kansas aviation final draft 1-2

Changzhou Meets Kansas: A Seminar

on Opportunities in the Aviation

Industry

Monday, June 15th

2015

China Aviation Historical Trend (Based on

data from March 2012)

GA Segment Historical Trend Growth Scenario

(Low)

Growth Scenario

(High)

Private Jet China has latent demand of

~400 aircrafts

60 hours per aircraft annually 80 hours per aircraft annually

Training N/a 5% 10%

Other (business jet, tourism) 25% growth from 2002-2006 25% 35%

Arial Seeding China aims to increase forest

coverage area from 12% to

16% of total land areas

14% 22%

Chemical Spraying Historical CAGR 1994-2006,

or 6%

6% 10%

Heilongjiang

Concentration Area:

Harbin General Aviation Industrial Center; etc.

Corporations:

Harbin Aviation Industry Corporation of China AVIC; etc.

Liaoning

Concentration Area:

Shenyang National Aviation Industrial Center

Corporations:

Shenyang Aviation Industry Corporation of China

AVIC

ShanxiConcentration Area:

Xi’an(Yanliang) National Aviation Industrial

Center; Xi’an Technological Economic

Development Area; etc.

Corporations:

AVIC Xi’an Aircraft Industry(group)Company LTD.;

etc.

Hubei

Concentration Area：Jingmen Aviation Industrial

Center of AVIC

Corporations:

China Aviation Industry General

Aircraft Co., Ltd.; Jingmen

Aviation Science & Technology

Co., Ltd.

Sichuan

Concentration Area:

Chengdu(Kongtian) Aviation

Industrial Center

Corporation:

Chengdu Aviation Industry

Corporation of China AVIC;

etc.

Concentration Area :Guizhou

Guizhou(Anshun) National

Aviation Industry General

Aircraft Industrial Center

Corporation:

China Aviation Industry General

Aircraft Co. of Guizhou, Ltd.;

etc.Hunan

Concentration Area:

Changsha

Technological Economic

Development Area

Corporations:

AVIC South Aviation

Industry Co., LTD.; etc.

Jiangxi

Concentration Area:

Nanchang National

Aviation Industrial

Center; etc.

Corporations:

HONGDU Aviation

Industry Group LTD

Guangdong

Concentration Area:

Zhuhai Center of

Aviation

Corporations:

China Aviation Industry

General Aircraft Co.,

Ltd.; MTU Maintenance

Zhuhai; etc.

Beijing

Concentration Area:

Beijing Aviation Industry Corporation of China,

Beijing International Aviation Industrial Park;

etc.

Corporations:

Beijing General Aircraft Co., Ltd.; etc.

Jiangsu (Changzhou)

Nanjing Aviation Industrial Center; etc.

Corporations:

AVIC Dongan Engine(Group) Corporation LTD.; etc.

Tianjin

Concentration Area:

Tianjin(Linkong) Industrial Center; etc.

Corporations:

AVIC China Helicopter Research and Development Institute

Shanghai

Concentration Area:

Shanghai(Pudong) Aviation

Industrial Center

Corporations:

Commercial Aircraft Corporation

of China; etc.

Aviation and Traffic Outlook: Projected Growth based on

past aviation annual GDP % from (2013-2033)

0 1 2 3 4 5 6 7

Annual GDP Growth 2013-2033South Asia

CHINA

South East Asia

Africa

Asia Pacific

Latin America

Middle East

Common Wealth of

Independent States

(CIS)

Oceana

North America

Europe

North East Asia

Source: HIS

Economics

Aviation Traffic Growth: Projections of growth % from

(2014-2033) based on past trends

0 1 2 3 4 5 6 7 8 9

South Asia

CHINA

South East Asia

Africa

Asia Pacific

Latin America

Middle East

Common Wealth of Independent

States (CIS)

Oceania

North America

Europe

North East Asia

Aviation Traffic Growth % Annual Growth Rate Compound

Annual Growth Rate (CAGR) 2014-2033

WHY U.S. CAN SELL TO CHINA: CHINA

BENEFITS FROM OWN COST ADVANTAGE

Chinese manufacturers benefit from their own cost advantage.

China’s manufacturing involvement in the U.S. aviation industry

has paid dividends for China.

In 2014, China made a net gain with the acquisition, and joint

venture with CIRRUS (an American manufacturer) in turn

creating a CESSNA citation which benefits China.

U.S. companies have found that having a foreign

manufacturing presence in China provides goodwill towards

China. This results in a higher likelihood that Chinese

customers will purchase their (Chinese) products.

China’s Aviation Industry Continues to

Thrive after invention of China’s High

Speed Rail

3.0

2.5

2.0

1.5

1.0

0.5

0

Tra

ffic

(P

assenger)

X D

ista

nce

2005 2007 2009 2011 2013

• Rail

• Air

(Domestic)

YEAR

Robust Air Travel in China Since

Introduction of High Speed Rail

Source: Boeing

Current Market

Outlook 2014-

2033

U.S. ECONOMIC AND EMPLOYMENT

IMPACT BY STATE

The U.S. civil aviation maintenance

industry generates $43.2B in economic

activity and employs over 289,281 people.

The U.S. civil aviation’s Maintenance,

Repair and Operations (MRO) accounts for

75.4% of the total employment in the U.S.

aviation industry, with 218,130 employees.


IMPACT BY STATE (Continued)

Within the MRO industry, companies that are

certificated by the FAA under part 145 are the

largest employers with 192,201 employees.

The remaining 25,929 are employed by other

companies involved in civil aviation.

Parts manufacturing and distribution (PMO),

accounts for the remaining 24.6% of

employment with 71,151 employees.


IMPACT BY STATE (Continued)

MRO generates over 42.8% of the

economic activity or $19.0B.

With 24.6% of the total employment, parts

manufacturing and distribution, accounts

for 56.0% of the total economic activity or

$24.2B.

State: Alabama, Alaska, Arizona, Arkansas

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Alabama 431 640 10 1,081 $93,490,858 $3,401,545 $96,892,403

Alaska 5,340 4 29 5,373 $466,494,06

5

$9,864,479 $476,358,54

4

Arizona 3,050 21 64 3,135 $267,076,96

0

$21,769,885 $289,846,84

5

Arkansas 6,443 931 10,088 17,822 $643,698,95

9

$3,553,933,

801

$4,197,632,

760

Aviation Maintanence Industry Employment Aviation Maintanence Industry Economic

Activity

State: California, Colorado, Connecticut,

Delaware

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

California 28,859 2,276 5,793 34,928 $2,543,283,

046

$1,970,514,

788

$4,593,797,

834

Colorado 1,289 976 16 2,281 $197,748,76

1

$5,442,471 $203,161,23

2

Connecticut 4,820 47 7,452 12,319 $424,855,28

0

$2,534,831,

038

$2,959,686,

318

Delaware 968 ----- 88 1,056 $84,499,674 $29,933,593 $114,433,26

7


Activity

State: Florida, Georgia, Guam, Hawaii

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Florida 16,313 2,333 1,030 19,676 $1,627,666,

232

$350,359,09

4

$1,978,025,

326

Georgia 16,366 1,090 1,513 18,969 $1,523,787,

501

$514,653,69

8

$2,038,441,

199

Guam 31 10 ____ 41 $3,579,015 $0 $3,579,015

Hawaii 168 566 9 733 $63,200,169 $3,061,390 $66,261,559


Activity

State: Iowa, Idaho, Illinois, Indiana

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Iowa 2,760 ___ 4,685 7,445 $240,928,82

1

$1,593,623,

646

$1,834,552,

467

Idaho 409 37 35 481 $38,932,701 $11,905,406 $50,838,107

Illinois 4,071 1,745 1,519 7,335 $507,696,38

6

$516,694,62

5

$1,024,391,

011

Indiana 2,688 460 1,228 4,365 $273,052,66

4

$417,709,67

7

$690,762,34

1


Activity

State: Kansas, Kentucky, Louisiana,

Massachusetts

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Kansas 5,356 157 5,201 10,714 $481,246,59

1

$1,769,143,

348

$2,250,389,

939

Kentucky 693 716 47 1,456 $122,995,90

9

$15,897,260 $138,983,16

9

Louisiana 2,335 150 197 2,682 $234,556,42

9

$67,010,429 $283,993,66

1

Massachus

etts

2,195 492 283 2,970 $71,493,009 $96,263,712 $330,820,14

1


Activity

State: Maryland, Maine, Michigan, Minnesota

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Maryland 647 172 625 1,444 $71,493,009 $212,596,53

8

$284,089,54

7

Maine 1,034 ___ 137 1,171 $90,261,015 $46,601,161 $136,862,17

6

Michigan 4,486 666 2,669 7,821 $449,773,80

00

$907,872,25

4

$1,357,606,

054

Minnesota 2,458 488 379 3,325 $257,165,32

9

$128,918,54

0

$386,083,86

9


Activity

State: Missouri, Mississippi, Montana Northern

Marina Islands

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Missouri 1,468 136 24 1,628 $140,018,05

4

$8,163,707 $148,181,76

1

Mississippi 742 ___ 147 889 $64,771,444 $50,002,706 $114,774,15

0

Montana 326 ___ 20 346 $28,457,535 $6,803,089 $35,260,624

Northern

Marina

Islands

7 ___ ___ 7 $611,051 $0 $611,051


Activity

State: North Carolina, North Dakota Nebraska,

New Hampshire

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

North

Carolina

3,820 966 405 5,191 $417,784,54

3

$137,762,55

6

$555,547,09

9

North

Dakota

247 ___ 104 351 $21,561,384 $35,376,064 $56,937,448

Nebraska 1,543 ___ 1,368 2,911 $134,693,17

8

$465,331,30

2

$600,024,48

0

New

Hampshire

716 ___ 35 751 $62,501,825 $11,905,406 $74,407,231


Activity

State: New Jersey, New Mexico, Nevada, New

York

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

New Jersey 4,019 710 474 5,203 $412,808,83

9

$161,233,21

4

$574,042,05

3

New Mexico 631 9 50 690 $55,867,553 $17,007,723 $72,875,276

Nevada 604 490 122 1,216 $95,498,598 $41,498,844 $136,997,44

2

New York 5,395 1,292 2,893 9,580 $583,728,63

3

$984,066,85

3

$1,567,795,

486


Activity

State: Ohio, Oklahoma, Oregon, Pennsylvania

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Ohio 6,240 210 3,347 9,797 $563,040,18

0

$1,138,496,

978

$1,701,537,

158

Oklahoma 11,146 208 552 11,906 $991,125,30

3

$187,765,26

2

$1,178,890,

565

Oregon 2,008 247 122 2,377 $196,845,83

0

$41,498,844 $238,344,69

4

Pennsylvani

a

3,281 731 120 4,132 $350,219,72

1

$40,818,535 $391,038,25

6


Activity

State: Puerto Rico, Rhode Island, South

Carolina, South Dakota

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Puerto Rico 148 51 --- 199 $17,371,317 $0 $17,371,317

Rhode

Island

243 ___ 47 290 $21,212,211 $15,987,260 $37,199,471

South

Carolina

1,614 122 11 1,747 $151,450,73

7

$3,741,699 $155,282,43

6

South

Dakota

78 ___ 179 257 $6,808,858 $60,887,648 $67,696,506


Activity

State: Tennessee, Texas, Utah, Virginia

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employment

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Tennessee 2,293 1,672 634 4,599 $346,116,94

8

$215,657,92

8

$561,774,87

6

Texas 20,399 3,052 4,123 27,574 $2,047,109,

343

$1,402,456,

840

$3,449,566,

183

Utah 346 306 483 1,135 $56,915,069 $164,294,60

4

$221,209,69

3

Virginia 1,262 879 2,463 4,604 $186,894,42

3

$837,800,43

6

$1,024,694,

859


Activity

State: Virgin Islands, Vermont, Washington, Wisconsin, West Virginia, Wyoming

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufacture

d/distributio

n

Total

Employmen

t

Maintenanc

e/Repair,

and

Overhaul/

Overall Mro

Parts

Manufacturi

ng/

Distribution

Total

Economic

Activity

Virgin

Islands

2 ___ ___ 2 $174,586 $0 $174,586

Vermont 169 ___ 313 482 $14,752,526 $106,468,34

6

$121,220,87

2

Washington 8,972 714 9,501 19,187 $845,520,49

4

$3,231,807,

527

$4,077,328,

021

Wisconsin 2,171 167 99 2,437 $204,091,15

4

$33,675,292 $237,766,44

66

West

Virginia

1,046 ___ 40 1,086 $91,308,532 $13,606,178 $104,914,71

0

Wyoming 75 ___ 18 93 $6,546,979 $6,122,780 $12,669,759


Activity

Aviation Statistics for all States

STATE FAA

REPAIR

STATION

Air Carrier Parts

Manufactur

ed/distributi

on

Total

Employment

Maintenance

/Repair, and

Overhaul/

Parts

Manufacturi

ng/

distribution

Total

Economic

Activity

12,435 192,201 29,929 71,151 289,281 $19,041,233

,244

$24,202,33

0,000

$43,243,56

3,254

Aviation Maintanence Industry

Employment

Aviation Maintenance Industry

Economic Activity

Wichita Kansas Aviation In 2015, Kansas had the 9th highest state ranking,

in U.S. aviation related employment with over

10,000 (total number of employees).

U.S. AVIATION STATS

Analyzing the MRO industry at the state level,

CAVOK estimates that California, Florida, Georgia,

and Texas combined; represent 35.0% of the total

US civil aviation maintenance employment with an

estimated 101,147employees. The top ten states

represent 63.2% of the total employment in the

US.

Citations

Source:2015 CAVOK© betterinsight TM and PlaneStats

http://arsa.org/wp-content/uploads/2015/03/ARSA-CAVOK-2015USOverview-20150330.pdf

www.bizjournals.com

http://www.kwch.com/news/local-news/aviation-growth-projected-in-wichita/30601584

http://export.gov/china/build/groups/public/@eg_cn/documents/webcontent/eg_cn_047964.pdf

http://www.boeing.com/assets/pdf/commercial/cmo/pdf/Boeing_Current_Market_Outlook_2014.pdf

http://www.bizjournals.com

http://www.kwch.com/news/local-news/aviation-growth-projected-in-wichita/30601584

http://export.gov/china/build/groups/public/@eg_cn/documents/webcontent/eg_cn_047964.pdf

• The McGinty Machine

Company, Inc., is a

manufacturer of precision

machined parts serving an

international customer base

since 1948

.

• Design, Analysis and Research

Corporation (DARcorporation)

provides Integrated Aircraft

Design, Development and

Consulting Services.

• Cobham AvComm is a leading supplier of test

equipment for the avionics markets. We provide both

bench and ramp instruments that are used for

design, certification, manufacture and repair for both

equipment and aircraft.

Companies in Attendance

Companies in Attendance

Companies in Attendance EDMO Distributors is an independent

wholesale distributor of aircraft electronics and accessories, installation and bench supplies, test equipment and tooling, tactical communications products, ground

support equipment, and pilot supplies.

Global Aviation Technologies LLC (GAT) specializes in Avionics System Integration and Certification, Build-to-Print Cable Assemblies and Electrical Sub-Assemblies.

Kansas Global is a full service trade consulting firm dedicated to building international growth and commerce. At Kansas Global, we have a variety of services that can fit any company’s individual needs, ranging from global information, strategic marketing or trade compliance. We believe that every company should be looking globally for its next sale.

Companies in Attendance Textron Aviation manufactures jet,

turboprop, and piston aircraft with a customer base of more than 200,000 worldwide. With the help of our Chinese partners, our goal is to make private air travel, the most convenient form of long distance transport, more accessible to the region.

Shackelford Machine Inc. is ITAR Registered with the US Department of Defense for Import/Export. Most of our business comes from General Aviation, Space Programs, Commercial Jets, and the Commercial Industry as well.

Connectivity Point LLC serves as an advisor for strategic business to business partnerships and business to consumer fruitful transactions. Our intention is to create conscious business connections focused in Entertainment and Luxury industries.

Thank you!

Siva Yam, CPA, CFA

U.S.-China Chamber of

Commerce

www.usccc.org

312-368-9038

[email protected]

http://www.usccc.org/

mailto:[email protected]

kansas aviation final draft 1-2

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