Briefing for AIA Session March 28 2002a

Building the 21st Century National Aerospace Workforce: 

Building the 21st Century National Aerospace Workforce Aerospace Industries Association Special Session on “Revitalization of the Workforce” March 27, 2003 Presentation by: Steve Sleigh, IAM Joel Cutcher-Gershenfeld, MIT “Right Skills, Right Place, Right Time”

Mission and Vision: 

Mission and Vision Overall Mission for the Aerospace Industry: Enabling the global movement of people and goods; Enabling the global acquisition and dissemination of information and data; Advancing national security interests; and Providing a source of inspiration by pushing the boundaries of exploration and innovation Source: Lean Enterprise Value: Insights from MIT’s Lean Aerospace Initiative (Palgrave/MacMillan, 2002) 21st Century Workforce Vision: Attract and retain a 21st Century aerospace workforce with the skills, capabilities and commitment to enable transformation and success in the aerospace industry

Strategic Challenges: 

Strategic Challenges Knowledge and Capability Demographic “cliff” Gaps in “pipelines” – skilled apprenticeships and aerospace engineering programs Changing skill mix requirements and new technologies Fundamental changes in the nature of work and operations Competitive Challenges Global competition and organizational instability Institutional barriers, monuments and gaps in the “social infrastructure” Divisive dynamics around job security, benefits and flexibility Reduced attractiveness of careers in aerospace

Institutional Opportunities: 

Institutional Opportunities Aerospace Inter-Agency Task Force Spanning the Department of Defense, NASA, FAA, Departments of Labor, Education, Commerce and Homeland Security – to coordinate government aerospace workforce initiatives Aerospace Capability Network Public/private partnerships spanning all key stakeholders—business, labor, government, universities and community groups Development of aerospace skill standards and certification programs Dissemination of information on occupations, job availability, high performance partnerships, and new work systems Grants for demonstration projects at local and regional levels Industry Promotion and Development Best practices in career development, employment relations, and life-long learning across the industry National campaign on aerospace opportunities – primary schools, secondary schools, community colleges and universities

Aerospace Workforce Knowledge, Skills and Abilities (KSAs): A Conceptual Map: 

Aerospace Workforce Knowledge, Skills and Abilities (KSAs): A Conceptual Map Source: MIT’s Labor Aerospace Research Agenda

Potential Topics for Dialogue: 

Potential Topics for Dialogue Dialogue on Challenges: Skills and capability Competitive challenges Dialogue on Opportunities: Priorities from industry and labor for proposed Inter-Agency Task Force on the Aerospace Workforce Elements of success for potential Aerospace Capability Network Opportunities for Aerospace Industry Promotion and Development For more information on aerospace workforce research at MIT, see the publications presented by MIT’s Labor Aerospace Research Agenda http://mit.edu/ctpid/lara and MIT’s Lean Aerospace Initiative http://web.mit.edu/lean. For more information on the IAM and High Performance Work Organizations, see http://www.goiam.org under “visit IAM Headquarters.”

Concluding Comment: 

Concluding Comment All of the above options require substantial contributions from public and private sectors – not just contributions of funds, but of leadership time and attention We call for a deep commitment to fundamental cultural change in this industry – valuing human capital as the key to future success.

Appendix: 

Appendix Apprenticeship data Global footprint data National employment and sales data

US DoL and Other Apprenticeship Programs: 2002 Survey: 

US DoL and Other Apprenticeship Programs: 2002 Survey The vast majority (85%) of aerospace facilities do not have apprenticeship programs and of those that do, approximately 2/3 have had no graduates over the past three years and have no one in the programs.

Percent of US Respondents Reporting Suppliers in Each Location: 

Percent of US Respondents Reporting Suppliers in Each Location US: 95% Canada, Mexico: 23% Japan, China, Korea: 22% Europe: 35% Russia, CIS: 4% South America: 3% Other: 3% Key: Blue: Under 25%; Red: 25-50%; Green: Over 50%

Percent of US Respondents Reporting Customers in Each Location: 

Percent of US Respondents Reporting Customers in Each Location US: 98% Canada, Mexico: 56% Japan, China, Korea: 50% Europe: 75% Russia, CIS: 5% South America: 29% Other: 18% Key: Blue: Under 25%; Red: 25-50%; Green: Over 50%

Percent of US Respondents Reporting Joint Ventures in Each Location: 

Percent of US Respondents Reporting Joint Ventures in Each Location US: 40% Canada, Mexico: 7% Japan, China, Korea: 11% Europe: 18% Russia, CIS: 1% South America: 1% Other: 3% Key: Blue: Under 25%; Red: 25-50%; Green: Over 50%

Percent of US Respondents Reporting Strategic Partners in Each Location: 

Percent of US Respondents Reporting Strategic Partners in Each Location US: 50% Canada, Mexico: 10% Japan, China, Korea: 11% Europe: 22% Russia, CIS: 6% South America: 1% Other: 5% Key: Blue: Under 25%; Red: 25-50%; Green: Over 50%

Percent of US Respondents Reporting Current Competitors in Each Location: 

Percent of US Respondents Reporting Current Competitors in Each Location US: 92% Canada, Mexico: 25% Japan, China, Korea: 31% Europe: 66% Russia, CIS: 6% South America: 5% Other: 5% Key: Blue: Under 25%; Red: 25-50%; Green: Over 50%

Percent of US Respondents Projecting Future Competitors in Each Location: 

Percent of US Respondents Projecting Future Competitors in Each Location US: 73% Canada, Mexico: 33% Japan, China, Korea: 68% Europe: 58% Russia, CIS: 20% South America: 13% Other: 10% Key: Blue: Under 25%; Red: 25-50%; Green: Over 50%

Selected Written Comments on Surveys: 

Selected Written Comments on Surveys September 11 has had a severe impact on our industry which has influenced this survey. Airlines have received government support, however none of these funds have provided GSE manufacturers stability or longevity. Over the last two years we have been working very hard on upgrading Quality Systems (AS9000), implementing LEAN manufacturing, training, while at the same time diversifying the business and trying to penetrate new markets. Our products (cargo systems) are installed on older aircraft and those were affected heavily by the down turn in the economy as well as the events of sept. 11. Can't get domestic labor - skilled or otherwise. HELP! Since September 11, 2001, there has been a significant downturn in the volume of our business. I know for a fact that our facility and at least three of our most valued suppliers face an almost insurmountable challenge to stay afloat over the next 90 - 120 days if something doesn't change. We withdrew from the aerospace markets in 1997 and moved our manufacturing capabilities to the energy equipment markets. OEM's are using DOD funding to develop new technologies, practices & procedures and then turnaround and subcontract work overseas to the lowest bidder. They also utilize these advances on their commercial products which are primarily subcontracted to Asia & Mexico under the guise of mandatory offsets.

Chart 1: US and EU Aerospace Employment since 1980: 

Chart 1: US and EU Aerospace Employment since 1980

Chart 2: Major Non-U.S. Aerospace Employer Countries since 1980 ( > 30,000 employees with time series data available): 

Chart 2: Major Non-U.S. Aerospace Employer Countries since 1980 ( > 30,000 employees with time series data available)

Chart 3: Sales and Employment for U.S. Aerospace Industry (SIC 372 and 376) since 1980: 

Chart 3: Sales and Employment for U.S. Aerospace Industry (SIC 372 and 376) since 1980

Chart 4: Sales and EmploymentSIC 372 - Aircraft and Part since 1980: 

Chart 4: Sales and Employment SIC 372 - Aircraft and Part since 1980

Chart 5: Sales and EmploymentSIC 376 - Guided Missiles, Space Vehicles, and Parts since 1980: 

Chart 5: Sales and Employment SIC 376 - Guided Missiles, Space Vehicles, and Parts since 1980

Chart 6: Sales and Employment for EU Aerospace Industry since 1980: 

Chart 6: Sales and Employment for EU Aerospace Industry since 1980

Chart 7: Sales and Employment forCanadian Aerospace Industry since 1984: 

Chart 7: Sales and Employment for Canadian Aerospace Industry since 1984

Chart 8: Sales and Employment for Brazilian Aerospace Industry since 1995: 

Chart 8: Sales and Employment for Brazilian Aerospace Industry since 1995

Chart 9: Sales and Employment for Japanese Aerospace Industry since 1988: 

Chart 9: Sales and Employment for Japanese Aerospace Industry since 1988

Chart 10: Sales and EmploymentSIC 49 - Electric, Gas, and Sanitary Services: 

Chart 10: Sales and Employment SIC 49 - Electric, Gas, and Sanitary Services

Chart 11: Sales and EmploymentSIC 80 - Health Services: 

Chart 11: Sales and Employment SIC 80 - Health Services

Chart 12: Sales and EmploymentSIC 371 - Motor Vehicles and Equipment: 

Chart 12: Sales and Employment SIC 371 - Motor Vehicles and Equipment

Chart 13: Sales and EmploymentSIC 373 - Ship and Boat Building and Repair: 

Chart 13: Sales and Employment SIC 373 - Ship and Boat Building and Repair

Chart 14: Sales and EmploymentSIC 374 - Rail Equipment: 

Chart 14: Sales and Employment SIC 374 - Rail Equipment