Aerospace: California's Other Innovator - Milken Institute

Aerospace: California’s Other Innovator

U.S. ranked top in aerospace and defense employment among selected
countries
2010
Europe
36.0%
Canada
6.3%
Source: Deloitte, "The Aerospace and Defense Industry in the U.S.“, March 2012.
Japan
2.3%
Brazil
1.7%
U.S.
53.8%

Total employment in the U.S. aerospace industry has been
decreasing
Total employment (thousands)
1,000
950
900
850
800
750
700
650
600
550
500
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Source: Aerospace Industries Association (accessed October 2012).

Contribution of the aerospace and defense industry to U.S. GDP
compared to other industries
2009
GDP contribition (%)
14
12
10
8
6
4
2
0
Source: Deloitte, "The Aerospace and Defense Industry in the U.S.“, March 2012.

U.S. aerospace industry has been experiencing a trade surplus
Trade of the U.S. aerospace industry
Trade (US$ billions)
160
140
120
100
80
60
40
20
0
36.61 37.69
97.22 95.08
Source: Aerospace Industries Association (accessed October 2012).
Exports Imports
25.13 26.35
81.17 77.50
29.57
86.98
2007 2008 2009 2010 2011

California had the most direct employment in the U.S. aerospace and
defense industry
2010
Employment (thousands)
180
160
140
120
100
80
60
40
20
0
Source: Deloitte, "The Aerospace and Defense Industry in the U.S.“, March 2012.

California ranked 2nd among top 10 states in aerospace and
defense exports in the U.S.
Exports (US$ billions)
30
25
20
15
10
5
0
2009
2010
Source: Deloitte, "The Aerospace and Defense Industry in the U.S.“, March 2012.

California ranked 4 th among top 10 states for the U.S. aerospace and
defense average wages
2010
Average wages (US$ thousands)
105
100
95
90
85
80
75
Source: Deloitte, "The Aerospace and Defense Industry in the U.S.“, March 2012.

Aerospace establishments – some examples in California
Sources: Northern California Center of Excellence and the Center for Applied Competitive
Technologies, 2010; the Milken Institute.
Note: The map is based on information in 2008.
Some examples of aerospace establishments in
California:
NASA:
Jet Propulsion Laboratory - Pasadena, CA
Ames Research Center - Moffett Field, CA
Dryden Flight Research Center - Edwards, CA
Key Air Force Bases:
Los Angeles Air Force Base - El Segundo, CA
Edwards Air Force Base - Edwards, CA
Vandenberg Air Force Base - Lompoc, CA
Major private sector employers:
Boeing - Long Beach, Seal Beach, and El Segundo, CA
Lockheed Martin (Skunk Works) - Palmdale, CA
Gen Corp - Canoga Park, Sacramento , CA
Northrop Grumman - El Segundo, Redondo Beach, and Palmdale, CA
Raytheon - El Segundo, CA

Distribution of aerospace establishments in California by region
2009
San Diego &
Imperial
8.3%
Orange
14.8%
Silicon Valley
11.4%
South Central
5.3%
Bay Area
7.2%
Central Valley
5.6%
Sources: Northern California Center of Excellence and the Center for Applied Competitive Technologies, 2010; EMSI 4 th Quarter 2009.
Far North
1.0%
Los Angeles
34.8%
Greater
Sacramento
3.3%
Inland Empire
8.2%

Aerospace manufacturing sector employment in California by region
2009
Employment (thousands)
90
80
70
60
50
40
30
20
10
0
Sources: Northern California Center of Excellence and the Center for Applied Competitive Technologies, 2010; EMSI 4 th Quarter 2009.

Projected change of employment in the aerospace manufacturing sector
in California by region
2009-2014
Change of employment (%)
25
20
15
10
5
0
-5
Sources: Northern California Center of Excellence and the Center for Applied Competitive Technologies, 2010; EMSI 4 th Quarter 2009.

Aerospace revenue and earnings per worker in California by region
2009
US$ (billions)
14
12
10
8
6
4
2
0
Revenue (left axis) Earnings per worker (right axis)
Sources: Northern California Center of Excellence and the Center for Applied Competitive Technologies, 2010; EMSI 4 th Quarter 2009.
US$ (thousands)
120
100
80
60
40
20
0

Predicted change of employment for top 10 fastest growing aerospace
occupations in California
2009 - 2014
Aerospace occupations Predicted change of employment
Aircraft mechanics and service technicians 13%
Industrial engineers 10%
Computer software engineers, applications 10%
Computer-controlled machine tool operators, metal and plastic 8%
Managers, all other 6%
Business operation specialists, all other 6%
Machinists 5%
Computer software engineers, systems software 4%
Engineering managers 3%
Aerospace engineers 2%
First-line supervisors/managers of production and operating workers 2%
Sources: Northern California Center of Excellence and the Center for Applied Competitive Technologies, 2010; EMSI 4 th Quarter 2009.

Projects and products of the U.S. aerospace establishments in
California
Aquarius
Nuclear
Spectroscopic
Telescope
Hybrid Airship
Advanced
Composite
Cargo
Aircraft
(ACCA)
Mars Science
Laboratory
Curiosity Rover
Lunar Atmosphere
Dust Environment
Explorer
Juno
Interface
Region Imaging
Spectrograph
(IRIS)
ASTRO
and
NextSat