3 Communications Corporation Rix Industries Corporation W. L. Gore & Associates, Inc. Services Chromalloy Embraer Aircraft Holding Harris Corporation Corporation Paragon Space Rockwell Collins Sparton Corporation Wesco Aircraft Hardware American Pacific CIRCOR International Inc. HCL America LAI International, Inc. Development Rolls-Royce North Spirit AeroSystems Corp. Corporation Inc. Erickson Air-Crane HEICO Corporation LMI Aerospace Inc. Corporation America Inc. Tech Manufacturing LLC WIPRO Technologies AmSafe Aviation Click Bond, Inc. Incorporated Hexcel Corporation Lockheed Martin PARTsolutions, LLC RTI International Metals, Textron Inc. Woodward, Inc. AMT II Corporation Cobham ESI North America Hi-Shear Technology Corporation Parker Aerospace Inc. The SI Organization, Inc. Xerox Corporation Analytical Graphics, Inc. Colt Defense, LLC ESIS, Inc. Corporation Lord Corporation Therm, Inc. AIA Associate Member Companies 300 Below ARINC Engineering Co-Operative Industries Fluor Corporation Intrepid Learning Monogram Aerospace Precision Tube Bending Sigma Metals, Inc. Tiodize Co., Inc. 3M Company Services LLC Defense, LLC Freedom Alloys Solutions Fasteners Premier Precision Group SMT Corp Tri Polus Inc. A.T. Kearney Public Arkwin Industries, Inc. Coalition Solutions Frontier Electronic ITW CIP Montana Metal RAM Company Southern Manufacturing TSI Group Inc. Sector & Defense Asia Pacific Engineering Integrated, Inc. Systems Corporation Janes Capital Partners Products, LLC Renaissance Services Technologies TSI Plastics, Inc. Services LLC Consulting Services, Consolidated Precision Future Metals, LLC JRH Electronics, LLC. Morris Machine Renaissance Strategic Spincraft TTI, Inc. Acme Industrial LLC Products G.S. Precision, Inc. Kennametal Inc. Company, Inc. Advisors II, LLC Spirit Electronics, Inc. TTM Technologies, Inc. Company Astro-Med, Inc. CPI Aero General Products Kubotek USA Morton Manufacturing Rocker Industries SPX Precision TW Metals ADI American Astronautics Corporation Crawford & Company Glovia International Kulite Semiconductor National Machine Group Rubbercraft Components UFP Technologies Distributors, Inc. of America (formerly Furniture H&S Swansons’ Tool Products, Inc. National Utilities USA Sugasawa Corporation Umbra Cuscinetti, Inc. Aeronautical Systems, ATC Aerospace Resources) Company Lintech Components Company Samuel Aerospace Sulzer Metco (US) Inc. University of Tennessee Inc. Athena Manufacturing, Crestwood Technology Haas TCM/Avchem Co., Inc. New Breed Corporation Metals Sunshine Metals, Inc. – Aerospace Defense Aerospace Alloys, Inc. LP Group HCL Technologies Loos & Co., Inc. Norfil Manufacturing, Inc. Scot Forge Corporation Swift Engineering Clearing House Aerospace Joint Banneker Industries, Inc. Dassault Systemes HDL Research Lab, Inc. MAG Industrial North Shore SDL (formerly Synchronous Aerospace Venture Aircraft, LLC Apprenticeship Benchmark Electronics, Data Conversion Hi-Temp Insulation Inc. Systems, Components, Inc. XyEnterprise) Group VISTAGY Committee (AJAC) Inc. Laboratory, Inc. Houlihan Lokey LLC O’Neil & Associates, Inc. Sea Air Space Machining Sypris Electronics VT Group, Inc. Aerospacemall.com Brogdon Tool & Die, Inc. Dayton T. Brown Inc. Hughes Bros. Aircrafters, Maine Machine Products Oceanit & Molding ( Formerly Systec Vulcanium Metals Air Industries Machining BRPH Architects & Electronic/Fasteners, Inc. Inc. Co., Inc. Aerospace Institute named North Cape Tactair Fluid Controls Incorporated Corporation Engineers Embry-Riddle Industrial Metals Intl. Ltd. Materion Orion Industries RIM Manufacturing) TCS America Whitcraft LLC Airborn Operating L.P. BTC Electronic Aeronautical University Infotech Enterprises McCann Aerospace P3 – North America SEAKR Engineering TechSolve, Inc. Windings, Inc. Alcoa Fastening Systems Components Emhart Teknologies America Inc. Machining Corporation Consulting Limited Seal Science, Inc. TEK Precision Co. Ltd. X-Ray Industries Allen Aircraft Products, Manufacturing Black & Decker InfoTrust Group Meehan Electronics Parkway Products, Inc. Sechan Electronics, Inc. Telephonics Corporation Yarde Metals Inc. Technology Consulting Company Ingenium Corporation PCC Airfoils, LLC SELEX Galileo Inc. The Ferco Group Altemp Alloys, Inc. CDG ENSCO, Inc. Inmedius Meyer Tool Inc. Pelican Products, Inc. Senior Aerospace The World Academy American Celltron Inc. Essner Manufacturing, InterConnect Wiring Microsemi Corporation Perillo Industries, Inc. Serco Inc. Thermacore, Inc. AMI Metals, Inc. Cherokee Nation L.P. International Mid-State Aerospace Inc. Phillips Screw Company Service Steel Aerospace ThyssenKrupp APV Manufacturing & Distributors ETA Global, Inc. Technegroup Inc. Millitech, Inc. Plymouth Engineered Servotronics, Inc. Aerospace North Engineering Co. CIT Aerospace Exotic Metals (TranscenData Moritz Aerospace, Inc. Shapes Shapes Aerospace America CMC Electronics Company LLC Division) Precision International TIGHITCO, Inc.

e x e c u t i v e r e p o r t  7 Chairman of the Communications Council John Dern addresses the crowd at the 47th Year-End Review and Forecast Luncheon. Dern is vice president of public relations at The Boeing Company. 2011 Year-End Review and Forecast ore than 300 people packed the ballroom at purchases are expected to decline in the coming years MWashington, D.C.’s historic Mayflower Hotel due to federal deficit reduction measures. in mid-December to hear the good news about the • In 2011, the industry contributed $87 billion in aerospace industry’s strong economic performance export sales to the domestic economy, up 12 percent in 2011. At AIA’s 47th Annual year-end Review and due to increased civil exports after falling for two Forecast Luncheon sponsored by the Communications years. The industry’s positive trade balance of $57.4 Council, President Marion C. Blakey reported that billion represents the largest positive trade balance of despite sluggish market conditions around the globe, any manufacturing industry. annual aerospace sales are expected to top $218 billion. • This year the space industry was impacted by the Marking the eighth consecutive year of growth, sales in retirement of the space shuttle and reductions in NOAA all sectors — civil and , , and the weather satellite funding and national security space space sector — are all expected to top their respective programs. Nonetheless, sales increased from $45.3 year-ago totals. billion in 2010 to a projected $46.4 billion in 2011. “The fact that our industry is a leading job-creator, • In the years following 2012 the aerospace industry a technological innovator and a critical part of our will face significant challenges, particularly in the nation’s security is too important to be taken for defense sector, as the government seeks solutions to granted,” said AIA President and CEO Marion C. an ongoing budget crisis. Sales in 2012 are expected Blakey. “If this industry stops being Second to None, to drop by about half a billion dollars with declines in the future of our country is in question.” every product group except civil aviation. Highlights of the report are below: In conclusion, with employees in every state of the • Poised to experience huge growth in the future, the union, the U.S. aerospace industry continues to provide civil aircraft sector is likely to grow at a compound significant contributions to the country’s economy and annual growth rate of some 3.4 percent during provides capabilities vital for national security. This 2011to 2013. Orders for civil aircraft are expected to is particularly relevant given the nation’s challenges rise sharply in 2011, reaching nearly $107 billion, a of high unemployment, a stagnating economy and a gain of 23 percent. crippling national deficit. • While 2011 was a strong year for military aircraft, For more information, go to www.aia-aerospace.org with a 6.7 percent expansion over 2010, domestic and see Year-ender under the Research Center tab. 

AEROSPACE INDUSTRIES ASSOCIATION 1000 Wilson Blvd. #1700 Arlington, VA 22209-3928 Phone 703.358.1000 www.aia-aerospace.org

FSC_Logo The AIA Executive Report is printed on FSC® certified paper, which contains recovered, post consumer waste fibers. printer to place Additionally, it was printed at a carbon neutral facility, utilizing 100% renewable electricity in the form of wind and solar REC’s with non-petroleum, vegetable based inks.