Report on Washington State's Path in the Global Aerospace Race — Aviation and Aerospace Advisory Committee

Summary

A July 2023 report of Washington's Aviation and Aerospace Advisory Committee (AAAC), titled Washington State's Path in the Global Aerospace Race and marked as a Department of Commerce draft. The committee was created by the Washington State Legislature in 2022 to advise the Departments of Commerce & Transportation, and the report is its second and final submission of subcommittee findings and recommendations. The introduction states that Boeing's presence and supply chain have been a significant economic driver, employing 105,000 people at 1,540 companies in Washington and generating $56.8 billion annually in sales, and that the COVID-19 pandemic significantly impacted the sectors. Six subcommittees studied airport services, manufacturing, space and satellites, uncrewed aerial systems, emerging segments and workforce; the report gives SWOT analyses and a call to action.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer: Congressional materials
Document type: Report
Case: 2023 Aaac Final Report 1 22 24 Rt 44E0F421 03D4 4F77 A214 4Bd0F1559A86

Cite this document

“Report on Washington State's Path in the Global Aerospace Race — Aviation and Aerospace Advisory Committee.” Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-aaac-final-report-1-22-24-rt-44e0f421-03d4-4f77-a214-4bd0f1559a86/, SHA-256 26823864dec0bde4a536722e4e05081199fc1d513d48eb1ed6fdc2d95d75cbaf.

Full text

WASHINGTON STATE’S PATH IN
THE GLOBAL AEROSPACE RACE
AeroNex: Empowering Collaboration and Innovation in Aerospace

July 2023
Contents
Introduction .................................................................................................................................................. 2
Proviso........................................................................................................................................................... 2
Process .......................................................................................................................................................... 2
Aviation & Aerospace Industry Overview ..................................................................................................... 3
Competitive Landscape ............................................................................................................................... 10
Location Factors .......................................................................................................................................... 11
Best Practices .............................................................................................................................................. 13
State Initiatives ........................................................................................................................................... 15
Workforce ................................................................................................................................................... 20
SWOT ANALYSES AND NEEDS ASSESSMENT ............................................................................................... 24
Airport Services, Infrastructure, and Testing .......................................................................................... 25
Commercial/Defense Manufacturing ..................................................................................................... 31
Space and Satellites ................................................................................................................................ 36
Uncrewed Aerial Systems ....................................................................................................................... 39
Emerging Segments (electric, hydrogen, VTOL, Advanced Air Mobility - AAM)..................................... 41
Workforce and Education ....................................................................................................................... 45
Call to Action Summary............................................................................................................................... 60
Conclusion ................................................................................................................................................... 65
End Notes .................................................................................................................................................... 68

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Introduction
Washington state has a rich history in aviation and aerospace, dating back to the early 20th Century. The
state has been a leader in the industry since the establishment of the Boeing Company in 1916 and
producing numerous commercial and military aircraft. Boeing’s presence and dedicated supply chain have
been a significant economic driver for the state and the country’s aerospace ecosystem, employing
105,000 people at 1,540 companies in Washington, generating $56.8 billion annually in sales,
1
and contributing 5% of the state’s total Gross Regional Product (GRP). Combined, 3% of all jobs in the
state are related to aviation and aerospace.

However, the COVID-19 pandemic significantly impacted the aviation and aerospace sectors. As the
industry looks toward recovery, it faces challenges related to labor availability, materials, carbon
emissions, and the need for innovation. Washington, in particular, is experiencing pressures from
increasing domestic and international competition. Within the United States, Texas, the Midwest, and the
Southeast regions are capturing an increasing market share of the aerospace market with business-
friendly environments and lower costs to do business.

This report provides an outlook on the industry, highlighting key areas such as space exploration,
uncrewed systems, and next-generation air mobility in Washington state. The state must invest
substantially in driving innovation to maintain its leading edge, marketing the strengths of Washington’s
aerospace sector, and equipping the current and future workforce for the next generation of aircraft.

Proviso
The Aviation and Aerospace Advisory Committee (AAAC) was created by the Washington State Legislature
in 2022 to advise the Departments of Commerce & Transportation on matters related to aviation and
aerospace in the state. The committee’s charge was to develop recommendations regarding operating
and capital budget requests to support aviation and aerospace, in addition to formalizing strategies to
enhance the safe and effective use of public-use airports and aerospace facilities (meaning aerospace
manufacturers) in the state. Specific topics include:

● Employment of emerging aviation and aerospace technologies to include uncrewed, autonomous,
and alternative propulsion systems
● New, changed, or proposed federal regulations
● Enhance national and international competitiveness
● State policy considerations
● Funding priorities and capital project needs
● Methods to reduce greenhouse gas emissions
● Workforce development needs and opportunities; and
● Multimodal requirements.

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Process
Six subcommittees studied the following priority areas:

1. Airport Services, Infrastructure, and Testing
2. Commercial/Military Manufacturing
3. Space and Satellites
4. Uncrewed Aerial Systems (UAS)
5. Emerging Segments (electric, hydrogen, hybrid, Advanced Air Mobility - AAM)
6. Workforce and Education

The goal of the committees and taskforce was to formulate recommendations for legislators, with the
initial results to be summarized and presented in December 2022 (see previous submission). The following
report includes the second and final submission outlining the subcommittees’ findings and
recommendations.

Committee Structure: The Aviation and Aerospace Advisory Committee comprised more than fifty
stakeholders representing legislators, ports and airports, aerospace supply chain companies, educators,
labor representatives, military personnel, and other advocates. The committee established
subcommittees to study and address the six priority areas.

Subcommittees consisted of members from all state regions who possess aviation, aerospace, workforce,
advanced manufacturing, or related expertise. They provided valuable insights for advancing new aircraft
technologies, airports, vertiports, aviation fuels, spacecraft, satellite systems, and other innovations to
transform people's travel and contribute to a sustainable economy. Meetings were conducted over
several months, allowing for in-depth discussions and the exploration of diverse perspectives. The
outcome resulted in collaboratively distilled ideas and patterns from the subcommittee members'
collective expertise and insights.

During the initial meetings, it became apparent that all sectors had common needs. That led to
restructuring the subcommittees so stakeholders could delve deeper into designing solutions to address
these shared themes. Groups consisted of the same individuals who participated in the subcommittee
meetings, thus ensuring continuity and consistency in exploring identified themes. These work groups
aimed to delve deeper into the themes, fostering collaboration and enabling the development of more
refined strategies and initiatives.

The project team extracted and consolidated the results after concluding the subcommittee meetings.
These themes represent the overarching areas of concern and focus, encapsulating the perspectives and
recommendations put forth by the subcommittees and serving as the foundation of this report. The
resulting four significant areas of focus include:

1. Airport Services and Infrastructure
2. Innovation Network
3. Sector Marketing
4. Workforce Development

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Aviation & Aerospace Industry Overview
DEFINITIONS
For purposes of this report, the aerospace cluster is defined by its entire industries, which are identified
within the subsequent taxonomy:

NAICS NAICS Description
Code

334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument
Manufacturing

334513 Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling
Industrial Process Variables

334515 Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

334519 Other Measuring and Controlling Device Manufacturing

336411 Aircraft Manufacturing

336412 Aircraft Engine and Engine Parts Manufacturing

336413 Other Aircraft Parts and Auxiliary Equipment Manufacturing

336414 Guided Missile and Space Vehicle Manufacturing

336415 Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing

336419 Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

481111 Scheduled Passenger Air Transportation

481112 Scheduled Freight Air Transportation

481211 Nonscheduled Chartered Passenger Air Transportation

481212 Nonscheduled Chartered Freight Air Transportation

481219 Other Nonscheduled Air Transportation

488111 Air Traffic Control

488119 Other Airport Operations

488190 Other Support Activities for Air Transportation

541715 R&D in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

611512 Flight Training

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INDUSTRY PERFORMANCE
The aerospace industry contributes roughly $29.8 billion, or 5%, to the state’s GRP. The aerospace cluster
sustains an approximate workforce of 105,000 individuals across 1,540 businesses subject to payroll in
the State of Washington. Unfortunately, the adverse effects of the pandemic resulted in a reduction of
approximately 17,350 jobs, reflecting a decline of 14.2% within this sector.
Figure 1. Job Performance in the Aerospace Cluster, State of Washington (2018-2023)

Over the past five years, the revenue generated from aircraft, engine, and parts manufacturing nationwide
has exhibited a compounded annual growth rate of 3.7%, culminating in a total of $323.1B. Notably, the
year 2023 witnessed a commendable upturn of 7.8% in revenue, subsequently yielding a profit margin of
8.3%.

Post-Pandemic Recovery Kickstarted U.S. Manufacturers
● Air travel skyrocketed in the years following COVID-19, reestablishing demand for passenger
airplanes and flooding airlines with much-needed cash.
● The heightened use of aircraft increased the wear and tear of current fleet inventories. This has
driven increasing demand for replacement parts and maintenance-related materials.
● Airlines that found themselves with capital surplus began to cycle out older airplane models as
they purchased newer, more fuel-efficient planes from aircraft manufacturers. New planes with
new technology have driven production demand, increased the need for new knowledge and
expertise, and increased revenue for aircraft manufacturers and companies throughout the
supply chain.

U.S. Imports Drop, Exports Skyrocket
● COVID created supply chain issues for manufacturers that import many aircraft parts and raw
materials required to assemble planes. This generated a domestic adaptation to the supply chain,
causing them to buy more input goods closer to home.

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● The U.S. is rated near the top for global airplane suppliers. Boeing’s presence in Washington
places the state in a strong position for aircraft production.
● Other countries expanded air travel options over the past decade, boosting demand for industry
products. With the U.S. (and Washington state) firmly placed as an aerospace manufacturing
supply chain leader, the domestic industry has retained or improved its standing.
● Exports have risen as countries with expanding air capabilities increasingly rely on US-made
aircraft, engines, and parts.

Defense Contractors Face Inconsistent Funding
● Federal funding for defense budgets initially increased but has tapered off in recent years.
● Defense contractors have increasingly tried to stabilize against government funding fluctuations
by diversifying their services and investing in the commercial aviation sector.
● The defense budget will increase domestically and abroad as Russia's invasion of Ukraine
continues and the United States arms its military allies.
● The geopolitical dynamics in the Pacific Rim (e.g., China and North Korea) will also likely increase
military spending for the next few years.

DEMAND

Air Transportation

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As air travel increases, so will the demand for passenger airplanes. Air transportation companies can
improve competitiveness with newer, more fuel-efficient aircraft models. This can, in turn, spur demand
from upstream manufacturing. Demand from air transportation—both passenger and cargo—has risen
and is expected to continue to grow in 2023, representing ongoing opportunities for growth.

Federal Defense Funding
The defense budget includes allocations for aircraft, parts, and related equipment. With an increase in
defense spending by $26B in 2023, additional opportunity exists to expand defense contracts. 2

Aerospace Manufacturing Supply Chain
Washington’s aerospace supply chain extends far beyond Boeing. The state is home to numerous
aerospace suppliers and subcontractors, providing various components, systems, and services that
support aircraft production. These companies contribute to the broader aerospace manufacturing
ecosystem and provide critical support to Boeing and other aerospace manufacturers.

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Figure 2. Supply Chain for Aircraft, Engine & Parts Manufacturing

Aircraft manufacturing provides the most revenue for the cluster, representing nearly 60% of industry
revenue in 2023—which broadly includes civilian and military aircraft, as well as modifications to
completed aircraft. Additionally, uncrewed aerial vehicles (UAVs) have become increasingly important to
military actions in recent years, and manufacturing has risen accordingly. UAV sectors in agriculture,
wildfire control, and remote inspection of the power grid are rapidly growing as well.

Furthermore, aircraft engines and parts for aircraft engines account for 22% of revenue in 2023, including
turbine, shaft, jet, and rocket engines. Fuel efficiency is the foremost aim of technological development
in this segment, and R&D teams are focused on swapping lighter materials where possible. Research and
production of sustainable aviation fuel (SAF) align with Washington's “green” reputation and present a
commercial opportunity for product and technology development in this area.

Other aircraft parts and auxiliary equipment include civilian and military aircraft subassemblies and parts,
aircraft mechanical power transmission equipment, propellers, helicopter rotors, research and
development of parts (excluding engines), and landing gear. Sales in this segment are generally for
replacement parts on existing aircraft, so increased flying time means a greater need for repairs and more
money in the pockets of parts manufacturers. Some items, such as subassemblies, have become more
advanced as composite material use has increased, while others, such as fasteners, are more standardized
and have remained largely unchanged.

Other parts account for 18% of industry revenue in 2023.

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Figure 3. Products and Services Segmentation

Source: IBIS World

Industry Outlook
Nationally, aircraft, engine, and parts manufacturing revenue are projected to grow at an annual growth
rate of 2.6% to $366.8B over the next five years, with profit reaching 7.8% in 2028.

Boeing - new technological rollouts will boost revenue
● Following setbacks involving two 737 MAX jet crashes, Boeing has recently received approval from
the Federal Aviation Administration (FAA) to continue production of these jets; an array of
improvements to the Maneuvering Characteristics Augmentation System (MCAS) should serve to
prevent future tragedies.
● The new 737 MAX line of airplanes contains several efficiency-focused innovations that reduce
emissions by increasing fuel efficiency, a benefit that is in high demand from airlines seeking to
manage volatile fuel prices.
● These new higher-cost jets will begin to replace older models, boosting demand for new plane
orders, parts, and other revenue in the supply chain.

Military exports to US allies will provide new revenue for defense contractors
● As tensions with Russia remain high, more and more NATO members will seek military equipment
from US manufacturers.
● The United States subsidizes research and development in the defense segment of aircraft
manufacturing in an effort to produce the most high-tech armaments on the planet, which has
proven successful in the rollout of the F-35 Lightning II fighter jet.
● Uncrewed aerial vehicles have become indispensable to modern combat, and manufacturers will
benefit from widespread demand to keep soldiers out of the line of fire by building more of these
aircraft types.

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● While exporting military products is a rigorous and thoroughly monitored process, US oversight
boards generally allow the sale of aircraft, engines, and parts to countries aligned with US
interests.
● A depreciating US dollar, measured by the trade-weighted index, will make US goods
comparatively less expensive and further boost exports.

Air travel is expected to grow steadily
● Commercial air transit represents the largest portion of industry revenue, so steady demand for
aircraft to carry passengers to and from their destinations is vital for manufacturers of aircraft
and aircraft parts. Demand for air transportation has risen since the pandemic and is expected to
continue to grow at an annual rate of 0.8% into 2028 (IBIS World).
● Domestic trips by US residents and international trips will both rise over the next five years,
representing a continued interest in travel following the still-lingering pandemic lockdowns.
China, in particular, has seen a surge in the growth of its middle class, which now has disposable
income for travel. Although their state-owned aircraft manufacturer (COMAC) recently had its
first commercial flight, it will still be several years before they can scale manufacturing to be a
significant threat to Western manufacturers.
● Increased air transit places more stress on planes, which boosts demand for replacement parts.

Emerging Segments
● Electrical propulsion systems
● Electric Aircraft Charging Infrastructure
● Renewable fuels, hydrogen-electric, zero-emission, green tech
● Hydrogen Fuel Supply
● Sustainable aviation fuel (SAF)
● VTOL—Vertical takeoff and landing
● UAS—uncrewed aircraft systems (defense, commerce, fixed-wing)
● High-Altitude satellites and Platform-stations
● Artificial Intelligence (AI): is expected to grow from $152.4 million in 2018 to $2.2 billion by 2025
in the aviation market alone
● Sun-powered Aircraft
● New materials
● Zero-Fuel Aircraft
● Autonomous Flight Systems
● LIDAR technology from automated cars

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Commercial Space
● The success of SpaceX, Blue Origin, and other private space ventures has opened the field for
future commercial endeavors.
● Sierra Nevada has also managed a growing share of space vehicle manufacturing, securing a
contract to supply the International Space Station. Even so, this contract will expire in 2024,
creating opportunities for other companies to acquire major contracts.
● The space tourism market also holds promise, with Virgin Galactic and Blue Origin conducting
manned tests. These companies are also planning their first commercial flights over the next
few years.
● SpaceX broke the monopoly on national security payload launches once held by The United
Launch Alliance (ULA), while Northrop Grumman and Blue Origin are innovating new rockets
that could compete.

Competitive Landscape
The aerospace industry in Washington is known for its high competitiveness and significant influence.
Over the years, the state has cultivated a strong aerospace ecosystem, but it is currently facing increasing
competition. In 2020, Washington ranked third among the top 10 states for aerospace attractiveness, but
by 2022, it had dropped to seventh place.

In the aerospace industry, operators face both internal competition from other industry players and
external competition from operators in other industries. This increasing competitiveness is driven by the
industry's somewhat standardized nature, where safety and efficiency enhancements are typically
regulated and adopted universally. As a result, the industry displays adaptability in terms of its
geographical reach. Moreover, due to the constant advancement of aircraft technology, skilled labor
becomes indispensable, and the industry is in a perpetual state of research and development.

When deciding on a location, operators in the Aircraft, Engine, and Parts Manufacturing industry consider
various factors. These factors encompass government incentives, the availability of skilled labor, and
proximity to universities conducting fundamental research. Suppliers often establish facilities close to
major original equipment manufacturers' factories to minimize transportation expenses, leading to the
formation of manufacturing hubs. Defense contractors, on the other hand, frequently distribute their
operations across multiple states to garner support from legislatures and government officials.

Leading States in 2023 for Aircraft, Engine, and Parts Manufacturing Companies: Share of the Total
Industry in U.S.:
1. California – 11.1% | Growth rate (2018-2023): 2.3%
2. Texas – 10.0% | Growth rate (2018-2023): 8.0%
3. Washington – 7.0% | Growth rate (2018-2023): 9.9%
4. Florida – 6.8% | Growth rate (2018-2023): 0.1%
5. Ohio – 5.6% | Growth rate (2018-2023): 6.1%

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Location Factors
When deciding on a location, aerospace manufacturers carefully consider various requirements and
operational needs. While each manufacturer may have unique criteria based on their production
processes, product portfolio, and target markets, there are common considerations that aerospace
manufacturers generally share when selecting or maintaining a geographic location.

1. Proximity to Key Markets: Aerospace manufacturers prefer to be close to major markets such as
airlines, defense agencies, and space agencies to reduce transportation costs and allow for better
customer support and collaboration. Washington’s I-5 corridor is well positioned to meet
proximity needs; however, other factors such as workforce, land availability, and expansion
capability may be challenges. On the east side of the state, Spokane hosts Kaiser’s aluminum
manufacturing plant and a growing aerospace manufacturing cluster, with overnight service to
the Puget Sound.

2. Skilled Workforce: Access to an available skilled workforce is crucial as aerospace manufacturers
seek a strong engineering and technical talent pool, including specialists in aerospace
manufacturing, materials science, and avionics. Labor costs are another major consideration.
Washington ranks high in its quality of education and availability of mechanical engineers.
However, other states, such as those in the Southeastern U.S., maintain a competitive advantage
with lower wages, flexible wage structures, considerably lower costs of living, and employer-
friendly laws.

3. Infrastructure: Aerospace manufacturing requires specialized infrastructure, including airports,
transportation networks, and logistics capabilities. The presence of suitable facilities and access
to reliable transportation options are vital considerations. Delayed infrastructure maintenance
and expansion to meet growing industry and commercial demands throughout Washington’s
aerospace facilities places the state at a disadvantage.

4. Research and Development (R&D) Resources: Aerospace companies often prioritize regions with
established and highly invested research and development institutions, universities, and technical
centers. These provide opportunities for collaboration, innovation, and access to cutting-edge
technology. Washington maintains strong relationships with its research universities, especially
the University of Washington and Washington State University. Larger aerospace manufacturers
work closely with these institutions to optimize resources and opportunities. Additional effort is
needed to facilitate and promote access to manufacturers throughout the state, especially at the
small-to-medium business level, to adopt new technologies and practices.

5. Regulatory Environment: Compliance with aviation and aerospace regulations is critical.
Manufacturers prefer locations with clear and supportive regulatory frameworks that promote
safety, streamlined processes, and favorable policies for industry. Washington is known for having
a clear and supportive regulatory framework for aerospace manufacturing. The challenge often
lies in the potential for excessive regulation, which hinders the development and implementation
of new technologies and practices within the industry. It is important to recognize that a complex
and burdensome regulatory framework disproportionately impacts tier 2-3 suppliers. These

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suppliers are typically small and medium-sized businesses with fewer resources compared to
prime suppliers.

Though overlapping the topic of Workforce (see #2), Washington is often criticized for labor laws
specific to employing minors or integrating children under 18 into the workplace in a
manufacturing environment. While many challenges remain in the perception of what is
allowable, the state can help aerospace manufacturers bridge the workforce gap through
education and facilitation to hire younger employees. Helping employers work with schools,
youth, Labor and Industries, and others to create a safe workplace while facilitating more onsite
work experiences for youth can expedite workplace readiness for high school graduates.

6. Supply Chain Ecosystem: An efficient and robust supply chain is essential for aerospace
manufacturers. Businesses rely upon a strong network of specialized manufacturers, component
suppliers, and material providers. Proximity to suppliers helps reduce lead times and costs.
Washington excels in its proximity to aerospace supply chain providers and delivery logistics
solutions. Manufacturers located throughout the state are readily available to provide qualified
solutions, and the delivery logistics network is built on the back of other large Washington
employers such as Amazon.

7. Economic Incentives and Support: Government and local authorities often provide economic
incentives to attract aerospace manufacturers. These may include tax incentives, grants,
subsidies, and infrastructure support. The availability of such incentives can influence location
decisions. Washington has a history of providing incentives at the state, regional, and local levels,
and its continuation of such practices can ensure continued success in attracting new
manufacturers to the state.

However, what is often overlooked when considering incentives are the indirect beneficiaries,
such as tertiary manufacturers. Manufacturing companies have a substantial economic influence
not only at the primary level but also at the secondary level. Since supply chains often align with
manufacturers when they establish new facilities, the economic impact of the primary company
is amplified through the addition of secondary companies and jobs.

Several states and locations use incentives to attract and retain manufacturers, such as those
below:

(a) Boeing (South Carolina, U.S.): In 2009, Boeing received approximately $300M in economic
incentives from the state of South Carolina to establish a manufacturing facility for its 787
Dreamliner aircraft. 3 The incentives included tax breaks, infrastructure improvements, and
workforce training support. This investment helped create thousands of jobs and boost the
local economy.

(b) Airbus (Mobile, AL, U.S.): Airbus received roughly $10M in economic incentives from the state
of Alabama to build an assembly plant for its A320 series aircraft in Mobile. 4 The incentives

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included tax abatements, infrastructure development, and grants. The facility has become a
major aerospace manufacturing hub, generating jobs and attracting suppliers to the region.

(c) Bombardier Aerospace (Mirabel, Quebec, Canada): Bombardier Aerospace partnered with
the Canadian federal and provincial governments to establish its aerospace manufacturing
facility in Mirabel. 5 The incentives included financial support, tax credits, and research and
development grants. The facility has contributed to the growth of the aerospace industry in
Quebec and has become a center for aircraft production and innovation.

(d) Embraer (Melbourne, FL, U.S.): Embraer, a Brazilian aerospace manufacturer, received
economic incentives from the State of Florida to establish its assembly and customer center
in Melbourne. 6 The incentives included tax benefits, infrastructure assistance, and workforce
training programs. The facility has created jobs and has been instrumental in the expansion
of Embraer's operations in the United States.

8. Security and Stability: Aerospace manufacturing involves sensitive technologies and classified
information. Manufacturers prioritize regions with political stability, robust security measures,
and protection of intellectual property rights. Washington maintains a respected reputation for
enforcing intellectual property laws, including patents, trademarks, and copyrights. The state’s
thriving technology and innovation sectors rely heavily on protecting intellectual property, further
underscoring the state's commitment to upholding these rights.

9. Environment: Aerospace manufacturers are increasingly conscious of environmental
sustainability. With the growing concern and awareness of workers for corporate social and
environmental responsibility, companies recognize their commitment to the environment as a
key factor to attract and retain top talent. Manufacturers often seek states with favorable
environmental regulations, access to renewable energy sources, and a commitment to reducing
carbon emissions.

Overall, selecting a location involves a comprehensive assessment of various factors, including market
demand, cost considerations, competition, and the specific needs of each aerospace manufacturer. It is a
strategic decision that requires careful analysis to optimize operational efficiency, customer satisfaction,
and long-term success in the aerospace industry.

Best Practices
The aerospace industry is characterized by its continuous drive for innovation and collaboration, resulting
in various initiatives that shape its future. Within this rapidly evolving sector, certain organizations have
emerged as exemplars, showcasing best practices that serve as benchmarks for excellence. These industry
leaders have successfully implemented strategies and processes that optimize efficiency, ensure
regulatory compliance, and promote sustainable practices. By examining these best practices, we can
glean valuable insights into the successful management and operation of aerospace companies.

1. Foster collaboration and coordination among stakeholders: Initiatives like the FlyOhio program in
Ohio and the Quebec aerospace strategy demonstrate the importance of bringing together

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various entities, including government agencies, research institutions, and industry partners, to
strengthen and support the aerospace industry. This collaboration helps drive innovation, address
regulatory challenges, and promote growth.

2. Develop specialized aerospace ecosystems: Locations such as Houston, Texas, and Colorado have
successfully established aerospace ecosystems that encompass a range of assets, including
spaceports, research institutions, military commands, and major aerospace companies. These
ecosystems facilitate operational collaboration, knowledge sharing, and integration between
aerospace sectors, leading to economic growth and job creation.

3. Invest in research and development: The presence of renowned research institutions,
laboratories, and centers of excellence like the National Oceanic and Atmospheric Administration
(NOAA), University Corporation for Atmospheric Research (UCAR), and Laboratory for
Atmospheric & Space Physics (LASP) in Colorado, and the National Institute of Standards and
Technology in Colorado, help drive technological advancements in aerospace. Investing in
research and development enables the industry to stay at the forefront of innovation and
maintain a competitive edge.

4. Support the growth of small and medium-sized businesses (SMBs): The Quebec aerospace
strategy and the focus on assisting SMEs in their development highlight the importance of
nurturing and supporting smaller companies in the aerospace sector. This can be achieved
through financial frameworks, funding pools, and initiatives that promote innovation, provide
resources, and encourage collaboration with more prominent industry players.

5. Promote advanced air mobility and uncrewed aerial systems (UAS): Efforts such as the proposed
drone highway system in Ohio, drone delivery pilots in Detroit-Windsor, and the establishment of
the American Center for Mobility in Michigan demonstrate a commitment to advancing air
mobility and the integration of uncrewed aerial systems. These initiatives involve testing,
research, and policy development to enable safe and efficient operations of drones and other
uncrewed vehicles, paving the way for future logistics, transportation, and more applications. UAS
test ranges and pilot training schools can help revitalize rural airports, as seen with the economic
benefit at the Pendleton, Oregon airport with their UAS facility.

6. Support startup ecosystems and innovation partnerships: Michigan's Autotech Attraction and the
Office of Future Mobility and Electrification exemplify creating an environment that attracts
startups and supports emerging technologies in the aerospace sector. Funding platforms, grants,
and collaborative programs with academia and private industry help foster innovation, drive
economic growth, and position the state as a hub for mobility-related technologies and
businesses.

7. Promote a conducive business environment: Wichita, Kansas, emphasizes its low startup costs,
which benefits high-tech startups. Additionally, being a top city for remote work can attract
aerospace professionals interested in working remotely while still connected to major national

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aerospace hubs. Providing an attractive business environment, suitable infrastructure, and
resources encourages industry growth and attracts top talent.

These best practices collectively contribute to the aerospace industry's growth, innovation, and
sustainability, reinforcing its position as a pioneer in technology and exploration.

State Initiatives7
Florida, California, and Texas are important competitors in the aerospace industry. California, with
approximately 850 aerospace companies, ranks second after Washington in terms of industry size. The
presence of three NASA research centers and the Mojave Air and Space Port contributes to the growth
and development of the sector. Texas is known for its strong aerospace and aviation industry, with several
major aerospace companies operating in the state. Florida also has a significant aerospace sector, focusing
on space exploration and related activities. The industry’s geographic proximity to commercial space
launch infrastructure is desirable to space companies.

It is worth noting that Georgia, the top-ranked state for aerospace attractiveness in 2020, boasts a thriving
aerospace industry. The state's infrastructure is ranked number one, with an aerospace and defense
workforce of 108,000 employed by over 800 aerospace companies.

Ohio, ranked second, has a favorable corporate tax structure, a healthy economy, and a strong industry
presence. The state is also a major supplier to Boeing and Airbus, housing over 550 aerospace and aviation
A&D organizations, including research centers and facilities like Battelle Air Force Research Laboratory
and NASA Glenn Research Center.

California is a major center for the aerospace industry, housing numerous initiatives and organizations at
the forefront of aerospace technology and exploration. Southern California has a rich aerospace history
and continues to be a center for aerospace activities. Initiatives in this region encompass both commercial
and defense aerospace sectors. The area is known for aerospace manufacturing, research institutions,
and organizations working on space exploration, satellite systems, and advanced aircraft technologies.

Here are some key aerospace initiatives in California:

1. NASA's Jet Propulsion Laboratory (JPL): Located in Pasadena, JPL is a leading research and
development center for robotic space exploration. JPL manages numerous missions, including the
Mars rovers and deep space probes, and conducts cutting-edge research in areas such as
astrophysics, Earth science, and planetary exploration.

2. SpaceX: Headquartered in Hawthorne, California, SpaceX is a private aerospace company founded
by Elon Musk. Known for its groundbreaking achievements in reusable rocket technology, SpaceX
has transformed the commercial space industry and plays a vital role in launching satellites,
resupplying the International Space Station, and paving the way for future missions to Mars.

3. California Aerospace & Aviation Association (CAAA): The CAAA is an industry association
dedicated to promoting California's aerospace and aviation sectors. It fosters collaboration,

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advocates for industry interests, and supports workforce development and educational initiatives
to sustain California's aerospace leadership.

4. Aerospace Corporation: Based in El Segundo, the Aerospace Corporation provides technical
expertise and guidance to government agencies, including the Department of Defense and NASA.
It supports the development, acquisition, and operation of space systems and contributes to
national security and space exploration efforts.

5. Spaceports: Several spaceports are being developed in the state, including the Mojave Air and
Space Port and the Vandenberg Space Force Base. These facilities support both commercial and
government launches, testing of innovative aerospace technologies, and space tourism initiatives.

6. California Polytechnic State University (Cal Poly): Cal Poly has a renowned aerospace engineering
program and is known for its CubeSat development program. Students at Cal Poly have the
opportunity to design, build, and launch small satellites, gaining hands-on experience in
aerospace technology and research.

These initiatives in California underscore the state's prominence in aerospace technology, research, and
space exploration. California's concentration of cutting-edge companies, research institutions, and
educational programs contribute to advancements in the industry and propel the state's aerospace sector
forward.

Florida's Space Coast: Located on the eastern coast of Florida, the Space Coast is home to the Kennedy
Space Center and Cape Canaveral Spaceport. Initiatives in this region focus on space exploration, launch
systems, and commercial spaceflight. Companies like SpaceX and Blue Origin have significant operations
in the area, contributing to the growth of the commercial space industry.

Here are some key aerospace initiatives driving advancements in space exploration, commercial
aerospace, and research in Florida:

1. Kennedy Space Center (KSC): Located on Florida's east coast, KSC is NASA's primary launch site for
human spaceflight. It supports a wide range of missions, including the historic Apollo moon
landings and the space shuttle program. KSC continues to serve as a launch facility for NASA and
commercial space companies like SpaceX.

2. Cape Canaveral Spaceport: Adjacent to Kennedy Space Center, Cape Canaveral Spaceport is a
major launch complex that supports both government and commercial space launches. It enables
various missions, including satellite deployments, interplanetary probes, and crewed missions to
the International Space Station.

3. Commercial Space Industry: Florida is home to multiple commercial space companies, including
SpaceX, Blue Origin, and OneWeb Satellites. These companies conduct research, development,
and launch operations, driving innovation and contributing to the expanding commercial space
industry.

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4. Florida Space Coast Consortium: The Florida Space Coast Consortium is a collaborative effort
among academic institutions, aerospace companies, and government agencies. It aims to
promote research, education, and economic development in the aerospace industry, supporting
the growth of the Space Coast region.

5. Space Florida: Space Florida is the state's aerospace economic development agency. It works to
attract and support aerospace companies, encourage spaceport infrastructure development, and
foster partnerships to promote Florida as a premier destination for aerospace activities.

6. Embry-Riddle Aeronautical University: With campuses in Daytona Beach and the Space Coast
area, Embry-Riddle Aeronautical University offers comprehensive aerospace programs and
research initiatives. The university's expertise contributes to workforce development, research
advancements, and collaboration with industry partners.

These initiatives in Florida highlight the state's significant contributions to space exploration, commercial
aerospace, and research. Florida's strong presence in the aerospace industry supports job creation,
technological innovation, and educational opportunities, solidifying its position as a key player in the
global aerospace landscape.

Texas has emerged as a key aerospace hub with initiatives spanning multiple cities with a range of
initiatives and organizations driving advancements in space exploration, aviation, and defense. Houston,
known for the Johnson Space Center, contributes to human spaceflight and research. Dallas-Fort Worth
area hosts aerospace manufacturing, research, and development activities. Additionally, cities like San
Antonio and Austin are home to aerospace companies and research institutions.

Here are some key aerospace initiatives in Texas:

1. NASA Johnson Space Center—For more than 50 years, NASA’s Lyndon B. Johnson Space Center
(JSC) in Houston has led the United States and the world on a continuing adventure of human
exploration, discovery, and achievement.

2. Houston Spaceport—Houston Spaceport is an FAA-licensed, urban commercial spaceport offering
unprecedented access to a thriving aerospace community.

These initiatives in Texas highlight the state's contributions to space exploration, aviation, and defense
industries. Texas' strong presence in aerospace research, manufacturing, and launch capabilities positions
it as a key contributor to the growth and advancement of the aerospace sector.

Ohio is ranked #2 in terms of attractive corporate tax structure, healthy economy, and strong industry
presence. Ohio is also the largest U.S. state supplier to Boeing and Airbus. The state has an A&D ecosystem
of more than 550 aerospace and aviation A&D organizations, including Battelle Air Force Research
Laboratory, the Ohio Unmanned Aircraft Systems Center, and the NASA Glenn Research Center.

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FlyOhio Initiative—FlyOhio seeks to make Ohio airspace among the first in the nation ready to fly beyond
visual line of sight (BVLOS). FlyOhio is an initiative of the Ohio UAS Center, and stakeholders include
JobsOhio, Dayton Development Coalition, Ohio Federal Research Network, and the City of Springfield. This
initiative seeks to address the BVLOS issue by coordinating ongoing UAS research throughout Ohio while
identifying and pursuing future research opportunities. The UAS Center works with public, private, and
research partners on the technology needed to allow numerous drones, operated remotely, to fly safely
over longer distances without fear that they will collide with other aircraft or ground-based objects or
pose a threat to humans.

Colorado has a vibrant aerospace industry and is home to several notable initiatives and organizations.
Here are some key aerospace initiatives in Colorado:

● Colorado Space Coalition (CSC): The CSC is a collaboration between industry, government, and
academic entities aimed at promoting and expanding Colorado's aerospace industry. It focuses
on fostering partnerships, attracting investment, and supporting workforce development to
maintain Colorado's leadership in aerospace.
● United Launch Alliance (ULA): ULA, headquartered in Centennial, Colorado, is a joint venture
between Boeing and Lockheed Martin. ULA provides reliable launch services for commercial and
government customers, supporting national security and space exploration missions.
● Aerospace and Defense Industry Association of Colorado (ADIA): ADIA is an organization that
brings together aerospace and defense industry stakeholders in Colorado. It advocates for the
industry's interests, promotes collaboration, and supports the growth and competitiveness of
aerospace and defense businesses in the state.
● Spaceport Colorado: Located at the Front Range Airport in Adams County, Spaceport Colorado is
an initiative to establish a commercial spaceport. It aims to support the growing commercial space
industry by providing infrastructure for horizontal and vertical launch activities.
● National Center for Atmospheric Research (NCAR): Based in Boulder, NCAR conducts research in
atmospheric and related sciences. While not solely focused on aerospace, its work contributes to
understanding and predicting weather patterns, climate change, and atmospheric phenomena
relevant to aerospace operations.
● Colorado School of Mines: The Colorado School of Mines offers specialized programs in aerospace
engineering, focusing on areas such as spacecraft design, propulsion systems, and satellite
technology. The university's research and academic initiatives contribute to the development of
aerospace talent and innovation in the state.

These initiatives in Colorado demonstrate the state's commitment to advancing aerospace technology,
research, and education. They also highlight Colorado's role as a hub for aerospace manufacturing, space
exploration, and fostering collaboration between industry, academia, and government entities.

The above-mentioned state-level initiatives aim to cultivate a conducive environment for innovation,
investment, and collaboration within the aerospace industry. These states strive to position themselves
as leading hubs for aerospace manufacturing, research, and development by offering targeted incentives,
infrastructure development, workforce training programs, and research partnerships.

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The following noteworthy initiatives undertaken by select cities highlight their impact on the growth and
sustainability of the aerospace industry.

Wichita, Kansas, has a strong presence in the aerospace industry, particularly in aircraft manufacturing
and aviation-related initiatives. Here are some key aerospace initiatives in Wichita:

1. National Institute for Aviation Research (NIAR): Based at Wichita State University, NIAR is a
leading aerospace research institution. It provides advanced testing, research, and development
services to the aviation industry, supporting innovations in materials, manufacturing processes,
and aircraft design.

2. Wichita State University's Aerospace Engineering Program: Wichita State University offers a
renowned aerospace engineering program, providing education and training for aspiring
aerospace engineers. The program collaborates with industry partners and conducts research in
various aerospace-related areas, contributing to advancements in the field.

3. Aircraft Manufacturing: Wichita is historically known as the "Air Capital of the World" due to its
significant involvement in aircraft manufacturing. The city is home to major aircraft
manufacturers, such as Textron Aviation (Cessna and Beechcraft) and Spirit AeroSystems, which
produce a range of general aviation and commercial aircraft components.

4. Wichita Area Technical College (WATC): WATC offers aerospace manufacturing programs,
providing technical training and workforce development to meet the aerospace industry's needs.
These programs equip students with the skills required for careers in aircraft assembly,
maintenance, and manufacturing.

5. Kansas Aviation Museum: The Kansas Aviation Museum preserves and showcases the region's rich
aviation heritage. It offers exhibits, educational programs, and events that highlight the significant
role Wichita has played in the development of aviation and aerospace.

These initiatives in Wichita reflect the city's long-standing association with the aerospace industry. The
presence of research institutions, educational programs, and aircraft manufacturing companies
demonstrates the commitment to aerospace innovation, workforce development, and preserving the
aviation legacy in the region.

Huntsville, Alabama: Huntsville is known for its strong presence in space and defense industries.
Initiatives in this region include the development of the U.S. Space and Rocket Center, research facilities,
and aerospace engineering programs. The area is a hub for space exploration, missile defense, and
advanced technology development.

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Workforce
Prior studies have called for urgency in developing the workforce of tomorrow for Washington's
aerospace manufacturers.4 Others predicted the current workforce shortage, recognizing the current
impact and projected future crisis decades ago. 8 Today, we find ourselves without more time to prepare
for the talent shortage - because we are in it. It is time to take immediate action. As a result, this section
has become more robust, given its significance and urgency to the airport and aerospace industry.

Any competitive industry relies on an abundant, qualified workforce to drive innovation and meet global
market demands. Washington has consistently held a high industry ranking as a business location choice
for international and domestic aerospace manufacturers. 9 The state had been ranked #1 overall for the
past several years, 10 with labor and education ranked highest, followed by research and innovation.
Today, the State of Washington has dropped to #7 in the rankings.

Aerospace leaders like Boeing and Blue Origin helped build Washington's strategic advantage as an
employer of choice. However, concerns specific to infrastructure and overall costs (including housing and
living expenses) continued to rise quickly.5 Focusing only on the overall #1 ranking makes it easy to see
the state as "the most competitive business environment." 11 Overlooking workforce trends and
postponing comprehensive resource alignment delayed the state's ability to adapt to changing conditions
and adequately prepare for future workforce needs.

Today, post-pandemic production demand in commercial aerospace is at previously unseen levels. Travel
has resumed, service demands have increased, and production demands are high, but the state’s
workforce infrastructure is fragile. For example, Boeing has surged in new orders of 737 MAX deliveries,
but supply chain disruptions continue, and labor shortages in critical positions constrain full recovery. 12
Lower available workers in manufacturing, declining worker participation (turnover/retention), below-
average job preparation among new employees, and decreased career interest in skilled trades (e.g.,
welding, machining) present unique challenges for the industry.3 Many aerospace manufacturers struggle
to focus on the basics: meet production demands, maintain profitability, and stay in business.

Developing Washington’s aerospace workforce must take a different approach. It requires action-oriented
partnerships of leaders in the public sector, business, and education to meet these challenges:

● The workforce shortage will continue for many years. The current pipeline is inadequate to replace
the retiring workforce. 13 Steps to increase volume or compensate for the shortage with other
strategies must be a priority.
● Employee skillsets will fall short of employer needs over time. Employers must prepare to address
those shortfalls and offer career development to retain employees.
● Employers must offer career development to attract less qualified employees with the right aptitude
for employment and begin the development process.
● Continuous internal and external recruitment to build the talent "pipeline" is critical. Providing
employers with resources to help do it is essential.
● Employers must increase access to workers in remote locations, with limited technology, or from rural
communities to enhance applicant pools and access to resources.

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● Partnerships must enhance equitable resources for all groups through broadening access to
technology. These efforts can improve access to support for women, BIPOC communities, and
traditionally underserved populations to careers in manufacturing positions.

A VISION FOR THE FUTURE OF THE WORKFORCE
Understanding the goal of workforce management can help clarify the desired outcome. Tomorrow's
workforce must align to help manufacturers meet new demands that continuously shift to meet the
accelerated speed of customer needs. Increased production demands, stronger competition, fewer
available workers, and the need to constantly improve talent will drive change. The ability to apply best
practices can help aerospace manufacturers adapt quickly. The following are some of the most prominent
pressures affecting aerospace workforce development over the next 5-10 years.

Industry 4.0: Upskilling for Technical Competency
Innovation in manufacturing is founded on Industry 4.0 ("IR4.0"), referring to the ongoing automation of
traditional manufacturing and industrial practices using modern technology. 14 Integrating smart
technology, IoT (Internet of Things), improvements in industrial practices, big data, and advanced robotics
are part of the movement.

Industry 4.0 creates critical pressure to adopt data-driven manufacturing. 15 Enhanced automation impacts
how people work with machines, data, technology, and each other as part of their core job requirements.
Aerospace manufacturers often invest in technology but fail to update processes or upskill people to
optimize efficiencies. Employers who fail to adapt to these demands will be unable to offer what is needed
to attract talent or to compete in the market. Companies cannot meet business needs to move forward
without ongoing upskilling to keep up with changing technology.

As the industry shifts to Industry 5.0 ("IR5.0"), it will re-integrate humans with technology to optimize
reliability, efficiency, and results. Manufacturers will require more technology and automation from
operations. A shift is expected in employee requirements and the need for massive upskilling for more
technical know-how to operate automated processes.

Upskilling for Technology and People Skills
A survey of 803 global employers representing 11.3M workers across 27 industry clusters (including
manufacturing) reported that technology remains a primary driver to transform business over the next
five (5) years. 16 Business growth relies on intelligent technology deployment and complementary
upskilling to deploy the technical business functions. Similarly, people skills are also critical to effectively
executing business operations. For example, communication skills are essential to helping organizations,
teams, and individuals understand and align with the company's goals.

Rapid AI, robotics, and automation lead to more sophistication. 17 These do not eliminate the need for
production workers. It transforms the type of expertise needed to adapt to new requirements. As a result,
the following are trends that demonstrate the need for ongoing reskilling:

● Digitalization will require both depth and breadth of technical proficiency among all employees.
● Robust digital platforms will surpass standard Enterprise Resource Planning (ERP) systems and require
workers to use more sophisticated tools, methods, and technologies.

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● Advancements in artificial intelligence (AI), cobots (collaborative robots), and cybersecurity will shift
worker requirements, causing a rapid transformation in worker capabilities.
● Most businesses expect to accelerate automation involving reasoning, decision-making, data
processing, and manual work.

The rate of change will accelerate. Demands to upskill employees will continue to grow.

The Factory of the Future
People will always be needed, even with increased automation. However, a shift will take place in the
competencies required to meet business goals. As employers automate manual tasks, they will require
new skills to perform evolving technologies. Technology will surely displace lower-skilled jobs as they exist
today, but researchers predict strong growth in other jobs created by new technologies. This “churn” of
simultaneous job reduction and growth provides employers with an opportunity to prepare current
workers for the future as they are trained for new requirements.

Creating a vision for tomorrow can guide the industry’s efforts today. The Factory of the Future must be
connected, collaborative, customer-centric, and people-oriented. 18 Emulating the best practices of IR4.0
and building the platform for IR5.0 will prepare companies for what is to come. Two competencies
repeatedly emerge for all workers in future aerospace manufacturing: digital leadership and technology
augmentation.
● Digital Leadership: Early technology adopters prove to be winners. 19 Employers must be adept at
promoting digital technology and upskill workers at all levels. Examples include the following:

o Workers can improve outcome consistency through process optimization and digital integration.
o Implementing digitized instructions can improve collaboration, communication, and efficiency.
o Using "digital twins" to simulate results finds inefficiencies and improvements before production
to improve quality, save time, and lower costs. 20
o "Digital transformation, when combined with operational excellence and a culture of continuous
improvement, can drive the future of manufacturing." 13

● Technology-Augmented Workforce: Digital tools enable employees to work smarter, faster, and more
efficiently. Enabling workers with better skills can enhance productivity exponentially. Providing
employees with tools and real-time data helps them to perform more effectively, make better
decisions, collaborate with others, detect root causes faster, and reduce delays and response times. 21
Employers can integrate best practices such as:

o Training employees on (and resourcing them with) digital tools such as tablets, smartphones, and
AI software to provide immediate decision support to save time and improve output.
o Empowering workers to optimize workflows, share knowledge, and provide feedback to improve
functionality with coworkers, customers, managers, and other departments.
o Automating predictive or prescriptive analytics on sensor data, such as maintenance schedules to
compensate for fewer workers and save time.
o Advancing technology through other business priorities, such as operational excellence, data
needs, and value creation, can complement employee development efforts.13
o Considering talent development from the perspectives of now and the future.13

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Diversity and Equity Alignment 22
Diversity, equity, and inclusion (DEI) is an imperative for manufacturers. To be competitive, businesses
must be able to connect with the skills and experiences of a wide range of communities. 23 Manufacturers
must create pathways to tomorrow’s jobs today to engage more groups and populations. Increasing
access to traditionally underserved and underrepresented populations is the right thing to do in today’s
world, where technology makes the difference between personal and career success and failure.
Economically, industrial success depends on the ability to develop a robust talent strategy that opens
pathways and opportunities to create a talent pipeline that is culturally inclusive.

Historically, the manufacturing industry has lagged in its progress toward greater diversity and inclusion. 24
Prior research by McKinsey & Company has clearly shown that more diverse companies are more effective
at attracting talent, improving customer orientation, maintaining customer satisfaction, and executing
decision-making. 25 Until manufacturers focus on and actively build a culture of inclusivity – starting at
their leadership corps – they will continue to face the same challenges as always and fail to create the
inclusive workplaces needed to achieve success for today (and in the future).

The National Association of Manufacturers recognizes the need to increase equity for underrepresented
communities and supports the “Pledge for Action” as manufacturers commit to specific actions by 2025. 26
The goal is to take tangible actions and create pathways to job opportunities that help manufacturing
reflect the diversity of the overall U.S. workforce by 2030. Regardless of which program to follow, building
equitable systems to improve access to underserved populations can increase opportunity for access, and
fostering culturally diverse and inclusive workplaces can promote greater recruitment, retention, and
growth of Washington’s aerospace workforce.

Connecting a company's Factory of the Future vision to its existing core strategic imperatives allows it to
recognize its current needs while building a platform to meet future demands. Identifying where the
business is (current strengths and opportunities) balanced with future needs and directions can build a
future-oriented alignment and strategy.

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SWOT ANALYSES AND NEEDS ASSESSMENT
Following the completion of research conducted by each subcommittee, the data underwent a rigorous
review, evaluation, and prioritization process. This was crucial to swiftly organize the most vital insights
pertaining to Washington's aerospace industry. The following sections provide urgent and concise
summaries based on the study's findings, analyses, and critical considerations from each subcommittee
topic.
● Summary: A brief summary is provided for each section describing the overall status, findings, and
considerations for Washington’s aerospace industry.

● SWOT Analysis: A summary of the industry’s strengths, weaknesses, opportunities, and threats
are provided under each subcommittee as they apply to Washington state.

● Needs Assessment: The resulting list of priorities and needs to consider for both short-term and
longer-term considerations for legislators, aerospace employers, and other public, private, and
educational stakeholders.

● Call to Action: Serves as a clear directive aimed at guiding decision makers towards addressing the
critical needs identified by industry leaders. These needs are essential for the growth and
prosperity of aerospace companies throughout the state, enabling them to remain relevant and
keep pace with increasing demand and emerging technologies.

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Airport Services, Infrastructure, and Testing

Washington state airports proactively seek to adapt their infrastructure to accommodate rapid
advancements in aircraft technologies. This includes preparations for the integration of electric, hydrogen,
hybrid, vertical takeoff and landing vehicles (VTOLs), and autonomous systems. Recognizing the
importance of environmental sustainability, airports across the state are actively exploring strategies to
reduce the carbon footprint of airports. Notable initiatives, such as the Sustainable Aviation Fuel (SAF)
Initiative, are implemented to promote alternative fuels. Concurrently, aircraft manufacturers are
developing more fuel-efficient and environmentally friendly aircraft models.

To meet future aviation industry demands, airports must focus on a range of top priorities. Expanding
capacity to accommodate increasing passenger numbers while simultaneously embracing sustainability
practices to minimize environmental impact is paramount. Leveraging digital technologies and
implementing advanced security measures are imperative to streamline operations and ensure the safety
of passengers and staff. Enhancing intermodal connectivity and promoting sustainable ground
transportation options further contribute to seamless and eco-friendly travel. Lastly, airports must remain
adaptable to the rapid progress in aircraft technologies, adjusting their infrastructure to facilitate the
integration of existing and emerging innovations, such as sustainable aviation fuels (SAF) and hybrid
propulsion flight technologies.

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Key Statistics for Sustainable Aviation Fuels

Source: International Civil Aviation Organization, July 2022

As mentioned previously, a major factor for site selection or retention by aerospace manufacturers is the
state’s investment in and the company’s access to ongoing research and development resources. The
National Institute of Aviation Research (NIAR) in Wichita, KS, is internationally recognized as a “gold
standard” of public, private, and academic collaboration for the development and migration of new
manufacturing technology 27. It has served as a magnet for attracting technical aerospace manufacturing
to the region because of its ability to support rapid advancements in aircraft technologies and sustain
future aviation demands. For airports and aerospace manufacturers to remain competitive, adaptive, and
adjustable to the required infrastructure demands of emerging technologies, expanded and coordinated
investments in R&D can accelerate progress toward those goals.

By addressing these needs, airports can effectively create a sustainable aviation ecosystem that caters to
the demands of future travelers while prioritizing environmental responsibility.

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SWOT: Airport Services, Infrastructure, and Testing

STRENGTHS WEAKNESSES
● Services: ● Infrastructure:
● With 130 public-use airports, there are multiple ● Hangar space is limited
opportunities to grow and maintain services. ● Charging capabilities
● More airports provide fuel service options. ● Inflation degraded near-term federal funding
● Infrastructure: grants for projects.
● Federal and state grants focus on infrastructure. ● Testing:
● Testing: ● Lack of UAS testing facility connected to over the
● Grant County International is known for its horizon flight operations.
testing capability. ● SAF:
● Strong aerospace presence to continue to grow ● Commercial and financing avenues
testing. ● Incentives for fueling infrastructure
● SAF: ● Multi-stakeholder collaboration (planning,
● Sustainable Aviation Tax Credit –ESSB 5447 offtake agreements, financing)
● Renewable Diesel and Sustainable Aviation Fuel
Parity Act

OPPORTUNITIES THREATS
● Infrastructure: ● Infrastructure:
o Legislators are interested in transforming ● Airports don’t compete well for state
airports to become more environmentally transportation funds (this will likely continue).
sustainable. ● Limited hangar space
o Capacity requirements could influence state ● Encroachment of airports with incompatible land
funding for airports. uses.
● Testing: ● Testing:
● Emerging technology companies are interested ● Other states can be attractive for testing, given
in testing in WA State due to cheap power and state incentives and cost of living.
aerospace presence. ● Companies seeking to test technology that is not
● Green hydrogen production could be a catalyst viewed as a step towards environmental
for attracting additional hydrogen propulsion sustainability could meet mounting
companies. resistance…the return of supersonic travel is an
● SAF: example.
● Sustainable Aviation Tax Credit ● With population growth, noise from aircraft
● Renewable Diesel and Sustainable Aviation Fuel testing becomes a greater issue.
Parity Act ● SAF:
● Washington state tax credits and exemptions ● Specs and regulations limit new production
(e.g., Machinery & Equipment sales tax pathways.
exemption) ● Limited supply
● Currently, only 5 SAF production facilities in the ● Commercial and financing avenues
U.S. ● Europe is ahead of the U.S. with policies around
● R&D and new technologies SAF.
● Extra revenues for farmers ● Legislators concerned about use of agricultural
● Lowering GHG emissions products or fields to convert to SAF
● Jobs

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NEEDS ASSESSMENT - AIRPORT SERVICES, INFRASTRUCTURE AND TESTING
The following provides an overview of the top priorities and needs to be considered.

Legacy Issues
● Currently, substantial airport revenue is diverted and does not come back to airports or aviation
programs for reinvestment or use for maintenance.
o WSDOT wrote an official letter to the FAA requesting the state’s action plan to divert funds for
reinvestment. At the time of this report, a decision has been received from the FAA, and the WA
State plan was found to be compliant. DOR is developing the tax reporting requirements for
implementation.
o Moving forward, the potential exists for legislators to direct periodic state audits of airports to
ensure diversion of funds takes place as anticipated.
● Incompatible land use surrounding airports creates challenges for ongoing development.
o Rather than shut down all non-compliant activity, an evaluation can identify other solutions.
Collaboration between industries such as rail and aviation (with WPPA’s support) can help.
o Development of affordable housing near airports is not equitable. This hinders manufacturers’
ability to increase access to services and employment opportunities equitably, plus concerns from
residents near airports continue to increase concerning emissions, noise, traffic and other issues.
● Revenue generation at general aviation airports should be considered.
o Additional business education through WAMA and WSCAA can increase capabilities while
generating additional funding.
o Airports can partner with nearby universities to have students assist with business plans as part
of their coursework. This engages students in a work-based learning exercise.
o Airports should consider how to reduce expenses while increasing revenue.
o Airports could consolidate construction projects across airports to reduce costs.
o Airports should explore alternate-use cases such as business parks, particularly for rural airports
that have available land.
● UAS Test Site
o Evaluate the TransAlta site in Centralia, WA, for compatibility and use.
o Evaluate Grant County International Airport as a possible test site location.
o Follow the lead of Pendleton, OR, as they have transformed from a financially struggling rural
airport into a national destination for drone research and drone pilot training. This is a use case
for consideration by Washington’s more remote airports.

Legacy Needs
● Preservation funding - primarily for airport pavement upkeep.
● Legislative approval is required to provide the Aviation Division spending authority on the 7-cent
increase in aircraft fuel taxes.
● Fund general aviation hangar development at designated locations. Review the current hangar wait
list system to analyze needs for location development and prioritize projects for implementation.
● Passenger service/air cargo capacity; this situation has been documented by WSDOT’s latest studies
● Modernize airport terminals, towers, and navigational aids.
o Update approaches to developing airport master planning processes.
o Guide navigational approach updates with AIP funding outside of master plan updates.
o Conduct independent reviews of airport approach update needs to prioritize projects.

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● Airport connectivity to other modes of transportation.
o Look for opportunities with public transportation services looking at their strategic plans and how
they include airports.
o RPTOs can also help develop options to look at airport transportation needs.
● Streamline the permitting process to avoid missed opportunities.

Legacy Opportunities
● Review options for increasing airport infrastructure funding, including:
o WSAA board to review previous funding options/strategies.
o Shovel-ready projects will compete best. Airports need to pursue shovel-ready projects.
o Maximizing IIJA funding opportunities is a need.
● Leverage available funding from federal funds and WSDOT Aviation grants to provide state match.
● Develop airport commercial areas to develop non-aircraft storage areas on airport property and
flexible storage options.

Emerging Issues
● Airport noise/aircraft emissions - also a legacy issue but growing in importance as aircraft operations
expand. Significant ongoing work is being conducted to reduce noise and emissions with legacy and
emerging technology.
● When, how, and should an airport invest in infrastructure to support emerging aeronautics such as
electric aircraft charging, vertiports, and UAS facilities.
● Inflation requires additional funding to support construction projects.
● Counter drone capabilities. SEA is slotted as one of the pilot programs to detect unauthorized drone
activities. This pilot program may be able to incorporate nearby smaller airports.
● Laser activity with approaching aircraft is a rising issue. Instances have occurred in growing numbers
at SEA and, to a lesser degree, at other airports on the state's east side. Spot reports from pilots are
needed. More powerful handheld lasers are now available. WSDOT to share with FSDO for their input
and links to existing FAA information.
● Sustainable Aviation Fuel (SAF):
● SAF currently sells at 2-6 times more than traditional jet fuel, which limits demand from
airlines, and therefore affects the bankability of production facilities.
● There currently is limited availability of sustainable feedstock and a concurrent lack of funding
research for the development of new feedstock feeding into SAF production.
● Currently, investing in SAF production is still a difficult proposition for lenders, which limits
access to finance for SAF producers and continues to hamper efforts to boost supply levels.
● Financiers have capacity and resource issues, so they prefer to invest in industries where
developers can offer a "portfolio of ready projects" over industries where developers can only
offer investment opportunities on a project-by-project basis. Given the still-early stage of the
SAF market, financing arrangers are therefore limited in their ability to structure and originate
opportunities in SAF production that would help create a viable pipeline of portfolio-ready SAF
projects; and
● Concerning the US market, demand for SAF is expected to increase. It could consume an
amount of several hundred million tons of biomass per year, which would be equivalent to the
amount of all biomass currently available in the US.

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Department of Commerce
Emerging Needs
The 2015 Airport Investment Study
● Hangar development: Based on a 2020 study
encompassing 37 general aviation airports in the state, (also cited in the 2020 Aviation
it was revealed that the availability of general aviation Economic Impact Study) found that
hangar spaces was quite limited. The study indicated the "state’s 134 public-use airports
that only 15 hangar spaces were currently available, will need $3.6B to cover maintenance
while a substantial waiting list of 850 individuals or and capital improvement costs
organizations sought these spaces. This existing through 2034. While Washington
demand, which is expected to continue growing, State’s share of those costs is about
highlights the importance of addressing the need for $240 million, budget forecasts
additional hangar facilities in a timely manner. estimate that WSDOT’s Airport Aid
● Capital to cover maintenance and improvement costs. Grant Program will only be able to
● Infrastructure for Sustainable Aviation.
contribute about $28 million during
● Airport infrastructure for EVTOL and other new
that time. To address the shortfall,
technologies.
● Transform airports to become more sustainable and WSDOT Aviation and Airport
reduce their carbon footprint. Several programs can Management must maximize state
include Airport Transformation and Airport funding resources, proactively
Sustainability Grants through WSDOT. develop private sector partnerships,
● Grant writers and consultant teams can compete for and implement strategies to produce
competitive IIJA funds with support from WAMA, WSAA, additional revenue on airport
WSCAA, and the Association of WA Cities (AWC). property. Additional state investment
● Enhance the production, storage, and distribution of into airports is also a critical
sustainable aviation fuels (SAF) to reduce emissions. component of ensuring Washington’s
While Commerce is leading a team in coordination with aviation assets can effectively support
WSDOT regarding SAF, there is a need to distinguish the the movement of goods and people
need to solve for JET A and 100LL replacement fuels or
and enhance the state’s economic
SAF.
vitality.”
● Develop onsite or near-site airport power generation
solutions for electricity and green hydrogen.
● Create solutions for EV charging and aircraft charging while identifying vertiport locations.

Emerging Opportunities
● Pursue formula and competitive IIJA funds for airports.
● Pursue sustainable Aviation Grants for Airport Projects and Airport Transformation Grants.
● Incorporate non-traditional IIJA funding that can be used at airports (e.g., Strengthening Mobility and
Revolutionizing Transportation (SMART) Grants Program).
● Implement commercial passenger services and air cargo operations at general aviation airports once
electric aircraft come to fruition. Implement distributed air services when feasible.
● With the application of SAF and emerging aeronautics, seek to reduce aircraft noise and emissions.
● Seek FAA reauthorization following interest in Congress around Advanced Air Mobility (AAM).

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Department of Commerce
CALL TO ACTION – AIRPORT SERVICES, INFRASTRUCTURE, AND TESTING
• Hangar development and prioritization
• Business development
• Warehouse space
• Workforce development: airport management (more fiscal education)—update report/business
management
• Build infrastructure that can serve alternative fuels (e.g., electrification and hydrogen)—3-5 years
out
• Install charging stations (5-7 years out)

The significance of rural airports cannot be overstated, as they play a pivotal role in sustaining and
fostering economic growth within their communities. However, many of these airports currently face
financial challenges. It is imperative to prioritize investments to maintain and modernize these vital
transportation hubs. By doing so, we can ensure that these airports retain their ability to offer equitable
access and opportunities to all regions of the state. Moreover, such investments have the potential to
generate new revenue streams, fostering financial self-sustainability for these airports in the long run.

Commercial/Defense Manufacturing
Boeing’s commercial and military divisions generate significant revenue, impact the overall economy in
Washington, and are key revenue drivers within the overall regional aircraft supply chain network. Boeing
is the 2nd largest employer in Washington and accounted for more than half of the growth in
manufacturing jobs from May 2022 to May 2023.

In recent years, Boeing's long-standing dominance in the aerospace sector has encountered significant
challenges, including the disruption caused by COVID-19 on air travel, quality issues with the MAX aircraft,
and the rise of other aerospace manufacturing clusters both domestically and internationally. U.S. regions
such as Texas, the Midwest, and the Southeast have been gaining market share due to their competitive
advantages of low labor costs and attractive financial incentives for new business ventures.

The Southeast, in particular, has experienced rapid growth in its aerospace supply chain, largely driven by
the presence of the Airbus plant in Alabama. It's noteworthy that Airbus has surpassed Boeing as the
leading commercial aircraft original equipment manufacturer (OEM), mainly due to the success of its
Airbus A320 tailored for single-aisle, mid-market routes that have become favorable for airlines post-
COVID.

According to industry experts, regaining global market dominance for Boeing compared to Airbus may
prove challenging until the introduction of a next-generation aircraft, a development anticipated to occur
in approximately 7-10 years. It is speculated that Boeing's emphasis on the defense sector, where they
offer competitive products, may explain the decision to relocate their primary headquarters to the DC
region. Furthermore, the proximity to the Southeast aerospace ecosystem could have also influenced this
strategic move.

Despite these challenges, Boeing will continue contributing significantly to Washington state's economy.
However, uncertainties surround their future growth and investment in the region.

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Department of Commerce
In addition, it is essential to acknowledge the delicate nature of the aerospace manufacturing and supply
chain ecosystem. Tier 1 companies such as Safran and Crane Aerospace act as system integrators at the
highest level, responsible for assembling significant aircraft sections such as lavatories, seating systems,
and cockpit aviation systems. These Tier 1 companies often sell these sections directly to Original
Equipment Manufacturers (OEMs) like Boeing, Airbus, and Lockheed.

On the other hand, Tier 2 and Tier 3 vendors play a critical role in the supply chain by providing
subsystems. These vendors are typically small and medium-sized businesses (SMBs) or micro-businesses
that rely on larger tiers to sustain their operations. Their success is intricately linked to the continued
demand and support from the higher tiers.

By understanding this hierarchy and the interdependencies within the aerospace manufacturing
ecosystem, policymakers can implement targeted strategies that address the needs and challenges faced
by each tier. This approach ensures that support programs, incentives, and resources are tailored to
benefit not only the Tier 1 companies but also the smaller SMBs and micro-businesses operating in the
lower tiers.

Policymakers should remain aware of the varying levels of aerospace industry participation and address
this discrepancy in their initiatives. Policymakers must design inclusive programs that have minimal
requirements regarding revenue, headcount, and administrative overhead, ensuring that the majority of
aerospace manufacturers in the state can qualify and actively participate in these initiatives. This will
foster a diverse economic landscape promoting innovation and create a more resilient economy capable
of withstanding economic shocks and uncertainties.

COMMERCIAL/DEFENSE MANUFACTURING: SWOT

STRENGTHS WEAKNESSES
● Depth and Breadth of Supply Chain ● Costs of Doing Business and Living In Washington
o The Puget Sound supply chain is the longest in ○ WA ranks 32 out of 50 states for the overall
existence, with a strong network. cost of doing business 28.
● Diversity of Technology and Developing Markets ○ WA ranks 46 out of 50 states in affordability,
o The aerospace industry includes commercial, making it less attractive to new workers.
space, satellite, defense, drones, ○ Example: Texas avg annual wage for
hydrogen/electric power, and urban air mobility. aerospace engineers is $121,000 vs $137,000
o Leaders understand the need to look to the in WA 29 (state average).
future and capitalize on new markets. ○ Example: The median home price in Texas is
o I-5 corridor boasts the best software talent and $337,000 vs $560,000 in WA (much higher in
companies to support emerging segments. Puget Sound and I-5 corridor).
● Quality of Life ● Lack of a K12 STEM & Manufacturing Talent
o Beautiful, natural environment. Pipeline: Washington’s weak talent pipeline
o Clean air, clean power, and vibrant intellectual affects its manufacturing capability.
and artistic culture are major attractants for ● Lack of Incentives for Business Infrastructure
cutting-edge companies. Investment: Washington and local governments
● Innovation have shown less flexibility in offering incentives.
o Washington has a history of innovation and ○ Example: WA lost the bid to NC in 2022 for
industry leadership. Boom Supersonic. Other states (especially in

AAAC Report - DRAFT Page 32 July 2023
Department of Commerce
o Forward-looking business culture supports the South) are aggressive in lucrative
innovators of tomorrow. incentives. This was due – in part - to
infrastructure in Everett not being ready in
time versus incentives.
○ “Total packages” should be more aggressive
to compete with other states.

OPPORTUNITIES THREATS
● Tech Hubs: Pursue grant for “tech hub” (public, ● Complacency: Perhaps the biggest threat to the
private, and education collaboration). aerospace industry in Washington is to assume that
o A Hub may include alternative propulsion we are simply “too big to fail” when it comes to the
systems, “factories of the future” like AI and state’s position as a leading aerospace cluster. As
robotics, advanced materials for aircraft, etc. recent surveys show, States like Texas, Carolina,
● Fund organizations like ICAP to help SMBs find and Ohio, Kansas, etc., are investing significant public
secure grants and funding from federal agencies. resources in the aerospace sector. Particularly in the
● Asset Mapping and Supply Chain Resource Center: emerging markets of clean power, drone
Map supply chain & public resources by capabilities technology, urban air mobility, etc., these states
and location, and provide a user-friendly directory already pose a significant challenge to Washington’s
to: position as the center of aerospace manufacturing
o Connect supply chain companies with each in North America.
other to keep business in Washington. ● Cost of Business and Congestion: Consider
o Connect state agencies with the supply chain developing industry hubs outside of Puget Sound.
and educate the industry on how to partner o The cost of land, housing, and more traffic are
with those departments to be more increasing problems.
competitive. o Areas like Moses Lake find success in aerospace
o Provide a comprehensive directory of supply and high-tech industry.
chain capabilities and events for out-of-state o Spokane grew during COVID in the healthcare
companies looking to investigate Washington tech market. Has a capable aerospace supply
for new business or expansion. chain.
• “Factory of the Future” Support for Automation o Time for a balanced, regional plan.
and Supportive Technology: Assist companies in ● Lack of Industry/OEM Diversification: From the
adopting AI, robotics, and automation. relocation of its headquarters to Washington, DC, to
a major investment in a new center in Texas, Boeing
has signaled that much of its future expansion will
be outside the state borders. While technology
development could still be significant in Puget
Sound, the revenue potential for that phase is not
the same as full-scale aircraft production, and every
indication is that the Southeast and Texas will be the
geographic centers for those facilities. Supporting
the growth of emerging segments like green
energy/propulsion, satellite technology
development and manufacturing, UAS devices and
systems, and AAM are going to be critical to lessen
dependence on Boeing for the aerospace sector. It
will still be critical to support Boeing in maintaining
a major presence here, as these sectors are fairly
nascent and will likely take 5-10 years to develop a
significant commercial mass.

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Department of Commerce
NEEDS ASSESSMENT - COMMERCIAL/DEFENSE MANUFACTURING
The following provides an overview of the top priorities and needs to be considered.

● Factory Automation: Build the Factory of the Future
○ Companies are shifting to “factory of the future” technologies like automation and cobots/robots
to supplement employees.
○ Significant gains in affordability and user-friendliness over the past ten years have made it easier
and more acceptable to adopt these technologies.
○ Automation frees workers from repetitive tasks, allows them to focus on value-added roles, and
supplements the lack of available talent to achieve production demands.
○ Smaller companies (tier 2-3) struggle with financial and human capital to allow them to implement
these processes, which may be a barrier to economic growth.

● SAF and Alternative Fuels
○ Washington will continue to be a global leader in “green” technology. SAF (sustainable aviation
fuel) provides the quickest path to near-term reductions in carbon output.
○ SAF is usable with current propulsion/engine systems in the commercial fleet. While
electric/hydrogen technologies show promise, future commercial refinement, and application are
years away.
○ Two key challenges will continue to be (a) scaling the production of SAF and (b) supplementing
and upgrading fueling infrastructure at airports to accommodate new fuels.
○ Legislative support is needed to help the state (a) maintain leadership in global technology, (b)
scale SAF production, and (c) upgrade fueling infrastructure.

● Technology Hubs
○ Technology hubs facilitate new process development and materials for manufacturing.
○ Like the workforce, technology innovation will require greater collaboration between education,
industry, and state/federal government to align resources and priorities.
○ Washington must develop similar collaborations in commercial and military applications to
achieve outcomes like The National Institute of Aviation Research in Wichita, KS (now with six
regional campuses and a $240M annual budget partnering with Airbus and Spirit AeroSystems).

● Strengthen Cybersecurity within the Supply Chain
○ The need to shore up IT security is at a critical stage, especially within the defense industry.
○ The CMMC (Cybersecurity Model Maturity Certification) will likely become a hard requirement
for prime contractors and their subcontractors. While the model is still developing, it will require
significant resources to implement, putting SMBs at risk.
○ Research conducted for this study among Tier 1 companies in the commercial market confirmed
that requiring partners to establish and document cybersecurity protocols will create problems.
○ The supply of outside consulting firms with expertise in this domain is already severely inadequate
to meet demand in the industry. Additional restrictions will create further setbacks.
○ The legislature should consider resources to assist companies (especially SMBs) in gaining the
training needed to remain in the workplace.

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Department of Commerce
● Resource Directory
○ SMBs are challenged to find public resources to support their business.
○ Resources such as export assistance, workforce training, tax incentives/credits, and research
grants hide in multiple locations. Most SMB owners don’t have time to search.
○ Creating a resource directory may help SMBs find access to additional resources specific to
commercial and defense manufacturing resources.

● Shore Up the Defense Industry
○ A key challenge to Boeing’s defense business over the last few years has been skyrocketing costs
from the supply chain related to shortages created by COVID.
○ Where many defense contracts allow limited or no deviation from initial pricing, the outcomes
have hit margins hard for military aircraft manufacturers, resulting in penalties and losses.
○ Additionally, as Boeing’s internal defense business becomes more concentrated in the EU, there
is potential to displace some domestic defense manufacturing to those regions.
○ A significant challenge is the administrative requirements for documentation, contract
administration, and cybersecurity reporting, creating so much overhead. SMBs struggle
logistically to qualify to enter this market.
○ Most military purchasing personnel also fail to meet DEI goals because of a lack of women and
BIPOC vendors. Additional resources are needed to expand diversity and inclusion.

● Investment/CapEx Incentives
○ For aerospace manufacturers to remain competitive, they must constantly upgrade existing
equipment and deploy new technologies.
○ Assisting employers (especially SMBs) to find and apply for grants and incentives to help
automate, upscale technologies, and upskill workers is critical.

● Regional Economic Equity
○ The economic benefit of the aerospace industry is concentrated along the I-5 corridor on the west
side of the state.
○ While areas like Eastern Washington are steadily adding aerospace suppliers, the net economic
impact in those areas is a fraction of Western Washington.
○ Factors like land availability and cost of living will be problematic for the west side in the future.
○ A more straightforward strategy to diversify the supply chain into other parts of the state can
strengthen the overall business model.

CALL TO ACTION - COMMERCIAL/DEFENSE MANUFACTURING
● Marketing and asset mapping: An effective marketing strategy for the industry is essential,
encompassing cluster coordination and emphasizing key sectors such as space, satellite,
commercial, military, UAS, and emerging technologies. It is crucial to maintain an up-to-date
comprehensive asset mapping that accurately reflects the industry's resources. To ensure
cohesive messaging and focus areas for various cluster groups, an advisory board comprising
representatives from the state, private sector, and non-profit organizations should be
established. A centralized resource database, resulting from the asset mapping, would provide

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Department of Commerce
access to vital information on industry groups, start-up resources, and funding sources
(including state, private, VC/Angel funding). This database would facilitate alignment among all
groups when advocating for critical policy initiatives.
● Innovation Center: The establishment of R&D Infrastructure and Innovation Centers is crucial
to foster collaboration between public, private, and educational institutions in Washington
state. These centers serve as hubs for developing and disseminating new technologies, drawing
inspiration from successful models like the National Institute for Aviation Research in Wichita.
Additionally, it is vital to create a supportive start-up and entrepreneurial ecosystem, including
the provision of incubator facilities. This holistic approach will facilitate innovation and the
growth of emerging companies in the aerospace industry.
● Support automation: It is essential to provide support for automating the supply chain
processes for tiers 2 to 3 suppliers, who often face resource limitations. This support should
primarily focus on leveraging technologies such as cobots (collaborative robots) and optimizing
process flows. Additionally, there should be a concerted effort to implement cutting-edge
technologies like Industrial Internet of Things (IIoT) 4.0, digital twinning/threading, blockchain,
and EDGE computing. These advancements will enhance efficiency, visibility, and traceability
within the supply chain, benefiting suppliers at lower tiers.
● DoD contracts: To encourage the expansion of defense work, it is crucial to provide support
through the development of grants, incentives, and potential assistance from organizations
such as the Procurement Technical Assistance Centers (PTAC) and Pacific Northwest Defense
Coalition (PNDC).
● Capital expenditure (capex) incentives that are specifically tailored to the industry. These
incentives may include tax abatement programs designed to encourage investment in
upgrading facilities, acquiring new technologies, and expanding manufacturing capabilities.

Space and Satellites
The aerospace industry is at the forefront of space exploration initiatives. Collaborative efforts between
space agencies, private companies, and international partnerships have led to missions exploring distant
planets, studying celestial bodies, and developing technologies for future space travel.

STRENGTHS WEAKNESSES
● Washington’s space sector has a $4.6B economic ● The state is missing key research and development
impact. elements related to space innovation, including
● Space employment and activity in the state has facilities for clean room, vacuum, hot fire test cell,
doubled in the last four years and continues to grow. hypersonic, and launch testing.
● Washington is already a leading producer of Low ● Other states have strong congressional support for
Earth Orbit (LEO) satellites. aerospace and space development. An example is the
● Washington’s overall aerospace industry experience, presence of congressional representatives from other
expertise, and existing supply chains are valuable to states at Farnborough Airshow in Germany.
the space sector. ● Washington is the only US space cluster without a
● The high-tech industry in Washington (cloud large federal presence (no NASA or Department of
computing, software, etc.) is strong, which bolsters Defense research lab), which also means there are
space innovation because of the alignment between few prime contractors e.g., Northrop Grumman,
the space and technology industries. Lockheed Martin.

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Department of Commerce
● Key space companies already have a presence here- ● Space companies and suppliers are not aware of each
Blue Origin, SpaceX, Aerojet RocketDyne, Amazon. other's needs/capabilities as there is no central
● The space sector has the support of several major database or directory.
private investors. ● The cost of living in the Puget Sound, where most
● The existing overall labor pool, in addition to aerospace business/talent is located, is high.
aerospace and tech talent, is strong. ● Engineering talent has a "big aerospace" vs.
● The University of Washington’s Space Policy and entrepreneurial mindset, so individuals are less
Resource Center (SPARC) is a connector for industry. interested in space start-ups.
● Washington construction permitting regulations are
extensive, time consuming, costly, and confusing.
● Washington state is not geographically close to space
launch facilities like those in Cape Canaveral, Florida
and Vandenberg Space Force Base, California.
● Existing aerospace suppliers do not know what is
needed by or how to connect with space companies.
● Space companies do not feel there is a true
commitment from the state to support the sector.
● There is a lack of state investment in transitioning
unique local supply chain technologies previously
developed for the airborne and tactical military to
space systems.
● The University of Washington is behind in developing
talent that demonstrates solid fundamentals and a
practical skill set needed by space companies. The
internship program and laboratory/hands-on
experience are woefully underdeveloped compared
to other programs.

OPPORTUNITIES THREATS
● Support/lead more public-private partnerships. For ● Space start-up companies move or build production
example, the state could coordinate leasing out facilities elsewhere as they grow and develop their
available space at Aerojet RocketDyne to other technology.
space companies for non-competitive projects. ● Competition from other clusters draws investment
● Develop a better way to connect space companies, and talent from Washington to other states.
suppliers and customers. This could include a ● Technology setbacks and failures by key companies
database/directory, more networking, sector can stop or delay development and
marketing that targets those in and outside of the commercialization of new technologies.
state. Existing industry support groups (Washington ● The aging workforce continues to create a skills gap.
State Space Coalition, Pacific Northwest Aerospace ● Aerospace and space industries are losing their
Alliance, Space Northwest) could lead/support. competitive advantage for talent as students and
● Establish a space incubator and/or innovation hub workers shift to other sectors like high-tech.
located in proximity to a higher education institution ● As space companies mature and bring new products
or a business park. This resource could support to market, the local supply chain must grow
space in addition to other sectors. accordingly, or companies will look elsewhere.
● Provide subsidized or reduced cost machining ● Supply chain shortages that delay or limit access to
services for new or small space companies needed materials can inhibit space company’s ability to
to produce protypes or small-scale runs of parts. produce products and scale their business.
● Provide tax relief for space companies starting in
Washington as well as those looking at expanding in
the state.

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Department of Commerce
● Increase focus on commercial human spaceflight
and space hardware production.
● The timing for space sector growth is good.
Washington needs to act fast to take advantage of
this.
● Improve efforts to market Washington state as a
leading space cluster to attract additional industry
investment.
● Connect Washington space companies with the
Department of Defense, NASA, and other prime
contractors.
● Fund an Innovation Center Accelerator Program
(ICAP) for space.
● Bridge aerospace, computer science, and
entrepreneurship programs in education to better
prepare students for jobs in the space sector.
● Shift manufacturing, and potentially consider a
facility that supports multiple companies, to rural or
lower cost regions of the state.
● Scale down the length of time for job training.
● Increase engineering student slot capacity at public
universities.

NEEDS ASSESSMENT - SPACE AND SATELLITES
● Specialized machine shops - low volume, high complexity, rapid prototyping
● Specialized components & materials suppliers - optics, custom PCB design & fabrication, etc
● Testing facility
● Workforce - a combination of education and hands-on experience
● Business support f(x) - financial, legal, IT
● Help companies find physical locations - subsidize/incentivize

CALL TO ACTION - SPACE AND SATELLITES
Washington has been an active part of the space industry since the 1960’s and is home to leading
companies, including Blue Origin, SpaceX, Amazon, and Aerojet RocketDyne. The state’s strong history in
commercial aerospace and technology has fed a booming ecosystem of space entrepreneurs, but steps
must be taken in order to better support start-ups and early-stage businesses.

● State investment in an innovation network that provides facilities/access to testing, prototyping,
and business support services is critical to the continued growth of space start-up ventures.
● To attract new companies and additional space investments, the state has to do a better job
marketing its existing space sector and the assets that make Washington a great place to locate a
business. Telling the broader story of the state’s aerospace strengths is only one part of what’s
needed. Focused sub-sector marketing efforts on space and other emerging technologies will
provide a platform to highlight existing companies/resources and create new opportunities for
businesses to set up shop in Washington.
● These marketing efforts should be coordinated with Department of Commerce work but should
have engagement or oversight from industry leaders/stakeholders.

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Department of Commerce
Uncrewed Aerial Systems
This sector has experienced remarkable growth and technological advancements in recent years. UAS
refers to aircraft that operate without a human pilot on board and are controlled remotely or
autonomously.

The UAS industry is not without challenges. Safety and regulatory concerns have been a significant focus
due to the potential risks associated with airspace integration and privacy issues. Governments and
aviation authorities worldwide are working on developing regulations and systems to ensure safe and
responsible UAS operations. The integration of UAS into daily operations has the potential to enhance
efficiency, reduce costs, and drive innovation across a wide range of industries.

STRENGTHS WEAKNESSES
● Presence of USIC and work in bringing industry ● No incentives for startups.
stakeholders together with the State’s support. ● Limited infrastructure, including hangar space.
● Location: has both urban and rural areas and lakes ● Limited R&D/technical resources to promote new
and water separating urban areas, which is good for product development - labs, incubators, testing
UAS flight paths. Also has a good deal of geographic corridor.
diversity: mountains, plains, rivers, and lakes. ● Lack of investors in the ecosystem.
● Airspace Lease Law: Washington law allows public ● Hard to scale with the limited talent available.
authorities to lease low-altitude airspace above state ● Limited marketing/exposure for sector/companies in
and local roads. Such a law allows state or local the sector.
officials to create drone highways above these ● Capacity constraints in key degree areas
roadways. (engineering).
● Aerospace workforce second-to-none (especially ● Local permitting processes.
engineering talent). ● Lack of public relations to educate the public about
● Strong and broad aerospace supply chain. the importance of UAS and the role it can play in WA.
● One hundred five years of aerospace/aviation history ● Lack of coordination between the local and federal
in WA. governments.
● Culture of innovation across industries in WA. ● Limited uncrewed traffic management
● Policy-maker interest in the sector. systems/policies.
● The government has shown a willingness to invest. ● Lack of U.S. DoD program support for small emerging
businesses without current government contracts.
● Technology (automation) integration.
● Energy Systems.
● Affordable housing.

OPPORTUNITIES THREATS
● Develop airway infrastructure for testing drones, ● Funding: lack of investors, funding, or subsidies to
UAVs, and remotely piloted vehicles (RPV)s. promote the proliferation of uncrewed programs or
● Pilot BVLOS projects. technology development.
● Develop a fully Advanced Air Mobility plan and lead ● Absence of a trained or experienced workforce or
the country in developing full-scale infrastructure. educational/vocational training opportunities to
● Establish a drone corridor network across the state. sustain industry growth.
● Push for streamlined regulatory approval to fly in ● Poor public perception of UAS: noise, safety.
TFRs after major disasters and during high-security ● Inability to leverage technology to integrate UAS into
events. the current operational environment.

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Department of Commerce
● Connect SMEs to existing supply chain/community ● Competition for resources with aerospace and
colleges to fill needs via product gaps. technology industries.
● Fund/reimburse key certifications (or portions of ● Uncertainty around FAA regulations.
them) for companies. ● Trade uncertainties.
● Remove red tape to let academia engage with ● Complex funding landscape.
industry (like agriculture).
● Digitization: combine efforts to capitalize on tech in
WA.

NEEDS ASSESSMENT - UNCREWED AERIAL SYSTEMS
Needs identified through Washington’s Unmanned Systems Industry Council (USIC) and the AAAC’s UAS
subcommittee include:

● Beyond Visual Line of Sight testing opportunities.
● Additional testing facilities and a system for finding and accessing existing resources.
● Workforce: a combination of education and hands-on experience.
● FAA development of updated regulations regarding UAS.
● Help companies find physical locations: subsidize/incentivize.

CALL TO ACTION - UNCREWED AERIAL SYSTEMS
Washington has many critical success factors already in place in order to support UAS and advanced air
mobility (AAM) developments; an urban population core situated along the Puget Sound, numerous lakes,
open space, and existing infrastructure in Central and Eastern Washington for testing and demonstrations,
the availability of a highly skilled technical workforce, and a history of experience and success in
aerospace.

To take advantage of these assets as UAS and AAM markets grow, the State has to act now with a focus
on the future. Recommendations include:
● Amend growth management plans to allow land for future vertiports in both rural and urban
areas.
● Allocate funds towards a pilot project(s) as an initial step.
● Allocate infrastructure funds to support the establishment of a UAS testing facility and drone
corridor. This investment will create a highly valuable resource for companies engaged in the
development of cutting-edge technologies and enhance the state's ability to secure federal
funding for Advanced Air Mobility (AAM) initiatives.
● Take the lead in establishing a business incubator/innovation center with research and
development components through a robust public/private partnership. This initiative would
provide critical support to start-ups, fostering their growth and success in the UAS/AAM industry.
Additionally, it would contribute to positioning Washington as a prominent leader in the
UAS/AAM space, driving innovation and attracting further attention to the state's capabilities and
expertise.

Overall, these strategic initiatives demonstrate a proactive approach to embracing the future of aerial
mobility. By amending growth management plans, investing in infrastructure, and fostering innovation

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through public/private partnerships, Washington can create a thriving ecosystem for UAS and Advanced
Air Mobility development while bolstering its economic competitiveness in this emerging industry.

Emerging Segments (electric, hydrogen, VTOL, Advanced Air Mobility - AAM)
This subcommittee focused on the evolving field of next-generation transportation solutions,
encompassing a wide-range of innovative technologies, concepts, and systems that aim to revolutionize
how people and goods are transported, offering more efficient, sustainable, and advanced mobility
options. Advanced mobility may include concepts such as electric or hybrid aircraft, urban air mobility
(UAM) systems, vertical takeoff and landing (VTOL), autonomous flight, supersonic travel, and other
cutting-edge developments in aerospace transportation.

These innovative solutions aim to address environmental challenges, optimize efficiency, and redefine the
very concept of aerial transportation. These initiatives typically foster collaboration among industry
leaders, governmental bodies, research institutions, and communities, collectively pushing the
boundaries of aerospace technology.

If there is one central theme we have seen over the past few decades, it is the influence of technology
and environmental concerns on global markets. In this context, Washington state emerges as a beacon of
promise with a remarkably bright future. In what we term “emerging markets/segments,” we observe a
remarkable surge in activity within the space and satellite, UAS, and electric- and hydrogen-powered
market segments.

While major players like Blue Origin and SpaceX dominate these market verticals, they are complemented
by a multitude of entrepreneurs and small enterprises that are tirelessly innovating and developing
groundbreaking solutions. Remarkably, in 2019 alone, over 240 aerospace start-ups focusing on these
nascent sectors were established in the State of Washington. The growth trajectory of these new
segments has persisted into 2023, displaying unwavering momentum.

Washington state has emerged as a global leader in the realm of "green" aviation, epitomizing its position
as a capital of environmentally conscious industries. Notably, Moses Lake has witnessed groundbreaking
milestones with the first-ever test flights of both electric- and hydrogen-powered aircraft. This progress is
further bolstered by the industry's impending transition to sustainable aviation fuels, underpinned by
initiatives like the Innovation Cluster Accelerator Program (ICAP) and, specifically, the Sustainable
Aerospace Technologies and Energies (SATE). The emergence of advanced air mobility systems and the
rise of clean tech in both air and land vehicles contribute to the growing demand for infrastructure
improvements and expansions at airports, further propelling the state's aerospace industry forward.

Challenges
Electric: current challenges include limited battery energy density and range, which restricts the size and
endurance of electric aircraft. Continuous research and development endeavors are propelling
advancements in battery technology, charging infrastructure, and aircraft design, putting the electric
aircraft industry on an upward trajectory.

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Hydrogen: challenges arise from the efficient production, storage, and distribution of hydrogen, as well
as the technical complexities of integrating hydrogen systems into aircraft. Hydrogen-powered aircraft
have garnered significant interest and investment, and ongoing research aims to overcome these
challenges.

Furthermore, the aerospace industry encounters additional hurdles encompassing regulatory
frameworks, infrastructure development, and public acceptance. These factors play pivotal roles in
shaping the trajectory and the adoption of emerging technologies in the aerospace sector.

STRENGTHS WEAKNESSES

● SAF ● Limited state incentives: there is a reason why
o WSU/Ascent expertise manufacturing is exploding in regions like South
o Alaska and Boeing investment and support for Carolina, Alabama, etc.
SAF ● Doesn’t always need to be financial incentives – it
o Leadership in green energy
could be policies/rules that make business easier.
● Resource rich (talent, natural resources)
● The key for SAF – is lack of parity (vs jet fuel). So
● Green/sustainable energy availability
that airlines can afford to purchase it and use it.
● Rich aerospace cluster & heritage
● Strong manufacturing base/supply chain ● Permitting (need a yes culture)
● Hydrogen ● Supply Chain Disruptions
● Ability to develop a green hydrogen ● Lack of broadband/IT infrastructure for rural areas
o Low carbon fuel standard (state level): a policy ● State’s span of influence (dependent on FAA to
that will support this work develop rules) – much is out of industry’s hands
o WSDOT Aviation: sustainable aviation grant ● Limited funding & support for promoting aviation
(SAF and other infrastructure) & aerospace at the state level
o Technical strength: engineering talent, R&D for
developing emerging tech (Amazon, Boeing,
AeroTEC)
o JACATI/Impact WA: resources for
manufacturing & engineering companies
o Access to military talent who may want to stay
in the PNW

OPPORTUNITIES THREATS
● Opportunity to brand WA State as the place to do ● Workforce readiness
emerging technology development in aerospace. ● Increasing competition from other national and
Marketing/branding opportunity. international clusters
● The geography of the state lends itself toward ● Increasingly split global market share
multi-modal travel ● Rural airports in peril
o I5 corridor congestion ● Emerging aerospace clusters in other regions in the
o Population bases that are “off the beaten path” US
or underserved communities – the opportunity ● Incoming recession
to increase connectivity (i.e., eVTOL positioned ● Lack of support/funding for technical trade training
& apprenticeships

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near transit centers to expedite the last leg of ● Increasing interest rates
travel) ● Rising energy costs
o Regional equity ● Limited energy production/transmission capacity –
● Air quality improvement opportunities due to competition from other industries
reduced fossil fuel emissions ● Potential loss of snake river dams.
● Work with FAA to influence rulemaking
● Local policy makers can influence decision-making
(Rep. Larson, Sen. Cantwell)
● Opportunity for the supply chain to diversify its
OEM customer base through the development of
alternative markets
● State R&D funding for start-ups (grants, incentives,
etc.) focused on emerging aviation technologies to
combat rising interest rates.
● Partnerships with higher education

NEEDS ASSESSMENT - EMERGING SEGMENTS
● Electric aircraft charging infrastructure
● hydrogen fuel supply
● regulations and standards for the operation and refueling/recharging of aircraft with alternative
propulsion systems
● feedstock for SAF production

CALL TO ACTION - EMERGING SEGMENTS
● Innovation Center: the establishment of an innovation center will create a comprehensive
network of facilities, laboratories, and suppliers, fostering innovation and attracting businesses to
Washington state. This center will serve as a strong competitor to established aerospace clusters
like Wichita, leveraging successful models such as the National Institute for Aviation Research
(NIAR). It is crucial to secure funding for marketing the statewide network of R&D resources,
raising awareness about the available resources and expertise. Additionally, the center should
actively pursue federal contracts as a consortium, enhancing its competitiveness and expanding
opportunities for collaboration and growth.
● Streamline permitting process: Efforts should be made to streamline the permitting process to
minimize regulatory uncertainty associated with permits. Specifically, there should be a focus on
streamlining the permitting process for new construction projects. This will help reduce delays
and provide clarity to businesses and developers, allowing for smoother and more efficient
project implementation.
● Workforce: Implementing robust apprenticeship programs can be instrumental in attracting
highly skilled engineering resources from across the globe, effectively bridging the resource gap.
These programs would serve as a means to cultivate talent, providing valuable training and hands-
on experience to aspiring engineers. By attracting top engineering resources through
apprenticeship initiatives, the industry can address the resource shortage and ensure a steady
supply of qualified professionals to meet the demands of the aerospace sector.

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● Leveraging state influence: Harnessing the state's influence in shaping federal decision-making
and securing funding is crucial. This can be achieved by actively seeking to attract NASA and DoD
contracts, for example, and investments, thereby strengthening the aerospace industry's ties with
these key federal entities. Additionally, it is important to advocate for effective federal aviation
wildfire response policies that align with the state's needs and priorities. By leveraging the state's
influence in these areas, Washington can actively shape policies and secure resources that
support the growth and resilience of its aerospace industry.

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Workforce and Education
The aerospace industry requires a diverse and skilled workforce to meet the complex demands of the
sector. To address the growing demand for skilled professionals, the industry emphasizes initiatives that
promote science, technology, engineering, and mathematics (STEM) education. These initiatives aim to
inspire and train the next generation of aerospace engineers, technicians, and innovators. Similarly, a
continuous supply of skilled technicians will be needed to maintain production at all levels. Unfortunately,
the current labor shortage is anticipated to continue for many years into the future, especially for those
skilled in technical positions.

Workforce development in aerospace is critical to ensure a thriving and sustainable future. As the industry
continues to evolve and innovate at a rapid pace, so too must the workforce evolve to maintain its ability
to meet business needs. At the same time, companies must recognize the value of building a diverse work
environment and find ways to create a strategic competitive advantage by sustaining an inclusive culture.
The priority for the industry is to recruit, retain, and develop a highly skilled and adaptable workforce that
can meet the industry's evolving demands.

WORKFORCE: SWOT

STRENGTHS WEAKNESSES
● Strong Educational Infrastructure: WA is ranked ● Status Quo: WA is slow to change in policy, direction,
highly in its educational resources. The state’s higher- and way of thinking (especially business and
ed resources are robust and offer several programs. education relationships).
● Reputation for Education Quality: The state ● Misalignment: Many agencies & organizations work
maintains a strong reputation for its education, on “Workforce,” but there is not a single statewide
making it attractive to students to recruit from. strategy. Resources are not working together.
● Strong Value Proposition for Employers: WA is a ● Funding Distribution: Large budgets are spent on
desirable place to live, which helps balance high living Workforce, but there is no central state strategy.
costs to attract new workers. ● Lack of Partnership & Engagement: Business and
● Current Push for Additional Pathways: WA has education have not openly talked in many years.
pushed for new career pathways and laid the Education cannot prepare students for workplace
foundation for alternative means of jobs. This helped success if they are unfamiliar with employer needs.
shift the culture for options beyond 4-year college. ● Inflexible Development Options: Higher education
● Strong Industry Ranking: Despite the recent slip in typically offers a “one size fits all” model of accredited
rankings, WA still holds a strong Top 10 rank in education. No other modular options are readily
aerospace and advanced manufacturing. available.
● Strong Employer Base: WA is home to Boeing, Blue ● K12 Rigidity: The state community colleges (overall)
Origin, and other large employers in aerospace. do not easily articulate programmatically with high
schools to offer trades programs in the high school.
● Higher Education Rigidity: The inability of educators
to change curriculum, delivery, structure, or approach
to meet business needs creates problems.
● Mindset: The rate of change in business is
unprecedented. For education and government to
become viable partners, they must be able to shift
quickly enough to keep up with partner speed.

OPPORTUNITIES THREATS

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● Need: Despite a slower-than-average start, ● Workforce Shortage: The obvious threat is the
manufacturers, educators, and government continued worker shortage. The current shortage will
stakeholders have finally recognized a need to do be generational. The workplace will not have enough
things differently. This need creates momentum to workers to go back to pre-pandemic levels of workers.
generate a changing opportunity. This will require new ways to increase efficiency from
● Current Push for Alternatives: WA has shifted its companies and workers.
focus to identifying alternative career pathways for ● Competition: Competition has already displaced WA
high school students other than traditional college as the top state in aerospace. Without addressing the
options. While registered apprenticeships have issues immediately, WA will continue to decline.
emerged as the primary option, it is most likely due to ● Resources for Employers, Especially SMBs: The
a lack of other readily available options. The aerospace and advanced manufacturing industries are
acceptance of alternatives sets the tone for change. known for avoiding or delaying investment in
● Current Success Models: WA does not need to start resources, especially spending on development and
from scratch. Other states have created successful automation. This is especially the case for SMBs.
models and best practices that WA can learn from to o Employee Development: Employee development
avoid “reinventing the wheel.” is regularly underfunded (or not funded at all). WA
● Competition: With the surge in production demand must find a way to incentivize employee
across manufacturing, now is the opportunity to drive development if it is to take place.
change in workforce development. Demand creates o Operational Expertise: Most SMBs - which includes
opportunity and motivation if the industry takes the majority - do not maintain operational
advantage of it. expertise. They avoid investing in upgrading
expertise. Funding opportunities to upgrade
operational expertise will have strong ROIs.
o Funding to Automate: Automation will be needed
to both compensate for the lack of employees and
to improve competitiveness. SMBs, in particular,
will need assistance to fund this.
● Misaligned Resources: The state funds an incredible
number of resources assigned to workforce
development. However, there is not a single
statewide strategy. Many resources are used and
money spent, but no single defined problem is to be
solved.
● Silo-ing: With so many departments working on the
workforce, there are also overlapping and duplicate
services. One threat is the resistance to change during
the alignment process if a player believes power is
being taken away.
● Lack of Acknowledgement: There remains a large
perception that a workforce problem does not exist or
that it is not anything more than a short-term problem
that will be resolved on its own.

NEEDS ASSESSMENT - WORKFORCE AND EDUCATION

Stakeholders must consider the following needs to advance their efforts to develop the workforce needed
for both today's and tomorrow’s aerospace manufacturer.

● Focus on Employee Retention.
○ Retaining current workers should be the top business priority for any organization.

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○ Creating professional development opportunities can help employees grow, develop, and engage
in their roles to build a future in their careers and companies.
● Adopt Inclusive Practices.
○ Adopting inclusive practices to enhance diversity efforts within company cultures.
○ Increased DEI helps current employees increase engagement, encourages higher levels of talent
development, and creates a workplace that is inviting to people from all backgrounds.
○ Promotes stronger recruitment and equity efforts.
● Increasing Access to Underserved Communities.
○ Increasing access to the workplace, career pathways, learning opportunities, development tracks,
and leadership roles.
○ Increasing efforts to diversify and expand programs that assist traditionally underserved
communities to increase access to talent that otherwise would be missed.
● Improve Stakeholder Relationships.
○ Building strong relationships between employers, K12, higher education, apprenticeship, and
other learning communities.
○ Bridging the gap between employers and students.
○ Extending proactive opportunities to bring students into the workplace sooner and aligning high
school and college programs with employer needs.
○ Increasing overall quality of candidates.
● Rapid Skills Deployment | Workforce Training Centers.
○ Creating opportunities to develop and deliver just-in-time training through centers that can
deliver a rapid skills deployment approach to learning.
○ Managing a skills-based or competency-based workforce requires the ability to provide fast,
modular learning.
○ As stakeholders develop and create workforce training centers that can deliver that model,
everyone benefits.
● Workforce Resource Alignment.
○ Working with local, regional, and state representatives to align state workforce resources.
○ Washington can do more and improve its outcomes through a systematic, aligned strategy where
all functions and agencies work toward a common goal.
○ Create an advisory panel or utilize the currently existing group (e.g., Workforce Board) to facilitate
the overall coordination of a workforce strategy.

THE NEED TO ALIGN
The committee’s conclusions on the state’s aerospace workforce support previous findings from work
completed by other studies:

● The aerospace manufacturing workforce shortage will endure for many years. Employers will continue
to struggle to find qualified talent, especially in skilled production and technical positions.
● The pipeline for 4-year prepared professional positions (e.g., engineers) has increased or remained
stable and should continue to meet future demands.
● Future community college enrollments in trades programs expect to be lower, primarily due to fewer
students and less interest. It will not provide a sufficient pipeline to meet industry needs.

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In summary, aerospace employers will continue to see the same problems if Washington continues down
the same path. A familiar list of recommendations to address the same problems as previously identified
will continue to result in little or no change. Something new is required to achieve different outcomes.

Using Best Practices
Manufacturing is known for applying best practices to bend the learning curve to save time and money,
improve outcomes, and increase efficiency and effectiveness. The state’s aerospace sector can benefit
from adopting this methodology to address its workforce challenge. Throughout this study, workforce
practices were reviewed among several states throughout the U.S. to identify best practices. Several
states stood out as top examples where advanced manufacturing practices (including aerospace) excelled
in achieving outstanding workforce results.

Though not an exhaustive list, states that topped the list in successful workplace development practices
included Connecticut, Massachusetts, Wisconsin, Michigan, and Virginia. Other states had programs or
best practices, including Florida, Tennessee, Georgia, North Carolina, Colorado, Alabama, Arkansas, and
West Virginia. The most common factors in delivering robust workforce systems included the following:

● Active Partnerships between Business, Education, and Public Sector
Active business participation is the most common characteristic among states with successful
workforce programs. In fact, active business leadership is the primary driving success factor in all
examples where states have implemented effective strategic programs. Government can design
programs and implement plans, but if the business does not drive its execution, the plan will not
happen. Likewise, education can talk about business, but unless business works directly with
education at the front lines, educators cannot know what businesses need and how to integrate those
real-time competencies into their curriculum. When government aligns with business, policies, and
regulations can help facilitate the need to develop and support a thriving workforce.

In Washington, a statewide collaborative relationship does not currently exist between business,
education, and government to form a coalition for centralized planning purposes. Though the
Workforce Training and Education Coordinating Board has representation by these groups, the format
of the Board is not structured openly to provide aligned coordination. Building a guiding coalition
among these three groups can enable an aligned approach to workforce development.

At a local level, the IT3 workforce development center in Ridgefield, WA, is a shining example of what
is possible when business, education, and government come together to solve the problem. 30
Recognizing the need for short-term training and bridging the gap between high school and the
workforce, the Port of Ridgefield, the Economic Development Administration, Washington State
Community Economic Revitalization Board, U.S. Department of Agriculture, Washington State
Legislature, the Siemens Corporation, the local tribe, and others came together to plan, organize,
fund, and launch a workforce solution. 31

● Central Planning
Creating a master plan to focus resources helps to define and achieve more. For example,
Connecticut’s annual Manufacturing Strategic Plan is an ongoing process where the manufacturing
sector focuses on innovation through workforce growth, industry expansion, and supply chain

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resiliency. 32 The plan brings primary stakeholders of business, education, and government together
to align resources to serve their needs best to achieve the state’s goals. Massachusetts focused on
advanced manufacturing to develop a workforce plan specific to its needs. 33

Washington lacks a master plan to guide its aerospace or advanced manufacturing efforts. Without a
coordinated strategy, the industry will remain fragmented and misaligned. Engaging in an industry
“whiteboard” session to determine the top priorities, goals, and investments can focus efforts and
improve outcomes. Given the breadth of stakeholders, this is not as easy as it sounds. Engaging an
existing entity such as the Center of Excellence for Aerospace and Advanced Manufacturing to launch
an initial discussion or survey industry interests may be a starting point to begin the process.

● Resource Alignment
Industry and partner resources must work together in a coordinated effort. In states with best
practices, designated agencies, departments, and NGOs coordinate efforts and align outcomes to
facilitate services efficiently and effectively to achieve common goals. Washington has many
resources currently committed to workforce development. For example:

o Higher education institutions offer exceptional programming for 4-year STEM-related degrees.
o The State Board for Community and Technical Colleges coordinates community colleges for post-
secondary professional technical education in the trades, apprenticeships in advanced
manufacturing through AJAC, worker retraining programs, Centers of Excellence, I-Best, and
related programs.
o The Department of Labor coordinates the approval of work-based apprenticeship programs.
o The Workforce Training and Education Coordinating Board oversees Career Connected Learning,
Future of Work Taskforce, Regional Workforce Councils, and related programs.
o OSPI coordinates Career and Technical Education (CTE) through K12.

There is no lack of resources throughout the state to offer workforce development services. The
challenge becomes poor coordination, duplication of services, and lack of alignment in working
toward an undefined goal. The following graphic demonstrates the scattered approach to
Washington’s workforce development. This does not include resources such as 4-year higher
education entities (e.g., public and private universities), non-profits such as AWB, or local and private
programs.

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By aligning resources, coordinating with partners in education and business, and working toward
common goals, the State can help facilitate better outcomes with the same resources.

● Early Exposure
Another success factor among best practices states was the exposure to the trades at younger
grades. 34 Introducing trades programs in middle school CTE curriculum and even grade school can
enable greater interest and success in future career paths.

Washington is already well-resourced to enhance workforce development efforts. The challenge becomes
creating a unified vision for aerospace manufacturing with common goals and priorities, followed by a
realignment of resources with a partnership to support industry-specific needs to meet those goals.
Aerospace employers must lead the effort by defining current and future workforce development needs,
with education and government delivering specific resources to support them.

CLOSING THE SKILLS GAP
For Washington's aerospace sector to remain competitive and regain its place as the most competitive
option for business, developing a future-ready workforce must be a top priority. The accelerating rate of
change makes it challenging to keep up. Nationwide, by 2030, 2.1M manufacturing jobs could go unfilled
if employers do not address the skills gap. 35 Ongoing automation will create more demand for workers
to acquire additional skills. 36 In fact, half of all employees will need reskilling by 2025. 37

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The rapidly changing nature of work has created a shift to move beyond education and experience
requirements and focus more on the skills match between candidates and roles. 38 Manufacturing roles
can benefit from skills-based hiring rather than depending upon traditional job descriptions. Jobs will
change with automation and technology, but capabilities and competencies create stability and reliability
in employees. Skills-based hiring also allows employers to use pre-employment assessments for greater
accuracy in matching people to jobs using job simulations, job trials, and pre-employment tests that help
both the employer and candidate find work that best suits them for improved outcomes and retention. 39

Though specific skills will vary by employer, a broad range is common to many in aerospace. Enabling
workers with “adaptive skills" to support the transformation of "their abilities as their demands and
environment change"10 will maintain ongoing performance and worker capability throughout their
employment. This can create a competitive advantage by addressing today’s needs while developing the
flexibility to adapt to future demands.

Manufacturing will continue to evolve too rapidly to keep up with traditional approaches. A study by EY
and The Manufacturing Institute10 found industry leaders agreed that:

● Skills needed for manufacturing jobs are changing rapidly. (74%)
● Skills required for manufacturing jobs are changing faster than the skill level of the workforce. (65%)
● Organizations struggle to fill job vacancies because of the quickly changing skills required for the
industry. (65%)
● Their organizations seek innovative ways to invest in the careers of their workforces. (82%)

Manufacturers must make adaptive cultures, talent strategies, and individualized learning programs part
of their overall strategies. While 60% of manufacturers surveyed by the National Association of
Manufacturers (NAM) are creating or expanding internal training programs to address skills shortages,
many are unaware of the essential role of adaptive skills.10 This means that manufacturers are most likely
training employees on the wrong things while developing training programs.

Building a Workforce Development Solution
Manufacturers must enable employees to develop the skills needed to drive innovation, continuously
grow both personally and professionally, and maintain the competencies required to meet future
demands. Upskilling is perpetual and cannot be seen as an event - it is a process to be built within a
company’s culture. As workers build learning and professional development into their jobs, they can
continuously prepare for ongoing changes. Employers who recognize the upcoming changes, identify the
required skills needed for automation and technology shifts and encourage professional and leadership
development have much better results in retaining skilled talent.

Employers must recognize that a one-size-fits-all approach to employee development is ineffective due
to the diverse nature of workers, their jobs, and types of learning. Successful companies incorporate
several tools to launch and manage a structured development program that includes:

● Active performance management and coaching that provide employees with structured
competencies, guidance, and engagement.

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● Individual development plans retain employees as they grow in their current positions and gain new
knowledge and skill to move into new assignments.
● Succession planning helps employers and employees understand opportunities, resources, and
planning for the future. When people know there is a future, they remain with the company.
● Competency models help managers build consistent performance, training, and development
programs to enhance certifications, qualifications, and industry advancement.
● Guided educational development in partnership with formal education, apprenticeships, industry-
recognized certifications, and other training partners.
● Other professional development opportunities through seminars, workshops, conferences, and
professional engagements that develop networking and common industry knowledge development.
● Rapid skills deployment structures to deliver just-in-time training for single employers or groups of
employers that are specific bodies of knowledge that meet employer needs.
● Tracking and management systems and processes to proficiently manage worker knowledge,
employee advancement, and employer knowledge management.

Like anything else, these are new skill sets and operations that require training and development among
and within organizations. Without additional supportive resources, most organizations (especially SMBs)
will not have the time, funding, or knowledge base to design, build, implement, and manage such a
system. Providing resources to assist employers in developing these types of robust development models
can accelerate overall industry stability, growth, and advancement to support the technological and
human shifts needed to achieve desired results within IR4.0/5.0.

Washington is only as good as its people. So, too, is the aerospace industry. Without a swift and decisive
investment in a comprehensive effort to align and develop workforce capabilities, the industry will
continue to fall further behind in its efforts to compete.

WORKFORCE AND EDUCATION ASSETS
The designated subcommittee highlighted the need for Industry and Education to partner in developing
talent solutions to grow the State’s capabilities. Washington ranks high in education resources, especially
among 4-year institutions in science, technology, engineering, and mathematics (STEM) education. These
initiatives actively target the next generation of aerospace engineers, technicians, and innovators.

Integrating Washington’s education resources is essential to address the workforce challenge.
Washington offers many solutions for workforce development, including universities (4-year programs),
community colleges (including trade schools), registered apprenticeships, and K12 programs.

Research conducted throughout this study identified several best practices that support future-oriented
workforce development. Examples stand out where other states have effectively aligned their workforces
to meet industry needs. These best practices are founded on businesses, education, and government
working together at the local, state, and national levels to align resources, achieve economic growth, and
develop a strong workforce. The following resources are critical career development pathways identified
as required to support the desired industry shift.

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4-Year University Programs
Over the past two decades, Washington focused on strengthening STEM-related 4-year programs. As a
result, Washington excels in producing mechanical engineers and other professional-level positions in the
manufacturing workforce pipeline. Washington ranks among the top 10 states for the concentration of
mechanical engineer employment, annual mean wages, and employment by area. 40 The Seattle metro
area ranks 7th nationally as the top-paying metro area for mechanical engineers.

Research conducted for this study identified partner schools such as Washington State University, Eastern
Washington University, and Gonzaga University as clear leaders in producing manufacturing engineers
and conducting related industry research. In cases where individual companies, such as Schweitzer
Engineering in Pullman, WA, launched efforts to expand workforce development initiatives, results
occurred. 41 Successful workforce alignment initiatives involve (or have been initiated by) employers and
cannot be developed and implemented by education, government, or NGOs without the business as an
active partner.

Efforts should continue current 4-year STEM efforts to ensure an ongoing supply of manufacturing
professionals. Additional steps to partner with manufacturers to accelerate workforce development may
also include the following:

● Increase interactions with aerospace businesses to identify specific industry workforce needs.
● Incorporate more “live” projects and real-world case studies into the curriculum with interaction,
mentoring, and feedback from industry professionals.
● Increase opportunities for work-based learning and internships during the program to integrate
students into the workplace sooner and gain additional practical, real-world experience.
● Introduce “micro-internships” requiring 10-40 hours of work to optimize exposure to multiple
companies.
● Enhance curriculum that develops “soft skills” such as communication, problem-solving, critical
thinking, leadership, conflict resolution, and similar interpersonal relationship skills. Employers have
the most difficulty finding critical thinking, communication, and creativity, which are critical
components of building the future workforce, technology, and innovation. 42

As 4-year educators and aerospace business leaders increase engagement and partnerships, curriculum,
learning, and outcomes can more readily align with employer needs to meet future workforce
requirements.

Community Colleges
Community colleges have historically offered a broad range of career-focused programs, including
technical degrees related to aerospace and advanced manufacturing. However, Washington's community
college trades programs remain challenged by the following:

● Declining enrollments in the trades, starting prior to (but accelerated by) the pandemic. 43
● Notable declines in underserved populations, with Indigenous and Latinx students at the State's two-
year colleges experiencing the most pronounced declines. 44
● Employer demand that pulls students from programs into employment prior to degree completion.

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● The low perceived value of college education or post-high school training, especially for production
jobs.
● Perception of a lack of affordability of college programs from community colleges.
● Ongoing perception issues of careers in the trades as being dirty jobs or second-rate options.
● Emphasis by high school counselors to push four-year university programs.
● Lack of awareness of career pathways or earning potential of careers in the trades.

Community colleges hold a unique opportunity to create a strategic partnership with industry to build
tomorrow's workforce, but it requires a mind shift. Resistance to change was apparent among several
college programs that hindered the ability to deliver the rapid upskilling needed. Research for this study
showed that Clover Park, Bates Technical, and Big Bend Community Colleges clearly demonstrate the
forward-thinking necessary to forge new partnerships with businesses to solve the problem. Others
remain inflexible and unable to adapt to rapidly changing industry needs.

If Washington’s community colleges are to serve as partners, they must help businesses identify and meet
shifting needs. Examples of best practices from other locations identified during this study include:

● Develop employer-driven curriculum. 45 Traditional advisory committees that meet annually and
provide recommendations followed by micro-adjustments to programs that take years to implement
cannot keep up with the rate of industry change. The curriculum must align with in-demand industry
standards, and community colleges must find a way to continuously update their curriculum.
● Blending credit and non-credit training via stackable credentials, modular training, and other
competency-based learning models can accelerate learning.23 Offering just-in-time competency
development can accelerate development and meet needs faster. This can also help students gain
short-term skills faster to land entry-level employment sooner. Skills-based learning is critical.
● Address equity with career-focused pathways to open the door to more opportunities. College is often
focused heavily on degree completion or transfer. With a competency-based approach, the goal is
employment and development. A strong relationship between the college, employer, and student
becomes long-term. The student attends school as long as needed, gains employment, and the
employer supports the employee’s ongoing development (and re-training) with the partner college.
This focus helps to reduce barriers to access, maintain employment, and facilitate opportunity.
● Modify the curriculum to be industry-based, not academically centralized. Rather than following a
standard "one-size-fits-all" approach to general courses such as math and English, consider designing
math and English to apply to the trades. I-BEST has proven itself effective in programs such as nursing
and precision machining. Applying a career-based approach to math can accelerate learning and
reduce the chance of failure by making the learning more applicable to the student’s career path. The
same can be applied to other general courses.
● Develop digital literacy skills by incorporating technology into classroom assignments. Providing
digital tools (e.g., laptops, tablets, software), building their use into assignments, improving online
access, training on ERPs and related systems, and integrating the use of AI in problem-solving can
accelerate student success. The more programs can simulate the employment environment, the
better-prepared employees will be to succeed on the job.

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● Incorporate work-based learning opportunities. The sooner students can integrate into the
workplace, the better. While employer co-op programs are effective options, they are typically
included at the end of the student program. Educators should consider the following:
o Involving manufacturers throughout the program to enhance practical application using live
projects, case studies, and other real-world applications.
o Earlier work-based learning opportunities to create learning in a live work setting that exposes
students to real work situations, mentors, working with professionals, and doing real work.
o Incorporating business partners to deliver hands-on content, theory, practice, and application.
Coordination of curriculum delivery can ensure alignment for academic integrity and quality
standards, but “on-the-job” learning can be part of the program.
o Engaging employers throughout the learning process to provide more mentoring, feedback,
communication, and engagement will help students prepare for full-time employment.

Registered Apprenticeships
The previous Washington State Aerospace Strategy highlighted the need to expand apprenticeship
programs in aerospace-related fields. 46 Facilitators such as AJAC and Machinists Institute grew
apprenticeship programs to develop needed skills. The current emphasis on registered apprenticeships
will continue to support future workforce development needs. However, while legislation such as
49.04.160 RCW may intend to expand high school registered apprenticeship programs, the process is still
complicated, unclear for employers or educators, and impractical to use in its current form as a viable
solution.

Additional support from apprenticeship programs can come in the form of flexible micro-apprenticeships.
Much like industry-recognized certifications, micro-apprenticeships can be offered modularly as a form of
skills-based or competency-based learning. Offering shorter courses (e.g., 4 weeks or other short-term
options) can provide individuals and employers with the ability to:

(a) Rapidly develop knowledge and skills in a specific area. This may assist with improving their current
capabilities, qualifications for promotion, or ability to gain employment quickly.
(b) Earn recognized professional credentials that lead toward completion of an apprenticeship
program. As employees complete modules, they can earn hours and credits toward the
completion of their program if full apprenticeship programs adapt to allow this flexibility.
(c) Use micro-apprenticeship courses as flexible, stackable credentials within programs. When
courses are transferrable from program to program (e.g., OSHA-10 Safety Module required within
various programs), the employee can change apprenticeships without having to start over.
(d) Develop employees within micro-apprenticeships as stand-alone resources to develop specific
skills. Though some may not continue with the full apprenticeship, they will be exposed to the full
program and can be encouraged to pursue additional training toward program completion.

Industry Recognized Credentials (IRCs)
IRCs have been used in several industries for years and provide a means to independently attest to a
learner’s level of knowledge and skill outside of a formal degree or apprenticeship program. For example,
the American Welding Society maintains independent training, testing, and professional certification
standards to demonstrate competency and levels of skill for welders that are recognized throughout

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manufacturing. IRCs serve as an alternative standard bearer to demonstrate competency to employers.
(It should not, however, take the place of pre-employment testing to verify capability.)

As the industry shifts to skills-based models, employers will rely less upon traditional development
methods. Instead, just-in-time options will look more attractive to provide the knowledge, skill, and
competency needed by the employer. IRCs are designed for just that purpose. By identifying the specific
skills needed, employers can match them with the desired curriculum and use the IRC model to meet their
needs.

Unlike university, college, or apprenticeship models, IRCs deliver short, specific training opportunities that
address a particular need. At the same time, IRCs provide the structure and content that go beyond the
simple one-day or one-week workshop format common to most industries. They provide a tangible
demonstration of learning, skills, and competence that can be used as an internal “credential,”
acknowledging achievement or completion for use in evaluating performance, placement, or promotion.

Because IRCs are industry-based and flexible, employers must take charge of ensuring that the right
training is delivered at the right time. This requires careful program vetting, alignment, workforce
development management, and internal succession planning to meet the desired outcomes.

High School (K12)
Perhaps the greatest area of opportunity lies in K12 to meet tomorrow’s workforce needs. The strategic
partnership between business, education, and government is most critical at this level. Unfortunately,
conclusions from this study indicate that the partnerships at this level appear to be the weakest across
the state, with few exceptions.

Best practices identified throughout the country during this study demonstrated the need for a critical
shift in the way Washington aligns its K12 programs to better prepare graduates for a future in aerospace
and advanced manufacturing. Characteristics and examples of best practices are listed below.

● Cardinal Manufacturing
A small group from the AAAC research team, Wagstaff, Inc., and East Valley High School (Spokane
Valley, WA) visited Eleva-Strum High School in Wisconsin to tour Cardinal Manufacturing. 47 With a
student body of only 600 (including all K12), the school has created one of the best and most
renowned examples of aligned, applied manufacturing in the nation. Characteristics of the program
that qualify it to be a “best practice” include:

o Outlined structured curriculum built around specific principles of advanced manufacturing.
o Local manufacturers helped to establish business operations and continue to work with Cardinal
on its advisory board to ensure alignment with workplace expectations.
o Businesses provide volunteers to assist in teaching, mentoring, and coaching students.
o Courses build from year to year, ensuring that competence is met before allowing students to
advance from one program to the next. (Students repeat what is not mastered.)
o Programs begin in 5th Grade (first year of middle school). Students begin to have access to the
shop as early as possible to learn skills and gain exposure to the trades at an early age.

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o Students are introduced to trades-related modules in grade school starting in first grade. For
example, students will participate in building a simple bird house in first grade from kits that were
prepared by students in a shop class in a higher grade. This creates an integrated model.
o Students spend time learning about people skills, professional development, and business to
interact with others and succeed in a business or operations environment.
o Heavy emphasis is placed on principles of quality, not just quantity.
o The culmination of the program is a student-led business operation called “Cardinal
Manufacturing,” allowing only 20 students to participate. It is a revenue-generating job-shop that
relies on outside business. Last year, the operation made over $100,000.
o This program provides hands-on integrated learning and applied skills development to achieve
mastery of skills, problem-solving, and curriculum operationalization.
o The curriculum is aligned with the local community college for dual credit.
o All students from Cardinal Manufacturing leave with full-time jobs or a full-ride scholarship.

● Peak Innovation
A team from Wagstaff, Inc. and East Valley High School visited Peak Innovation Center in Ft. Smith,
Arkansas. 48 This center is the culmination of business and education, partnering with the community
and local government to optimize manufacturing (and healthcare) workforce development. Serving
an urban region (not unlike Spokane, WA), Peak Innovation is open to students from several high
schools who complete their CTE requirements during two periods each day (similar to Washington).
Notable characteristics of Peak’s program include:

o The Center was built from a large industrial facility donated by a private company as a “shell.”
o Money was raised through a collaborative fundraising effort between the school and businesses.
o Grants were also obtained with the help of the regional chamber of commerce, local government,
federal agencies, and others for the initial build.
o Large industrial partners helped establish equipment for key programs such as ABB (electrical
automation), Haas (machining), etc.
o The curriculum is structured in a way that allows students to complete their trades-related
associate’s degree (AAS) when they graduate from high school. Students were just completing
degrees in machining and electrical automation this year (at the end of the second year of
operation).
o College instructors were used to teach. This allowed students to earn degrees without a problem.
o Industry partners donated the use of personnel to help teach at the center. For example, ABB
maintained an individual at the Center full-time to help manage, mentor, and teach.
o Students worked with industry partners who came onsite to assist in class and mentor.
o Students were assigned externships as a part of their coursework (similar to Washington’s work-
based learning program).

● Salem-Keizer
A representative from Wagstaff, Inc. visited the Career Technical Education Center in Keizer, OR (north
of Salem), which houses 10 CTE programs, including manufacturing, welding, and engineering (one
program) as well as aviation. 49 The center was established in 2019 as a public-private partnership to

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prepare students for high-skill, high-wage, and high-demand careers. The characteristics that make
this operation a best practice include:

o Structured curriculum to learn essential skills within the trades.
o A “job shop” environment where students work directly with external customers to estimate,
design, fabricate, problem-solve, finish work, make mistakes, and deliver products.
o Work with faculty with years of real-world experience and deliver instruction focusing on the
future workforce.
o Core required courses in math and English are applied to the profession (e.g., math is applied to
industry, metal fabrication, and production).
o Students learn job site skills by completing piecework for local manufacturers.

● Kootenai Technical Education Campus (KTEC).
Representatives from Wagstaff, Inc. and East Valley High School visited KTEC in Rathdrum, ID, to
review its trades-related programs. 50 Best practices include:

o The curriculum is designed around industry-recognized credentials from AWS (industry
standards).
o Students in the welding program work toward learning competencies to prepare to qualify for
AWS certification.
o KTEC covers the cost of the first AWS certification test per student.
o Students are encouraged to set up employer work-based learning internships during their senior
year.
o Students can graduate from high school with up to a Level 4 AWC certification. (Graduates can
leave high school as fully certified professional welders if they complete work and pass tests.)

Improving Workforce and Education Relationships
To improve results in its partnership, aerospace and advanced manufacturing businesses and K12
educators must consider the guiding principles:

● Create an opportunity to bridge the gap and work collaboratively to facilitate success.
● Actively partner with one another to find solutions that bring students into the workforce faster.
● Reduce barriers to change that come from protecting past structures that are currently in place, and
instead consider new options and opportunities to achieve results by adopting best practices.
● Forge a partnership between business, education, government, and community at the local and state
levels to accelerate workforce development.

The initial priorities are foundational to making change a possibility. If the primary stakeholders cannot
forge an initial partnership on those guiding principles, other recommendations are impractical. Ideally,
stakeholders can incorporate other best practices that can accelerate workforce development in K12, such
as:

● Offer community college trades degree programs in high school. While some Washington schools have
articulated dual credit for courses, full programs must be articulated that allow students to earn a full

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certificate (e.g., welding) or associate’s degree (e.g., AAS in machining) while attending their own high
school.

Running start programs are not enough. Until the 2023-24 year, Running Start was still cost-
prohibitive to socioeconomically challenged students as it required fees despite the tuition waiver for
high school students. Though the fees are now waived, the travel requirement is time and cost
prohibitive for students without means, especially from outlying areas who cannot travel. It further
makes it impossible to complete the full degree program while in high school. Without an onsite
program, students will not be able to earn the full credentials and enter the workplace out of high
school.

Allowing those students who are capable of completing a full college program while in high school –
ensuring they meet all standards of academic quality and integrity – facilitates their ability to enter
the job market sooner, avoid student loan debt, and meet employer needs faster. For students who
are unable to finish the program but can complete some of the training, they can (a) continue to
pursue the degree in a shorter timeframe, still saving time and money, (b) go to work at a lower
starting level and return to school later, or (c) continue in another pathway with a solid background
as a foundation (e.g., pursue engineering with a background in machining).

● Accelerate work-based learning. The goal should be to expose high school students to employers as
soon as possible, as early as possible. In cases where students are not ready for regular employment,
alternatives such as micro-internships (between 10-40 hours total) can introduce a student to the
workplace. Whether it be for a project, short-term assignment, case study, or some other purpose,
any opportunity to safely bring students into a live work setting is beneficial for learning, networking,
and exposure to the real-world work experience.

● Incorporate business into the classroom. Partnering with businesses can bring professionals into the
classroom. This, in turn, increases opportunities to learn from professionals, network, and align with
real-world expectations. In many cases, best practices can include using businesses to help teach
content, mentor students, incorporate case studies, provide tours, and deliver other partnership
opportunities that enhance student preparation and learning.

● Expand outside programs. Expand the use of extracurricular programs that support skills development
or application of competencies.
o Skills-based programs such as Skills USA have been highly beneficial to increase exposure to
students, raise interest, and improve skill levels.
o Best Practices also partner with businesses to deliver hands-on, immersive experiences to
help students engage in industry simulations.
o Wagstaff, Inc. collaborates with dozens of other manufacturers in the Spokane region to
deliver the Production and Manufacturing Institute each summer. The program immerses
students in a manufacturing simulation where participants design, manufacture, sell, and
otherwise own a product line within a company over the course of three weeks. Working in
teams, students must manage their business unit, deal with quota changes and supply issues,
and see how manufacturing is done in multiple settings.

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These programs create a vision for what manufacturing can do that way.

CALL TO ACTION - WORKFORCE AND EDUCATION

● Statewide Workforce Development Strategy and Advisory Committee
Create a roundtable to develop a comprehensive statewide Workforce Development strategy (stop
piece-mealing solutions).

● Regional and Micro-Workforce Training Centers
To offer rapid deployment IRC training options to meet immediate and long-term critical skills needs
(could be part of innovation center)

● Improve Workforce and Education Relationship
Emphasizing the necessity of K-12 STEM education and career pathways is vital to establish a robust
talent pipeline for higher education and trade programs.

Call to Action Summary
This section provides a series of targeted recommendations that aim to address critical challenges and
capitalize on emerging opportunities within the industry. These recommendations are the culmination of
comprehensive research, in-depth analysis, and consultation with industry experts. The objective is to
provide a guide for policymakers in shaping a supportive regulatory framework and fostering an
environment conducive to industry growth and investment, innovation, and competitiveness to secure a
prosperous future for the aerospace industry and its stakeholders. The highest priority recommendations
are highlighted in blue.

Sub-
Recommendation Details committee
Convene representatives from government, education, and
business to create a comprehensive statewide workforce
development strategy and align existing resources. Consider Workforce
Develop a Statewide utilizing the Center of Excellence for Aerospace & Advanced and
Workforce Strategy Manufacturing as a coordinating body. Education
Workforce
and
Education,
Space and
Satellites,
Establish a Network of Offer rapid deployment Industry-Recognized Credentials training Uncrewed
Regional Workforce options through regionalized centers to meet immediate and long- Aerial
Training Centers term critical skills needs (could be part of innovation center). Systems
Create a Statewide
The network would include 1-2 hubs and a series of spokes Commercial
Innovation Network
throughout the state with the following features: and Defense,

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● Labs and testing facilities Emerging
● Prototype manufacturing facilities Technologies,
● Offices and meeting rooms Space and
● Wrap around business support services Satellites,
● Collaboration and community spaces Uncrewed
The network would coordinate existing resources and create Aerial
centers to fill in regional gaps. Systems
Establish/utilize existing entities to advise and direct expanded
promotion of the aviation and aerospace industry, including cluster
coordination.
-Develop targeted marketing strategies and messaging for key Commercial
segments such as space & satellite, commercial, defense, uncrewed and Defense,
Fund Marketing of aerial systems, and sustainable aviation. The defense sector’s focus Emerging
Aviation & Aerospace should be on attracting DoD or NASA, or other federal investments. Technologies,
Sector & Industry -Develop a centralized resource database that includes supply chain Space and
Segments assets, R&D resources, start-up resources, industry support groups Satellites
Provide $10M in annual funding to meet current airport
Close Annual Funding Gap infrastructure needs and to assist airports in transitioning to Airports and
for Airports more environmentally-sustainable operations. Infrastructure
Increase Hangar Capacity Dedicate $5M in annual state funding over a 10-year period to Airports and
at Airports address the General Aviation Hangar capacity needs. Infrastructure
Create business development opportunities for airports,
particularly in rural areas. This may include incentivizing small
businesses to locate on airport leased property that may otherwise
Assist Business be difficult to attract or prioritizing alternative energy or emerging Airports and
Development at Airports technologies at airports. Infrastructure
Increase Warehouse Support the development of increased warehouse space to attract Airports and
Capacity at Airports and accommodate businesses located in proximity to airports. Infrastructure
Build Infrastructure for
Alternative Fuels at Equip airports with infrastructure to serve alternative fuels Airports and
Airports including hydrogen and electrification in the next 3-5 years. Infrastructure
Install Charging Stations at Outfit airports across the state with charging stations to serve Airports and
Airports increasing number of electric vehicles in the next 5-7 years. Infrastructure
Offer Capital Expenditure Specific to aerospace manufacturing, including tax abatement to
Incentives to Aerospace incorporate automation, upgrade competitiveness, and add new Commercial
Companies capabilities, particularly for SMB and Defense
Commercial
Provide Funding for Provide grants and incentives with support from the Procurement and Defense,
Companies Competing for Technical Assistance Center (PTAC) to companies seeking Emerging
DoD contracts Department of Defense Contracts. Technologies
Actively seeking to attract NASA and DoD contracts. Advocate for
effective federal aviation wildfire response policies that align with Emerging
Leverage State Influence the state's needs and priorities. Technologies
Emerging
Streamline Permitting Remove red tape and streamline the permitting process for new Technologies,
Process construction projects. Uncrewed

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Aerial
Systems
Provide Grants for Start- Provide matching funds for phase I SBIR/STTR (need to not conflate Space and
Ups with JCATI) Satellites
Improve Workforce and Emphasizing the necessity of K-12 STEM education and career Workforce
Education Relationship pathways is vital to establish a robust talent pipeline for higher and
education and trade programs. Education
Uncrewed
Develop UAS Testing Provide infrastructure money for the development of a UAS testing Aerial
Facility facility/drone corridor. Systems
Amend Growth Uncrewed
Management Plans for Provide funding for counties and municipalities to identify and Aerial
Vertiports designate land for future vertiports. Allocate funds for test site(s). Systems
Uncrewed
Provide Tax Relief for Continue or expand tax relief to aerospace companies looking to Aerial
Aerospace Employers relocate or those retaining/growing jobs in Washington. Systems
-Accelerate work-based learning through earlier exposure to
Create Opportunities for industry and bring industry professionals into the classroom
Early Exposure and -Expand extracurricular programs such as SkillsUSA, that provide an
Options to Launch introduction to skills needed in industry and hands-on problem- Workforce
Aerospace Careers from solving opportunities and
High School -Offer community college trades degree programs in high school Education
● Increase interactions with aerospace businesses to identify
specific industry workforce needs.
● Incorporate more “live” projects and real-world case studies Workforce
into the curriculum, and
● Increase opportunities for work-based learning and internships Education,
Enhance 4-Year University ● Introduce “micro-internships” requiring 10-40 hours of work Emerging
Programs ● Enhance curriculum to include development of “soft skills.” Technologies
● Develop employer-driven curriculum that adjusts to industry
needs quickly.
● Blend credit and non-credit training via competency-based
learning models

● Address equity with career-focused pathways that enable
students to quickly gain employable skills, enter the workplace, Workforce
Modify Community College and then return to school to upskill, re-train, or change course and
Programs as needed or desired by the individual or employer. Education
Create short-term topical courses (average of 4 weeks) through
existing apprenticeship programs or industry groups (AJAC,
Machinists Institute, American Welding Society, etc.) that provide
individuals and employers with the ability to:
-Develop demonstrable knowledge and skills in a specific area Workforce
Develop and Implement -Earn recognized credentials that can lead toward completion of an and
Micro-apprenticeship/ apprenticeship program Education,
Industry Recognized -Use courses as flexible stackable credentials within/among Emerging
Credential Programs apprenticeship programs Technologies

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BUILDING UPON RECOMMENDATIONS FROM SUBCOMMITTEES (1/15/23 - 4/15/23)
Innovation Network
The dizzying pace of technological change is driving innovation throughout the aerospace industry. The
need to provide infrastructure and tools for entrepreneurs and companies to design, test, and
commercialize technologies was one of the most prevalent themes across all AAAC subcommittees.
Examples of other countries, states, and regions establishing innovation centers and networks abound–
Advanced Manufacturing Research Centre (AMRC) in the UK, FlyOhio in Ohio, and NIAR in Wichita, Kansas.
In order for Washington to successfully compete in the global aerospace marketplace of the future, it’s
imperative that the state provide the infrastructure to facilitate innovation and coordinate
existing/developing innovation resources now.

This work is much more than a single, multi-faceted facility. Rather it needs to be a statewide system that
allows access to all regions of the state and addresses both shared and unique needs/interests in
communities across Washington. A statewide Innovation Network will stimulate, support, and attract
entrepreneurs and companies committed to bringing the industry’s future to fruition. The network will be
a partnership among public-private-education stakeholders with a coordinating body, two regional hubs,
and a number of geographically-dispersed facilities or spokes.

The centers will be an innovator and start-up’s treasure trove, housing equipment and labs for research
and development, testing, access to academic research partners, and shared equipment for small-scale
production. The innovation centers will also support entrepreneurs with shared workspaces and access
to workforce training resources and community events. Given that start-up ventures are typically in dire

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need of capital and business support services, the network would include a system for accessing funding
sources and wraparound services.

The development of the Innovation Network is envisioned as a six-year project that will start with
establishing one hub in each of the next two bienniums, along with augmenting existing/planned centers
(see Figure below) and adding new locations to ensure geographic diversity.

These facilities will leverage existing resources, both physical and intellectual, and will ideally be co-
located or situated near an educational institution and/or an existing airfield. Substantial investment will
be required over a period of years to be successful. As an example, the state of Georgia committed $100
million toward the creation of the Georgia Cyber Center 51. Ohio has pledged a longer-term investment
expected to have a $13 billion economic impact, with 10,000 advanced air mobility jobs alone added over
25 years. Kansas’ NIAR has a $190 million annual budget, a staff of 1,000, and 1.6 million square feet of
laboratory and office space in six locations across the city of Wichita.

Further development of the Innovation Network is beyond the scope of this report but should be funded
by the Legislature as soon as possible.

Marketing

Enhancing the industry’s marketing endeavors emerged as a prevalent theme across all the
subcommittees. While this study’s researchers could not break down specific marketing budgets, it is
worth noting that in 2019, Alabama (a significant aerospace competitor to Washington) allocated a

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staggering $4.4 billion for advertising. In contrast, Washington’s advertising expenditure for the same year
amounted to only $10.1 million. 52

Industry stakeholders voiced a strong demand for a comprehensive statewide marketing strategy
encompassing the following key components:

● Fund and authorize an industry-specific statewide marketing strategy.
● Promote Washington's supply chain on both national and global scales. While other states'
marketing initiatives often target site selectors catering to large corporations, Washington's
appeal to entrepreneurs and start-ups necessitates a more targeted approach aimed directly at
business owners and managers. For smaller entities, factors such as talent availability,
entrepreneurial culture, and quality of life hold greater significance than incentives or population
statistics. Adopting this approach would leverage the inherent strengths of the region.
● Establish a comprehensive marketing portal (digital, web-based, etc.) for state and federal
agencies and industry groups to enhance awareness of the vast array of services and resources
available at all levels. The portal would serve as a centralized hub, streamlining access to
information and facilitating navigation through the existing ecosystem, which is currently
perceived as a complex maze of disparate websites and platforms, as indicated by feedback from
numerous interviewed businesses.
● Craft a statewide marketing plan to incorporate diversity and equity at a regional level. Currently,
there is a strong focus on the west side of the state, leading to challenges related to infrastructure,
workforce, and housing limitations. Moreover, the state's eastern side has historically received
limited direct economic benefits from commercial aerospace. By raising awareness of the appeal
of areas such as Spokane, Moses Lake, and the Tri-Cities, the distribution of growth opportunities
can be more equitable, benefiting underserved mid-size markets.
● Establish a marketing council comprising a minimum of 50% industry and aerospace
manufacturing representatives to guarantee that insights and perspectives from the private
sector drive the content and focus of the marketing efforts.

The Norstrat Team strongly emphasizes maintaining a substantial and continuous marketing budget,
particularly for digital content. Regular and sustained SEO efforts are vital; digital content should be
refreshed as frequently as possible. Committing to a consistent and long-term investment in a robust
marketing campaign ensures ongoing success.

Conclusion
Washington’s rich history in aviation and aerospace has positioned it as a leader in the industry, thanks to
the establishment of the Boeing Company and the presence of a robust supply chain. The aerospace sector
has been a major economic driver, employing a significant portion of the state's workforce and
contributing significantly to the Gross Regional Product. Washington state must focus on key areas such
as space exploration, uncrewed systems, and next-generation air mobility to maintain its leading edge.

The state must invest substantially to maintain competitiveness by driving innovation, marketing its
aerospace sector's strengths, and equipping the current and future workforce with the skills necessary for
the next generation of aircraft. The formation of the Aviation and Aerospace Advisory Committee (AAAC)

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by the Washington State Legislature is a positive step in this direction, as it will provide valuable
recommendations and strategies to support aviation and aerospace in the state.

The AAAC subcommittees, focusing on airport services and infrastructure, commercial/military
manufacturing, space and satellites, uncrewed aerial systems, emerging segments (electric, hydrogen,
hybrid, Advanced Air Mobility), and workforce and education, have diligently studied their respective
priority areas. These subcommittees will play a crucial role in formulating legislators' recommendations,
enhancing national and international competitiveness, addressing policy considerations, prioritizing
funding and capital projects, reducing greenhouse gas emissions, and fulfilling workforce development
needs.

By leveraging the expertise of these subcommittees, Washington state can position itself as a hub for
emerging aviation and aerospace technologies, ensuring the safe and effective use of public use airports
and aerospace facilities. Continued collaboration between the Departments of Commerce and
Transportation and the AAAC can drive the industry forward by implementing recommended strategies.

In summary, Washington's aviation and aerospace industry has a promising future, but it must adapt to
the evolving landscape and overcome current challenges. By investing in innovation, marketing its
strengths, and prioritizing workforce development, the state can maintain its leading edge and remain a
key player in global aviation and aerospace.

Embracing a culture of innovation is critical to the aerospace community's ability to overcome challenges,
push boundaries, and secure its position at the forefront of human achievement. While Washington has
a rich history of leadership in aerospace manufacturing, it faces significant challenges from other regions
domestically and internationally. The competition offers attractive financial incentives, lower costs of
living, and cheaper labor.

To regain and strengthen Washington's top position in aerospace, the state must leverage its core
strengths, which include innovation, a highly skilled workforce, and global leadership in green and
alternative mobility. The report provides several recommendations, but the following initiatives should
be prioritized:

1. Strengthening innovation clusters and assisting the supply chain in pursuing federal funds for
further technology development. This includes seeking funding opportunities from programs like
CHIPS and Build Back Better.
2. Supporting entrepreneurs and start-ups through public-private partnerships that provide funding
for testing facilities and startup incubators. This will foster a vibrant ecosystem for aerospace
innovation.
3. Rethinking workforce development efforts to address both short- and long-term needs. While
higher education plays a crucial role, investing in K12 STEM curricula and trade
classes/apprenticeships is equally important. A diverse range of skilled trades and factory workers
is essential for the industry's success. Additionally, efforts to promote diversity, equity, and
inclusion (DEI) should consider regional diversity and include underemployed workers in the 18-
30 age group.

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4. Creating apprenticeship programs that cater to the needs of both small/medium employers and
formal trade unions. Non-union options should be available to ensure inclusivity and support the
growth of all aerospace businesses.

By prioritizing these initiatives, Washington state can revitalize its aerospace industry, recapture its
leadership position, and foster long-term growth. It will require collaboration between industry
stakeholders, government agencies, educational institutions, and private enterprises to drive the
necessary changes. By doing so, Washington can solidify its position as a global leader in aerospace and
contribute to the advancement of the industry as a whole.

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Department of Commerce
End Notes
1
Source: Lightcast, Q1 2023, includes all types of employment (QCEW, Non-QCEW, Employees, and Self-Employed)
2
www.defense.gov/News/News-Stories/Article/Article/3327644/lethal-resilient-agile-joint-force-basis-for-defense-
budget-
request/#:~:text=President%20Joe%20Biden's%20national%20defense,the%20fiscal%202023%20enacted%20budg
et.
3
scholarcommons.sc.edu/cgi/viewcontent.cgi?article=1070&context=scjilb
4
www.lagniappemobile.com/news/mobile-county-awards-10m-incentive-for-airbus-a320-
production/article_5f44b87e-095e-11ee-9321-4b8481fda5c4.html
5
docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-
DP.aspx?language=E&CatalogueIdList=234481&CurrentCatalogueIdIndex=0&FullTextHash=&HasEnglishRecord=Tr
ue&HasFrenchRecord=True&HasSpanishRecord=True
6
www.fedconline.org/embraer-opening-aircraft-design-center-in-florida/
7
Sources include: “2020 Aerospace manufacturing attractiveness rankings.” PwC Aerospace & Defense practice. April
2020; “Where Aerospace Manufacturers Are Gravitating in 2020.” Site Selection Magazine. Nov. 2020; various state
websites.
8
Pew Research Center. (October 6, 2015). Changes in the American Workplace. (www.pewresearch.org/social-
trends/2016/10/06/1-changes-in-the-american-workplace/).
9
Society of Professional Engineering Employees in Aerospace (SPEEA). (2022). Workforce Report.
10
AeroDynamic Advisory. (2022). Aerospace Competitive Economics Study (ACES).
(https://www.dropbox.com/s/l5e245lm3ce04ew/2022%20ACES%20Aerospace%20Competitive%20Economics%20
Study%20.pdf?dl=0)
11
King5 News Article. (2023). Study: Washington is the most competitive in the country for engineering,
manufacturing planes. (https://www.king5.com/article/tech/science/aerospace/washington-engineering-
manufacturing-planes-study/281-6a0a36b6-dd62-4a5f-8bec-d4d8f517462f).
12
PwC. (2023) PwC’s global aerospace and defense: Annual performance and outlook.
(https://www.pwc.com/us/en/industries/industrial-products/library/aerospace-defense-review-and-
forecast.html).
13
2022 Workforce report, Society of Professional Engineering Employees in Aerospace (SPEEA).
14
EY (Ernst-Young) (2022) Resilient, connected and customer centric: the future of manufacturing is here.
(www.ey.com/en_us/advanced-manufacturing/resilient-connected-and-customer-centric-the-future-of-
manufacturing-is-here).
15
EY (Ernst-Young) & Manufacturing Institute. (2022). How adaptive skills can play a pivotal role in building the
manufacturing sector of the future. (www.ey.com/en_us/advanced-manufacturing/the-manufacturing-institute-
adaptive-skills-study).
16
World Economic Forum. (May 2023). Future of Jobs Report. (www.weforum.org/reports/the-future-of-jobs-
report-2023/)
17
Manufacturing Leadership Council. (2023) Empowering Employees in the Manufacturing 5.0 Era.
(www.manufacturingleadershipcouncil.com/empowering-employees-in-the-manufacturing-5-0-era-33654/)
18
EY (Ernst-Young). (Feb 2, 2022). Don’t let talent and skill become an afterthought in your Factory of the Future.
(Retrieved June 24, 2023 from https://www.ey.com/en_us/advanced-manufacturing-realized/creating-people-
centric-future-factories).
19
Bughin, J., Catlin, T., & LaBerge, L. (June 2019). The drumbeat of digital: How winning teams play. McKinsey
Quarterly. (Retrieved June 24, 2023 from
www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/the%20drumb
eat%20of%20digital%20how%20winning%20teams%20play/the-drumbeat-of-digital-how-winning-teams-play-
final.pdf).

AAAC Report - DRAFT Page 68 July 2023
Department of Commerce
20
Ekudden, Erik (CTO Ericsson). (2023). Evolving networks for a rapidly changing world. Ericsson Technology Review, 2023:01.
(Retrieved 6/24/2023 from https://www.ericsson.com/en/reports-and-papers/ericsson-technology-review/articles/ericsson-
technology-review-2023-issue-1).
21
“The Digital Transformation of Manufacturing Companies.” SAP (www.sap.com/products/scm/industry-4-0/industry-4-0-
strategy.html).
22
Wellener, P., Reyes, V., Ashton, H., & Moutray, C. (May 4, 2021). Creating pathways for tomorrow’s workforce today: Beyond
reskilling in manufacturing. Deloitte Insights. (www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-
industry-diversity.html/#the-future).
23
Manufacturing Institute. Diversity and inclusion: What you need to know. (www.nam.org/diversity-and-inclusion-what-you-
need-to-know-12073/?stream=workforce).
24
Graham, J.M. (nd). Enhancing diversity: The manufacturing mind-set advantage. Heidrick & Struggles.
(www.heidrick.com/en/insights/diversity-inclusion/enhancing_diversity_the_manufacturing_mind_set_advantage).
25
Hunt, V., Yee, L., Prince, S., Dixon-Fyle, S. (Jan 2018). Delivering through diversity. McKinsey & Company.
26
Manufacturing Institute. Diversity, Equity, & Inclusion. (www.themanufacturinginstitute.org/diversity-
inclusion/).
27
https://www.wichita.edu/industry_and_defense/NIAR/
28
https://www.approve.com/business-cost-index/
29
https://www.usnews.com/news/best-states/rankings/opportunity/affordability
30
https://www.it3tech.org/
31
Wolf, S. (March 1, 2023). Ridgfield high-tech trainign center IT3 aims to develop workforce for local manufacturers. The
Columbian. (www.columbian.com/news/2023/mar/01/ridgefield-high-tech-training-center-it3-aims-to-develop-workforce-for-
local-manufacturers/)
32
State of Connecticut. (2003). Strategic Plan for Manufacturing. (portal.ct.gov/-/media/Manufacturing/PDF/2023-CT-Mfg-
Strategic-Plan---final---HR.pdf).
33
Advanced Manufacturing / Strategic Initiatives / Massachusetts Department of Higher Education
34
Hanover Research. (December 2020). Best practices in middle school career and technical education expansion.
(portal.ct.gov/-/media/SDE/CTE/Best-Practices-in-Middle-School-Career-and-Technical-Education-Expansion.pdf).
35
“2.1 Million Manufacturing Jobs Could Go Unfilled by 2030,” National Association of Manufacturers Website,
www.nam.org/2-1-million-manufacturing-jobs-could-go-unfilled-by-2030-13743/?stream=workforce, May4, 2021.
36
Manufacturing Leadership Journal. (2023) The Evolution of Manufacturing Jobs.
(www.manufacturingleadershipcouncil.com/the-evolution-of-manufacturing-jobs-33574/?stream=ml-journal)
37
World Economic Forum. (2020) The Future of Jobs Report. (https://www.weforum.org/reports/the-future-of-
jobs-report-2020)
38
Society for Human Resources Management (SHRM). (March 28, 2023) Skills-based hiring requires commitment
to change. (www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/skills-based-hiring-requires-
commitment-to-change.aspx)
39
Hiring for the future of work. (www.testgorilla.com/blog/hiring-for-the-future-of-
work/?utm_term=&utm_campaign=Performance+Max+%7C+US&utm_source=google&utm_medium=cpc&hsa_ac
c=4932434860&hsa_cam=13392445085&hsa_grp=&hsa_ad=&hsa_src=x&hsa_tgt=&hsa_kw=&hsa_mt=&hsa_net=
adwords&hsa_ver=3&gclid=CjwKCAjw44mlBhAQEiwAqP3eVkc82RdWDnTrUDRJ7xPLwlYqVxbo6T2owp54C1VFcYc9
FP4Ima8DqRoCo2IQAvD_BwE)
40
Bureau of Labor Statistics. (www.bls.gov/oes/current/oes172141.htm)
41
https://vcea.wsu.edu/facilities-modernization/schweitzer-engineering-hall/
42
Rockwood, K. (May 28, 2021). The hard facts about soft skills. HR Magazine. Society for Human Resource
Management. (www.shrm.org/hr-today/news/hr-magazine/summer2021/pages/why-soft-skills-are-
important.aspx).
43
https://wsac.wa.gov/sites/default/files/2022.12.ResearchBrief.EnrollmentTrends.pdf
44
Kwakye, I., Kibort-Crocker, E., Lundgren, M. & Pasion, S. (2021, January). Fall Enrollment Report: Exploring the
Impact of COVID-19 on Postsecondary Enrollment in Washington. https://wsac.wa.gov/sites/default/files/2021-01-
12-Fall-Enrollment-Report.pdf
45
https://ccrc.tc.columbia.edu/media/k2/attachments/tomorrows-middle-skill-jobs-community-colleges.pdf
AAAC Report - DRAFT Page 69 July 2023
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46
Aerospace Pipeline Report. (2020). Joint report by Washington Workforce Training and Education Coordinating
Board and the Community and Technical Colleges Washington State Board. (www.wtb.wa.gov/wp-
content/uploads/2021/01/FINAL-Aerospace-Report.pdf).
47
www.cardinalmanufacturing.org
48
https://www.fortsmithschools.org/peak
49
https://ctec.salkeiz.k12.or.us/manufacturing-welding-and-engineering/
50
https://www.ktectraining.org/
51
The Georgia Cyber Center reports that on average, for every 10 jobs created in cybersecurity, another 8 are
established throughout the economy. Given this ratio, over 10,900 jobs can be attributed to the cybersecurity
industry and another roughly 2,900 are created in other sectors throughout the economy. These cybersecurity
occupations are also high paying. Cyber employment represents roughly 9% of overall employment in Richmond
County but 11% of total labor income. In total, direct private sector cybersecurity activities contributed roughly $371
million to gross domestic product (GDP), nearly 3% of the County’s total GDP in 2020.

52
Statistica 2023

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