The 19-member Future of Aviation Advisory Committee concluded its work today here in Washington and presented 23 recommendations to the Secretary of Transportation to ensure the future vitality of the U.S. aviation industry. 

Representatives from three major manufacturers – Boeing, Textron’s Cessna Aircraft and Goodrich Corporation –- offered critical leadership in keeping manufacturing and competitiveness issues at the fore.  Emerging as welcome priorities were the acceleration of NextGen air traffic modernization and the need for new financing mechanisms for NextGen aircraft equipage. (NextGen is short for Next Generation Air Transportation System, the digitally integrated infrastructure system for pilots and air traffic control operations. For more, see the NAM’s fact sheet, “Expediting Air Traffic Modernization and Accelerating NextGen.”)

Other top recommendations included making the R&D tax credit permanent to support aerospace innovation, development of alternative fuels, and a stronger coordinated role for STEM education to cultivate a future aerospace workforce. Safety and safety standards were a unifying theme throughout today’s discussions, as well.

Looking ahead to a fresh start for the FAA reauthorization effort in the 112th Congress and an anticipated FY 2012 Obama Administration budget proposal in early February, the Advisory Committee provided a practical blueprint for Transportation Secretary LaHood (and the authorizers in Congress) to move in the next several months.  Secretary LaHood declared the “recommendations will not sit on a shelf,” and the NAM will keep the manufacturers’ recommendations handy as we work for a comprehensive FAA reauthorization next year.

DOT news release, “U.S. Transportation Secretary LaHood Receives Recommendations on Future of Aviation“

Marion C. Blakely, the president and CEO of the Aerospace Industries Association, has taken note of the NAM’s new report from the Milken Institute, “Jobs for America,” including the analysis of the economic impact of NextGen, the advanced air transportation system, and aerospace manufacturing. From a statement:

Jobs for America says that more than 182,000 jobs could result from a $10.4 billion government investment in the Next Generation Air Transportation System.

NextGen is a solution at hand for our nation. The program is shovel ready and in addition to generating jobs will enhance the safety, security and environmental stewardship of our transportation system.

Jobs for America also calls out the value of aerospace manufacturing, which employs high-skilled labor and pays above average wages with an extensive value chain that stimulates many other manufacturing industries. According to our research, there are already 2,436 manufacturing, maintenance and installation facilities operating in every state of the union. Investment in NextGen will add more jobs to these already established and productive facilities.

The National Association of Manufacturers today released a major economic analysis documenting the impact on the economy and jobs creation of several policy changes. The report was conducted by the Milken Institute, a nonpartisan and independent think tank in Santa Monica, that used respected and rigorous economic models to assess the impact of proposals.

The report is “Jobs for America,” and the Milken Institute has put up a website with the full study, explanatory slides, and other material: http://www.milkeninstitute.org/jobsforamerica/

“Jobs for America” concludes that proposed corporate tax cuts, export control reforms and key infrastructure investments could create more than 11 million jobs in the U.S. by 2019.

Specifically:

• Reducing the U.S. corporate income tax to match the average of other industrial countries (OECD nations) would boost total employment by 2.1 million jobs.
• A permanent R&D tax credit, increased by 25 percent, could generate 510,000 jobs within a decade.
• Modernizing U.S. export controls would expand exports in high-value areas, increasing total employment by 340,000.
• Investing $425.6 billion across 10 infrastructure categories (including highway and transit, energy efficiency, wastewater treatment, Smart Grid, nuclear, etc.) would generate 10.7 million jobs over three years.

“Jobs for America” provides the substantive economic analysis that should guide policymakers with a clear course of action if, as many assert, jobs is the No. 1 facing the country.

See also NAM release, “New Study Gives Roadmap for U.S. Job Creation and Long-Term Growth“

Nineteen aviation, business and labor groups, the National Association of Manufacturers included, sent a joint letter to House Transportation Committee Chairman Oberstar and Ranking Member Mica urging support for modernizing the nation’s air traffic control system. The letter takes note of both the House Democratic leadership’s plans for a “jobs” bill and President Obama’s Dec. 3 White House Forum on Jobs and Economic Growth.

Competitiveness Under Threat
Currently, the aerospace industry provides a significant positive contribution to our balance of trade. However, the U.S. competitive position is being challenged by other countries like the European Union, Australia and Canada, which are outpacing us in implementing NextGen. Other countries like China and India will look to either the U.S. or Europe for leadership as they develop their air traffic control system. If the U.S. does not demonstrate leadership in deploying these technologies, opportunities for U.S. manufacturers and workers will be lost.

Economic and Employment Impact
Accelerated NextGen funding will drive the nation’s economic recovery and stimulate job growth across all sectors. The Joint Economic Committee has estimated that airline delays and congestion cost $40 billion in lost productivity and time for passengers and our economy. Solving the congestion and delay problems through more direct flights and increased efficiencies will increase productivity across the nation and put a serious dent in that $40 billion of lost productivity.

NextGen deployment will employ thousands of engineers, software developers and other high-tech workers to support a transition from a ground based radar infrastructure system to a satellite based infrastructure. In addition, pilots and other aviation jobs such as maintenance and installation jobs will benefit. A viable aviation sector enhances economic activity in a wide number of industries outside aviation including, among many others, travel and tourism and industries that rely on just-in-time global inventories and shipping capability.

The Air Transport Association has posted the full letter online.

The NAM has a summary sheet on NextGen here.