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New Report Expands on Vital Role of Aerospace and Defense Industry to U.S. Economy

March 7, 2012

Industry and Labor Join to “Stop the Clock” – Avoid Sequestration

ARLINGTON, Va., March 7, 2012 /PRNewswire-USNewswire/ — A new report commissioned by AIA demonstrates the irreplaceable impact the aerospace and defense (A/D) industry has on America’s economic and national security. Addressing the current economic crisis, the report emphasizes the industry’s support of more than three million American workers. With federal budget sequestration looming and DOD, FAA and NASA budgets facing severe cuts, the International Association of Machinists and Aerospace Workers and Aerospace Industries Association have escalated efforts to educate the public and elected officials on the need for alternatives to budget sequestration.

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“The data speaks for itself, America’s aerospace and defense industry is a sector that punches far above its weight,” said AIA President and CEO Marion C. Blakey. “And it’s not just the numbers, which are impressive by themselves– it’s how this industry makes a difference in the lives of all Americans.”

The aerospace and defense industry booked $324 billion in sales in 2010 in every state of the union. The report by Deloitte details state-by-state A/D industry employment, revenues, taxes paid and more. And, following recent White House efforts to promote increased export opportunities for American business, the report details the industry’s position as the number one contributor to the country’s positive trade balance, at a net $42 billion.

A study conducted by Dr. Stephen Fuller of George Mason University in October, 2011, projects that more than one million American jobs could be lost as a result of defense budget cuts if the sequestration trigger is pulled. Unemployment would go up .6 percent and GDP projected growth would be cut by 25 percent.

“Sequestration threatens to devastate our industry’s contributions to America’s bottom line,” Blakey said. “This report sends the clear reminder that sequestration is a local, community issue, the jobs at stake are not here in Washington, D.C. Over 1 million American jobs and the security of our nation are at stake.

“The American aerospace worker is counting on voters and elected officials to take notice of what sequestration will do to our country,” said R. Thomas Buffenbarger, International President of the International Association of Machinists and Aerospace Workers. “As this new report highlights, sequestration will result in two indisputable outcomes – more unemployment and a country that is less secure.”

“Although the aerospace and defense industry will never stop defending this country, it’s capabilities to do so will surely be reduced if sequestration is not stopped,” said Blakey. “The countdown has begun and it is now up to us to stop the clock.”

The Budget Control Act of 2011 requires Congress to identify one trillion in savings. Failure to do so by the end of the year will result in a $600 billion cut to the defense budget on top of $487 billion in reductions it is already planning. In addition, cuts will impact FAA’s Next Generation Air Transportation Program and NASA funding to develop a new vehicle to go to the International Space Station.

The complete study, The Aerospace and Defense Industry in the U.S: A financial and economic impact study, is available at http://www.aia-aerospace.org/assets/deloitte_study_2012.pdf

    STATE                                         2010 A&D Employment                                        2010 A&D Revenues                                    Average wages(1)                                 Exports(1)                                Imports(1)                             State business income tax                                            Defense Dependent Jobs at Risk(2)
    Alabama                                                                                          23,090                                       $7,816,573,270                                          $68,435                              $482,474,639                           $325,430,330                                                          $33,003,307                                                              24,614
    Alaska                                                                                            1,516                                         $338,593,064                                          $61,253                               $60,043,380                            $23,308,911                                                             $961,445                                                               5,394
    Arizona                                                                                          42,687                                      $14,990,985,510                                          $83,673                            $2,134,795,368                         $1,260,449,911                                                          $71,386,817                                                              33,208
    Arkansas                                                                                          6,358                                       $1,900,381,975                                          $51,565                              $594,166,589                           $938,771,826                                                           $8,634,602                                                               3,452
    California                                                                                      162,162                                      $52,254,892,780                                          $94,354                            $7,734,658,519                         $4,984,618,651                                                         $311,455,188                                                             125,789
    Colorado                                                                                         18,378                                       $5,224,228,552                                          $95,295                              $316,183,678                           $605,303,551                                                          $13,770,401                                                              17,107
    Connecticut                                                                                      41,076                                      $13,718,428,181                                          $85,682                            $6,919,282,665                         $3,702,521,670                                                          $74,340,872                                                              34,215
    Delaware                                                                                          1,381                                         $265,541,938                                          $83,429                              $125,128,375                            $95,111,649                                                           $6,525,276                                                                 662
    District of Columbia                                                                              5,451                                       $1,500,765,618                                          $95,086                              $678,774,976                             $7,635,148                                                           $8,680,028                                                              14,129
    Florida                                                                                          49,383                                      $14,682,550,330                                          $68,784                            $5,149,915,510                         $2,288,367,532                                                          $50,903,585                                                              39,246
    Georgia                                                                                          29,445                                       $9,750,839,887                                          $73,234                            $4,699,126,527                         $2,029,030,101                                                          $38,020,877                                                              25,450
    Hawaii                                                                                            2,580                                         $590,462,674                                          $65,061                              $253,713,813                           $336,652,348                                                           $1,940,386                                                                 714
    Idaho                                                                                             2,312                                         $442,060,517                                          $61,785                              $321,585,596                            $15,885,644                                                           $1,453,892                                                                 805
    Illinois                                                                                         16,284                                       $3,874,947,506                                          $78,558                            $1,300,871,059                         $1,892,648,812                                                          $15,976,814                                                              21,626
    Indiana                                                                                          16,570                                       $6,664,806,347                                          $56,646                            $1,087,195,584                           $598,827,339                                                          $36,455,924                                                              13,273
    Iowa                                                                                             12,869                                       $4,312,717,316                                          $78,438                              $303,042,134                            $27,606,118                                                          $36,502,600                                                               4,730
    Kansas                                                                                           36,859                                      $13,229,657,291                                          $69,402                            $2,173,463,871                         $1,181,174,037                                                          $66,455,163                                                               5,897
    Kentucky                                                                                          7,131                                       $2,003,769,247                                          $54,593                            $3,616,627,294                         $1,903,376,907                                                           $7,496,184                                                              15,739
    Louisiana                                                                                        17,145                                       $5,854,915,818                                          $62,815                              $214,672,528                           $156,529,590                                                          $29,647,952                                                              17,751
    Maine                                                                                             8,536                                       $1,987,605,031                                          $64,465                              $114,226,659                            $71,301,584                                                          $14,036,259                                                               4,055
    Maryland                                                                                         26,380                                       $7,651,375,691                                          $90,975                              $622,051,445                           $209,257,628                                                          $39,903,349                                                              36,227
    Massachusetts                                                                                    30,171                                       $8,685,721,853                                          $99,096                            $1,010,327,367                           $801,308,440                                                          $48,399,691                                                              38,240
    Michigan                                                                                         15,018                                       $3,882,674,943                                          $72,325                            $1,109,226,577                           $594,303,368                                                          $50,012,345                                                              12,398
    Minnesota                                                                                        11,305                                       $2,957,046,378                                          $75,759                              $600,036,874                           $317,102,073                                                          $18,788,602                                                               4,619
    Mississippi                                                                                      13,056                                       $3,005,550,685                                          $56,777                              $164,471,126                           $275,536,863                                                          $11,437,423                                                               4,961
    Missouri                                                                                         20,510                                       $6,572,162,153                                          $85,332                              $862,773,172                           $314,048,889                                                          $27,187,443                                                              31,196
    Montana                                                                                           1,147                                         $246,884,793                                          $47,466                               $43,193,355                            $11,989,046                                                             $605,215                                                                 950
    Nebraska                                                                                          2,001                                         $481,000,846                                          $48,442                               $41,517,314                            $20,002,515                                                           $2,059,080                                                               2,405
    Nevada                                                                                            3,110                                         $697,821,633                                          $61,991                              $152,052,155                            $82,564,749                                                                   $0                                                               3,995
    New Hampshire                                                                                     6,982                                       $2,386,096,779                                          $93,596                              $117,389,044                            $89,435,379                                                          $32,050,643                                                               3,321
    New Jersey                                                                                       20,701                                       $5,437,063,516                                          $93,120                            $1,502,508,352                         $1,217,380,684                                                          $28,580,734                                                              23,870
    New Mexico                                                                                        8,108                                       $1,892,663,563                                          $71,164                               $84,166,544                            $36,579,265                                                           $7,460,545                                                               4,619
    New York                                                                                         34,391                                       $9,411,818,253                                          $77,599                            $2,734,960,592                         $1,042,709,298                                                          $42,482,838                                                              26,768
    North Carolina                                                                                   12,140                                       $2,877,556,877                                          $70,040                            $1,567,943,600                         $1,645,713,336                                                          $10,755,876                                                              11,019
    North Dakota                                                                                      1,124                                         $336,120,841                                          $59,939                               $33,160,788                             $8,126,583                                                           $1,248,862                                                                 875
    Ohio                                                                                             28,157                                       $9,597,179,399                                          $73,251                            $5,033,045,693                         $1,600,502,366                                                          $26,499,479                                                              18,424
    Oklahoma                                                                                          8,451                                       $2,628,058,417                                          $56,489                              $397,353,659                           $414,934,288                                                           $9,739,882                                                               7,326
    Oregon                                                                                            6,523                                       $1,890,149,302                                          $71,800                              $507,090,906                           $307,532,241                                                           $9,447,648                                                               2,707
    Pennsylvania                                                                                     31,220                                      $10,037,424,108                                          $77,230                            $1,580,591,709                         $1,398,632,706                                                          $59,814,902                                                              36,157
    Rhode Island                                                                                      3,381                                         $857,555,932                                          $63,247                                $9,480,161                            $25,274,523                                                           $5,620,209                                                               2,355
    South Carolina                                                                                    7,894                                       $2,008,847,359                                          $63,290                              $187,421,997                           $656,359,784                                                           $5,431,736                                                              13,666
    South Dakota                                                                                        758                                         $172,296,457                                          $47,246                               $20,935,143                             $3,522,483                                                                   $0                                                               1,701
    Tennessee                                                                                         8,401                                       $1,776,798,797                                          $65,354                            $1,274,346,027                           $573,393,955                                                           $5,649,492                                                               9,419
    Texas                                                                                            87,781                                      $27,041,844,407                                          $81,624                            $6,100,064,143                         $7,223,839,018                                                         $270,418,444                                                              91,575
    Utah                                                                                             11,489                                       $3,816,983,604                                          $77,026                              $322,870,670                           $190,650,095                                                          $12,878,278                                                               7,658
    Vermont                                                                                           2,852                                       $1,007,737,001                                          $71,082                               $63,429,427                           $105,523,652                                                           $5,789,508                                                               2,164
    Virginia                                                                                         36,941                                       $8,267,107,488                                          $75,661                            $1,023,171,504                           $439,637,458                                                          $78,714,488                                                             122,770
    Washington                                                                                       93,925                                      $32,781,367,636                                          $89,233                           $23,525,394,393                         $4,823,681,948                                                           $6,326,804                                                              15,648
    West Virginia                                                                                     3,729                                       $1,182,344,248                                          $58,149                              $209,400,104                           $354,324,811                                                           $6,647,045                                                               1,047
    Wisconsin                                                                                         7,002                                       $1,630,924,328                                          $56,498                              $445,683,110                           $240,092,770                                                           $7,253,051                                                              25,731
    Wyoming                                                                                             386                                          $81,699,768                                          $51,805                                $1,743,780                            $11,583,786                                                                   $0                                                                 473

    (1) The Aerospace & Defense Industry in the U.S.: A Financial and Economic Impact Study - Copyright 2012 Deloitte
    (2) Private sector job losses projected from $1 trillion sequestration level defense budget cut, $45.01 billion per year in defense spending on investment accounts (only) - The U.S. Economic Impact of Approved and Projected DOD Spending Reductions in Equipment in 2013 by Stephen S. Fuller, Ph.D., George Mason University (NOTE: Fuller study did not account for private sector job losses resulting from NASA and FAA
     budget cuts.)

SOURCE Aerospace Industries Association


Source: PR Newswire