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Aerospace Industry and Labor Join Together to Stop the Clock on Sequestration

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.

The study reported that the aerospace and defense industry booked revenues of $324 billion in 2010 and has more than one million direct workers and another 2.5 million workers supported by the industry. In addition, at $42.4 billion, aerospace and defense is the largest net exporting industry in the nation.

“The bottom line take away is beyond these impressive statistics, the industry seems to punch above its weight, contributing in many other ways that you don’t find in the numbers,” said Tom Captain, vice chairman and U.S. aerospace and defense leader of Deloitte.

Beginning in 2012, the Defense Department will absorb $487 billion in reductions over the next decade. In accordance with the 2011 Budget Control Act, another $600 billion cut will be imposed over the same timeframe unless a legislative remedy is put in place. In addition, sequestration will delay the Next Generation Air System and stall U.S. efforts to develop space programs in the wake of the space shuttle program's retirement.

According to a 2011 study conducted by Dr. Stephen Fuller of George Mason University, more than one million American jobs will be lost if sequestration is triggered.

“Our national security is at risk. Further budget cuts would hollow out our forces and shutter military production lines at a time when our troops are already being forced to use outdated weaponry and equipment,” said R. Thomas Buffenbarger, International President of the International Association of Machinists and Aerospace Workers. “Now is not the time to turn off an engine that helps propel this economy as it struggles to find its altitude.”

“Policy makers need to focus on creating jobs and investing in our workers, not pulling the rug out from under the economy just as it’s starting to move again,” added Gen. Charles F. Wald, director of Deloitte Services LP.

The Deloitte study, paired with the findings from the Dr. Fuller report, provides a sobering summary of everything the United States has to lose if budget sequestration is not stopped before next January.

“Now is not the time for Congress to push the self-destruct button on the aerospace and defense industry, devastating American workers, local governments and our GDP,” said Blakey. “Now is the time for Congress to act, before the clock ticks down to what Secretary Panetta has been calling ‘doomsday’.”

For additional information and access to the press kit, including the joint AIA-IAMAW letter to the White House, Deloitte study and press release, click here.

AIA Source: ashley.gudzak[at]aia-aerospace.org