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 AIA UPDATE: September 2006, Volume 11, No. 2
AIA and Four Global Partners Initiate Ethics Roundtable AIA and four international partners in the International Coordinating Council of Aerospace Industries Associations (ICCAIA) — Brazil, Canada, Europe, and Japan — have agreed to establish regular consultations on aerospace business ethics. At a meeting at the Farnborough International Airshow in July, representatives of the four ICCAIA partners and the United States agreed to an ongoing roundtable forum that would establish and coordinate efforts to promote international ethical business principles, standards, and practices. AIA proposed the idea at the Paris Air Show last year, citing the benefits of participation in the Defense Industry Initiative on Business Ethics and Conduct, a successful U.S. business ethics program. Establishment of an international equivalent to the U.S. industry initiative has been an AIA 2006 Top Issue. The efforts are expected to lead to an international ethics code of conduct that will set standards of global ethical business behavior, AIA President and CEO John Douglass said. Douglass added that the move will head off ethics problems before they start, create a level, competitive playing field worldwide, and establish a positive climate for the workforce. "The aerospace industry is very important to all of us for security as well as economic reasons," Douglass said. "Good business ethics equal good business for our companies and customers. As our industry becomes increasingly global, it makes sense for international partners and competitors to share best practices on this issue." The agreement was announced on the heels of two related developments in Europe. The AeroSpace and Defence Industries Association of Europe announced the formation of an Ethics and Anti-Corruption Working Group and endorsed the AIA proposal for consultations. In addition, the Society of British Aerospace Companies and the Defence Manufacturers Association in the United Kingdom issued a joint statement on their organizations' commitments to promote best practices against corruption. The other partners in the new roundtable are the Society of Japanese Aerospace Companies, the Aerospace Industries Association of Canada, the Aerospace Industries Association of Brazil, and the AeroSpace and Defence Industries Association of Europe. AIA Source: mark.esper@aia-aerospace.org AEROSPACE FOCUS
Association Export Control Reform Initiative in High Gear The Executive Committee of AIA's Board of Governors is seeking a mid-September meeting with White House officials to present a series of proposals that would make the U.S. export control system more predictable, transparent, and efficient. The recommendations, which are currently being finalized by AIA's International Council, are measurable, attainable, and meaningful and should be capable of reasonably quick implementation by the administration. Going forward, the International Council will work with association member companies and relevant officials within the State, Commerce, and Defense departments, the U.S. military, and Congress to refine, implement, and expand the suggested improvements to the current export control system to make it more effective. Reform of the current export control system and processes is one of AIA's Top Issues of 2006 and has been at the top of the association's objectives for a number of years. The current U.S. export control system was put in place as a Cold War paradigm and, the association believes, prevents the nation from realizing the full security and economic benefits of aerospace trade and technology cooperation. The aerospace industry is the nation's largest export sector, consistently delivering a significant trade surplus and directly sustaining more than 250,000 high-paying jobs. AIA Source: mark.esper@aia-aerospace.org WASHINGTON PIPELINE: Industry Should Be Credited for High-Technology Contributions By John W. Douglass, AIA President and Chief Executive Officer In early June, U.S. forces killed notorious terrorist Abu Musab al-Zarqawi in a house near Baghdad. News accounts talked about the importance of stopping the most wanted terrorist in Iraq but only briefly mentioned how the operation took place. It was, in fact, a huge triumph of sophisticated aerospace and defense industry equipment and technology. An F-16 Fighting Falcon dropped two, 500-pound bombs on the house, which was pinpointed using a sensor pod with day and night vision cameras and data links, GPS satellite equipment, and transmitters to guide bombs by both satellite and laser. Two other aerospace technologies also helped — situational surveillance from a Predator unmanned aircraft and refueling from a KC-10 Extender tanker. That day in June clearly demonstrated what the aerospace and defense industry brings to the war on terror. Generally speaking, we do not receive credit when our equipment is used to vanquish an infamous foe like al-Zarqawi, but there is no shortage of criticism of the defense industrial base or the so-called "military-industrial complex." A Google search of the words "U.S. defense industry" turns up almost as many Web sites critical of the industry as advocating for it. This circumstance is the result of many factors, including misconceptions about the defense industry's size and strength and unfortunate and rare, but well-publicized, instances of scandal. There are some basic facts we can all use to clear up these misunderstandings:
WASHINGTON WATCH: House Aerospace Caucus Spotlights Space Exploration Following the successful July 4 launch of the space shuttle Discovery, the AIA-sponsored House Aerospace Caucus held its second Capitol Hill public policy briefing of the year with a focus on NASA's exploration and aeronautics programs. NASA Administrator Michael Griffin, one of three featured speakers, re-affirmed the president's commitment to the January 2004 Vision for Space Exploration, under which the United States will replace the shuttle by 2014 and inaugurate new programs to explore the moon and Mars over the next two decades. House Armed Services Strategic Forces Subcommittee Chairman Terry Everett (R-Ala.) addressed the caucus on national security space programs, stressing the critical role that Congress must play in scrutinizing the capabilities and long-term budget requirements for the nation's network of military satellites. AIA 2006 Board of Governors Chairman Ronald Sugar, CEO of Northrop Grumman Corporation, presented perspectives on how industry and the Defense Department can intensify their cooperation on complex space communications and reconnaissance programs to protect both national security and the taxpayers' investment. Co-chaired by Reps. Dave Weldon (R-Fla.) and Norm Dicks (D-Wash.), the House Aerospace Caucus unites members of Congress and their staffs with aerospace industry officials and news media representatives three times each year to discuss federal regulatory and programmatic issues. AIA Source: patrick.mccartan@aia-aerospace.org WASHINGTON WATCH: World Standards Day Highlights Public-Private Partnership The United States will celebrate World Standards Day (WSD) on October 11, 2006. At a special exhibition, reception, and dinner at the Ronald Reagan Building and International Trade Center in Washington, D.C., Ambassador Constance A. Morella, U.S. representative to the Organization for Economic Cooperation and Development, will receive the Ronald H. Brown Standards Leadership Award for her role in advancing the National Technology Transfer and Advancement Act (NTTAA). The landmark legislation, which marked its 10th anniversary this year, represents a key partnership between the public and private sectors and calls for federal agencies to adopt voluntary consensus standards as alternatives to federally developed specifications. NTTAA has far-reaching benefits to the standards community and has saved millions of dollars in federal expense. Standards are critical to safety and reliability in the aerospace industry, which today has some 3,500 formal manufacturing standards. AIA's National Aerospace Standards Committee, formed in 1938, produces one of the largest bodies of trade association standards in the United States. It's a user-oriented committee, preparing standards that define items the industry uses in its high-technology products. The association also supports the Strategic Standardization Forum for Aerospace, which serves as primary contact for U.S. aerospace industry standards positions. WSD began as a celebration of the birth of the International Organization for Standardization (ISO), which held its first meeting in London on October 14, 1946, with an initial roster of 25 countries. ISO now has more than 150 member nations and has evolved into a global clearinghouse for standards activities. The goal of World Standards Day is to raise awareness of the significance of global standardization to the world economy and to promote standardization's role in helping meet the needs of business, industry, government, and consumers. The international event recognizes the thousands of volunteers around the world who participate in standardization activities. In the United States, World Standards Day is a cooperative effort between the public and private sectors. AIA Source: matt.williams@aia-aerospace.org Space Council Forms Four New Steering Committees on Issues The association's Space Council has established four new steering committees to address emerging issues impacting AIA member companies. They are:
AIA Source: jp.stevens@aia-aerospace.org Sterling Joins Association as Legislative Affairs Vice President Cord Sterling, a Capitol Hill veteran with years of experience with the Senate Armed Services Committee (SASC), has been named AIA's vice president of legislative affairs for the Aerospace Industries Association. Sterling joins the association from the office of Sen. John Warner (R-Va.), the SASC chairman. Sterling served as Warner's military legislative assistant, advising the senator on significant defense issues and working with federal agencies and local governments. AIA President and CEO John Douglass said Sterling's depth of knowledge and experience will be great assets to the association. "We are happy to have Cord aboard," Douglass said. "His years of experience on defense-related policy issues will help AIA tackle some of the most pressing issues facing the industry." Sterling spent seven years as a professional staff member on the SASC, serving as the staff lead for the Readiness and Management Support Subcommittee, and has spent the last three years working directly for the chairman. He has worked on a variety of issues, including military readiness budget requests; industrial infrastructure, such as shipyards, arsenals, and ammunition plants; base closure and realignment; and weapon system procurement. Before working for Warner, Sterling was business development and government relations manager for EMC Corporation and worked as an evaluator for the Government Accountability Office. Sterling earned his bachelor's degree in economics and political science and his master's in national security studies from California State University, San Bernardino. He also served in the U.S. Marine Corps. He can be reached at cord.sterling@aia-aerospace.org. Defense Logistics 2006  AIA is a sponsoring partner for Defense Logistics 2006, a conference designed to bring together logistics leaders from the services, the Defense Department, and industry to discuss strategies for supporting warfighters.
The four-day conference, which will take place Nov. 27-30 in Washington, D.C., will address supply chain integration, end-to-end distribution, service and support, lean and six sigma concepts, and performance-based logistics and sustainment. For more information and registration, visit www.defenselog.com. National Security Veteran Fills Defense Policy Post at AIA Jeremiah "J.J." Gertler, a 22-year veteran of national security policy work and an accomplished author, has been named assistant vice president of defense policy for AIA. Gertler comes to the association from the Center for Strategic and International Studies where he was a senior fellow and lead analyst on missile defense and base closure issues. Previously, he was a staff member on the House Armed Services Committee where he managed the military procurement and missile defense budgets. AIA President and CEO John Douglass said Gertler brings a unique mix of defense policy, procurement, and congressional knowledge to AIA's National Security Division. "J.J.'s solid understanding of defense issues will be a tremendous asset to the association and its members," Douglass said. "He knows the industry, its strengths, challenges, history, and future." Gertler is responsible for policy issues related to the defense budget, industrial base, military aviation, and R&D. He also will oversee workforce development, which includes the AIA-sponsored Team America Rocketry Challenge. The author and editor of numerous articles and studies, Gertler has been bylined and quoted in national publications and has appeared on national broadcasts. A graduate of Amherst College, Gertler earned a master of arts degree in security policy studies from the Elliott School of International Affairs at The George Washington University. He most recently graduated with distinction from the Naval War College. Gertler can be reached at jj.gertler@aia-aerospace.org. AIA in the Forefront at Farnborough 2006 The 2006 Farnborough International Air Show in July marked the largest ever U.S. government participation in the event. The Defense Department sent 13 aircraft, and two congressional and three gubernatorial delegations attended. Other visitors included the deputy secretary of commerce, the secretary of the Air Force, the Marine Corps commandant, the FAA administrator, and the chairman of National Transportation Safety Board. More than 160 industry executives and government officials attended the AIA-sponsored dinner honoring President Bush's representative to the air show, Rep. Bill Young (R-Fla.), chairman of the House Appropriations Defense Subcommittee. AIA also hosted the annual reception with its Japanese counterpart, the Society of Japanese Aerospace Companies, and the U.S. Ambassador's Reception – events that were supported and sponsored by a large number of participating association member companies. In addition, several member companies hosted special events:
Next year, the 47th annual Paris Air Show will take place at Le Bourget June 18-24. For more on association activities at Farnborough, visit www.aia-aerospace.org. AIA Source: mark.esper@aia-aerospace.org Industry Orders, Shipments on Record Pace in First Half of 2006 Aerospace industry orders and shipments in the first half of 2006 are on pace to exceed last year's record levels, according to AIA's Aerospace Research Center. Manufacturers booked $116 billion in orders during the first half, which, on an annual basis, exceeds last year's record of $219 billion. Similarly, industry shipments totaled $88 billion in the first six months, a pace that's ahead of 2005's record of $162 billion. Civil aerospace orders nearly tripled in 2005 from its 2003 level and continued at that strong rate in the first half. Defense orders also continued their rise in 2006. AIA President and CEO John Douglass said the balanced results are a good sign for the industry. "The aerospace and defense industry is vital to our safety and security as well as our nation's economy," Douglass said. "These statistics reflect the important role the industry plays for America." Defense shipments are on pace to increase for the sixth straight year, while civil is on its third year of growth and up nearly 50 percent over 2003 results. With the industry's growing, unfilled order backlog of $280 billion as of June 2006, both defense and civil shipments are expected to continue rising.  For more information, see the Chart Gallery and Series 26ABC at www.aia-aerospace.org/stats/aero_stats/aero_stats.cfm. AIA Source: david.napier@aia-aerospace.org Space History 101 Did you know the United States might have launched a satellite before the U.S.S.R. orbited Sputnik in 1957 but chose not to?That's one factoid from a creative AIA Space Education series being offered on Capitol Hill during the remainder of the year. Called Space History 101, the series recounts the U.S. civil space program with lessons relevant to national space issues faced by Congress today. See more in the October AIA UPDATE. AIA Source: andrew.barber@aia-aerospace.org |
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