Economic Impact of NASA Programs on the U.S. Economy

Aerospace Industries AssociationPresident & CEO John Douglass

March 2, 2006

State of the Industry

$184.0

$170.1

$155.7

$146.6

$152.3

$151.6

$144.7

$153.7

$148.0

$131.6

$116.8

$107.8

$110.6

$123.2

$138.6

$139.2

$134.4

0

25

50

75

100

125

150

175

200

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

p

20

06

e

Billio

ns

of C

urre

nt D

olla

rs

Aerospace Industry Sales

$14.7 $15.3 $14.4

$35.8 $34.0 $35.2 $38.1 $40.4 $46.6 $50.0 $50.8

$30.5 $29.7 $29.5$34.6 $35.9

$35.9 $37.3 $38.5$25.6 $24.1 $25.3$25.4 $24.4

$26.0$28.3 $30.7

$52.9$47.6

$51.3$41.3 $32.4

$32.5$39.2

$49.5

$9.3 $10.4 $13.5$12.8$8.80

25

50

75

100

125

150

175

200

1999 2000 2001 2002 2003 2004 2005p 2006e

Billio

ns

of C

urre

nt D

olla

rs

CivilAircraft

RelatedProducts

Space

MilitaryAircraft

Missiles

$184.04.4

$152.3$146.644.4

$155.7

$170.1Total

$151.6$144.7

$153.7

Aerospace Industry Sales

0

20

40

60

80

100

120

140

160

180

200

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005P

2006E

Billions of D

ollars

Aerospace Sales by Customer

Commercial and FMSDOD NASA

Orders, Shipments, and Backlog

0

50

100

150

200

250

300

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

1H

05

*2

20

05

Billio

ns

of C

urre

nt D

olla

rs

Backlog

Orders

Shipments

“Aerospace” Employment

612.3587.1

672.0

1120.8

741.1

618.4592.0

0

200

400

600

800

1,000

1,200

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

(in thousands)

NASA makes up an estimated 1/10 of aerospace employment

Economic Impact of NASA Programs on the U.S. Economy

U.S. Competitiveness in Question

• America’s Asian and European competitors understand the strategic role of space exploration in building political and economic power.• China-China National Space Administration’s

20 year strategic plan• Russia-Russo-Chinese Sub-commission on

Space Cooperation• India- India Space Research Association• The European Union- European Space

Agency

Truth in Space Budgeting

• NASA accounts for a fraction of the federal government’s budget and has never diverted resources from domestic discretionary spending programs

• For 36 of the last 48 years in existence NASA has accounted for less than one penny of every federal dollar expended

• No trade-offs exist between NASA and other priority programs

The Real Connection Between Space and Life on Earth

• Space exploration technologies have transformed health care, environmental protection, transportation, and public safety programs

• These tangible benefits generate economic growth• According to NASA, “For every space-

related R&D dollar that NASA spends, the government captures seven dollars in tax revenue as a result of the net gain in jobs and contracting activities.”

0

200

400

600

800

1000

1200

1400

1600

1800

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

$ i

n M

illi

on

s

NASA Aeronautics Funding FY1994 – FY2011

FY2007 President’s Budget Request cuts aeronautic by $178.3 million or 18.1 percent

Where do we go from here? And why?

• The Administration has shown a clear preference to deemphasize its aeronautics programs (18.1% cut in FY07 submission).

• Our foreign competitors continue to ramp up targeted funding for aeronautics research.

• The U.S. lead in aeronautics is at grave risk.

• NASA must once again play its historical role in funding critical, pre-competitive research.

• Funding at proposed levels of approximately $720 million per year is not sufficient.

• NASA must fully reengage with its Industry partners to ensure a dynamic and fruitful aeronautics program.

AIA Aeronautics Strategy

• Stop the bleeding - Aggressive strategy resulted in $912.3 million (+ $60 million) for

NASA aeronautics in FY 2006

- Space Exploration left harmless

- Challenge ahead to do the same for FY2007

• Develop & implement healthy, long-term U.S. aeronautics policy

- Work with administration, Congress, and stakeholders to develop policy that is consistent with aviation’s importance to the U.S. economy

- Mandated by Nov. 2006 by NASA Reauthorization and Appropriations bills

NASA must regain mission as world’s leader in aeronautics research

www.aia-aerospace.org