Arizona is a top-ranked defense state with much at stake in the forthcoming sequestration and budget cuts

Aerospace Industry

NOTE: This report was published in 2013 and the data on this page is reflective of that.

 

The State of Greater Phoenix’s Aerospace and Defense Industry: A pre-Sequestration Analysis

Executive Summary

Arizona is a top-ranked defense state with much at stake in the forthcoming sequestration and budget cuts associated with the 2011 Budget Control Act – an estimated $1 trillion over 10 years. According to the Pew Center on the States, 5.2 percent of the state’s GDP is dependent on federal defense funding, making it the 10th most vulnerable state in the nation. Indeed, a recent analysis by Wells Fargo Economic Group also classified Arizona as a “high risk” state in terms of vulnerability.

In anticipation of these massive cuts, the Greater Phoenix Economic Council (GPEC) – along with its Economic Development Directors Team and the Greater Phoenix Chamber of Commerce – last year undertook a major market intelligence initiative to determine the existing strengths and weaknesses of Arizona’s aerospace and defense industries. Based on this data snapshot, the analysis also sought to understand the potential impact of sequestration on our local companies, communities, workforce and innovation base.

The program consisted of two main components. The first developed an in-depth profile and analysis of 114 local companies identified by GPEC using data from the Office of Management and Budget. The second was an extensive door-to-door outreach effort to these companies conducted by mayors, local chambers of commerce, GPEC Ambassadors (volunteers from GPEC’s member companies) and municipal economic development directors and their teams.

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