The Aerospace Industry. Partners Meeting March 29, 2016

Transcription

1 The Aerospace Industry Partners Meeting March 29, 2016

2 Which Costs More? Boeing 747 Lockheed Martin F-22 Raptor $378 million $412 million

3 How Many Chevy Cruzes For One GE-90 Engine? Approximate Cost: $20,000 1,200 Chevy Cruzes Approximate Cost: $24 million

4 Meeting Overview Aerospace Industry Overview Aerospace in NEO Aerospace Trends Opportunities for NEO

5 Meeting Objectives Become more knowledgeable about the aerospace industry Learn about new technologies that can keep a company competitive Be able to talk to a company about aerospace opportunities and how to get into the industry Learn about resources to connect aerospace companies to in order to help them grow

6 Aerospace Value Chain

7 Determinants of Demand

8 Determinants of Demand

9 Commercial Aircraft Demand Expected to Increase Passenger demand is expected to double in next 20 years Boeing and Airbus have a backlog of 12,400 orders for aircraft estimated to be 9 years worth of production Commercial production will increase 30% over next decade

10 Global Military Aircraft Demand Shrinking US Market but Global Growth Department of Defense is projecting $86 billion in cuts from for military aircraft U.S. companies are relying more on exports with domestic demand shrinking Military demand will be steady outside of the U.S. Tensions in Asia are leading to growth in Asian air defense forces

11 Growth in Emerging Markets Asia expected to be the largest air travel market over the next 20 years

12 Strong Projected Production Growth

13 Production also Influenced by Replacement Need

14 Changing Economics of Commercial Air Travel Fuel efficient aircraft like the Boeing 787 are changing the economics of air travel making new flights viable The best ways for airlines to bring in more customers is to create new routes and provide more frequent departures

15 The Aerospace Industry Ohio and Northeast Ohio

16 Aerospace in 1 st ranked U.S. supplier state to Boeing and Airbus 1 st Industry size ranking for 2015 (PwC) 3 rd Aerospace Manufacturing Attractiveness Ranking 2015 (PwC) 26,521 Aerospace workforce (private) 528 Aviation and Aerospace firms

17 JobsOhio Strategy Manufacturing Focus Unmanned aerial systems Systems, components, and parts manufacturing Commercial space Airline Services, MRO Technology Focus Additive Manufacturing Advanced Materials Automation/Internet of Things/Intelligent Machines Aerospace Sales and Outreach Aerospace sales campaign Attend major international aerospace shows Strategic BRE outreach to top aerospace companies in Ohio

18 Aerospace in NEO NEO Aerospace Employment: 9,745 (3.6% of manufacturing workforce) NEO Aerospace GRP: $2.5 billion (6.1% of manufacturing output) 180 NEO Aerospace Manufacturing Companies:

19 Aerospace in NEO 7,000 6,000 5,000 4,000 5,405 5,479 5,529 3,731 3,831 Aerospace Employment in NEO ,258 4,023 4,069 4,946 3,748 5,137 5,473 5,286 5,182 5,791 5,527 3,932 3,812 3,911 3,953 3,954 3,962 3,000 2,000 1, Jobs 2007 Jobs 2008 Jobs 2009 Jobs 2010 Jobs 2011 Jobs 2012 Jobs 2013 Jobs 2014 Jobs 2015 Jobs Navigational, Measuring, Electromedical, and Control Instruments Manufacturing Aerospace Product and Parts Manufacturing 2016 Jobs

20 $ Millions Aerospace in NEO 1,800 1,600 1,400 1,200 1, , , , , Aerospace GRP NEO , , , , , , , Aerospace Product and Parts Manufacturing Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

21 Aerospace Supply Chain in NEO is 3x as Large as the National Average Industry Plastics Product Manufacturing Iron and Steel Mills and Ferroalloy Manufacturing Alumina and Aluminum Production and Processing Foundries Forging and Stamping Architectural and Structural Metals Manufacturing Spring and Wire Product Manufacturing Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing Other Fabricated Metal Product Manufacturing 2015 Location Quotient

22 Aerospace in NEO NEO Aerospace Companies

23 Alcoa 50,000 Ton Press $100 million rebuild completed in 2012 Produces parts for aircraft including the F-35 Joint Strike Fighter

24 Aerospace in NEO Nextant Aerospace More than XTIs remanufactured Nextant s backlog for the 400XTI represents a quarter of the available fleet of about 600 jets Nextant is planning future models

25 Production Engineers Occupation Aerospace Workforce Top 20 Occupations 2015 Jobs Median Hourly Earnings Northeast Ohio Median Hourly Earnings United States Wage Difference NEO vs USA 2015 Location Quotient Aerospace Engineers 895 $51.02 $51.57 ($0.55) 0.92 Electrical Engineers 1,853 $36.99 $44.65 ($7.66) 0.76 Electronics Engineers, Except Computer 1,028 $39.77 $46.80 ($7.04) 0.54 Industrial Engineers 3,946 $35.94 $39.79 ($3.85) 1.19 Mechanical Engineers 4,002 $33.92 $40.36 ($6.44) 1.05 Engineers, All Other 2,613 $40.56 $46.07 ($5.50) 1.46 Electrical and Electronics Engineering Technicians 1,042 $25.45 $28.71 ($3.26) 0.55 Engineering Technicians, Except Drafters, All Other 1,397 $28.62 $29.93 ($1.31) 1.46 First-Line Supervisors of Production and Operating Workers 11,517 $25.48 $26.99 ($1.51) 1.40 Aircraft Structure, Surfaces, Rigging, and Systems Assemblers 93 $23.83 $23.92 ($0.09) 0.17 Electrical and Electronic Equipment Assemblers 3,258 $13.25 $14.62 ($1.37) 1.14 Electromechanical Equipment Assemblers 1,010 $15.21 $15.97 ($0.75) 1.55 Team Assemblers 21,796 $14.50 $13.95 $ Assemblers and Fabricators, All Other 6,638 $12.58 $12.95 ($0.37) 1.98 Computer-Controlled Machine Tool Operators, Metal and Plastic 5,855 $17.15 $17.84 ($0.69) 2.85 Cutting, Punching, and Press Machine Setters, Operators, and Tenders, Metal and Plastic 8,426 $14.93 $14.98 ($0.04) 3.22 Machinists 11,340 $18.04 $19.38 ($1.34) 2.09 Multiple Machine Tool Setters, Operators, and Tenders, Metal and Plastic 5,037 $15.30 $16.50 ($1.20) 3.75 Tool and Die Makers 4,355 $25.63 $24.27 $ Inspectors, Testers, Sorters, Samplers, and Weighers 10,600 $16.75 $17.27 ($0.52) 1.55 Total 106,701 $20.20 $23.53 ($3.34) 1.90

26 NEO Aerospace Education Case Western Reserve- Aerospace Engineering Cleveland State- Mechanical Engineering including Aerospace University of Akron- Aerospace Systems Engineering All three universities also have strong programs in materials used in aerospace

27 Aerospace Resources in NEO

28 NASA Glenn 1568 Civil servants and 1560 contractors in Cleveland NASA Plum Brook acres and 115 employees $567 million budget in 2014 with 50% dedicated to aerospace NASA is pushing its scientists to look for more technology transfer and commercialization opportunities

29 NASA Glenn Core Competencies

30 Glenn Service Offerings to Non-NASA Community

31 Ohio Aerospace Institute Mission: Enhance Ohio s aerospace competitiveness through research and technology development, workforce preparedness, and engagement with global networks for innovation and advocacy. Services: Technology Roadmapping Assessment tools Proposal development Project management Contact Ann Heyward Executive Vice President Phone: AnnHeyward@oai.org

32 The Aerospace Industry New Technologies and Opportunities for NEO

33 Aerospace Technology OEMs are Pushing Suppliers to Invest in New Technologies Aircraft OEMs are demanding high standards of production from their suppliers and companies that can not innovate and keep up with new technology will not be able to compete Competitive pricing pressures make the competition fierce among suppliers

34 Aerospace Industry Trends Fuel Efficiency Fuel accounts for 30-40% of airline operating expenses Reducing weight and increasing engine efficiency are the two main strategies used to reduce fuel consumption Low fuel prices recently have had an effect on fuel efficiency driven sales but airlines are making long term decisions when purchasing aircraft and lowering fuel consumption is still important

35 Aerospace Opportunity for NEO Lightweight Materials Aircraft manufacturers are increasingly using advanced lightweight materials like carbon fiber composites to reduce fuel consumption The Boeing 787 airframe is made up of 50% composite materials

36 Aerospace Opportunity for NEO Increase Exports Ohio exports $5.3 billion worth of aerospace goods each year Country Aerospace Exports 2015 France $1,300,555,977 Canada $554,897,101 Brazil $451,445,425 United Kingdom $416,771,913 China $375,178,694 South Korea $196,883,569 Mexico $190,101,464 Germany $176,807,461

37 Aerospace Opportunity for NEO Increase Exports

38 Aerospace Opportunity for NEO Unmanned Aerial Vehicles

39 Aerospace Opportunity for NEO Unmanned Aerial Vehicles Predicted to double over the next decade (AIA) Still confusion over integrating UAVs into national air system Regulation of UAVs having trouble keeping up with technological advancement There will be opportunities in airframe design but most opportunity will be in software

40 Aerospace Opportunity for NEO Unmanned Aerial Vehicles Support Network

41 Aerospace Opportunity for NEO Commercial Space NASA is Focusing on deep space missions and leaving the private sector to lead low earth orbit missions The goal is to build a strong commercial space sector in the United States Leading commercial space companies include Boeing and SpaceX

42 Aerospace Opportunity for NEO Additive Manufacturing Additive Manufacturing is helping aerospace companies make parts lighter to meet fuel efficiency targets Aerospace is the perfect market for additive manufacturing because of weight requirements, low production volumes, and high precision manufacturing Additive manufacturing using metal is most applicable to aerospace but can be expensive to implement (Machine cost can be $1 million and up) Additive manufacturing can help a company break into the aerospace supply chain

43 Aerospace Opportunity for NEO Additive Manufacturing

44 Help Companies Become a Part of the Aerospace Supply Chain The Quality management system for automotive (ISO/TS 16949:2009) is similar to the Aerospace system (AS9100C) Companies must be certified AS9100C to supply to tier 1 and tier 2 aerospace suppliers A revision is underway to the new AS9100D standard. This should be complete in the next few months. NADCAP (National Aerospace and Defense Contractors Accreditation Program) may also be required for certain parts as well as individual manufacturer standards MAGNET can help companies implement these Quality Management Systems and achieve certification

45 Aerospace Summary Aerospace is projected to experience strong and steady growth over the next two decades Ohio and NEO have a robust aerospace industry with many leading companies and research institutions New technologies and emerging sub-industries are creating opportunities and challenges for aerospace companies. Economic developers have many resources available to help companies overcome their challenges and take advantage of opportunities