Aerospace: California's Other Innovator - Milken Institute
Aerospace: California's Other Innovator - Milken Institute
Aerospace: California's Other Innovator - Milken Institute
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<strong>Aerospace</strong>: California’s <strong>Other</strong> <strong>Innovator</strong>
U.S. ranked top in aerospace and defense employment among selected<br />
countries<br />
2010<br />
Europe<br />
36.0%<br />
Canada<br />
6.3%<br />
Source: Deloitte, "The <strong>Aerospace</strong> and Defense Industry in the U.S.“, March 2012.<br />
Japan<br />
2.3%<br />
Brazil<br />
1.7%<br />
U.S.<br />
53.8%
Total employment in the U.S. aerospace industry has been<br />
decreasing<br />
Total employment (thousands)<br />
1,000<br />
950<br />
900<br />
850<br />
800<br />
750<br />
700<br />
650<br />
600<br />
550<br />
500<br />
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010<br />
Source: <strong>Aerospace</strong> Industries Association (accessed October 2012).
Contribution of the aerospace and defense industry to U.S. GDP<br />
compared to other industries<br />
2009<br />
GDP contribition (%)<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
Source: Deloitte, "The <strong>Aerospace</strong> and Defense Industry in the U.S.“, March 2012.
U.S. aerospace industry has been experiencing a trade surplus<br />
Trade of the U.S. aerospace industry<br />
Trade (US$ billions)<br />
160<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
36.61 37.69<br />
97.22 95.08<br />
Source: <strong>Aerospace</strong> Industries Association (accessed October 2012).<br />
Exports Imports<br />
25.13 26.35<br />
81.17 77.50<br />
29.57<br />
86.98<br />
2007 2008 2009 2010 2011
California had the most direct employment in the U.S. aerospace and<br />
defense industry<br />
2010<br />
Employment (thousands)<br />
180<br />
160<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
Source: Deloitte, "The <strong>Aerospace</strong> and Defense Industry in the U.S.“, March 2012.
California ranked 2nd among top 10 states in aerospace and<br />
defense exports in the U.S.<br />
Exports (US$ billions)<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
2009<br />
2010<br />
Source: Deloitte, "The <strong>Aerospace</strong> and Defense Industry in the U.S.“, March 2012.
California ranked 4 th among top 10 states for the U.S. aerospace and<br />
defense average wages<br />
2010<br />
Average wages (US$ thousands)<br />
105<br />
100<br />
95<br />
90<br />
85<br />
80<br />
75<br />
Source: Deloitte, "The <strong>Aerospace</strong> and Defense Industry in the U.S.“, March 2012.
<strong>Aerospace</strong> establishments – some examples in California<br />
Sources: Northern California Center of Excellence and the Center for Applied Competitive<br />
Technologies, 2010; the <strong>Milken</strong> <strong>Institute</strong>.<br />
Note: The map is based on information in 2008.<br />
Some examples of aerospace establishments in<br />
California:<br />
NASA:<br />
Jet Propulsion Laboratory - Pasadena, CA<br />
Ames Research Center - Moffett Field, CA<br />
Dryden Flight Research Center - Edwards, CA<br />
Key Air Force Bases:<br />
Los Angeles Air Force Base - El Segundo, CA<br />
Edwards Air Force Base - Edwards, CA<br />
Vandenberg Air Force Base - Lompoc, CA<br />
Major private sector employers:<br />
Boeing - Long Beach, Seal Beach, and El Segundo, CA<br />
Lockheed Martin (Skunk Works) - Palmdale, CA<br />
Gen Corp - Canoga Park, Sacramento , CA<br />
Northrop Grumman - El Segundo, Redondo Beach, and Palmdale, CA<br />
Raytheon - El Segundo, CA
Distribution of aerospace establishments in California by region<br />
2009<br />
San Diego &<br />
Imperial<br />
8.3%<br />
Orange<br />
14.8%<br />
Silicon Valley<br />
11.4%<br />
South Central<br />
5.3%<br />
Bay Area<br />
7.2%<br />
Central Valley<br />
5.6%<br />
Sources: Northern California Center of Excellence and the Center for Applied Competitive Technologies, 2010; EMSI 4 th Quarter 2009.<br />
Far North<br />
1.0%<br />
Los Angeles<br />
34.8%<br />
Greater<br />
Sacramento<br />
3.3%<br />
Inland Empire<br />
8.2%
<strong>Aerospace</strong> manufacturing sector employment in California by region<br />
2009<br />
Employment (thousands)<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
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<br />
in California by region<br />
2009-2014<br />
Change of employment (%)<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
-5<br />
Sources: Northern California Center of Excellence and the Center for Applied Competitive Technologies, 2010; EMSI 4 th Quarter 2009.
<strong>Aerospace</strong> revenue and earnings per worker in California by region<br />
2009<br />
US$ (billions)<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
Revenue (left axis) Earnings per worker (right axis)<br />
Sources: Northern California Center of Excellence and the Center for Applied Competitive Technologies, 2010; EMSI 4 th Quarter 2009.<br />
US$ (thousands)<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0
Predicted change of employment for top 10 fastest growing aerospace<br />
occupations in California<br />
2009 - 2014<br />
<strong>Aerospace</strong> occupations Predicted change of employment<br />
Aircraft mechanics and service technicians 13%<br />
Industrial engineers 10%<br />
Computer software engineers, applications 10%<br />
Computer-controlled machine tool operators, metal and plastic 8%<br />
Managers, all other 6%<br />
Business operation specialists, all other 6%<br />
Machinists 5%<br />
Computer software engineers, systems software 4%<br />
Engineering managers 3%<br />
<strong>Aerospace</strong> engineers 2%<br />
First-line supervisors/managers of production and operating workers 2%<br />
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<br />
California<br />
Aquarius<br />
Nuclear<br />
Spectroscopic<br />
Telescope<br />
Hybrid Airship<br />
Advanced<br />
Composite<br />
Cargo<br />
Aircraft<br />
(ACCA)<br />
Mars Science<br />
Laboratory<br />
Curiosity Rover<br />
Lunar Atmosphere<br />
Dust Environment<br />
Explorer<br />
Juno<br />
Interface<br />
Region Imaging<br />
Spectrograph<br />
(IRIS)<br />
ASTRO<br />
and<br />
NextSat