Aerospace Outlook: Washington Economic Development Association

1. Aerospace Outlook: Washington Economic Development Association Where We’ve been & Where We’re Going February 11, 2013

2. About AFA • AFA was established in 2006 • Our Mission: “Promote and Enhance the Aerospace Industry in Washington” • AFA only organizational focus is Aerospace and the industry’s needs – entirely industry driven • With Boeing and the additional 1200 Aerospace related companies the aerospace industry represents approximately 130,000 workers • AFA holds the lease and the operating agreement with Edmonds Community College for the Washington Aerospace Training and Research Center

3. Challenges • Aging Workforce • Rapidly Changing Technology • Availability of skilled workforce • Decline in technical trade, engineers, and scientists • Economic crisis • Replacing workers as Boeing ramps up production

4. Washington’s Aerospace Competition • Primary competitors are: South Carolina, North Carolina, Texas and Kansas • Competitive Tax Structures • Ability to fully fund training to meet the needs of the industry from private, state and federal sources • Competition with foreign competitors

5. Research Says • Our recent survey shows that 50% of the industry is hiring now and approximately 70% expect to hire within the next 12 months • The industry is telling us that the job skills needed are for engineers, inspectors, electricians, assembly mechanics and sub assemblers, among other positions • Highest needs are short-term, customizable, industry-driven training follow closely by engineering.

6. Legislative Efforts Workforce Training • WATR Center • Student Loan Program Competitiveness • Workers Compensation • Unemployment Insurance • Tax Structure Education • Ensuring students graduate with core skills

7. AFA Top Training Priorities • Enhance training and education • Provide skilled workforce to meet industry needs • Grow the Statewide Training Centers at Everett, Renton Technical and Spokane • Continue to emphasize the coordination of all aerospace training programs

8. AFA Training Goals • Ensure training facilities are statewide and industry driven • Continue to create partnerships with Community Colleges, labor and industry • Create the ability to transfer employees from one employer to another • Ensure people are available to meet industry needs • Promote R&D research ahead of technology • Strengthen both K-12 and college systems to meet aerospace demand

9. AFA is Moving Forward with a Statewide Training System • AFA was instrumental in the creation of the Washington Aerospace Training and Research (WATR) Center and partnerships with Renton Technical and Spokane Community Colleges • Established an Advisory Training Board to maintain “industry driven focus” • Successfully lobbied for a Newly Established Short-Term Student Loan Program specifically for Aerospace • Continues to survey and meet with companies to ensure their needs are being met

10. Where We Are Going • Continue to place “emphasis” on Aerospace – even after the boom • Diversification of the Industry • Identifying the next issues • FAA, ITAR, Streamlining Certifications • Diversification of the Industry • Online Training

11. What’s Coming Up • 3rd Annual Aerospace Day in Olympia • March 27th • Quarterly Regional Leadership Breakfast • 7th Annual Governor’s Summit • Fall, 2013

12. Wrap Up “Through communication and participation this is our opportunity to stabilize the industry and continue as the best place to be an aerospace company in the world” Thank you for your time!