California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The aerospace industry in California fared relatively well when compared
to the overall manufacturing sector according to a recent study by the
Northern California Center of Excellence and the Center for Applied
Competitive Technologies at Cerritos College. 

Between 2004 and 2008, the aerospace industry added over 5,500 jobs, but
then experienced a sharp decline in 2009 with the loss of nearly 14,500
jobs.  However, from 2004 to 2009, the aerospace industry only declined
by 5 percent compared to 12 percent for the overall manufacturing sector.

California is responsible for about 25 percent of the aerospace industry
in the U. S. Besides the strong supplier presence, California has more
NASA centers than any other state and has a higher education system that
provides a pipeline of skilled workers.  The clustering of aerospace
supplier industries promotes knowledge transfer and innovation, reduces
operating expenditures, and attracts new aerospace businesses to the state. 

There are also four air force bases that support research, design, and
testing of commercial and military aerospace systems (Edwards, Vandenberg,
Los Angeles, and Air Force Plant 42.)

A few large firms, such as Northrop Grumman and Lockheed Martin, which
produce aircraft for the military and private organizations, dominate the
aerospace industry. These large firms subcontract with smaller suppliers
to manufacture or design parts for the aircraft systems. The aerospace
industry is comprised of the following industry groups:

• Aircraft manufacturing
• Aircraft engines and engine parts
• Other aircraft parts and equipment
• Aircraft support
• Missiles, space vehicles and parts
• Search, detection and navigation instruments

The aerospace industry generated over $27 billion in sales in 2009, with
the Los Angeles region generating 42 percent of the total revenue.  Orange
County Silicon Valley, and the San Diego and Imperial region were high
performers in terms of generating revenue.

In 2008, there were about 5,300 aerospace companies located in California,
with the majority located in Los Angeles County (1,850), followed by Orange
County (790), the Silicon Valley (610), and the San Diego and Imperial
Region (450).

The study divided the state into ten regions, with Los Angeles, Orange,
San Diego/Imperial, and the Inland Empire, and South Central providing the
most jobs.  While four of the top five regions lost jobs, the San Diego/Imperial
region gained over 3,000 jobs, indicating a unique competitive position relative
to the other regions.

I am Tim Johnson and this has been the California Business Minute.