Snapshot of Massachusetts Aerospace & Aviation Industry (2001)
By Vik Kachoria | May 7, 2008
AIA’s 2001 report titled “Commission on the Future of the US Aerospace Industry” is a bit dated, but the latest I could find that provides state-by-state comparisons of the economic impact of aerospace/aviation industries.
Though published in Oct 2002 it does not include the significant downturn in the industry resulting from 9/11. On the flip side, keep in mind the tremendous growth since 2002 in general aviation (business jets) and military contracts resulting from Afghanistan/Iraq.
The following data was extracted from the report.
Massachusetts
Establishments: 403 (17th nationally)
Employment: 44,086 (17th nationally)
Average Annual Wages: $49,820 (8th nationally)
Wage Premium Over Average: 12%
Payroll: $2.3b
United States
Establishments: 21,852
Employment: 2,034,587
Average Annual Wages: $35, 296
Payroll: $98b (2.1% of total payroll)
As noted above, Massachusetts aerospace & aviation employment ranks #17th in the country. This is behind New York, Illinois, Arizona, Ohio, New Jersey, Kansas, Tennessee, Connecticut, Missouri & Virginia.
We are also ranked 17th based on the number of organizations. Pennsylvania, Ohio, Illinois, Virginia, Colorado, New Jersey, North Carolina & Missouri all have more companies and institutions than Massachusetts.
Los Angeles, Seattle, Chicago, Atlanta & Fort Worth were the top metro areas. I was happy to see Boston/NH was at least on the list - in 8th place.
With so few aerospace jobs in this state, no wonder our graduates are getting a phenomenal education at MIT, Harvard, Boston University & Northeastern and then leaving for greener pastures – depleting the state of the high caliber/highly educated individuals.
The commission included the following footnote, something I’ve also struggled with in my research of the industry:
The present SIC code structure does not permit a clear analysis of every segment of the industry. For instance, the SIC system does not allow us to isolate those components of the military that are aerospace and aviation related. All the branches of the armed forces are classified together under SIC code 9711, National Security. For this reason, this report only examines the civilian and commercial components of the aerospace and aviation industry.
Also, we are not able to isolate flying instruction schools — an important component of the air transportation industry — since the current SIC code structure aggregates data for these schools along with drama schools, charm schools, and modeling schools. Finally, the SIC system also does not allow us to capture those companies that manage certain aerospace and aviation facilities under SIC code 8744, Facilities Support Management Services. Unfortunately, this SIC code includes the management of private correctional facilities and jails.
Source: U.S. AEROSPACE AND AVIATION INDUSTRY: A STATE-BY-STATE ANALYSIS
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