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

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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.)