First Quarter - Aerospace Industries Association

A quarterly digest for the Aerospace Industries Association
Executive
REPORT
INSIDE
President's Message
AIA Leaders In Place
Keeping Up
With
CLAY JONES
AIA Chairman Clay Jones Assesses Aerospace Industry
page 5 Q1 Q2
Q3 Q4
2008

OFFICERS
Clayton M. Jones, Chairman
Robert J. Stevens, Vice Chairman
Marion C. Blakey, President & Chief Executive Officer
Ginette C. Colot, Secretary-Treasurer
Executive COMMITTEE
James F. Albaugh, Executive Vice
President, The Boeing Company, and
President & Chief Executive Officer,
Integrated Defense Systems
Marion C. Blakey, President &
Chief Executive Officer, Aerospace
Industries Association
Nicholas D. Chabraja, Chairman &
Chief Executive Officer,
General Dynamics Corporation
Kenneth C. Dahlberg, Chairman & Chief
Executive Officer, Science Applications
International Corporation
Scott C. Donnelly, President & Chief
Executive Officer, GE - Aviation
Stephen N. Finger, President,
Pratt & Whitney, United
Technologies Corporation
Robert J. Gillette, President & Chief
Executive Officer, Honeywell Aerospace
James M. Guyette, President & Chief
Executive Officer, Rolls-Royce
North America Inc.
Walter P. Havenstein, Chief Operating
Officer, BAE Systems plc and President &
CEO, BAE Systems, Inc.
Mary L. Howell, Executive Vice President,
Textron Inc.
Clayton M. Jones, Chairman, President &
Chief Executive Officer, Rockwell Collins
Marshall O. Larsen, Chairman,
President & Chief Executive Officer,
Goodrich Corporation
Robert R. Sprole, President, Therm, Inc.
Robert J. Stevens, Chairman, President
& Chief Executive Officer, Lockheed
Martin Corporation
Ronald D. Sugar, Chairman &
Chief Executive Officer, Northrop
Grumman Corporation
William H. Swanson, Chairman & Chief
Executive Officer, Raytheon Company
President’s MESSAGE
Dear Association Member:
Having begun my
job as AIA’s president
and CEO this past
November in the midst
Marion C. Blakey of this upswing, I can
AIA President & CEO confirm that timing
really is everything. I’m
delighted to have come aboard at a point
when the industry is doing so well. It means
that the association has the momentum to
continue being highly effective on aerospace
issues that impact the fundamentals of our
national economy and security.
Joining AIA in November also was
optimal timing because it gave me the advantage
of working for a few months with 2007
Board of Governors Chairman Bill Swanson,
chairman and CEO of Raytheon Company,
who provided valuable guidance during the
transition. Now, of course, I have the added
benefit of a new leader with great ideas in
2008 Board Chairman Clay Jones, chairman,
president and CEO of Rockwell Collins.
The American aerospace industry has been delivering
good news from nearly every sector, thanks in
large measure to strong sales of superb products
and technologies and its well-managed companies with
talented leadership.
In addition, I am particularly appreciative
of the work that my predecessor John
Douglass did during this smooth transition
period. John went out of his way to make me
feel welcome and provided a great foundation
for the next stage of the association.
I recognize that our industry’s strong
performance is complicated by our struggling
domestic economy and uncertainty in markets
abroad. We must take care that our
robust health does not signal to Congress or
the next president that the aerospace industry’s
needs can take lower priority.
Meetings with Members
Now that I’ve settled in, I’m looking forward
to attending AIA meetings with representatives
of many of our member companies as
well as visiting production facilities around
the country. My calendar for late winter and
early spring has a significant amount of travel
in this regard.
For instance, I’ll be at the Supplier
A quarterly digest for the Aerospace Industries Association

Board of GOVERNORS
Sudesh K. Arora, President, Natel
Engineering Co., Inc.
Robert P. Barker, President,
Parker Aerospace, and Senior Vice
President - Operating Officer,
Parker Hannifin Corporation
Joseph C. Berenato, Chairman
& Chief Executive Officer,
Ducommun Incorporated
David E. Berges, Chairman & Chief
Executive Officer, Hexcel Corporation
Robert T. Brady, Chairman & Chief
Executive Officer, MOOG Inc.
Thomas J. Cassidy, Jr., President,
Aircraft Systems Group, General
Atomics Aeronautical Systems, Inc.
Joan M. Davies, Vice President,
Aerospace & Defense, EDS
Elmer L. Doty, President & Chief
Executive Officer, Vought Aircraft
Industries, Inc.
Erik J. Fabricus-Olsen, Vice President,
Aerospace Business Systems,
Sparton Corporation
Debra Faktor Lepore, President,
AirLaunch, LLC
James J. Fitzsimmons, President &
Chief Executive Officer, GKN
Aerospace-Aerostructures
Steven F. Gaffney, Senior Vice
President, ITT Corporation, and
President, ITT, Defense
Thomas A. Gendron, President &
Chief Executive Officer, Woodward
Governor Company
Paul L. Graziani, President &
Chief Executive Officer, Analytical
Graphics, Inc.
Tariq Jesrai, Chief Executive Officer,
McKechnie Aerospace
Amin Khoury, Chairman & Chief
Executive Officer, B/E Aerospace, Inc.
Tom Kilkenny, General Manager,
Global Aerospace & Defense Industry,
IBM Corporation
Howard L. Lance, Chairman,
President & Chief Executive Officer,
Harris Corporation
John S. Langford, Chairman &
President, Aurora Flight Systems
Stephen R. Larson, Vice President,
Strategy and Technology,
Esterline Technologies
Laurans A. Mendelson, Chairman,
President & Chief Executive Officer,
HEICO Corporation
Gregory F. Milzcik, President & Chief
Executive Officer, Barnes Group Inc.
Ulick McEvaddy, Director,
Omega Air, Inc.
Bradley J. Morton, President,
Eaton Aerospace
Daniel J. Murphy, Chairman &
Chief Executive Officer, ATK
J. Scott Neish, President, Aerojet
Mark S. Newman, Chairman,
President & Chief Executive Officer,
DRS Technologies, Inc.
W. Stewart Orr, Vice President,
Government Relations, Cobham
Aerospace Systems Group
Richard Pogue, President, Remmele
Engineering, Inc.
Thomas P. Powell, Vice President &
General Manager, DuPont Advanced
Fiber Systems
Ronald S. Saks, President & Chief
Executive Officer, LMI Aerospace Inc.
James E. Schuster, Chairman & Chief
Executive Officer, Hawker Beechcraft
Corporation
Raymond H. (Tray) Siegfried III, Vice
President OEM Sales & Strategic
Resources, The NORDAM Group
Gary J. Spulak, President, Embraer
Aircraft Holding Inc.
Michael T. Strianese, President
& Chief Executive Officer,
L-3 Communications Corporation
Jeff Turner, President & Chief
Executive Officer, Spirit AeroSystems
Gregory A. Ward, President, Crane
Aerospace Group, Crane Aerospace
& Electronics
James R. Western, President, Pall
Aeropower Corporation
Brian S. Young, General Manager,
3M Aerospace
Management Council meeting in Charleston,
S.C., in the first week of March, followed
the next week by AIA’s Southeast Regional
meeting, hosted by Harris Corporation, in
Melbourne, Fla.
In addition, there are several international
trips coming up. I’m representing the International
Coordinating Council of Aerospace
Industries Associations at a meeting of the
International Civil Aviation Organization’s
Group on International Aviation and Climate
Change in Montreal and then at a major
conference on the environment in Geneva.
I’ll also attend the annual conference of the
Society of British Aerospace Companies
where Clay Jones is delivering the keynote
address.
Election 2008 Inroads
Externally, we’re definitely making inroads in
our Election 2008 initiative in terms of meeting
with candidates, staff and policy advisors.
As the primaries winnow away the candidates,
we are re-focusing on the likely presidential
and congressional candidates and re-engaging
their campaign coordinators and staff.
The fact that we have been able to cover
the bases with the candidates has made a
difference. In party debates and rallies,
candidates have referenced the critical need
for a strong defense base for America,
strengthening our workforce and ensuring
that America maintains leadership in space
with support for the Constellation program.
Those are some of the aerospace-rooted
topics that are at the forefront of the election
COUNCIL Leaders in Place
AIA’s councils for 2008 have formed and elected their leaders from
among member company representatives. Councils and their chairs are:
Civil Aviation Council — Monte Belger,
Vice President, Transportation System
Solutions, Lockheed Martin Transportation
and Security Solutions, Lockheed Martin
Corporation
Communications
Council — Tim Burris,
Vice President,
Communications &
Advertising, Raytheon
Company
Tim Burris
Defense Council — Cecil Black,
Director, Market Assessment and Budget
Analysis, The Boeing Company, and
Wayne Schroeder, Director, Plans and
Policy, Lockheed Martin Corporation
International Council — Bruce Scott,
President, ITT Defense International
A quarterly digest for the Aerospace Industries Association
Executive
REPORT
Keeping Up
With
CLAY JONES
INSIDE
President's Message
AIA Leaders In Place
AIA Chairman Clay Jones Assesses Aerospace Industry
page 5 Q1 Q2
Q3 Q4
2008
National Security Council — Bill Inglee,
Vice President, Plans and Policy,
Lockheed Martin Corporation.
Procurement and Finance Council —
Timothy Malishenko, Corporate Vice
President, Contracts & Pricing, The
Boeing Company
Space Council — Eric Thoemmes,
Vice President, Washington Operations,
Lockheed Martin Corporation
Supplier Management Council —
Mary Simmerman, Senior Vice President
of Supplier and Material Management,
Bell Helicopter
Technical Operations Council —
Charla K. Wise, Vice President of
Technology, Environment, Safety and
Health, Lockheed Martin Corporation
On the COVER
Rockwell Collins Chairman, President
and CEO Clayton M. Jones, chairman
of the 2008 AIA Board of Governors,
looks at association priorities for 2008
on page 5.
Cover photo courtesy of Rockwell
Collins.
3 Executive REPORT
Q1 Q2
Q3 Q4
2008

AIA Member COMPANIES
3M Company
Accenture
Aerojet
AeroVironment, Inc.
AirLaunch LLC
Agilent Technologies, Inc.
Allfast Fastening Systems, Inc.
American Pacific Corporation
AMT II Corporation
Analytical Graphics, Inc.
Andrews Space
ATK
Aurora Flight Sciences
AUSCO, Inc.
B&E Group, LLC
BAE Systems, Inc.
Barnes Aerospace
B/E Aerospace, Inc
The Boeing Company
Celestica Corporation
Click Bond, Inc.
Click Commerce
Cobham
Computer Sciences Corporation
Crane Aerospace & Electronics
Curtiss-Wright Corporation
Curtiss-Wright Controls Systems, Inc.
Metal Improvement Company
Dassault Falcon Jet Corporation
Doncasters, Inc.
DRS Technologies, Inc.
Ducommun Incorporated
DuPont Company
Eaton Aerospace
Eclipse Aviation
EDS
Elbit Systems of America
Embraer Aircraft Holding Inc.
Erickson Air-Crane Incorporated
ESIS, Inc.
Esterline Technologies
Evergreen International
Exostar LLC
Flextronics International USA
FlightSafety International Inc.
General Atomics Aeronautical
Systems, Inc.
General Dynamics Corporation
General Electric Company
GKN Aerospace
I believe it is very important for any organization to have clarity
discussion. AIA’s information package
detailing our Election 2008 issues has been a
well-received document that advocates our
interests. It’s an asset that will be the foundation
for discussion during the remainder of
the election season.
Having been involved in the election
scene, I can say that the focus on issues will
continue to sharpen. As November draws
closer and candidates formalize their platforms,
we will get an increasingly specific
sense of where the two major presidential
candidates, as well as those running for
Congress, stand on aerospace issues.
The American public will want to know
very clearly where both major candidates are
on matters this important to our country.
Strategic Performance Plan
Internally, we are engaged in a very intensive
process of determining the association’s
strategic focus for this year and for the longer
term. I am strongly committed to establishing
a Strategic Performance Plan to which AIA
staff and member companies are contributing.
Once a draft of the plan is developed this
spring, I look forward to presenting it at the
Board of Governors meeting in Williamsburg
in May. We’re on a very fast pace to engage in
that discussion.
I expect that the business plan we commit
to will be based on the issues AIA has been
four-square behind all along — including the
10 issues in the Election 2008 package.
Developing a strategic plan will establish
immediate goals and measures of success. We
will have a greater degree of focus on what we
expect to accomplish in 2008 and 2009 and
then in the several years beyond that. We will
also give our members the benchmarks so
that our progress together will be clear and
measurable by all.
Developing the plan is a dynamic process.
Suggestions are coming from member companies
through various councils and committees.
Every member company will have an opportunity
to review the plan, comment on it and
suggest new ideas as it goes forward.
I believe it is very important for any
organization to have clarity of vision and conviction
about what it is seeking to accomplish.
The more everyone has a clear line of sight
from their particular area of responsibility to
the broader goals of the organization, the
more we will see significant achievements.
NextGen Wins Funds
Funding in the administration’s FAA budget
request for fiscal 2009 includes a significant
increase for the Next Generation Air
Transportation System, a positive step for
the nation’s air travel system. Major transitional
investments, such as Lockheed Martin
Corporation’s En Route Automation Modernization
program, remain on schedule and on
budget as their funding requirements tail off,
making room for newer programs.
The proposal has a three-fold funding
increase for development and implementation
of NextGen, the advanced, satellite-based system
that’s vital to meeting passenger demand
that’s expected to grow 31 percent by 2015.
FAA’s overall request is for $14.6 billion,
including $688 million for NextGen, a needed
A quarterly digest for the Aerospace Industries Association

Goodrich Corporation
W.L. Gore & Associates, Inc.
Groen Brothers Aviation Inc.
Harris Corporation
Hawker Beechcraft Corporation
HEICO Corporation
Hexcel Corporation
HITCO Carbon Composites
Honeywell
IBM Corporation
ITT Corporation
Kaman Aerospace Corporation
L-3 Communications
LAI International, Inc.
LMI Aerospace, Inc.
Lockheed Martin Corporation
Lord Corporation
Martin-Baker America Inc.
Meggitt Vibro-Meter Inc.
Micro-Coax, Inc.
MicroSat Systems, Inc.
McKechnie Aerospace
MOOG Inc.
Natel Engineering Co., Inc.
National Machine Group
National Machine Company
National Aviation Products, Inc.
National Technical Systems
The NORDAM Group
Northrop Grumman Corporation
NYLOK Corporation
Omega Air Inc.
Oracle USA
Pall Aeropower Corporation
Parker Aerospace
Pinkerton Government Services, Inc
PRIMUS Technologies Corporation
Proficiency Inc.
Raytheon Company
Remmele Engineering, Inc.
Rockwell Collins
Rolls-Royce North America Inc.
RTI International Metals, Inc.
Satyam Computer Services Ltd
Science Applications
International Corporation
SITA
Space Exploration Technologies
Corporation
Sparton Corporation
Spirit AeroSystems
Textron Inc.
Timken Aerospace Transmissions,
LLC Purdy Systems
United Technologies Corporation
Hamilton Sundstrand
Pratt & Whitney
Sikorsky
Vought Aircraft Industries, Inc.
Woodward Governor Company
of vision and conviction about what it is seeking to accomplish.
increase from the $212 million budgeted
in fiscal 2008.
NextGen is at the stage of development
where planning is moving into
demonstration and application of
advanced technologies, which explains
the marked increase in funding in the
administration request.
On Guard against Erosion
In defense, the president’s proposed
budget calls for about $515 billion for
fiscal 2009, including a healthy $104.2
billion for weapons procurement and
nearly $80 billion for research, development,
testing and evaluation.
Although the spending proposal is
7.5 percent higher than the fiscal 2008
budget, those extra dollars for research
and development come at the expense
of procurement funding, which is down
about $6 billion from the current year.
This decrease illustrates our concern
about the future erosion of the
defense budget. The procurement
accounts, which will keep our nation
strong, are being challenged by growing
operating and personnel costs. AIA’s
Defense Policy and Budget Committee
has completed a report that we plan to
release in the coming weeks that calls
for a defense budget floor at no less
than 4 percent of the national gross
domestic product.
Bright Spots, Sore Spots
We’re pleased that the administration’s
$17.6 billion fiscal 2009 budget
request for NASA includes an overall
AIA Chairman Jones Looks at AEROSPACE
AIA 2008 Chairman Clay Jones
provides Executive Report with insight
into current aerospace and defense
industry issues and initiatives. Jones
is chairman, president and chief
executive officer of Rockwell Collins.
Q. What are your priorities for the
association in 2008
A. My priorities are twofold. First, I want
to ensure that we take advantage of this
year’s presidential and congressional
election campaigns to obtain positive
support for our aerospace issues from
the candidates. We have the potential
to put our industry in an excellent position
when the new administration and
the new Congress take office in 2009.
Second, the change in leadership is
an opportunity for refocusing and
renewal. Since Marion Blakey took the
reins, the Executive Committee and I
have assisted and encouraged her as
she focuses on AIA’s priorities,
especially the development of a forward-looking
strategic business plan.
Q. The administration announced
that it is implementing many of the
recommendations championed by
AIA and the Coalition for Security
and Competitiveness. What remains
to be done
A. We will watch implementation very
closely. The administration adopted 17
of the coalition’s 19 proposals — a
very encouraging sign. There are still,
however, a number of short-term and
long-term objectives in front of us to
make the system truly more predictable,
efficient and transparent.
Priorities that need to be accomplished
this year include ratification of
the UK and Australia defense treaties
as well as clarification of export controls
for civil aviation parts and improved
licensing options for major programs.
Most important is laying the groundwork
for change by encouraging the presidential
candidates to make a meaningful
commitment to the long-term modernization
of the export control system.
Q. Governments around the world,
most notably the European Union,
are prioritizing aeronautics research
and development funding at a time
when the United States has downsized
its aeronautics program. What
are the likely consequences if the
U.S. government continues to deemphasize
non-military aeronautics
research
A. We are very concerned about the
long-term impact of declining aeronautics
funding on our competitiveness.
The soaring sales the industry is
benefiting from today are a result of
investments made over the last several
decades. Unfortunately, the fiscal 2009
NASA budget proposal continues the
5 Executive REPORT
Q1 Q2
Q3 Q4
2008

AIA Associate Member COMPANIES
ADI American Distributors, Inc.
AirBorn Operating L.P.
Air Industries Machining Corporation
Airfasco Industries, Inc.
Albany Engineered Composites
Alcoa Fastening Systems
Alken Industries Inc.
Allegiant Global Services, LLC
Allen Aircraft Products, Inc.
American Brazing
AMETEK Aerospace & Defense
Anaren Microwave, Inc.
Ancon Gear & Instrument
Corporation
Arkwin Industries, Inc.
Arrow/Zeus Electronics,
A division of Arrow Electronics
Astronautics Corporation of America
Astronic
Athena Technologies, Inc.
AVChem, Inc.
Avnet Electronics Marketing
Ballistic Recovery Systems, Inc.
Banneker Industries, Inc.
Blenheim Capitol Services
Brogdon Tool & Die, Inc.
Brush Wellman Inc.
BTC Electronic Components
Burton Industries Aerospace
Heat Treating, Inc.
California Manufacturing
Technology Consulting
Capo Industries Inc.
Celltron Inc.
Chandler/May, Inc.
Cherokee Nation Distributors
Cincinnati Machine,
A UNOVA Company
CMC Electronics
Coalition Solutions Integrated, Inc.
Cohesia Corporation
Co-Operative Industries Defense, LLC
Consolidated Precision Products
Cytec Engineered Materials
Dassault Systems of America
Data Conversion Laboratory, Inc.
Dayton T. Brown Inc.
Delphi Electronics
Designed Metal Connections
Doyle Center for Manufacturing
Technology
DynaBil Industries, Inc.
East West Associates
EDAG Inc.
Electronic/Fasteners, Inc.
The welcome package of directives designed to make the U.S. export control
increase for space exploration, but
aeronautics research falls short again.
The request has several bright spots vital
to maintaining our status as the world’s space
leader, including continued space exploration
priorities, Earth observation efforts and the
Commercial Orbital Transportation System.
NASA’s important undertakings in the
next few years include 11 scheduled flights
before the space shuttle is retired in 2010 and
developing the next generation of vehicles in
the Constellation program.
But the $447 million aeronautics R&D
request is once again a sore spot, significantly
underfunding transitional research that
would enable technology from government
trend of neglecting aeronautics. Meanwhile,
the EU aggressively funds product-focused
aeronautics research, recently launching
a €1.6 billion program to develop clean
aircraft technologies.
Q. What areas in acquisition reform have
the most promise to make the system
more efficient while providing the finest
equipment to warfighters at the best cost
A. Aerospace industry sales are becoming
increasingly dominated by the strength of the
civil aviation marketplace. The Defense
Department needs to adapt to this marketplace
reality and purchase goods and
services the way commercial companies do,
avoiding costly military specifications and
overlapping government oversight. Increased
use of multiyear procurements will bring significant
efficiencies to the acquisition process
and the latest technologies to our warfighters.
laboratories to move to real-life applications.
Even allowing for accounting changes
that shifted agencywide support costs from
the R&D budget to a central fund, the
amount pales in comparison to the height of
aeronautics R&D investment — $1.54 billion
— in 1994.
Modernizing the System
The welcome package of directives designed
to make the U.S. export control system more
predictable and efficient, announced by the
White House in late January, has been a long
time coming.
The need to modernize the system was
underscored by a report from the Center for
Q. A number of presidential candidates
have referred to the need to update the
nation’s infrastructure, but there hasn’t
been discussion about the Next
Generation Air Transportation System.
Why is commitment to NextGen important
A. The answer is simple. More than $640
million, or 5.4 percent of our gross domestic
product, is generated by U.S. civil aviation
activity. This means not only jobs for
Americans but also a way of life that the
freedom to fly brings. However, our air transportation
system simply cannot handle the 31
percent volume increase expected by 2015.
NextGen incorporates advanced, satellitebased
technology and will not only revolutionize
the way we travel but also increase safety
and lessen the environmental impact of flying.
Q. What are some of the structural challenges
within the U.S. defense budget, and
how can the next president address them
A quarterly digest for the Aerospace Industries Association

Emhart Teknologies,
A Black & Decker Company
Endicott Interconnect Technologies, Inc.
ENSCO, Inc.
Exotic Metals Forming Company LLC
Fenn Technologies
The Ferco Group
Ferguson Perforating and Wire Company
Forrest Machining, Inc.
Frontier Electronic Systems Corporation
GEAR Software
Greene, Tweed & Company
G.S. Precision, Inc.
GuardianEdge Technologies
H&S Swansons’ Tool Company
Harvard Custom Manufacturing
HDL Research Lab, Inc.
Heartland Precision Fasteners
Aerospace Plating Company
Heizer Aerospace
Hitachi Consulting
Hi-Temp Insulation Inc.
Hobart Machined Products, Inc.
Hughes Bros. Aircrafters, Inc.
IDD Aerospace Corp.
Industrial Metals International LTD
Infotech Enterprises America
Inmedius
Integrated Sourcing
ION Corporation
JRH Electronics, LLC.
KPMG LLP-Risk Advisory Services
Kreisler Manufacturing Corporation
Kulite Semiconductor Products, Inc.
M/A-COM, Inc.
Meyer Tool Inc.
Microsemi Corporation
Mid-State Aerospace Inc.
Millitech, Inc.
Mil Spec Sales Co.
Morris Machine Company, Inc.
MPC Products Corporation
Navigant Consulting, Inc.
New Breed Corporation
NMC Group, Inc.
Nor-Ral Plastics Inc.
Norfil Manufacturing, Inc.
North Cape RIM Manufacturing
O’Neil & Associates, Inc.
Ohio Aerospace Institute
Orion Industries
P3-North America, Inc.
Parkway Products, Inc.
PCA Aerostructures
PCC Airfoils, LLC
Performance Software Corporation
Perillo Industries, Inc.
PGM of New England, LLC
Plexus Corporation
Plymouth Extruded Shapes
Plymouth Tube Company
Precision Gear
Precision Aircraft Machining Company
Precision Machine & Manufacturing Co.
Precision Tube Bending
PRTM Management Consultants, LLC
PTC
QuEST
Radant Technologies, Inc.
Ranal
REMEC Defense & Space, Inc.
Renaissance Services
Rodelco Electronics Corporation
Rubbercraft
system more predictable and efficient has been a long time coming.
Strategic and International Studies
released in February. It concludes that
the U.S. space industrial base has been
greatly harmed and has lost ground to
other nations because of export controls
that, ironically, are supposed to preserve
American leadership.
AIA and its member companies
have long advocated export control
modernization to support defense and
dual-use trade and technology cooperation.
Specific recommendations and the
analytical work that supported them
originated inside our association. It’s
been a job well done, and we’ll keep a
keen eye on the government’s process of
implementing what the president has
ordered.
There are compelling reasons for a
modern export system. It will help
ensure that U.S. armed forces have the
best weapons and equipment available
at the best price to taxpayers. It will
promote our nation’s continued economic
and technological leadership
while supporting hundreds of
thousands of high-paying, highly
skilled jobs. And it will advance
America’s position in relation to manufacturing
competitors abroad.
From Meadow to Mars
Finally, I look forward to being among
the spectators at the national finals of
the Team America Rocketry Challenge
sponsored by AIA on May 17 in Great
Meadow at The Plains, Va.
I hope you will join us in applauding
America’s future generation in space.
Marion C. Blakey
AIA Chairman Clay Jones, at left, answers
questions from trade press reporters during
a Washington press briefing.
A. The principal challenge for the new
president to address will be the inevitable
growth in operations, maintenance and
personnel costs with an equally pressing
need to reset and recapitalize our
defense equipment. This won’t be an
easy task, but the next president needs
to establish a national strategy for
sustained investment.
Q. The decades-old U.S. space shuttle
fleet is scheduled to retire in 2010 with
no immediate replacement. What does
the next administration need
to do to ensure that the
five-year manned spaceflight
gap doesn’t grow and that the
United States retains its leadership
in space
A. The Constellation program is
an exciting initiative that will take
America back to space and on to
the moon with a new launch and crew
vehicle. There are challenges for the next
president with this important program —
namely the requirement for stable funding
to keep the program on track.
At stake is America’s future as a
space-faring nation, preservation of our
space industrial base and inspiration for
thousands of young people who look to
the stars and the aerospace industry for
the next generation of flight.
Q. The aerospace industry has made
great strides in reducing the environmental
impact of its products. Experts
agree, however, that environmental
issues could limit future civil aviation
growth and military and space
operations. What needs to be done
to prevent this
A. Industry and government across all
three sectors — civil, defense and space
— need to establish research and
development priorities and partnerships.
This can result in major technology
breakthroughs that will benefit everyone
from synthetic fuels — a military priority
— to NextGen and replacing our aging
Earth observation satellites that monitor
our environment.
A coordinated approach is the most
practical and productive to meet our
environmental goals without sacrificing
economic growth or national security.
7 Executive REPORT
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Q3 Q4
2008

AIA Associate Member COMPANIES CONT.
Sanmina-SCI Corporation
Sample Machining, Inc. dba Bitec
SEAKR Engineering
Sechan Electronics, Inc.
SELEX Sensors and Airborne
Systems US Inc.
Senior Aerospace
Service Steel Aerospace
Servotronics, Inc.
Sigma Metals, Inc.
Signal International
Spectralux Corporation
Spincraft
Spirit Electronics, Inc.
Starwin Industries
Tedopres International, Inc.
TEK Precision Co. Ltd
Telephonics Corporation
Therm, Inc.
Thermal Solutions, Inc.
TIGHITCO, Inc.
Tiodize Co., Inc.
TMX Aerospace
Tri Polus Inc.
TTI, Inc.
TTM Technologies
TW Metals
UGS
UMA, Inc.
Unicircuit Inc.
United Performance Metals
Universal ID Systems, Division of
Commerce Overseas Corporation
University of Tennessee - Aerospace
Defense Clearing House
Unlimited Innovations
Vishay
Vulcanium Metals Incorporated
Waer Systems
Welding Metallurgy, Inc.
West Cobb Engineering &
Tool Co. Inc.
Wind River Systems
Windings, Inc.
Xerox Corporation
X-Ray Industries
XyEnterprise
Yarde Metals
Inspiring Students to Fly HIGHER
From high school robotics fanatics to
college juniors on the cusp of their
careers, students are being encouraged
by AIA member companies to get hands-on with
the aerospace industry.
Bell Helicopter conducted Textron Inc.’s first
Engineering Bootcamp in January with 10
engineering students competitively selected
from the University of Texas.
The students, a mix of aerospace and
mechanical engineering majors, were assisted
by six Bell engineers who had graduated
from UT less than three years ago as well as
Engineering & XworX Technical Fellows.
Elaine Vaught, Bell’s senior vice president of
Engineering & XworX, said it’s important to
recruit college students during their junior year
because many seniors have already identified a
career path and even an employer.
Over the course of the bootcamp, students
designed a flight control system for attitudeindependent
aircraft and later briefed Bell’s
leadership team on their approach. The group
toured five facilities in the Fort Worth area and
flew to Amarillo to see the assembly facility for
the V-22 and H-1 aircraft.
officer and senior vice president of engineering
for BAE Systems. "FIRST gives students an
opportunity to work on teams, demonstrate
leadership and tackle a technical problem.
"Given the need to replace retiring baby
boomers over the next five to 10 years, there's
a need for engineers who can go into the
workforce and contribute proactively. We're
interested in supporting that national need."
During the 2008 FIRST Robotics
Competition season, running January through
April, students are competing in three-team
regional alliances and then at the BAE Systemssponsored
championship in Atlanta. This year’s
challenge, named Overdrive, requires each
team’s remote-controlled robots to race around
an oval track while passing large balls.
Of the more than 1,500 teams participating
nationwide, BAE Systems supports more than
60 teams from schools near company sites in
12 states.
Other AIA member company sponsors
include Parker Hannifan Corporation, Raytheon
Company, United Technologies Corporation
and Plexus.
1000 Wilson Blvd. #1700
Arlington, VA 22209-3928
Phone 703.358.1000
Fax 703.358.1012
www.aia-aerospace.org
Racing Robots
BAE Systems has become a strategic partner
to FIRST (For Inspiration and Recognition of
Science and Technology) and its annual robotics
competition, upping its annual support to more
than $1 million and providing volunteer mentors
and sponsorships across the country.
Since the company first began backing the
competition in the early 1990s, BAE has hired
more than a dozen former FIRST participants.
"The key element of FIRST is trying to
interest high school students in science, math
and engineering educational endeavors and
careers," said Robert Stow, chief technology
Lauren Duda, Eric Finn and Dan Petrovic
of the Chop Shop robotics team of Merrimack,
N.H., High School examine parts
during the 2008 FIRST Robotics Championship.
BAE Systems is a team sponsor.
Photo by Chris Petrovic.
A quarterly digest for the Aerospace Industries Association