aerospace, defense & security industry in ... the aerospace, defense & security (ad&s)...

Click here to load reader

Post on 21-Aug-2020

0 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • Aerospace, Defense & Security Industry in Arizona: Options for Advancing the Aerospace, Defense and Security Industry

    September 24, 2011 Prepared by: L. William Seidman Research Institute W.P. Carey School of Business Arizona State University Tel: (480) 965-5362 Fax: (480) 965-5458 www.seidmaninstitute.com Prepared for: Science Foundation Arizona This project was supported by the Governor’s Office of Economic Recovery and Science Foundation Arizona.

    Aerospace, Defense & Security Industry in Arizona: Options for Advancing the Aerospace, Defense and Security Industry

  • Seidman Research Institute | i

    1. Executive Summary

    Arizona’s Aerospace, Defense and Security (AD&S) industry faces several challenges to its continued

    growth thanks to an increasingly competitive economic landscape and the changing technological needs

    of the military.

    The current report commissioned by Science Foundation Arizona (SFAz) and supported by the

    Governor’s Office of Economic Recovery:

    • Identifies a series of common themes and gaps in the AD&S industry;

    • Analyzes best practices in competitor states that support their industry;

    • Examines the issues surrounding collaboration among firms;

    • Recommends activities for an organization to best support the AD&S industry in

    Arizona.

    In-depth interviews were conducted with five industry and government leaders to identify the major

    themes representing concerns and gaps in the industry. The following six themes were identified:

    • There is currently no clear single point of contact for the AD&S industry in the State.

    • The needs of the industry are not being adequately addressed by the State’s federal

    delegation.

    • Existing organizations in the State do not represent the specific needs of the AD&S

    industry.

    • Arizona has a reliable supply of engineers and some types of skilled workers, but firms

    have difficulties convincing senior hires to relocate due to perceived deficiencies in the

    State.

    • Firms in the State are concerned with lowering the cost of maintaining a reliable supply

    chain.

  • Seidman Research Institute | Executive Summary ii

    • AD&S firms in the State generally favor the establishment of an organization such as a

    trade association in support of the industry and believed it would have a significant

    positive effect.

    A comparison with three competitor states (Alabama, Florida and Virginia) is also made to provide

    further insight into best practice, highlighting the importance of organizations serving as a centralized

    focal point for their industry. The following best practices were identified:

    a) Balancing the needs of the entire membership with those of sub-groups within the organization.

    b) Assisting federal delegations through education and lobbying.

    c) Connecting member firms with each other.

    d) Educating the public and their membership about pertinent industry.

    e) Providing a single point of contact facilitating engagement with outside parties who want to do

    business in the state.

    f) Marketing the state as a superior place to do business.

    g) Setting up an organization as an industry- led, focused and funded entity.

    h) Educating small businesses and suppliers with the knowledge necessary for doing business with

    the federal government.

    i) Providing a mechanism for effective and clear communication between research, industry,

    government and military entities.

    j) Creating an organization that serves as a focal point for the industry.

  • Seidman Research Institute | Executive Summary iii

    An in-depth literature review was conducted highlighting the issues surrounding collaboration among

    firms. The research revealed that companies can maximize their collaborative efforts by:

    • Facilitating communication among its members;

    • Creating an open-membership model to create a large, efficient alliance; and

    • Developing disclosure rules for member-provided data that foster incentives for individual firms

    to share their business information with the association.

    Collating the gaps in the industry with best practices from competitor states that fill those gaps, this

    report draws the following conclusions:

    1. A single point of contact for AD&S is necessary in Arizona to allow out-of-state firms and entities to

    easily engage and do business with firms in the industry.

    2. The AD&S industry would benefit greatly from having an organization dedicated to addressing its

    concerns with government representatives at the state and federal level.

    3. Existing organizations in the State do not focus specifically on the needs of the AD&S industry, or

    they deal mostly with policy matters and are not structured to provide comprehensive services to

    industry members such as lobbying activities.

    4. An organization in Arizona is needed to connect local suppliers and manufacturers.

    5. The establishment of an AD&S trade association in Arizona would effectively meet the industry

    needs outlined in this report.

    6. The success of an AD&S trade association depends in part on its ability to:

    • Facilitate communication;

    • Create an open-membership model; and

    • Develop disclosure rules that foster incentives for individual firms to share their business

    information with the association.

  • Table of Contents

    1. Executive Summary .......................................................................................................................... i

    2. Introduction .................................................................................................................................... 4

    3. Interviews ........................................................................................................................................ 5

    3.1. Summary of Interview Responses ............................................................................................. 6

    3.2. Single Point of Contact ........................................................................................................... 10

    3.3. Addressing concerns at the State and Federal level: ............................................................... 11

    3.4. Other organizations in the State: ............................................................................................ 11

    3.5. Workforce: ............................................................................................................................. 14

    3.5.1. Hiring Issues ................................................................................................................... 14

    3.5.2. Workforce Supply ........................................................................................................... 16

    3.6. Connecting with suppliers: ..................................................................................................... 19

    3.7. Activities in Support of AD&S Industry: ................................................................................... 20

    4. Competitor Strategies .................................................................................................................... 21

    4.1.1. Alabama ............................................................................................................................. 21

    4.1.2. Virginia ............................................................................................................................... 22

    4.1.3. Florida ................................................................................................................................ 24

    4.1.4. Best Practices ..................................................................................................................... 27

    5. Literature Review .......................................................................................................................... 30

    5.1. Communication ...................................................................................................................... 31

    5.2. Structure ................................................................................................................................ 32

    5.3. Sharing Information ............................................................................................................... 33

    6. Conclusion & Recommendations ................................................................................................... 34

    Bibliography .......................................................................................................................................... 35

    Authors ................................................................................................................................................. 37

  • Seidman Research Institute | Executive Summary 3

    List of Tables

    Table 1: Industry Stakeholder Interview Exploratory Framework of Questions ....................... 5 Table 2: Organizations Supporting Industry in Arizona ...........

View more