Aerospace

Aerospace Trend Report Fourth Qtr 2005

Aerospace Trend Report Third Qtr 2005

Aerospace Trend Report Second Qtr 2005

Washington State is home to the Boeing Commercial Airplane Company.  The Boeing Company has long been the nation's leading exporter.  In Washington , Boeing aircraft exports represent about half of the state's exports (not including services such as software). In many respects, the Washington economy-driven largely by its export sector-still remains as dependent upon Boeing as it did forty years ago.  The regional economy's ability to create wealth and high-quality jobs still remains dependent upon the health of this company and the overall aerospace sector.

Aerospace in Washington, however, is more than The Boeing Company.  Besides Boeing, Washington is home to over 300 aerospace companies and hundreds of suppliers and service firms.   These companies manufacture a wide variety of parts and supplies and market to aerospace companies throughout the world.

The economic "driver" behind the aerospace sector is export demand.  Out-of-state (and international) buyers for Washington produced aerospace products (aircraft and parts, space craft and parts) leads to a series of economic events that affects production, employment, and income throughout the state's economy.  For instance, the immediate impact of the growth of aircraft sales is an increase in aerospace production, employment, and income.   In turn, aerospace production places demands on other local businesses, such as machine tool shops, metal fabricators, electronic instrument firms, and interior components companies to help supply the parts and services required to build the aircraft.  Through the operation of their so-called "backward linkages," these businesses in turn stimulate economic activity in other sectors of the regional economy.  Simultaneously, the income earned by workers in aerospace and its supporting industries generates demand for consumer goods and government services, imparting yet another round of regional economic activity.  Finally, changes in production, income, and population (net immigration) results in the need for additional capital in the form of new commercial buildings, industrial equipment, and houses, inducing further production within the construction sector.  Hence, the overall economic effect is far greater than the initial change stimulated by outside demand for aerospace.

The Snohomish County Workforce Development Council has launched an Aerospace Skill Panel to harness the expertise of leaders in business, labor, education, and economic development to focus on the existing and future workforce development needs in the aerospace industry.  The industry-led Aerospace Skill Panel will assess skill needs for aerospace workers and implement strategies to close the gap between the need of employers for skilled workers and the supply of Washington residents prepared to meet that need.