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