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A.T. Kearney Releases California Aerospace Economic Impact Study
EL SEGUNDO, Calif., March 31, 2014 /PRNewswire-USNewswire/ -- Global
management consulting firm A.T. Kearney today released an original
study on the essential role the aerospace industry plays in sustaining
the California economy. The study finds that in 2012 aerospace
companies manufacturing or providing aerospace-related services in
California accounted for $62 billion in revenues, representing 21
percent of the U.S. aerospace market and 9 percent of the global
market.
With research supported by the National Defense Industrial Association
(Los Angeles Chapter) and the Aerospace & Defense Forum, the A.T.
Kearney analysis also details how aerospace is a crucial component of
California's economy, both as a significant source of high-paying jobs
and as an incubator for technological innovation. It is one of
California's largest industries, with annual revenues equal to
agriculture and entertainment combined. Including the $38.8 billion in
indirect revenues it feeds to adjacent industries, the industry's
total economic impact is more than $100 billion.
"While we have always known that California's aerospace sector was a
huge influencer in the state's sometimes turbulent economy, this
report presents a quantitative analysis on what that impact actually
is," said Randall Garber, partner, A.T. Kearney Public Sector &
Defense Services. "When you have insight into what these companies
mean in terms of taxes and employment, whether you're a state
legislator or a regular citizen, you can see how important it is to
protect this source of direct and indirect revenue."
The report's findings state that the industry accounts for 510,800
jobs in California-203,400 directly, including commercial, military,
and civilian employment, and 307,400 in indirectly related industries
such as finance, real estate, construction, and transportation.
Regarding tax revenue, aerospace wages rate in the top 3 percent of
all industries and generate $2.9 billion in California personal income
tax revenue.
"This study is a testament to the need for California to enact
meaningful regulatory reform and marketplace incentives to remain
competitive in this industry," said Senator Steve Knight (R-Antelope
Valley), chair of the Senate Select Committee on Defense and
Aerospace. "California has been at the forefront of aerospace, and
striving to successfully incorporate science, technology, engineering
and math (STEM) into our school curriculum will also give us more of
an edge."
According to the study, the aerospace industry has enjoyed tremendous
success in the state, but competitive challenges exist, including high
corporate and personal income taxes, a difficult regulatory
environment and an aging skilled workforce. While recent state
legislation is a step in the right direction, to grow its aerospace
footprint California should proactively pursue competitive policies
that encourage commercial investment as well as investments in STEM
instruction for its students.
Please visit here to access a summary of the study.
To request the full study, please send an email to:
CAaerostudy@atkearney.com
About A.T. Kearney A.T. Kearney is a global team of forward-thinking
partners that delivers immediate impact and growing advantage for its
clients. We are passionate problem solvers who excel in collaborating
across borders to co-create and realize elegantly simple, practical,
and sustainable results. Since 1926, we have been trusted advisors on
the most mission-critical issues to the world's leading
organizations across all major industries and service sectors. A.T.
Kearney has 58 offices located in major business centers across 40
countries.
To read more about A.T. Kearney's Aerospace & Defense Practice, please
visit: http://www.atkearney.com/aerospace-defense
SOURCE A.T. Kearney
-0- 03/31/2014
/CONTACT: Al Black, Qorvis MSLGROUP, 2012.683.3130, ablack@qorvis.com; Richard Ashbaugh, A.T. Kearney, 312.223.6239, richard.ashbaugh@atkearney.com
CO: A.T. Kearney
ST: California
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