< PreviousPhoto by GettyImages.com AEROSPACE & DEFENSE 128 NOVEMBER 2024 SITE SELECTION By the Numbers: Big Stats and Big Dollars by MARK AREND mark.arend@siteselection.com Photo: Getty Images ust how signifi cant is the aerospace and defense industry to the U.S. and states’ economies? Very. It generated more than $ billion in sales in , according to Facts & Figures analysis released in September by the Aerospace Industries Association (AIA) in collaboration with S&P Global Market Intelligence. at’s a .% increase over sales. e industry generated $ billion in economic value nationally, or .% of the nominal GDP. According to the data, the top fi ve Plus: Site Selection Insights from Industry Experts A&D130 NOVEMBER 2024 SITE SELECTION states for aerospace and defense related economic value are California at $ . billion, Washington ($ . billion), Texas ($ . billion), Arizona ($ . billion) and Connecticut ($ . billion). “ is year’s Facts and Figures shows that the American aerospace and defense industry continues to be an economic powerhouse — outpacing national averages for job creation and wages and contributing signifi cantly to global trade, national security and technology leadership,” said Eric Fanning, AIA’s president and CEO, announcing the numbers. “We take pride in maintaining the gold standard in aviation, delivering cutting-edge equipment for modern warfi ghters, and enabling international collaboration with our allies and partners. With our world-class workforce, advanced supply chain and high-quality innovations, the TOP EXPORTS DESTINATIONS The leading destinations for U.S. A&D exports in 2023 were France, Germany, Canada, the United Kingdom, and Singapore IN 2023 Driven by global demand for American-made products, U.S. A&D exports rose by a remarkable 21 percent from 2022 to 2023 to a total value of $135.9 billion. A&D INDUSTRY EXPORTS 2023 $135.9 billion 21% 2022 $112.1 billion INCREASE The total value of all U.S. A&D industry imports for 2023 was $21.88 billion — up 7 percent from the year prior. The top origins of U.S. A&D imports for 2023 were the United Kingdom, Brazil, Germany, France, and Canada. A&D INDUSTRY IMPORTS 2023 $21.88 billion 7% 2022 $20.34 billion INCREASE In 2023, the U.S. A&D industry maintained a positive trade balance at a value of $113.99 billiion, an increase of 24 percent from 2022 — demonstrating the incredible impact the industry has on the American economy. TRADE BALANCE 2023 $113.99B 2022202120202019 $91.8B $51.5B $40B $79.4B132 NOVEMBER 2024 SITE SELECTION American aerospace and defense industry stands as one of our country’s strongest strategic assets.” AIA pegs the industry’s workforce at 2.2 million workers, nearly 60% of whom work in supply-chain functions. Other aerospace and defense workforce statistics from AIA include these: • The commercial aerospace sector makes up 47% of the industry’s direct employment with the defense and national security sector comprising the remaining 53%. This study divides the A&D industry into four key subsectors, and of those the aeronautics/aircraft is the largest employer, directly employing 462,000 workers. The land and sea systems subsector is the next largest with more than Companies Location Country Product Investment (Million USD) Kalyani Steels Dhenkanal, Odisha India Aircraft Parts and Auxiliary Equipment 3,000 The Boeing Co. Berkeley, Missouri United States Aircraft 2,000 Lockheed Martin Corp. Fort Smith, Arkansas United States Aircraft 765 Kongsberg Defence Australia Newcastle, New South Wales Australia Guided Missile and Space Vehicle 567 Joby Aviation Dayton, Ohio United States Aircraft 500 The Pratt & Whitney Co. Oklahoma City, Oklahoma United States Aircraft Engine and Engine Parts 255 Aibot Us Operation Mojave, California United States Aircraft 250 Aibot Us Operation Long Beach, California United States Aircraft 250 Collins Aerospace / RTX Corp. Seletar, North East Community Singapore Aircraft Parts and Auxiliary Equipment 250 Development Region Neuraspace Ponte de Sor, Distrito de Portalegre Portugal Aeronautical Instruments 212 The Pratt & Whitney Co. / RTX Corp. Columbus, Georgia United States Aircraft Engine and Engine Parts 206 B/E Aerospace Spokane, Washington United States Aircraft Parts and Auxiliary Equipment 200 Magnus Aircraft Zártkörüen Müködö Wuxi, Jiangsu China Aircraft 186 Részvénytársaság / Jiangsu Magnus Aircraft Manufacturing Adani Aerospace And Defence Kanpur, Uttar Pradesh India Guided Missile and Space Vehicle 181 The Boeing Co. / Wisk Aero / Héroux-Devtek Montreal, Quebec Canada Aircraft 176 Aura Aero Daytona Beach, Florida United States Aircraft 173 Rheinmetall Aktiengesellschaft Zalaegerszeg, Zala megye Hungary Military Armored Vehicle, Tank, 170 and Tank Component GKN Aerospace Garden Grove, California United States Aircraft 150 Singapore Technologies Engineering Changi Singapore Aircraft 126 Porter Airlines Ottawa, Ontario Canada Aircraft 125 Anduril Industries McHenry, Mississippi United States Guided Missile and Space Vehicle 125 Leonardo DRS Goose Creek, South Carolina United States Aeronautical Instruments 120 RTX Corp. Redstone Arsenal, Alabama United States Guided Missile and Space Vehicle 115 Hensoldt Oberkochen, Baden-Wuerttemberg Germany Aeronautical Instruments 106 Region BAE Systems Hägglunds Ornskoldsvik, Vaesternorrlands Laen Sweden Military Armored Vehicle, Tank, 105 and Tank Component TOP AEROSPACE AND DEFENSE INDUSTRY PROJECTS BY INVESTMENT, 2023-2024134 NOVEMBER 2024 SITE SELECTION , workers, followed by the space subsector with , workers, and the cyber sector with , employed in . • Jobs supported by the U.S. A&D industry represent .% of the nation’s total employment base. • e average labor income per job within the A&D industry (both producers of end-use goods and services as well as the supply chain) amounted to $ , , approximately % above the national average — refl ecting the highly skilled nature of the workforce. • A total of $ billion in labor income supported by the A&D industry represented nearly % of the nation’s total labor income. As for , aerospace and defense companies have been investing in new and expanded facilities across the U.S. and the world. Some recent examples: In July, GE Aerospace said it will more than $ billion over fi ve years to increase capacity at its Maintenance, Repair and Overhaul (MRO) and component-repair facilities worldwide. A major part of the MRO funding this year, according to the company, went to construction of a new Services Technology Acceleration Center (STAC) near Cincinnati, Ohio, that opened in September. Its MRO facilities around the world are seeing investment already, in large part to expand support for CFM LEAP aircraft engines. CFM is a joint venture between GE Aerospace and Safran Aircraft Engines. At the Farnborough Air Show in July, Collins Aerospace, a division of RTX, announced plans to invest $ million to relocate a manufacturing plant currently in Bedok, Singapore, to a new facility in the country’s Selatar Aerospace Park miles away. e company says construction will begin in the fourth quarter of and should commence operations in . Collins has had a presence in Singapore since . e company also is investing $ million to expand its carbon brake production facility in Spokane, Washington. e , -sq.-ft. addition will double production capacity and add about new jobs. (See p. for an interview with Collins’ general manager at the facility.) Pratt & Whitney, also an RTX business, opened its new , -sq.-ft. facility in Oklahoma City, Oklahoma, where it supports customers of its military aircraft engines, solidifying its position as the business’s largest military engines fi eld location. e $ million investment will create about jobs, adding to the full-time jobs already at the complex. “ is expansion more than doubles our footprint in Oklahoma City, ensuring we have the capacity and agility to support increased workloads as military programs ramp up and new ones come online,” said Greg Treacy, vice president of Pratt & Whitney in Oklahoma City, at the October opening. Honeywell is investing $ million to expand Expanding this facility will enable the development of a strong and resilient domestic supply chain for next-generation avionics and printed circuit board assemblies that our commercial and military customers can rely on.” — Greg Treacy , Vice President, Pratt & Whitney, Oklahoma CIty Expanding this facility will enable the 136 NOVEMBER 2024 SITE SELECTION its Olathe, Kansas, manufacturing facility. e ,-sq.-ft. facility makes components for avionics, safety and fl ight control systems and complex radio frequency systems for traffi c collision avoidance, radar altimeters and weather radar. e project will result in about new jobs. “Expanding this facility will enable the development of a strong and resilient domestic supply chain for next-generation avionics and printed circuit board assemblies that our commercial and military customers can rely on,” said Jim Currier, president and CEO, Honeywell Aerospace Technologies, in a statement. GKN Aerospace completed an ,-sq.- ft. expansion at its facility in Chihuahua, Mexico, one of three it operates in the country. Workers at the factory assemble composite aerostructures and manufacture electrical wiring interconnection systems. “By diversifying the site,” says the company, “with the addition of electrical wiring systems capability alongside its existing aerostructures capabilities, Chihuahua will be repositioned as a multi-technology aerospace manufacturing center with the creation of more than new jobs.” GKN Aerospace also plans to increase the capacity and effi ciency of its manufacturing facility in Trollhättan, Sweden. For some insights into what’s driving today’s aerospace and defense industry location decisions, Site Selection turned to some experts at JLL who work with the industry to fi nd the best sites. Following are their takes on navigating the A&D location landscape. How are site location factors for aerospace and defense projects evolving? In other words, are certain criteria more important now than in the past, such as access to specialized labor or supplies of rare earth minerals? Tom Taylor, Managing Director, Aerospace and Defense, JLL Work Dynamics: e industry is experiencing growing demand for products and services. is growth is characterized by more and varied industry demands such as remote defense and space applications. Today the industry is faced with greater demand for faster development cycles, extreme adoption and integration of digital/AI systems across all solutions and products, and more sophisticated and fl exible supply chains to ensure delivery of materials and components to de-risk production requirements. To meet these demands, location footprints and site selection are moving beyond the industries’ tried and true legacy markets to identify markets that can meet the unique operating needs of the enterprise and provide a competitive advantage for these evolving industry demands. ere are several criteria that would be considered important for a new location has always been an important location criterion, but with the rising demand for digital/AI and advanced technologies it is becoming a more critical consideration in A&D site selection initiatives for engineering and development processes.” — Tom Taylor , Managing Director, Aerospace & Defense, JLL Work Dynamics Labor Labor Tom Taylor, Managing Director, Aerospace & Defense, JLL Work DynamicsNext >