“Winning the future” was the battle cry in President Obama’s 2011 State of Union address. For the aerospace industry, success in the international market will be one of the deciding factors in the size of our “win.” As domestic defense budgets come under more pressure, industry is increasingly looking to foreign markets to fill the gap in demand and keep production lines open. This is a strategy that also fits well with the Defense Department’s renewed emphasis on security cooperation and building partner capacity. Defense trade allows our allies and military partners to address common security concerns in coordination with and in place of U.S. forces.
AIA and International Association of Machinists and Aerospace Workers, the union representing more than 720,000 workers, teamed up to release a new study on the aerospace and defense industry’s contributions to the nation’s economy and national security March 7. The study by Deloitte reports state-by-state data on revenues, wages, employment, taxes, trade and other data and was commissioned by AIA as part of the Second to None campaign.
It is well known that last year’s Budget Control Act requires devastating cuts to the defense budget beginning ten months from now. It is less evident that these cuts would also cripple a number of non-defense programs including FAA’s Next Generation Air Transportation System. The Congressional Budget Office estimates that non-defense agencies would suffer an immediate 7.8 percent budget cut from sequestration. The Center for Budget and Policy Priorities’ estimate comes in even higher at 9.1 percent. For FAA, this means a potential loss of $1 billion dollars or more. FAA – the agency responsible for monitoring and safely guiding 85,000 aircraft each day through our nation’s skies – has never faced a budget cut of this magnitude.
The United States is a world leader in innovation and technology development. In order to maintain that edge, Congress has provided a Research and Development Tax Credit to provide an incentive for companies to perform R&D in the United States. For more than thirty years, this has been an important counterbalance to the tax policies of other nations, which often provide greater tax incentives than the United States offers. This credit has been instrumental in stimulating the amount of innovation financed and maintained in the United States by the private sector.
The Obama administration released its budget request last month for fiscal year 2013, including proposed funding for civil space programs at NASA, NOAA and the FAA Office of Commercial Space Transportation. Following is an assessment of how each of these organizations fared.
Global legislation of materials – particularly the banning of lead in commercial electronics sold in the European Union – continue to adversely impact the Aerospace, Defense and High Performance (ADHP) industries.
More than 250 Full and Associate AIA members attended the Winter Supplier Management Council Meeting in St. Louis, Mo., in February. The meeting, hosted by Boeing Defense, Space and Security, was the largest SMC meeting in AIA’s history. The program agenda featured an array of speakers and panels focused on the critical issues currently impacting industry and the supply chain. SMC’s new Board of Managers was selected and installed at the meeting as well.
April 2-4 in Indianapolis, Ind.: AIA’s Workforce Committee has a busy spring planned with the first of four state meetings scheduled in Indianapolis the first week in April. The meeting will feature keynote speeches, stakeholder presentations and group breakout discussions at the Rolls-Royce Training Center. Senator Dan Coats, Brigadier General Jeffrey Hauser, USA, and State Superintendent of Schools Tony Bennett are among the invited speakers
Register now for a members-only, complimentary webinar by Dr. Ajai Kapoor, SVP Solution of Realization to learn how Lean techniques can speed up project execution and turn project management into a strategic weapon. Projects are the most difficult aspect of managing and growing an enterprise yet many are consistently late. Although you may associate the problem to poor planning, a lack of discipline or factors beyond your control, these are not always the case. Dr. Kapoor will highlight execution factors that cause projects to suffer significant loss of speed and productivity. He will also provide an overview of Lean techniques for product execution that have been used by major organizations around the world that enable them to complete projects 20-50 percent faster.
While space capabilities were a cornerstone of the January 2012 Defense Department strategic guidance, top-line funding for major military space acquisitions in the president’s fiscal year 2013 budget request were largely flat or reduced. To some extent, budget pressures are not a surprise. DOD is currently operating under the bipartisan budget debt ceiling agreement reached last year that calls for the defense budget to drop to 2008 levels - a reduction of nearly $500 billion in defense spending over 10 years.