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 AIA UPDATE: October 2008, Volume 13, No. 3
New Association Report Released on Aerospace Industry Workforce Efforts 
An AIA report on U.S. aerospace industry commitment to bolster its workforce was released last month. The report — "Launch into Aerospace: Industry's Response to the Workforce Challenge" — provides an overview of the industry's workforce problem and lists four goals set by AIA members.
The first goal commits each AIA company to designate a senior executive responsible for implementing a commitment to workforce revitalization. The second goal commits members to promote the aerospace and defense industry as an attractive career choice. The third goal calls upon companies to financially support a national awareness campaign, and the final goal asks government to partner with industry in addressing workforce concerns. "The workforce crisis cuts across all sectors of our industry and affects every member company," AIA President and CEO Marion Blakey said. "This report is a statement of our commitment and resolve to move forward as an industry while working with government and other stakeholders to develop solutions." According to AIA statistics, in 2007 almost 60 percent of the workforce was age 45 or older and reaching retirement eligibility. Additionally, America's requirement for workers who are well-educated in science, technology, engineering and mathematics is not being met. Copies of the Launch into Aerospace report are available on AIA's Web site. AIA Source: daphne.dador@aia-aerospace.org AEROSPACE FOCUS: Workforce  Augustine Honored With Wright Brothers Memorial Trophy  Norman R. Augustine, former chairman and chief executive officer of Lockheed Martin Corporation who also served as chairman of AIA, has been selected to receive the prestigious Wright Brothers Memorial Trophy. The trophy is awarded annually by the National Aeronautic Association to a living American for "significant public service of enduring value to aviation in the United States." Augustine, nominated by AIA, is being honored, NAA said, for "legendary and inspirational aerospace leadership in both industry and government." The award will be presented at the 2008 Wright Memorial Dinner hosted by the Aero Club of Washington on Dec. 12. For more information, go to www.naa.aero or www.aeroclub.org. In addition to his career in industry, Augustine has served in government in many capacities, including as assistant secretary of the Army for research and development. Other government service included Defense, Energy, Transportation, Commerce and Homeland Security departments, FAA and the Government Accountability Office. He also has received numerous awards, including the National Medal of Technology. "Norm is a symbol of the best of our aerospace industry, his efforts continuing today to enhance our educational system in areas of science, technology and math — a critical issue for our nation," said Marion Blakey, AIA president and CEO. Augustine served as chairman of AIA's Board of Governors in 1994 and 1995. Integral in restructuring the U.S. aerospace industry in the 1990s, he was a leading proponent of consolidation that followed a strategy of acquisitions and mergers, such as the merger that created Lockheed Martin. U.S. presidents tapped Augustine's expertise many times to serve on committees and commissions seeking solutions to urgent national challenges. For example, he led the Advisory Committee on the Future of the U.S. Space Program in 1990 that studied long-term space policies. More recently, Augustine chaired a National Academies panel that looked into America's science and technology competitiveness. Augustine remains involved in promoting a robust workforce for the aerospace industry and other high-technology sectors and serves on the Board of Directors of the National Math and Science Initiative. AIA Source: alexis.allen@aia-aerospace.org Viewpoint: AIA Redoubles Global Efforts By Marion C. Blakey, AIA President and CEO With American cars built in Mexico and Canada, Japanese cars built in Mississippi and Korean cars built in Tennessee, there's no denying today's economy is more integrated internationally than ever before. Large multinational corporations blur international borders while ever smaller supplier companies have begun to find opportunities with foreign counterparts. Our industry takes this international cooperation to new levels as it transcends purely business relationships by promoting the overall economic health and national security of our country and our friends and allies around the world. It also permeates all three sectors of aerospace. U.S. civil aviation manufacturers are benefiting from very strong sales in the last few years, most of which are to overseas airlines. Companies on the defense side are involved in such projects as the F-35 Joint Strike Fighter that showcase unprecedented international integration. And space exploration provides, perhaps, the most cooperative enterprise — the International Space Station. AIA has always been engaged internationally, serving as an outspoken advocate in Washington, D.C., to open markets to our members and help facilitate global cooperation and a level playing field. Those of you who've taken part in international air shows also know about the role AIA plays supporting our members and coordinating events that promote networking with all of our partners and customers. And we're going to do even more. AIA has shifted its strategic thinking to include more direct international outreach. I'll illustrate this change in dramatic — if exhausting — fashion as I embark on consecutive trips this month to Japan, France and India to support our companies' international priorities. Also, in the coming decade, the Defense Department expects demand for satellite communications alone to jump dramatically — more than tenfold by 2015. This means we must increase our capabilities to ensure that national security needs aren't left behind. In addition, NSS systems are vulnerable to attack as China's anti-satellite test last year proved in dramatic fashion. The first stop is the Japan International Aerospace Exhibition 2008, an important trade show for the entire Asia Pacific region that only happens every four years. We have a full slate of meetings and events with the Japanese government and our partner, the Society of Japanese Aerospace Companies. I'm also giving a speech detailing the importance of international relationships and other industry trends. Next, it's off to Paris to participate in the annual convention of our sister organization, the AeroSpace and Defence Industries Association of Europe, hosted by the French association GIFAS. AIA has also joined ASD and GIFAS to organize a summit on one of our most pressing issues — aviation's environmental impact and the need for a global industry approach to R&D in this challenging area. I'll also help mark the 100-year anniversary of GIFAS by a group of aviation pioneers in France. Finally, I head to India, one of the most important emerging markets in our industry. I'll stop in Delhi for meetings on defense trade with Indian officials and U.S. and Indian executives. I'll then take part in the first-ever International Conference on Indian Aviation in Hyderabad. During both stops I'll be focused on supporting the growing strategic partnership between our two countries. At all three destinations I'll address the local American chambers of commerce, exploring ways to bolster U.S. civil, space and defense business in those locations. AIA continues to be closely involved in the International Coordinating Council of Aerospace Industries Associations, an important part of our international advocacy. The council includes industry groups from the United States, Brazil, Canada, Europe and Japan. Our two-year chairmanship will draw to a close in December after a recent major accomplishment — we have just installed ICCAIA's first permanent representative to ICAO. Our international relationships are vital to our continued success as an industry. AIA is poised to make an even bigger mark in the global aerospace arena, fostering common ground that will lead to expanded opportunities for our members. WASHINGTON WATCH: Industry Pulse: Strong Aerospace Growth in Second Quarter 2008 The U.S. aerospace industry is continuing its solid performance despite a challenging business environment. Quarterly and year-over-year financial indicators confirm the steady pace of industry growth. During this year's second quarter, aerospace companies generated sales and earnings significantly higher than the previous quarter and comparable 2007 levels. Second quarter aerospace sales typically rebound from characteristically weaker first quarters. This year was no exception as manufacturers increased commercial airplane deliveries, pushing second quarter sales above $63.6 billion, 11 percent higher than the previous quarter. Exports grew 11 percent over the past year to $26.2 billion, reflecting the continued foreign demand for U.S. aerospace products. Exports per total sales, however, decreased from 43 percent to 41 percent this quarter, signifying growing shipments to the domestic market. New orders totaled $55.8 billion, lifting the aerospace backlog to a record $393 billion. In light of the growing backlog, aerospace companies have renewed their focus on productivity improvement and added more than 15,000 new employees to their ranks since this time last year. AIA Source: william.chadwick@aia-aerospace.org WASHINGTON WATCH: Kaminski: NextGen Will Boost Fuel and Environmental Efforts The need to make aviation more fuel efficient and environmentally friendly bolsters the requirement to develop the next-generation air transportation system as quickly as possible, Paul Kaminski told a congressional panel recently. In testimony to the House Committee on Science and Technology, Kaminski, AIA's representative to the NextGen Management Council, said environmental benefits and the ever-increasing numbers of air passengers should prompt officials to give the initiative as much support as possible. He noted that the FAA is modeling fuel burn and noise with aircraft operations, which will help quantify the significant energy and environmental benefits of NextGen. "NextGen promises dramatic increases in efficiency and reduction in carbon emissions," Kaminski said. "When you add this to capacity, safety and other gains, it is clear we can't afford to give NextGen anything less than full support." Kaminski spoke during a hearing exploring the status of NextGen development and implementation. As AIA's council representative, Kaminski provides industry input into the initiative through the Joint Program and Development Office. NextGen is an advanced, satellite-based system that will employ cutting-edge technology to totally transform air travel in the United States. It will replace the current air traffic control system, which is based on outdated architecture and technology developed during the World War II era. A former undersecretary of defense for acquisition and technology, Kaminski has had a decades-long career involving large program implementation and application of advanced technology. He said many lessons learned during that experience could be applied to NextGen to accelerate development and allow continuous technology enhancements in the future. AIA Source: brian.elson@aia-aerospace.org WASHINGTON WATCH: SMC Hosts TRIAD Session for Small Business Sectors Acquisition processes affecting small business were among the hot topics at the AIA-sponsored Fall 2008 meeting of the Tri-Association Advisory Panel for Small Business (TRIAD) in Washington in August. The meeting took place in conjunction with MEDWeek 2008, the annual National Minority Enterprise Development conference co-hosted by the Commerce Department's Minority Business Development Agency. AIA, the National Defense Industrial Association and the Electronic Industries Alliance formed TRIAD more than 20 years ago to advocate for small businesses, small disadvantaged businesses, women-owned small businesses and veteran-owned businesses. The TRIAD meeting was hosted by Co-Chairs Joan Robinson-Berry of Boeing, Diane Dempsey of BAE Systems and Benita Fortner of Raytheon. The foremost item on the agenda was updating the procurement process to make it easier for government contractors to locate desired socioeconomic groups using a procurement card (P-card). In another matter, Elaine Guth, AIA acting vice president of procurement and finance, discussed the potential impact of pending federal legislation that would add transparency and disclosure requirements for government contractors. Another major focus of the TRIAD session was the mentor/mentee protégé program that enables senior small business liaison officers to train new officers in the field. Other topics were contracting officer expectations for small and mid-sized businesses and updates on the Defense Contract Management Agency and the Electronic Subcontracting Reporting System. After the TRIAD meeting, participants attended a White House reception for MEDWeek Award winners. AIA Source: william.peterson@aia-aerospace.org AIA Perspective: AIA National Security Vice President Downey Outlines Case for Defense Modernization for New Administration  At a press briefing in Washington in late August, AIA released a special report on growing defense modernization decisions facing the new president and Congress. In opening the event, Fred Downey, the association's vice president of national security, outlined the report. The next president will face serious national security issues and painful choices.
We don't believe any of those options are prudent. They would come with adverse costs to the nation and to the defense industrial base that's needed to compete and prevail in the future. Last spring AIA released a report on defense modernization intended primarily to inform the presidential candidates and their defense advisors. We highlighted the defense environment as we see it and made specific recommendations to commit to adequate defense funding and predictable and stable modernization funding:
The full report — U.S. Defense Modernization: Today's Choices for Tomorrow's Readiness — is available on AIA's Web site at www.aia-aerospace.org. Go to Reports & White Papers in the Library section. 2008 Performance-based Logistics Awards Delivered At Association's Annual Product Support Conference Five AIA member companies and their U.S. military partners were honored Sept. 30 at the Fourth Annual Secretary of Defense Performance-based Logistics Awards at the association's Product Support Conference in Hilton Head, S.C. This year's award recipients were:
PBL is a DoD product support strategy that ties contract payment to the attainment of performance metrics such as availability, reliability and total cost of ownership throughout a product's life cycle. AIA Source: rusty.rentsch@aia-aerospace.org TARC Registration Is Open for Next Challenge Registration is underway for the upcoming Team America Rocketry Challenge, the world's largest rocket contest in which students compete for cash prizes and a trip to next year's Paris International Air Show. Teams have until Dec.1 to register. April 6 is the deadline to conduct a qualifying launch and earn a trip to the finals, scheduled for May 16 at Great Meadow in The Plains, Va. AIA sponsors the contest with the National Association of Rocketry, NASA, DoD, the American Association of Physics Teachers and a large number of AIA member companies. The Challenge gives potential engineers a way to demonstrate math and physics skills by designing a real aerospace product that will be put through rigorous testing and evaluation. Since TARC began in 2003, almost 50,000 students have participated. The aerospace industry is encouraging young people to consider careers in science, technology, engineering and math fields to help avert workforce shortages brought on by retirements among Baby Boom generation staff. Contest rules and registration are at www.rocketcontest.org. AIA Source: audrey.koehler@aia-aerospace.org Heijl Named First ICCAIA Representative to ICAO  International aviation specialist Marinus Heijl has joined the International Coordinating Council of Aerospace Industries Associations as that organization's first full-time representative to the International Civil Aviation Organization in Montreal. The council, established in 1972, represents aircraft manufacturing associations from Canada, Europe, Brazil, Japan and the United States and has observer status at ICAO, an agency of the United Nations. AIA President and CEO Marion Blakey, current council chair, said Heijl, who retired from ICAO last December after a 27-year career there, will provide a much needed voice for manufacturers at the United Nations' agency. "Civil aviation is going through a transformational period as Europe and the United States both develop new air transportation systems and the industry addresses global climate change," Blakey said. "Marinus brings a strong suite of skills to the table that will ensure that the manufacturing industry is well represented." AIA Source: howard.aylesworth@aia-aerospace.org |
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