Executive

A quarterly digest for the Aerospace Industries Association

INSIDE

page 8 Q1 Q2

Q3 Q4

2008

Seeking Remedies for Workforce Shortages

President’s MessageAIA Member SpotlightREPORT

AspirAspire Highere Higher..

AERAEROSPOSPAACECE

Clayton M. Jones, ChairmanRobert J. Stevens, Vice Chairman

Marion C. Blakey, President & Chief Executive OfficerGinette C. Colot, Secretary-Treasurer

A quarterly digest for the Aerospace Industries Association

President’s MESSAGEDear Association Member:

James F. Albaugh, Executive VicePresident, The Boeing Company, andPresident & Chief Executive Officer,Boeing Integrated Defense SystemsMarion C. Blakey, President & Chief Executive Officer, AerospaceIndustries AssociationNicholas D. Chabraja, Chairman & Chief Executive Officer, General Dynamics CorporationKenneth C. Dahlberg, Chairman & ChiefExecutive Officer, Science ApplicationsInternational Corporation

Scott C. Donnelly, Executive VicePresident & Chief Operating Officer,Textron Inc.Stephen N. Finger, President, Pratt & Whitney, United Technologies CorporationRobert J. Gillette, President & Chief Executive Officer, Honeywell Aerospace James M. Guyette, President & ChiefExecutive Officer, Rolls-Royce North America Inc.

Walter P. Havenstein, Chief OperatingOfficer, BAE Systems plc and President &CEO, BAE Systems, Inc.Clayton M. Jones, Chairman, President &Chief Executive Officer, Rockwell CollinsDavid L. Joyce, President & CEO, GEAviationMarshall O. Larsen, Chairman, President & Chief Executive Officer,Goodrich CorporationRobert R. Sprole, President, Therm, Inc.

Robert J. Stevens, Chairman, President & Chief Executive Officer, Lockheed Martin CorporationRonald D. Sugar, Chairman & Chief Executive Officer, NorthropGrumman CorporationWilliam H. Swanson, Chairman & ChiefExecutive Officer, Raytheon Company

OFFICERS

Executive COMMITTEE

It’s important to know that during thecampaign representatives of the association,including some CEOs who are members of the Executive Committee of the Board of Governors, had a number of positiveexchanges with Obama’s staff and advisors about critical policies that supportaerospace. In opening that dialogue, we’velaid the groundwork with the incomingadministration for the job ahead.

Also, we expect to position AIAobjectives very prominently with the 111thCongress that will be sworn in early next year.We counted a number of good results as the110th Congress wrapped up its regularsession in October, but there’s more to bedone. We’re enthusiastic about working withlawmakers in both houses and on both sidesof the aisle.

AIA’s engagement with the presidentialand congressional campaigns goes back a year to when we mapped out a priority list of industry issues and objectives and

disseminated them far and wide. As thenumber of presidential candidates narrowed,we zeroed in on the party nominees and their staffs.

We held several meetings with high-levelrepresentatives of the candidates, including aforum co-sponsored with the Center forStrategic and International Studies on defensechallenges. Judging by reactions we receivedand the resulting campaign platforms, ourefforts paid off.

As the new administration team preparesto move into the White House, we’replanning a dialogue on the challenges aheadin civil aviation and space. AIA has preparedtransition papers on defense, acquisition,space and workforce issues that will providedetailed information on key topics.

With 2009 approaching I’m confidentthat our industry is well-positioned with both the incoming administration and Congress,and we’re ready to hit the ground running inJanuary.

What an amazing fall this has been — an historic presidential

campaign in the midst of the financial crisis and a haywire

market. It’s been riveting. We extend hearty congratulations to

President-elect Barack Obama. We look forward to working with him and his

new administration in the coming years.

Q1 Q2

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2008

3 Executive REPORT

On the COVER

Sudesh K. Arora, President, NatelEngineering Co., Inc.Robert P. Barker, President,Parker Aerospace, and Senior Vice President - Operating Officer, Parker Hannifin CorporationJoseph C. Berenato, Chairman & Chief Executive Officer, Ducommun IncorporatedDavid E. Berges, Chairman & ChiefExecutive Officer, Hexcel CorporationRobert T. Brady, Chairman & ChiefExecutive Officer, MOOG Inc.Thomas J. Cassidy, Jr., President,Aircraft Systems Group, GeneralAtomics Aeronautical Systems, Inc.

Joan M. Davies, Vice President,Aerospace & Defense, EDS

Elmer L. Doty, President & ChiefExecutive Officer, Vought AircraftIndustries, Inc.Henry Driesse, Senior Vice President,ITT, Acting President, Defense,ITT CorporationErik J. Fabricus-Olsen, Vice President,Aerospace Business Systems,Sparton CorporationDebra Faktor Lepore, President,AirLaunch, LLCJames J. Fitzsimmons, President &Chief Executive Officer, GKNAerospace, North AmericaAerostructures

Thomas A. Gendron, President &Chief Executive Officer, WoodwardGovernor CompanyPaul L. Graziani, President & Chief Executive Officer, AnalyticalGraphics, Inc. Tariq Jesrai, Chief Executive Officer, McKechnie Aerospace Robert Khoury, Vice Chairman,B/E Aerospace, Inc.Tom Kilkenny, General Manager,Global Aerospace & Defense Industry,IBM CorporationHoward L. Lance, Chairman,President & Chief Executive Officer,Harris Corporation

John S. Langford, Chairman &President, Aurora Flight SciencesStephen R. Larson, Vice President,Strategy and Technology, Esterline TechnologiesLaurans A. Mendelson, Chairman,President & Chief Executive Officer,HEICO CorporationGregory F. Milzcik, President & ChiefExecutive Officer, Barnes Group Inc.Ulick McEvaddy, Director, Omega Air, Inc.Bradley J. Morton, Vice President, Eaton AerospaceScott Neish, President, AerojetMark S. Newman, Chairman,President & Chief Executive Officer,DRS Technologies, Inc.

Richard Pogue, President, RemmeleEngineering, Inc.Thomas G. Powell, Vice President &General Manager, DuPont AdvancedFiber Systems Ronald S. Saks, President & ChiefExecutive Officer, LMI Aerospace Inc. James E. Schuster, Chairman & ChiefExecutive Officer, Hawker BeechcraftCorporation Raymond H. (Tray) Siegfried III, Vice President OEM Sales & StrategicResources, The NORDAM GroupGary J. Spulak, President, Embraer Aircraft Holding Inc.

Michael T. Strianese, Chairman,President & Chief Executive Officer, L-3 Communications CorporationCharlie Stuff, Executive VicePresident, Cobham Jeff Turner, President & ChiefExecutive Officer, Spirit AeroSystems Gregory A. Ward, President,Crane Aerospace Group, CraneAerospace & ElectronicsJames R. Western, President, Pall Aeropower CorporationBrian S. Young, General Manager, 3M Aerospace

Board of GOVERNORS

Response to the Financial CrisisThe 110th Congress adjourned in a flurry of activity with

the financial crisis the focus of most of the attention.As this Executive Report went to press, a lame-duck

session was planned. With that in mind, we recently sent aletter to House and Senate leadership pointing out howcritical the aerospace industry is to economic recovery andjob growth. We asked that they take action on a number ofitems of major importance to our industry.

Under Pension Plan Financing, we support:• Provisions that will permit smoothing of unexpected

losses.• Removal of restrictions on extent of asset smoothing.• Sufficient transition to new funding rules.• Permitting new funding election methods to keep plans

viable.• Clarification of end-of-year valuations.• Fixed interest rate for Code Section 415 limits.

AIA New Member SPOTLIGHT

Membership in AIA at last counthas grown to 107 regularmembers and 183 associate

members. Here is a look at two of thenewest members.

BreconRidge Manufacturing

provides innovative designengineering and manufacturingservices for electronic products.

Headquartered in Ottawa,Canada, with facilities in NorthAmerica and Asia, BreconRidgecollaborates on voice, video and dataapplications with the world’s leading communications,

industrial and defense originalequipment manufacturers.

The company providesexceptional engineering support incollaborating with customers in thedevelopment of innovative solutions,specializing in RF, microwave andoptical technologies and applications.

www.breconridge.com

Naverus, a privately held Seattlecompany founded in 2003, is a leader in performance-basednavigation with hundreds of PBNprocedures in use worldwide.

Airlines, air navigation service

providers and national regulators useNaverus PBN flight paths to save fuel, reduce carbon emissions,reduce miles flown, reduce blocktimes and help air traffic systems gainnew efficiencies.

The company’s customers includeAir China, Air New Zealand, Boeing,CAAC, COPA, the International AirTransport Association, jetBlue, Jetstar,SkyEurope, Southwest Airlines,Qantas, WestJet and others.

www.naverus.com

Daphne Dador, AIA managerof workforce, and four young

scholars discuss careers inaerospace at AIA’s exhibit

booth at Education Alley,an event hosted by the

American Institute ofAeronautics and Astronauticsin San Diego.

A quarterly digest for the Aerospace Industries Association

3M Company

AAR

Accenture

Aerojet

AeroVironment, Inc.

AirLaunch LLC

Agilent Technologies, Inc.

Allfast Fastening Systems, Inc.

American Pacific Corporation

AmSafe Aviation

AMT II Corporation

Analytical Graphics, Inc.

Andrews Space

Aurora Flight Sciences

AUSCO, Inc.

B&E Group, LLC

BAE Systems, Inc.

Barnes Aerospace

B/E Aerospace, Inc

Belcan Advanced Engineering and

Technologies

Best Foam Fabricators, Inc.

The Boeing Company

BreconRidge Manufacturing

CAE USA Inc.

Celestica Corporation

Click Bond, Inc.

Click Commerce

Cobham

Computer Sciences Corporation

Crane Aerospace & Electronics

Curtiss-Wright CorporationCurtiss-Wright Controls Systems, Inc.Metal Improvement Company

Dassault Falcon Jet Corporation

Doncasters, Inc.

DRS Technologies, Inc.

Ducommun Incorporated

DuPont Company

Eaton Aerospace Operations

Eclipse Aviation

EDS

Elbit Systems of America

Embraer Aircraft Holding Inc.

Erickson Air-Crane Incorporated

ESIS, Inc.

Esterline Technologies

Exostar LLC

Flextronics International USA

FlightSafety International Inc.

FTG Circuits, Inc.

General Atomics Aeronautical

Systems, Inc.

General Dynamics Corporation

AIA Member COMPANIES

Under Tax Reform, we support provisionsthat:

• Will make the R&D tax credit permanent.

• Will repeal the 3 percent withholding requirement.

• Will lower corporate tax rates.Under Airport Technology and

Infrastructure, we advocate additionalresources for the deployment of the Next-Generation Air Transportation Systemand airport improvement projects as necessary components of any economicstimulus package.

Under Space Workforce, we urge real,short-term investments in key programs tosustain the space industrial base through thiscritically tough economic situation.

Though it’s unclear what chance we havefor action during a lame-duck session, bylobbying these issues forcefully now we will bebetter positioned for early legislative actionwith the new Congress.

Looking back, there were a number ofvery good outcomes for AIA and theaerospace industry during the past regularcongressional session.

A big victory was the extension of theresearch and development tax credit that wasincluded in the large economic recoverypackage. The credit, which expired almost ayear ago, is very important to encourage andenable innovation in our industry. The

extension is retroactive to cover 2008 andextends the credit through the end of 2009.Also included is language that strengthens thetax credit by increasing the alternativesimplified credit rate to 14 percent for 2009.

In another action, Congress authorizedfunding for defense, military construction,veterans and homeland security needs for allof fiscal 2009. AIA worked hard on thedefense authorization bill, managing to helpremove or significantly improve severalprovisions that would have negatively affectedthe industry, especially on procurement issues.

Other 2008 results include passage of theNASA reauthorization bill, a statement oncongressional support for the space program and short-term extension of FAA’sauthorities, including the Airports and AirwaysTrust Fund.

Congress ratified the U.S.-India civiliannuclear cooperation agreement, and thepresident signed it soon after. The pact pavesthe way for a closer strategic and traderelationship with the emerging power and isgood news for the industry.

Looking ahead, there are several topissues that AIA will continue pursuing. Forinstance, the 110th Congress didn’t approvedefense trade treaties with the UnitedKingdom and Australia, and the 3 percentwithholding provision for defense contractsmentioned above wasn’t repealed or delayed.

A big victory was the extension of the research and development tax credit.

5 Executive REPORTQ1 Q2

Q3 Q4

2008

General Electric Company

GKN Aerospace

Goodrich Corporation

W.L. Gore & Associates, Inc.

Groen Brothers Aviation Inc.

Harris Corporation

Hawker Beechcraft Corporation

HEICO Corporation

Hexcel Corporation

HITCO Carbon Composites

Honeywell

IBM Corporation

ITT Corporation

Kaman Aerospace Corporation

L-3 Communications

LAI International, Inc.

LMI Aerospace, Inc.

Lockheed Martin Corporation

LORD Corporation

Marotta Controls

McKechnie Aerospace

Meggitt Vibro-Meter Inc.

Micro-Coax, Inc.

MicroSat Systems, Inc.

MOOG Inc.

Natel Engineering Co., Inc.

National Machine GroupNational Machine CompanyNational Aviation Products, Inc.

National Technical Systems

Naverus, Inc.

The NORDAM Group

Northrop Grumman Corporation

NYLOK Corporation

Omega Air Inc.

Oracle USA

Pall Aeropower Corporation

Parker Aerospace

Pinkerton Government Services, Inc

Proficiency Inc.

Raytheon Company

Remmele Engineering, Inc.

Rockwell Collins

Rolls-Royce North America Inc.

RTI International Metals, Inc.

Satyam Computer Services Ltd

Science Applications

International Corporation

Siemens PLM Software

SITA

SM&A

Space Exploration Technologies

Corporation

Sparton Corporation

Spirit AeroSystems

Textron Inc.

Timken Aerospace Transmissions,

LLC Purdy Systems

United Technologies CorporationHamilton SundstrandPratt & WhitneySikorsky

Vought Aircraft Industries, Inc.

WIPRO Inc.

Woodward Governor Company

In response to results from thebroad membership surveyconducted earlier this year and

other initiatives, the association hasbegun rolling out a series of newbenefits for members. They include:

LEGISLATIVE ALERTS

When the 111th Congress opensin January, AIA’s Legislative Affairsorganization will initiate a legislativealert e-mail service to signal memberswhen there is important or breakingnews from Capitol Hill.

Alerts on bill introductions,hearings, status reports, passage andanalyses will be available. Memberswill be able to sign up for this serviceon the AIA Web site.

CYBER SECURITY SERVICES

Through the Internet SecurityAlliance (ISA), AIA will provide at nocost to members ($500 to non-members) an e-mail-delivered cybersecurity alert and Web-accessedinformation service that includes:• Daily alerts and briefings on ISA

events, activities, cyber security threats, vulnerabilities, issues and related news.

• Information sharing on cyber security best practices to help large

and small companies manage cyberrisks, integrate cyber security management and audit issues and techniques.

• Participation in and access to Webinar forums and services on emerging cyber security issues, online cyber security assessment tools, cyber security working groups by sector and related services.

WEBINARS

AIA’s Web site and others willoffer staff-led technical presentationson an array of timely aerospace topics, such as environmental issues, industry standards, e-business matters, counterfeit parts,procurement and more.

MARKET INSIGHTS

Based on expressed support formore research and analysis from AIA,the association will develop a 5-yearindustry forecast that will be releasedat the annual Year-end Review andForecast Luncheon in December.

UPGRADING STANDARDS

LIBRARY

A year-and-a-half-long project toexpand, modernize and digitize AIA’sstandards will be completed by next

June. AIA is responsible for 3,000standards, the largest body of trade association standards in the United States. They are usedin the manufacture of aerospace,automobile, railroad and spacehardware.

The standards are available at areduced price to member companies.Benefits to members will includeimproved quality and faster revision ofstandards.

C-TPAT SUPPLIER DATABASE

AIA is implementing a programthat will assist members, internationalaerospace suppliers and U.S.importers in complying with U.S.Customs-Trade Partnership AgainstTerrorism (C-TPAT) supply chainsecurity goals.

OTHER BENEFITS

Additional member benefitsinclude free access to the dailyLeade-newsletter and job board, providingadvertisers with 26,000 aerospace-focused readers.

For more information about theexpanding benefits program or for anyquestions, contact membership@aia-aerospace.org.

Association Expands BENEFITS for Members

A quarterly digest for the Aerospace Industries Association

One of our strategies of engagement with the presidential campaigns

ADI American Distributors, Inc.

AirBorn Operating L.P.

Airfasco Industries, Inc.

Air Industries Machining Corporation

Albany Engineered Composites

Alcoa Fastening Systems

Alken Industries Inc.

Allegiant Global Services, LLC

Allen Aircraft Products, Inc.

American Brazing

AMETEK Aerospace & Defense

Anaren Microwave, Inc.

Ancon Gear & Instrument

Corporation

Arkwin Industries, Inc.

Arrow/Zeus Electronics,

A division of Arrow Electronics

Astronautics Corporation of America

Astronic

Athena Technologies, Inc.

Avnet Electronics Marketing

Ballistic Recovery Systems, Inc.

Banneker Industries, Inc.

Blenheim Capitol Services

Brogdon Tool & Die, Inc.

Brookfield Atlantic

Brush Wellman Inc.

BTC Electronic Components

Burton Industries Aerospace

Heat Treating, Inc.

California Manufacturing

Technology Consulting

Capo Industries Inc.

Celltron Inc.

Chandler/May, Inc.

Cherokee Nation Distributors

Cincinnati Machine,

A UNOVA Company

CMC Electronics

Coalition Solutions Integrated, Inc.

Consolidated Precision Products

Co-Operative Industries Defense, LLC

CPI Aero, Inc.

Crestwood Technology Group

Cytec Engineered Materials

Dassault Systems of America

Data Conversion Laboratory, Inc.

Dayton T. Brown Inc.

Delphi Electronics

Dexter Magnetic Technologies, Inc.

Doyle Center for Manufacturing

Technology

DynaBil Industries, Inc.

East West Associates

Electronic/Fasteners, Inc.

Ellison Surface Technologies

Embry-Riddle Aeronautical

University

Emhart Teknologies,

A Black & Decker Company

Endicott Interconnect Technologies,

Inc.

ENSCO, Inc.

Exotic Metals Forming Company

LLC

The Ferco Group

AIA Associate Member COMPANIES

International OutreachAIA’s International Affairs Division has

been ramping up its activities to help supporttrade opportunities for our members withdirect international outreach. Our industry isbecoming increasingly global, seemingly bythe day, and we’re focusing our efforts toreflect that fact.

The new strategic direction is alreadyleading to closer ties with our friends andallies abroad. Much of this is through ourpartner organizations, such as the AeroSpaceand Defence Industries Association ofEurope, the Society of Japanese AerospaceCompanies and the Confederation ofIndian Industries.

As part of this new strategic effort,AIA recently was prominently involved inseveral important activities overseas. Forexample, I helped kick off the JapanInternational Aerospace Exhibition. The tripenabled meetings with Japanese governmentofficials and manufacturers to discuss defense and commercial opportunities andstress the soundness of U.S. aerospace inturbulent times.

The association also participated in twoEuropean events. One was a set of activitiesconnecting the U.S.-French aerospacepartnership to a ceremony marking the 100thanniversary of our French counterpartGIFAS at which AIA Chairman Clay Jones

was a keynote speaker. Jones was also thekeynoter for the annual conference of theAeroSpace and Defence IndustriesAssociation of Europe.

In addition, I was honored to speak atthe first-ever Indian Aviation Summit inHyderabad and highlight our industry’sengagement in that extremely importantaerospace market. While in India, I had good discussions with officials ondefense issues as well.

Some of our most important challengesin the aerospace industry deal withinternational issues. In the forefront is export control. Modernizing exportregulations has been an AIA priority for years to support our security and economic competitiveness.

Even though we made significantprogress on improving export regulations thisyear, there is more work to do, and I thinkour expanded international efforts will helpin that regard.

Defense ModernizationOne of our strategies of engagement

with the presidential campaigns was tohighlight the challenges the newadministration faces with defensemodernization.

In August we released a report titled“U.S. Defense Modernization: Today’s

7 Executive REPORTQ1 Q2

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2008

Ferguson Perforating and Wire

Company

Forrest Machining, Inc.

Frontier Electronic Systems Corporation

GEAR Software

Greene, Tweed & Company

G.S. Precision, Inc.

GuardianEdge Technologies

Harvard Custom Manufacturing

Haas TCM/AvChem

H&S Swansons' Tool Company

HCL Technologies

HDL Research Lab, Inc.

Heartland Precision Fasteners

Aerospace Plating Company

Heizer Aerospace

HGS Aerospace

J.F. Hubert Enterprises

Hitachi Consulting

Hi-Temp Insulation Inc.

Hobart Machined Products, Inc.

Hughes Bros. Aircrafters, Inc.

IDD Aerospace Corp.

Industrial Metals International LTD

Infotech Enterprises America

Ingenium Technologies Corp

Inmedius

Integrated Sourcing

International Technegroup Inc.

TranscenData Division

ION Corporation

ITW CIP

Jabil Defense & Aerospace

JRH Electronics, LLC.

A.T. Kearney Public Sector & Defense

Services LLC

KPMG LLP-Risk Advisory Services

Kreisler Manufacturing Corporation

Kreisler Industrial Corporation

Kreisler Polska sp. z. o o.

Kubotek USA

Kulite Semiconductor Products, Inc.

LMI

Loos & Co., Inc.

M/A-COM, Inc.

McCann Aerospace Machining

Corporation

Meyer Tool Inc

Michigan Aerospace Manufacturers

Association

Microsemi Corporation

Mid-State Aerospace Inc.

Millitech, Inc.

Mil Spec Sales Co.

Morris Machine Company, Inc.

MPC Products Corporation

Nasmyth Precision Products Inc.

Navigant Consulting, Inc.

New Breed Corporation

NMC Group, Inc.

Norfil Manufacturing, Inc.

Nor-Ral Plastics Inc.

Ohio Aerospace Institute

O’Neil & Associates, Inc.

Orion Industries

P3-North America, Inc.

Parkway Products, Inc.

PCA Aerostructures

PCC Airfoils, LLC

Performance Software Corporation

Perillo Industries, Inc.

PGM of New England, LLC

Plexus Corporation

Plymouth Extruded Shapes

Plymouth Tube CompanyPowerway Inc.

Precision Aircraft Machining Company

Precision Gear

Precision Machine & Manufacturing

Co.

Precision Tube Bending

Premier Precision Group

PRTM Management Consultants, LLC

PTC

Choices for Tomorrow’s Readiness.” Itprovides specific recommendations fornine weapon system sectors as well asthe consequences of failing to makeneeded investments. It also coverslogistics and science and technologychallenges of defense modernizationawaiting the new president.

The new report followed an earlierinstallment called “U.S. DefenseModernization: Readiness Now and forthe Future.” That version detailed theoverall budget challenges the newadministration will face as costs fordefense personnel and maintenance keepincreasing and taking more of the DoD budget.

Future readiness is at risk ifofficials shortchange vitally neededmodernization and recapitalizationrequirements because of these otherbudget pressures.

Both reports are available on AIA’sWeb site at www.aia-aerospace.org in the Reports & White Papers sectionunder Library.

Workforce InitiativesThe challenge of an aging workforce

is one of the most pressing issues in ourindustry and one that gets a lot ofattention at AIA. Several recent activities

highlight our efforts to attract youngpeople to our industry and to sound the alarm at the potential for a serious crisisin aerospace as skilled workers retire inever-increasing numbers.

We released a report titled “Launchinto Aerospace: Industry’s Response tothe Workforce Challenge.” It spells outthe situation today — about 60 percentof workers in the industry are age 45 orolder — and provides specific goals andactions. It’s a valuable resource inunderstanding the challenge and decidingon steps to respond.

A follow-up to that report will be aguide for the administration transitionteam to use as they craft policies towardaerospace and science, technology,engineering and mathematics education— the STEM initiative. The report will outline industry activities and offer specific recommendations for the new administration.

Another piece of the workforcepuzzle is outreach. We have pursued thiswith a very aggressive step — sending6,500 school counselors all over thecountry copies of a DVD spotlightingthree young member company engineersin their workplaces.

Ride the Leading Edge is designed toattract high school students to the

industry and is being advertised inASCA School Counselor, the magazinepublished by the American SchoolCounselors Association.

Looking AheadThe coming year is going to be

pivotal for aerospace. We’re sailing insome uncharted waters these days whenit comes to our national economy andhow recovery will occur. We’ll have anew president and administration as wellas a new Congress to engage in makingsure that our nation’s needs are met incivil aviation, national defense and space.

Our Board of Governors, which ismeeting in mid-November when thisreport is being distributed, will help mapout specific strategies for approachingaerospace industry issues next year.That initiative will flow down to AIA’scouncils and committees and our staff to make sure our work in 2009 surpasses the important successes we’vehad this year.

I wish everyone a happy holidayseason and success in the new year.

Marion C. Blakey

was to highlight the challenges the new administration faces with defense modernization.

A quarterly digest for the Aerospace Industries Association

1000 Wilson Blvd. #1700Arlington, VA 22209-3928

Phone 703.358.1000Fax 703.358.1012

www.aia-aerospace.org

QuEST

Radant Technologies, Inc.

RAF Tabtronics LLC

Ranal

REMEC Defense & Space, Inc.

Renaissance Services

Robertson Forwarding Company

Rodelco Electronics Corporation

Rubbercraft

Sample Machining, Inc. dba Bitec

Sanmina-SCI Corporation

Sea Air Space Machining & Molding

SEAKR Engineering

Sechan Electronics, Inc.

SELEX Sensors and Airborne

Systems US Inc.

Senior Aerospace

Service Steel Aerospace

Servotronics, Inc.

Sierracin Corporation

SIFCO FORGE GROUP

Sigma Metals, Inc.

Signal International

Southco, Inc.

Southern California Braiding

Company

Spectralux Corporation

Spincraft

Spirit Electronics, Inc.

SPX Precision Components

Starwin Industries

Sunshine Metals

TechSolve, Inc.

Tedopres International, Inc.

TEK Precision Co. Ltd

Telephonics Corporation

Therm, Inc.

Thermal Solutions, Inc.

TIGHITCO, Inc.

Tiodize Co., Inc.

TMX Aerospace

Tri Polus Inc.

TTI, Inc.

TTM Technologies

TW Metals

UMA, Inc.

Unicircuit Inc.

United Performance Metals

Universal ID Systems, Division of

Commerce Overseas Corporation

University of Tennessee - Aerospace

Defense Clearing House

Unlimited Innovations

Vishay

Vulcanium Metals Incorporated

Waer Systems

West Cobb Engineering &

Tool Co. Inc.

The Wharton School - Executive

Education

Wind River Systems

Windings, Inc.

Xerox Corporation

X-Ray Industries

XyEnterprise

Yarde Metals

AIA Associate Member COMPANIES CONT.

STEM-ing Our Diminishing Advantages

Stakeholders in and around the aerospaceindustry are striving to remedy today’sserious workforce shortages and America’s

diminishing global advantage in science,technology, engineering and math (STEM)education and careers.

Alarmed over the critical need to develop thenext generation of workers, AIA is preparing acomprehensive report — “Launching the 21st

Century American Aerospace Workforce” — thattakes a close look at the issue and detailsindustry’s actions and recommendations.

AIA member companies, thereport points out, have committed to abroad agenda to strengthen theworkforce of the future, and almost allhave company-designed initiatives inplace to meet manpower andworkforce challenges.

The document provides anoverview of steps aerospace firmshave undertaken, as well as fiveinnovative industrywide programs that AIA and many of its memberssupport:

Team America Rocketry Challenge

— Sponsored by AIA and the NationalAssociation of Rocketry and backed by dozens ofAIA member companies, TARC has attractedmore than 50,000 competitors from U.S. middleand senior high schools since it began in 2003. Ina recent survey of participants, 54 percent saidthey plan to pursue a STEM degree in college.

Business-Higher Education Forum — Thisinitiative aims to double the number of U.S. STEMcollege graduates by 2015 by strengthening themath and science teaching workforce and

pursuing promising strategies to bolster thepipeline that leads to STEM careers.

Project Lead the Way — A national, award-winning, not-for-profit educational program, PLTWgives middle and high school students a rigorousground-level education to develop backgrounds inscience and engineering. The program hasreached out to more than 500,000 students.

FIRST Robotics — Founded in 1989 to sparkyoung people’s interest in science and

technology, FIRST’s extra-curricular robotic competitionshave involved more than159,000 student participantsacross the United States.

MATHCOUNTS — This is amiddle school program thatheightens student interest inmathematics. Teachers,engineers and otherprofessionals, parents andalumni coach students andconduct competitions. Sincethe program began, more than 6 million students have participated.

In related steps, AIA has produced a career-inspiring DVD for high school students titled Ridethe Leading Edge. It looks at aerospace throughthe eyes of three young member companyengineers. Some 6,500 copies have beendistributed to schools nationwide.

And linked to the DVD is a full-page AIA ad(see inset above) published in the AmericanSchool Counselor Association magazine.