|Statement||James Dertouzos and Michael Dardia.|
|Contributions||Dardia, Michael., Rand Corporation.|
|LC Classifications||HC107.C23 D443 1993|
|The Physical Object|
|Pagination||ix, 31 p. :|
|Number of Pages||31|
|LC Control Number||94226047|
These declines raise public policy concerns about the overall economy, the defense industrial base, and the economic well-being of regions, industries, and workers that are particularly dependent on aerospace procurement. This industry is quite important to the California economy, and even more important to Los Angeles County. effects of defense spending on the economy, since those effects can, in prinCiple, be of bet or achieved by other policies. It is, nonetheless, important to be mindful of the economic effects of defense spending, since that knowledge can help in shaping appropriate . The Defense Department recently announced plans to trim spending by $ billion over the next 10 years. In addition, a stalemate over how to reduce the debt will trigger up to an additional $ Less important, but hardly irrelevant. Even under the worst of scenarios, “the aerospace industry will continue to be an important factor in California’s economy, supporting over ,
Posted by Steven Brand. The aerospace industry in California has played a large role in the region’s economy for over a half century. With recent changes in the economy and a new administration in the White House, this is a good time to review the outlook for this vital industry. Overall, things are looking good for California’s aerospace industry in Triumphs and failures like these have been woven into Southern California’s aerospace industry since the beginning. From production and employment spikes during war times to mass job and economic losses after they ended. “Aerospace is a boom and bust industry. With continued defense budget cuts, the state is expected to lose , to , more such jobs in five years. One-fifth of manufacturing jobs in southern California are in aerospace. The economic benefits created by military installations are susceptible to change at both the federal and state levels. Recent events such as the drawdown of troops in Iraq and Afghanistan, federal budget cuts, and potential future rounds of Base Realignment and Closure have left government officials uncertain of the future role and sustainability of military installations.
Aerospace & Defense Risk. The companies involved in the aerospace and defense industries are subject to fierce competition, consolidation, adverse political and government developments, substantial research and development costs, limited numbers of potential customers and excess capacity and spending trends. In his book Prophets of War A argument in favor of bailing out the defense industry from Thomas Donnelly argued that increased defense spending is a balm to a hurting economy and. The defense sector soared in as defense budgets increased. But production-related issues, cancelations, and fewer orders slowed growth in the commercial aerospace sector and the global aerospace and defense industry overall. Will things rebound in ? Long-term demand for commercial aircraft and innovative technologies may hold the tion: US And Global A&D Leader. During that period, the U.S. aerospace industry job base shrank 25% nationwide. California saw its aerospace industry employment drop 40%, the bulk of that in the Southland, as a .