 |
|
|---|
|
|
 |
 AIA UPDATE: February 2006, Volume 10, No. 5
AIA Advocates Global Aerospace Business Ethics Initiative with European Counterparts AIA and its European counterparts are weighing the prospect of developing a cooperative structure to encourage ethical business relationships and oversight processes in international aerospace and defense markets. Tentatively called the International Defense Industries Initiative (IDII) — a name taken as an extension of a similar aerospace and defense ethics program in the United States —the international initiative would promote a culture and practice of ethics and right conduct in global business activities. Business ethics have become an increasingly visible issue in the United States. As the aerospace and defense industry has become more globally competitive, Congress, regulators, and government agencies have become more concerned with business practices among buyers and sellers in U.S. and offshore markets. IDII would be a committee of the International Coordinating Council of Aerospace Industry Associations (ICCAIA) and would include AIA's counterparts in Europe, Brazil, Canada, and Japan as members. Participating industry bodies would require their respective defense and aerospace members to have documented business ethics programs, share best practices, and examine issues relating to ethical business standards. The initiative is under review among ICCAIA members, pending an ICCAIA meeting in March to coordinate IDII implementation by each member organization. Signing of an IDII charter, possibly at the Farnborough International Airshow in July, would formally launch the initiative. AIA Source: remy.nathan@aia-aerospace.org Ron Sugar Chairs AIA Board in 2006  Ronald D. Sugar, chairman, chief executive officer, and president of Northrop Grumman Corporation, has been elected chairman of AIA's Board of Governors for 2006.
He succeeds Robert D. Johnson, chairman of Honeywell Aerospace, in the association's top leadership post. In addition, William Swanson, chairman and chief executive officer of Raytheon Company, was elected vice chairman of the association's Board of Governors. Also, the board re-elected John W. Douglass as AIA's president and chief executive officer and Ginette C. Colot as secretary-treasurer. Sugar joined the company at the time of its 2001 acquisition of Litton Industries Inc. He previously served as Litton's president and chief operating officer and as a member of its board of directors. Before joining Litton, Sugar was president and chief operating officer of TRW Aerospace and Information Systems and a member of the chief executive office of TRW Inc. Earlier, he ran TRW's worldwide automotive electronics business and also served as TRW's chief financial officer. TRW Inc. was acquired by Northrop Grumman in 2002. In 1968 Sugar graduated summa cum laude in electrical engineering from the University of California at Los Angeles where he also received a master's degree and a doctorate in the same field. He subsequently completed executive education programs at Stanford University, the Wharton School of the University of Pennsylvania, and Harvard University. Sugar is a trustee of the Association of the United States Army, a member of the National Academy of Engineering, a fellow of the American Institute of Aeronautics and Astronautics, and a fellow of the Royal Aeronautical Society. He also is a national trustee of the Boys and Girls Clubs of America, a director of the Los Angeles Philharmonic Association, and a trustee of the University of Southern California. Sugar serves as a member of the board of directors of Chevron Corporation. AEROSPACE FOCUS  WASHINGTON PIPELINE: Bringing Industry's National Defense Strategy into Focus By John W. Douglass, AIA President and Chief Executive Officer The United States accounts for about half of worldwide defense spending even though it consumes a modest 4.4 percent of the nation's gross domestic product. Furthermore, U.S. military forces operate in 118 countries — not including Iraq and Afghanistan. At the midpoint of the current decade, we can begin to appreciate the vast evolution of foreign threats to the United States in just the last six years. U.S. armed forces stand at the center of this whirlwind of change, providing credibility to our diplomacy, securing global stability, and, when necessary, using precision force to confront America's most lethal adversaries. AIA's national defense agenda recognizes the critical role of the military in preserving — and representing — our society and its values. The association's national defense agenda begins with an incontestable fact: American soldiers depend on a responsive industrial base for the hardware, technologies, and mobility they need to succeed in their mission. The private sector, in turn, depends on sound public policies that safeguard the nation's security while enhancing the ability of the aerospace industry to compete around the world. These twin policy goals illustrate a second fact about the AIA agenda: we cannot maintain an effective national defense without a vibrant industrial base. Industry's pre-eminent responsibility of equipping the military would falter if aerospace and defense companies lacked the capacity to invest billions of their own dollars in research and development every year. It would falter if what we know as the principles of acquisition excellence are not applied, and, instead, the process produces ill-defined program requirements and budgeting techniques that create unrealistic cost expectations. It would falter if legislative or administrative restrictions cripple the nation's defense trade and cooperation with partners around the globe. And it would falter if we fail to revitalize industry's key weapon and most valuable asset — a skilled and motivated workforce. During 2006 AIA's new National Security Division will engage Congress and the Bush Administration on a range of policy issues to improve the capabilities of the aerospace and defense industry in support of the country's defense objectives. Today's defense and deterrence imperatives have relegated previous standard battle configurations to history. A series of new battlefields have rapidly displaced the old ones, and foreign enemies, if not directly confronting the United States, continue to fight from mountain caves or in crowded public squares. The traits of adaptation and determination at the heart of American culture, however, have begun to prepare us for this struggle against terrorism and its state sponsors. America's contemporary security challenges, therefore, highlight the third fact behind AIA's defense agenda: the need for systematic cooperation between the aerospace industry and its government customers at home and abroad so that our military has the tools to prevail against an indiscriminate enemy. WASHINGTON WATCH: Lockheed's Inglee Leads AIA National Security Council The newly formed AIA National Security Council will concentrate its efforts on defense issues. Bill Inglee, vice president of plans and policy for Lockheed Martin, chairs the new council. The council plans to:
The Executive Committee of the association's Board of Governors last year called for an increased focus on defense issues and authorized creation of the National Security Council. AIA Source: jana.denning@aia-aerospace.org WASHINGTON WATCH: AIA Identifies 2006 Top Industry Issues AIA's Executive Committee has announced its top aerospace and defense industry issues for 2006. Each year the association identifies the top issues of importance to America's aerospace and defense companies, encompassing the broad objectives of the association's Board of Governors. This year's issues will guide the efforts of the association's three divisions — national security, space, and civil aviation.
WASHINGTON WATCH: Douglass: Industrial Base Should Not Be Neglected Amid news of strong sales in the aerospace and defense industry is a growing concern among insiders that a less-than-healthy industrial base could threaten the country's economic and security future, AIA President and CEO John Douglass said. The aerospace industrial base is not as strong as the positive statistics suggest, Douglass said, and leaders should take action to make sure the United States isn't caught unprepared for military and economic challenges years from now. The aerospace and defense industrial base is increasingly fragile," Douglass said. "Some parts of the defense industrial base have dried up completely." Douglass issued the caution to 300 members of the media, industry, and government at AIA's 41st Annual Year-End Review and Forecast Luncheon in mid-December. After unveiling a raft of positive economic news based on 2005 statistics, Douglass said it isn't time to ignore some troubling signs about the future of aerospace. Right now the United States is not producing any bomber aircraft or refueling tanker aircraft, he pointed out. Many other important products and components are being manufactured by just one producer, including strategic and tactical aircraft, aircraft carriers, main battle tanks, space shuttle components, and the rocket fuel used for space and missile applications. Fisher Leads NGATS Institute  Stephen T. Fisher, a senior FAA and aerospace industry manager, is the new executive director of the Next Generation Air Transportation System Institute.
Fisher, who assumed the post last November, oversees daily operations at the institute, an industry partnership supporting the Joint Planning and Development Office (JPDO) in developing and implementing a technologically advanced air traffic control system for the future. He succeeded Dale Goodrich, the first executive director of the institute, who was recalled to active military duty. Affiliated with AIA, the institute provides liaison with aerospace manufacturers, operators, academics, and others involved in designing and creating an advanced U.S. air traffic control system. The institute works closely with the JPDO, the multi-agency body formed to lead development of the improved air traffic control system. Before joining the institute, Fisher was a senior account manager with Northrop Grumman's Information Technology Sector, overseeing FAA and Transportation Department programs and services. Earlier, he was an executive staff officer in the National Military Command Center in the Pentagon following the Sept. 11, 2001, terrorist attacks. At FAA, Fisher served in numerous engineering management positions, including program director for advanced technology research and development for emerging general aviation and vertical flight technologies. In addition, Fisher served as a helicopter pilot and staff officer in the regular and reserve Marine Corps, retiring with more than 30 years of service in 2002. Romanowski Named Head of NCAT  AIA executive Michael Romanowksi has been named president of the National Center for Advanced Technologies.
Romanowski, vice president of Civil Aviation at AIA, remains in that position. He succeeds Stan Siegel, who retired from the center in December. AIA President and CEO John Douglass continues in his role as chairman of the center. The organization is a non-profit research and education foundation that provides a bridge between government, industry, and academia and encourages cooperative efforts in technology development. The 10-year-old center is affiliated with AIA. The parent organization of the Next Generation Air Transportation System Institute, the center provides direct private-sector input into the efforts of the government's Joint Planning and Development Office. It also supports Defense Department initiatives. Mertes Joins AIA Civil Aviation Susan J. Mertes has joined AIA as director of aviation infrastructure, a new position focusing on improvements to the civil air transportation system. AIA President and CEO John Douglass said Mertes, an attorney, is well-positioned to advance industry requirements in civil aviation infrastructure. "Our nation's aviation system, which is a huge economic engine, is in a period of transition," Douglass said. "Susan is an excellent addition to our Civil Aviation staff, representing our interests in the new, technologically advanced air traffic control system and other infrastructure issues." At AIA, Mertes identifies and monitors emerging aviation infrastructure issues and trends and federally funded advanced systems research and development. Most recently she was director of federal relations and legislative counsel for the American Medical Group Association. Before that Mertes was an assistant corporation counsel for Chicago, responsible for city aviation issues. Earlier, she oversaw aviation issues for the Transportation Subcommittee of the Senate Appropriations Committee and the Employment, Housing, and Aviation Subcommittee of the House Government Operations Committee. In addition, Mertes was director of government and industry affairs at the National Air Transportation Association and held positions at FAA and the Transportation Department. She earned a bachelor's degree from the University of Illinois and a telecommunications law degree from Catholic University of America. Aerospace Sales Robust in 2005 Aerospace sales hit a record level in 2005 as the industry's three main sectors — civil aircraft, defense, and space — all showed growth, AIA reported in its state-of-the-industry analysis.  Douglass said the statistics are reflections on positive developments over the past year with civil aviation gaining strength and airlines buying new planes and the new Vision for Space Exploration driving space technologies. The strong defense sales numbers show the administration's dedication to keeping the nation secure. "This is good news for our economy because aerospace provides a foreign trade surplus and is adding jobs," Douglass said. "Our industry is also vitally important to national security, and the strong defense sales are a reflection of that fact." Douglass presented the statistics at the 41st Annual Year-End Review and Forecast Luncheon in mid-December. AIA Research Director David Napier, who compiled the statistics, said the outlook for the next year is solid, calling for 8.2 percent growth to $184 billion. That would be another record year. Aerospace remains one of the most important cogs in the U.S. economy, registering a positive trade balance of $37 billion. That reflects an increase of $6.4 billion over last year's surplus. Aerospace is one of the few manufacturing sectors of the economy that consistently shows a foreign trade surplus and posted the highest positive balance of all industry categories in 2004. Civil aviation sales, including commercial jets, general aviation aircraft, helicopters, engines, and parts, led all sectors, increasing 20 percent to $39 billion. Orders increased 15 percent to $187 billion and, for the second year, the number of commercial jetliners delivered rose, an increase of seven to 290. Backlog of commercial jetliners jumped 39 percent to $98 billion. Military aircraft sales increased 7 percent to $50 billion, missile sales rose 4 percent to $15.3 billion, and space sales grew 3.8 percent to $37 billion. Sales for general aviation, helicopters, military aircraft, space, and related products and services are all new records. Aerospace employment continued its climb after hitting a 50-year low in February 2004, adding a projected 30,900 jobs in 2005 to reach 623,900. Aerospace accounted for one-third of all manufacturing jobs added nationwide since that 50-year low. AIA Source: david.napier@aia-aerospace.org DoD and AIA Seek Berry Amendment Compliance Policy A Procurement and Finance Council working group is developing an industry approach to contractual and practical aspects of a long-term Berry Amendment compliance policy. The Berry Amendment prohibits the use of appropriated funds to purchase certain items, including specialty metals, unless they are certified as U.S.-produced. Most specialty metals are procured at the subcontract level, often many tiers removed from the prime contract. It is difficult and sometimes impossible to trace the source of specialty metals in end items and components. The result is that items containing a specialty metal that can't be confirmed as compliant with Berry Amendment requirements are not acceptable to the government. The current practice is a partial payment withholding and conditional acceptance at the time of delivery and an eventual negotiated price reduction. DoD has said it can't continue that practice indefinitely and is threatening to discontinue its use, leading to AIA's compliance policy initiative. State and Local Data Added to AIA Web Site AIA Web users can now browse data on employment, payroll, average wages, and number of aerospace businesses by sector for states and selected metropolitan statistical areas. Also available are employment and wage statistics for selected occupations by state. For more information, go to www.aia-aerospace.org/stats/state_data/index.cfm. AIA Source: david.napier@aia-aerospace.org 2006 Regional Meetings Set Two regional meetings for AIA member companies have been scheduled during 2006. The first will be the Midwestern Regional Meeting on June 22 and 23 in Burnsville, Minn., hosted by Goodrich Corporation. The West Coast Regional Meeting will take place in Irvine, Calif., on Sept. 27 and 28, hosted by Parker Aerospace. For more information, contact Trish Ward at (703)358-1061 or at the e-mail address below. AIA Source: trish.ward@aia-aerospace.org AIA Backs DoD at Asian Aerospace 2006 AIA is assisting the Defense Department in coordinating U.S. military aircraft participation in Asian Aerospace 2006. Taking place Feb. 21-26 at the Changi Airport and Exhibition Center in Singapore, Asian Aerospace is the largest air and trade show in Asia. Static displays of F-16, F-15C, F-15E, C-130J, KC-135, and B-1B aircraft are planned as well as demonstration flights by F-16s and F-15s. It is the final year the show in Singapore will be called Asian Aerospace. Beginning in 2008, the event will be named the Changi International Air Show and will take place at a larger site with improved access next to Changi Airport. AIA Source: sherry.epperson@aia-aerospace.org Joint Industry Study of Supplier Quality Leads to Manufacturing Recommendations AIA and the General Aviation Manufacturers Association (GAMA) have completed a year-long joint study of quality oversight of manufacturers' suppliers and have developed recommendations for solving supplier quality control issues. The study, known as the Regulatory Aspects of Improved Supplier Control, addressed FAA and congressional concerns over 1) the regulatory aspects of aircraft type certificate and 2) production certificate holder responsibilities for control and oversight of suppliers. The outcome of the study is to ensure conformity to FAA-approved type design. Members of AIA's Civil Aviation Regulatory and Safety Committee and GAMA's Technical Policy Committee carried out the extensive examination. Six manufacturing areas were investigated:
FAA commended industry for addressing the long-standing supplier control issues, noting that many of the team's recommendations address key challenges FAA is facing in the transition to a risk management approach for manufacturing certification and oversight. AIA Source: ronald.baker@aia-aerospace.org> Team America Rocketry Challenge Continues to Grow; 39 AIA Member Companies Are Sponsors A total of 678 teams from 47 states and the District of Columbia will try their hand at rocketry with the hope of landing an invitation to the fourth annual finals of the largest rocket contest in the world, the Team America Rocketry Challenge. The Team America Rocketry Challenge requires middle school and high school students to design and build a model rocket that will fly to exactly 800 feet and stay aloft for exactly 45 seconds. In addition, the rocket is required to carry a single hen's egg that must return unbroken. This is the first time since the contest began in 2003 that teams must meet both altitude and flight duration specifications. Student teams must submit qualifying scores by April 10 to be eligible for the national finals. The top 100 teams will be invited to compete in the National Finals Fly-off May 20 at Great Meadow Outdoor Center in The Plains, Virginia. Five additional AIA members have become financial partners, bringing the total number to 39. In addition, the Defense Department has joined NASA as a government partner in the contest; the Civil Air Patrol is this year's educational partner. AIA Member Company Sponsors 3M Company AAI Corporation Aerojet Alliant Techsystems Inc. (ATK) American Pacific Corporation Analytical Graphics, Inc. Argo-Tech Corporation Aviall, Inc. BAE SYSTEMS Barnes Aerospace The Boeing Company Cubic Corporation DRS Technologies, Inc. Ducommun Incorporated Embraer Aircraft Holding Inc. General Electric Company GKN Aerospace Services Goodrich Corporation W.L. Gore & Associates, Inc. Harris Corporation Honeywell ITT Industries Kaman Aerospace Corporation Lockheed Martin Corporation Natel Engineering Co. Inc. National Technical Systems Northrop Grumman Corporation Parker Aerospace The Purdy Corporation Raytheon Company Rockwell Collins Rolls-Royce North America Inc. Smiths Aerospace Actuation Systems Swales Aerospace Textron Inc. Triumph Group, Inc. United Technologies Corporation Vought Aircraft Industries, Inc. Woodward Governor Company AIA Source: allison.harvey@aia-aerospace.org> Iowa Governor Appeals to Congress for Aerospace and Defense Industry Support Iowa Governor Tom Vilsack has urged his state's congressional delegation to support a competitive and innovative U.S. aerospace and defense industry. "America's international aerospace trade serves as a pillar of our economic and national security," Vilsack wrote to the state's seven-member congressional delegation in December. "Congressional efforts," the governor continued, "should focus on legislation that enhances our opportunities with our allies around the world and maintains the United States' international leadership position in the aviation and aerospace industry." Last fall, AIA launched an educational campaign among governors from states with significant aerospace research and production facilities to make them aware of the contribution made by the industry's global partnerships to the requirements of American warfighters as well as the stabilization of hundreds of thousands of high-skilled jobs in the United States. Vilsack noted, for example, that the Pentagon awards almost $670 million in contracts to Iowa businesses on an annual basis and that the state's aerospace industry has "demonstrated world class leadership" in military and commercial electronics programs. To complement the governors' initiative, AIA in January resumed a series of congressional staff briefings to highlight the domestic economic and national security benefits of the international aerospace trade. American aerospace and defense companies collectively export approximately one-third of their total output. AIA Source: patrick.mccartan@aia-aerospace.org> GECA Goes Online A new Global Electronic Collaborative Agreement template has been completed and is now posted on the AIA Web site for use worldwide. Prepared by AIA's Electronic Enterprise Integration Committee, the document responds to an industry requirement to establish a common set of guidelines when exchanging data collaboratively and engaging with new business partners. The electronic template was developed to provide a contractual framework governing general e-business exchanges for companies. It is intended to compliment the primary contractual terms and conditions of contracts requiring collaboration among multiple parties, eliminating the practice of imbedding collaborative contract clauses that become difficult to implement and manage. The model agreement provides the rules and contractual coverage for such collaboration elements as electronic signature, non-repudiation and protection of personal data, and treatment of proprietary information. Intended to reduce the complexity and cycle time in creating a collaborative protocol agreement, the new electronic asset provides companies with practical contractual language to facilitate electronic data sharing globally. AIA Source: bruce.mahone@aia-aerospace.org AIA Source: bruce.mahone@aia-aerospace.org> |
Copyright © 2008 Aerospace Industries Association. All rights reserved. Terms and Conditions Privacy Policy