A Challenge for the Aerospace & Defense Industry

1. Presentation by: Phil Combs, President & CEO, Belcan AETD A Challenge for the Aerospace & Defense Industry “The Vanishing Engineer…”

2. A&D Industry Concern…The Vanishing Engineer…. A Challenge for the Aerospace & Defense industry “Our nation is not producing enough qualified workers to fill important jobs in U.S. Aerospace companies and the shortfall will increase as retirements grow in the coming years’. To maintain America's leadership in the global aerospace marketplace in the 21st century, we must cultivate a highly skilled workforce of scientists, engineers and other technical specialists critical to our national security, our economy and the strength of our industrial base” (Marion C. Blakey AIA) “Our policymakers need to acknowledge that the nation’s apathy toward developing a scientifically and technologically trained workforce is the equivalent of intellectual and industrial disarmament, and is a direct threat to our nation's capability to continue as a world leader…” (Commission On The Future Of The United States Aerospace Industry) “Baby Boomer Retirements could trigger an A&D engineering crisis. Aerospace companies aren’t attracting enough engineers to replace the wave of baby boomers nearing retirement. The gap could have profound impact on the future of the industry - - and the nation”. (Aviation Week) “The Aerospace industry faces declining workforce numbers that could result in a disastrous loss of intellectual capital for the industry if measures are not taken to attract more skilled applicants” (Interagency Aerospace Revitalization Task Force 2008) “Second only to a weapon of mass destruction detonating in an American city, we can think of nothing more dangerous than a failure to manage properly science, technology, and education for the common good over the next quarter century”…. “The harsh fact is that the U.S. need for the highest quality human capital in science, mathematics, and engineering is not being met”… (Roadmap for National Security) Brain Drain Could Ground Aerospace Production… “Industry task force offers dire warning if workforce challenges aren’t met.” (Industry Week) “Without a workforce with engineering skills, the U.S. aerospace industry will lose its innovative and productive edge. While the country graduates about 70,000 engineers annually, only a small percentage enters aerospace or the related defense industry.…” Wanted: Qualified Engineers to Keep the Aerospace Industry Flying: A Shortage of Engineers Threatens the Industry – and National Security --- Wharton A&D Report “The Aerospace industry faces declining workforce numbers that could result in a disastrous loss of intellectual capital for the industry if measures are not taken to attract more skilled applicants” (Interagency Aerospace Revitalization Task Force)

3. Challenges Aside…. A&D Remains strong & viable… • THE U.S. AEROSPACE AND CIVIL AVIATION INDUSTRIES REPRESENT APPROXIMATELY 5% OF THE UNITED STATES GDP • CURRENT AEROSPACE AND DEFENSE INDUSTRIES (A&D) SALES ARE IN EXCESS OF $214 BILLION AND HAVE CONTINUED TO INCREASE EVEN DURING THE RECENT ECONOMIC DOWNTURN • THE AEROSPACE AND DEFENSE (A&D) INDUSTRY CURRENTLY EMPLOYS OVER 800,000 DIRECT EMPLOYEES, SUPPORTING OVER TWO MILLION HIGH-QUALITY AMERICAN JOBS WITH SUPPLIERS LOCATED IN ALL 50 STATES • THE U.S. A&D INDUSTRY IS OUR COUNTRY’S LARGEST EXPORTER OF GOODS. IN 2009, IT CREATED A TRADE SURPLUS OF OVER $57 BILLION ON OVER $ 79 BILLION IN EXPORTS A Challenge for the Aerospace & Defense industry

4. The Aerospace & Defense Workforce Dilemma • THE AVERAGE AGE OF THE A&D WORKFORCE IS 45 YEARS OLD • LESS THAN 25 % OF THE A&D WORKFORCE IS AGE 35 OR YOUNGER • ALMOST 30% OF THE AEROSPACE WORKFORCE IS BETWEEN 50 - 59 YEARS OLD • OVER 20% OF THE A&D WORKFORCE IS CURRENTLY ELIGIBLE TO RETIRE IN 2011 AND THAT NUMBER GROWS TO ~ 25% BY 2013 A Challenge for the Aerospace & Defense industry Source: Innovation in Aerospace & Defense, Charles River Associates 2/2010 Today A&D is not a preferred career of choice for engineering graduates - Less than 10% target the A&D industry as a career path 2010 CSC Aerospace & Defense market survey indicates over half of the A&D companies surveyed indicated they already have a shortage of scientists & engineers, or expect to in the next 5 years

5. The A&D Industry isn’t sitting idly by…..Major Initiatives Launched • INDUSTRY SUPPORT OF GOVERNMENT INITIATIVES • Project Lead the Way • Commission On The Future Of The United States Aerospace Industry – 2001 to 2002 (Public Law 106-398) • Interagency Aerospace Revitalization Task Force – 2006 to 2008 (Public Law 109-420) • INDUSTRY SUPPORT OF UNIVERSITY INITIATIVES • Promoting Engineering/Aerospace Education (K-12), Retirees to STEM Educators… • Engaging in Developing University Curricula Consistent with Industries Needs… • Supporting University Senior Design Projects, Capstone Programs Guest Lectures… • Providing Engineering Scholarships, Work/Study Internships, Co-Op Opportunities… • AEROSPACE INDUSTRIES ASSOCIATION • Election Issues 2008 – Aerospace Workforce Renewal • “Launch into Aerospace” – Goals and Actions (08/08) • “Launching the 21st Century American Aerospace Workforce” (12/08) A Challenge for the Aerospace & Defense industry

6. A Challenge for the Aerospace & Defense industry PACE Formula 1 Design Team Brigham Young University AIAA Design Competitions Air Vehicles, Engines and Space CansatCompetition SAE Design Competitions ASME Design Competitions Formula SAE FIRST Robotics Competitions American Solar Challenge P&W Belcan Team • What Can You Do? • Student Chapters of AIAA, ASME, etc. • Co-Op or Intern • Student Clubs & Design Competitions, such as Solar Car, “Design, Build, Fly…”, World in Motion (SAE), Team America Rocketry challenge, Space Camp… • K-12 Outreach Programs – be an Ambassador for the engineering profession • Consider entrepreneurship Ohio State Space Team Microgravity Experiment 6

7. What can we do??? • Encourage your Industrial Advisory Boards to address the issue: • Promote Engineering/Aerospace Education (K-12), Retirees to STEM Educators… • Engage in Developing University Curricula Consistent with Industries Needs… • Support University Senior Design Projects, Capstone Programs Guest Lectures… • Provide Engineering Scholarships, Work/Study Internships, Co-Op Opportunities… • Get Personally Involved: • Support Outreach Programs K-12, STEM Programs, Mentoring… • Participate in University Engineering Advisory Boards… • Get Involved in Professional Association Initiatives (AIAA, AIA, SAE, ASME, etc.) • “Sell” your Industry and Profession – Exciting and Rewarding Career Path Forward… “We cannot always build the future for our youth, but we can build our youth for the future.” - Franklin D. Roosevelt 7