Membership Presentation 2013 • AIA is the most authoritative & influential aerospace trade association • Our membership accounts for more than $200 billion in aerospace sales • We represent more than 90% of the aerospace market • We help our member companies sell more products and services by: • Advocating for the advancement of aerospace & defense interests •Providing the forum to build and strengthen business relationships • Breaking down economic barriers • Promoting manufacturing and trade • Working together to shape regulatory and legislative policies • Our industry is under attack from forces on Capitol Hill and within the Administration. That’s why we’re banding together in AIA to preserve our interests • During tough economic and political times, AIA’s strong representation and advocacy is essential to protecting aerospace and defense interests and establishing new growth opportunities • As a result, since January 2010, AIA’s membership has grown more than 60% and experienced its highest retention rates in history Full Membership • 159 companies • Full Members have access to all association benefits, including Board of Governors Meetings, councils, committees, and working groups Associate Membership • 214 companies • Operates through the Supplier Management Council - - a collaborative forum for suppliers to address issues, share best practices, and build relationships Membership Has its Privileges Interacting with Industry & Government • Interact with industry leaders and broaden your company’s sphere of influence with Congress and the Administration Membership Has its Privileges Interacting with Industry & Government • Engage with more than 250 CEO’s and senior executives from the leading aerospace and defense companies as well as our invited Congressional and Administration guests at our bi-annual Board of Governors Meetings Membership Has its Privileges Interacting with Industry & Government Membership Has its Privileges Interacting with Industry & Government •Private dinners with government & industry officials • Tri-annual Supplier Management Council Meetings hosted by primes and OEMs • Councils, committees & working groups Membership Has its Privileges Policy Making & Advocacy • Benefit from AIA’s superior advocacy efforts on the Hill and in the Administration • Opportunity to sit at the table and work with industry colleagues to develop association’s policies and positions on the industry’s most pressing issues Membership Has its Privileges Information • Gather the latest information that your customers and competitors are working with on a daily basis at AIA Membership Has its Privileges Air Show Support • Opportunity to attend the premier events hosted by AIA •Access to Defense Department’s corral, AIA’s air show support team, and visiting government officials • Obtain tickets, secure sponsorships, and use of AIA’s chalet and member services Membership Has its Privileges Research, Financial Analysis, & Communications Support • Personalized service and briefings from AIA’s professional staff • Statistical research, financial analysis, and communications support • Whitepapers on critical issues • Legislative and media updates • Participate in the development of future National Aerospace Standards and receive discounts on current standards AIA 2013 Leadership Chairman – Wes Bush, Chairman & Chief Executive Officer & President, Northrop Grumman Corporation Vice Chairman – Michael Strianese, Chairman, President & CEO, L3 Communications President & CEO of AIA – Marion Blakey Comprehensive Strategic Plan • Strategic Plan sets clear goals, objectives, and targets for the organization • All employees’ pay tied to plan’s success • Developed and reviewed by member companies Organizational Chart President and CEO COO Finance Civil Aviation Membership National Security & Acquisition Policy Legislative Communications Space Systems International Affairs National Security & Acquisition Policy • Responsible for national security and defense issues, including: • Modernization of aerospace and defense systems • Health of the industrial base & defense spending • The future aerospace workforce National Security & Acquisition Policy Major National Security Issues • Ensuring Defense Department has adequate funding and is supporting the development of next generation military equipment • Focusing on Defense Department’s procurement and R&D accounts National Security & Acquisition Policy Major National Security Issues • Must ensure healthy budget for recapitalizing weapons and equipment and reset • AIA study, The Unseen Cost; Industrial Base Consequences of the Defense Strategy, greatly influenced the debate • First time in history the Quadrennial Defense Review highlighted the need to involve industry in the process National Security & Acquisition Policy Major National Security Issues • Almost 60% of the US aerospace workforce over the age of 50 is nearing retirement • AIA is working with its members to develop the next generation of scientists, engineers, and highly-skilled workers • Developing the strategy to encourage interest and investment in Science, Technology, Engineering & Mathematics (“STEM”) National Security & Acquisition Policy Major National Security Issues • More detailed issues include the following: •Counterfeit parts, alleged non-conforming titanium substitution, long range archival and retrieval product data, lead-free electronics, standards-based interoperability, NAS standards, cyber security National Security & Acquisition Policy National Security Councils & Committees •National Security Council •Homeland Security/Homeland Defense Committee •Industrial Base and Workforce Committee •International Exhibitions Committee •Electronic Business Steering Group •Electronic Enterprise Integration Committee •Technical Operations Council •Engineering Management Committee •National Aerospace Standards •Strategic Standardization Forum for Aerospace •Product Support Committee •Quality Assurance Committee •Industrial Security Committee National Security & Acquisition Policy • Responsible for issues including: • Government procurement • Contract administration • Financial and legal matters relating to federal procurement • Federal and state taxation • Environmental, safety, and health National Security & Acquisition Policy Major Acquisition Policy issues • Weapons systems acquisition reform • Deficient defense business systems withholding • 3% withholding tax • R&D tax credit National Security & Acquisition Policy Environmental, Safety & Health • Responsible for issues concerning the identification of environmental, safety, and health issues of interest for manufacturing facilities •Develops positions on environmental, safety and health policy, laws, regulations and initiatives •Develops and shares best practices for environmental and safety issues. Acquisition & Finance Environmental, Safety & Health Major Issues • Chemical and material management • Clean Air Act • Sustainability • Safety award and benchmarking program National Security & Acquisition Policy Acquisition Policy Councils & Committees • Procurement & Finance Council • Cost Principles Committee • Economic Advisory Committee • Intellectual Property Committee • Legal Committee • Procurement Techniques Committee • Property Management Committee • Tax Matters Committee • Washington Procurement Committee • Environmental Safety & Health Committee • Alliance for Environmental Responsibility and Openness Civil Aviation • Responsible for the following issues: • Improving the capability for designing, developing, producing, and operating aviation products •Obtaining federal aeronautics R&D funding under the FAA and NASA • Ensuring aviation safety and security • Modernizing the air traffic management system • Monitoring federal and international aviation regulations and international aircraft noise and emissions standards Civil Aviation Major issues • Accelerate funding and equipage of Next Generation Air Transportation System technology • CO2 emissions • Ensuring a level international playing field for US manufacturers • Increase safety • Promote emerging technologies - - Unmanned Aircraft Systems Civil Councils & Committees • Civil Aviation Council • Air Transportation Systems Committee • Aircraft Environmental Committee • Civil Aviation Regulatory & Safety Committee • Civil Aviation Security Committee Space Systems • Responsible for all civil and defense relates space issues and policies Space Systems Major issues • Robust funding for NASA, NOAA, and DoD & future of the American space program • Supporting missile defense programs • Space situational awareness & space protection • Protecting & promoting commercial space opportunities • International collaboration Space Systems Councils & Committees • Space Council • Civil Space Committee • Commercial Space Committee • National Security Space Committee International Affairs • Responsible for the following: • Advancing and promoting international trade opportunities for the U.S. aerospace industry • Ensuring access to foreign markets on an equitable basis • Working with foreign partners to spread risk, raise capital, improve market access, and develop new technology International Affairs Major issues • Export control modernization • Leveling the playing field for international trade • Promoting global standards for ethical business practices International Affairs Councils & Committees • International Council • Commercial Trade Committee • Export Controls Committee • Defense Trade Committee Supplier Management • Responsible for surfacing and addressing issues related to the health of the aerospace and defense supply chain • Non-attributional forum where senior supply chain representatives from system integrators and manufacturers work together Membership Qualifications • Regular membership is available to firms engaged in the production of aerospace systems in the U.S., provided the firm is not owned or substantially controlled, directly or indirectly by a foreign government • Recently expanded membership criteria to include homeland and cyber security companies that provide unique aerospace applications Dues Structure Annual Full Membership Dues •$22k for every $100 million is aerospace sales • $31 million or less - minimum of $6800 • 10 billion or more - maximum of $400k plus air show assessment of 22k for any company over $1 billion in aerospace sales Dues Structure Annual Associate Membership Dues •$5k for over $50 million in aerospace sales •$3k for under $50 million