Aerospace industry warns about job loss if federal cuts occur

Submitted by tim on Wed, 03/07/2012 - 00:57

A new report commissioned by the Aerospace Industries Association asserts that Vermont could lose upwards of 2,100 jobs if automatic defense cuts are realized. Vermont has a disproportionally high number of aerospace and defense jobs. The report states that theaerospace and defense industry accounts for a billion dollars in revenues in Vermont and supports 2,852 jobs with an average wage of$71,082.
TheAIA says the report 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.
"The data speaks for itself, America's aerospace and defense industry is a sector that punches far above its weight," said AIA President and CEOMarion 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 billionin 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.
Astudyconducted by Dr.Stephen FullerofGeorge Mason Universityin 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 inWashington, 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,"saidR. 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 billioncut to the defense budget on top of$487 billionin 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 athttp://www.aia-aerospace.org/assets/deloitte_study_2012.pdf

State

2010
A&D
Employment

2010
A&D
Revenues

Average
wages

State
business
income tax

Defense
Dependent
Jobs
at Risk

23,090

$7,816,573,270

$68,435

$33,003,307

24,614

1,516

$338,593,064

$61,253

$961,445

5,394

42,687

$14,990,985,510

$83,673

$71,386,817

33,208

6,358

$1,900,381,975

$51,565

$8,634,602

3,452

162,162

$52,254,892,780

$94,354

$311,455,188

125,789

18,378

$5,224,228,552

$95,295

$13,770,401

17,107

41,076

$13,718,428,181

$85,682

$74,340,872

34,215

1,381

$265,541,938

$83,429

$6,525,276

662

5,451

$1,500,765,618

$95,086

$8,680,028

14,129

49,383

$14,682,550,330

$68,784

$50,903,585

39,246

29,445

$9,750,839,887

$73,234

$38,020,877

25,450

2,580

$590,462,674

$65,061

$1,940,386

714

2,312

$442,060,517

$61,785

$1,453,892

805

16,284

$3,874,947,506

$78,558

$15,976,814

21,626

16,570

$6,664,806,347

$56,646

$36,455,924

13,273

12,869

$4,312,717,316

$78,438

$36,502,600

4,730

36,859

$13,229,657,291

$69,402

$66,455,163

5,897

7,131

$2,003,769,247

$54,593

$7,496,184

15,739

17,145

$5,854,915,818

$62,815

$29,647,952

17,751

8,536

$1,987,605,031

$64,465

$14,036,259

4,055

26,380

$7,651,375,691

$90,975

$39,903,349

36,227

30,171

$8,685,721,853

$99,096

$48,399,691

38,240

15,018

$3,882,674,943

$72,325

$50,012,345

12,398

11,305

$2,957,046,378

$75,759

$18,788,602

4,619

13,056

$3,005,550,685

$56,777

$11,437,423

4,961

20,510

$6,572,162,153

$85,332

$27,187,443

31,196

1,147

$246,884,793

$47,466

$605,215

950

2,001

$481,000,846

$48,442

$2,059,080

2,405

3,110

$697,821,633

$61,991

3,995

6,982

$2,386,096,779

$93,596

$32,050,643

3,321

20,701

$5,437,063,516

$93,120

$28,580,734

23,870

8,108

$1,892,663,563

$71,164

$7,460,545

4,619

34,391

$9,411,818,253

$77,599

$42,482,838

26,768

12,140

$2,877,556,877

$70,040

$10,755,876

11,019

1,124

$336,120,841

$59,939

$1,248,862

875

28,157

$9,597,179,399

$73,251

$26,499,479

18,424

8,451

$2,628,058,417

$56,489

$9,739,882

7,326

6,523

$1,890,149,302

$71,800

$9,447,648

2,707

31,220

$10,037,424,108

$77,230

$59,814,902

36,157

3,381

$857,555,932

$63,247

$5,620,209

2,355

7,894

$2,008,847,359

$63,290

$5,431,736

13,666

758

$172,296,457

$47,246

1,701

8,401

$1,776,798,797

$65,354

$5,649,492

9,419

87,781

$27,041,844,407

$81,624

$270,418,444

91,575

11,489

$3,816,983,604

$77,026

$12,878,278

7,658

2,852

$1,007,737,001

$71,082

$5,789,508

2,164

36,941

$8,267,107,488

$75,661

$78,714,488

122,770

93,925

$32,781,367,636

$89,233

$6,326,804

15,648

3,729

$1,182,344,248

$58,149

$6,647,045

1,047

7,002

$1,630,924,328

$56,498

$7,253,051

25,731

386

$81,699,768

$51,805

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 AssociationARLINGTON, Va.,March 7, 2012/PRNewswire-USNewswire/ --
CONTACT:Chip Sheller, Vice President, Communications - AIA, +1-703-964-6271, Mobile +1-703-964-6271, [email protected], or Rick Sloan, Director, Communications - IAMAW, +1-301-967-4520, Mobile +1-202-297-2941, [email protected]
Web Site:http://www.aia-aerospace.org/