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

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Aerospace Industries Association

Mar 07, 2012, 09:30 ET

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

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