Posts Tagged ‘Farnborough Air Show’

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The U.S. Aerospace Industry: Fueling Economic Growth

October 9, 2012

Francisco Sánchez is the Under Secretary of Commerce for International Trade.

Photo caption: Under Secretary Sanchez helps cut the ribbon to officially open the Farnborough International Air Show in the U.K. in July.

Photo caption: Under Secretary Sanchez helps cut the ribbon to officially open the Farnborough International Air Show in the U.K. in July.

We recently celebrated National Aerospace Week, which is a time to look back and appreciate all the pioneers from this industry whose vision and determination literally helped our nation reach new heights — names like Wright, Earhart, Armstrong and Jemison.

This is also a time to enjoy the contributions this great industry makes today. Every time an aircraft is built, it benefits a wide-range of stakeholders, from the businesses that make the parts, to those who assemble and fly the planes. And it’s critical that public and private representatives partner together to maintain our global leadership in this industry by helping American aerospace companies export their products to markets all over the world.

This is important work because U.S. exports are playing a central role in our economic recovery. When a sale is made abroad, it brings back revenue to hire workers here at home. Last year, U.S. exports supported nearly 10 million jobs, an increase of 1.2 million since 2009. Exports also accounted for nearly half of our increase in GDP in 2011.

The aerospace industry played a big part in this growth; it had nearly $87 billion in export sales in 2011. Notably, it had the largest positive trade balance of any U.S. manufacturing industry: $66 billion.  It’s also played an important role in our nation’s economic recovery, which includes 31 straight months of private sector growth, resulting in roughly 5.2 million jobs.

Exporting also has a significant positive impact on wages, resulting in an average increase of 18 percent across U.S. manufacturing industries.  So increasing exports translates to stronger economic security for middle class families. We want to build on that momentum by continuing to push forward with the President’s National Export Initiative, which aims to double U.S. exports by the end of 2014.

We need to do this in a number of ways. One is to get the word out to businesses – both small and large – that agencies like Commerce’s International Trade Administration are ready to help them seize these overseas opportunities.

Another way is to push for more federal investments in research and development and STEM (science, technology, engineering and math) education, as well as for federal policies to ensure that U.S. industry continues to have a competitive edge in aerospace and aviation.

Finally, we must continue to raise awareness abroad, and showcase how products that are “Made in America” represent quality and value. That’s why earlier this summer I attended Farnborough Airshow in the U.K. where the U.S. pavilion showcased the best of the best of America’s aerospace industry. And in August, I met with aerospace companies in Arizona and Colorado to highlight the benefits of strengthening American manufacturing and expanding U.S. exports in order to create jobs.

When new opportunities arise, we need to make sure that this industry can compete on a level playing field. We can’t afford to leave any jobs on the table.  That’s why the Administration has continuously engaged Congress over many months, on both sides of the aisle, urging support for legislation to repeal Jackson-Vanik and extend permanent normal trade relations with Russia because it will help our economy.

Already, the American aerospace industry exports hundreds of millions of dollars in aircraft and parts to Russia each year. If Congress takes action, we’ll not only see the tariff reductions that are already on-track with Russia’s accession, but we’ll also have more tools that we currently lack to address non-tariff issues like intellectual property rights and to raise concerns if there are disputes and problems in Russia’s adherence to World Trade Organization rules.

Such actions will also reward the innovation that defines American companies – and America’s aerospace industry. It is why you see international airlines around the world flying planes built here in the United States.

This industry is part of what defines America – leadership, innovation, competitiveness and strength. Let’s build on that strength – and maintain our edge in the global economy – by continuing to support the industries that employ hard working Americans.

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Transportation: Helping the Economy Move Forward

August 7, 2012

Francisco Sánchez serves as the Under Secretary of Commerce for International Trade. Follow him on Twitter @UnderSecSanchez.

Healthy economic development depends on a healthy transportation system.  That’s because people depend on everything from boats to trains to get to work, move their products, and help customers shop at their stores. 

Across the globe, as economies push for more growth and development, there is increasing demand for transportation-related products and services, presenting an incredible opportunity for U.S. businesses. 

Under Secretary Francisco Sánchez during a ceremony formalizing a partnership to promote exports between ITA and the American Association of Port Authorities.

Under Secretary Francisco Sánchez during a ceremony formalizing a partnership to promote exports between ITA and the American Association of Port Authorities.

For that exact reason, a major focus of our work at the International Trade Administration is on the transportation sector.  As you’ll see in this issue of International Trade Update, we’ve been working to help U.S. businesses in this field succeed in a number of ways.  

For example, I was proud to participate in the Farnborough International Air Show, the world’s largest aerospace trade exhibition of 2012. Every other year, the global aerospace industry descends on England to exhibit their latest products and initiate partnerships. This year, $47 billion worth — that’s billion with a ‘b,’ — of orders were announced during the show. 

As the largest aerospace industry in the world, this one sector contributed more than $89 billion in export sales to the U.S. economy in 2011, a 9 percent increase over the previous year. Furthermore, according to a study by the Economic and Statistics Administration of the Department of Commerce, aerospace directly supported more jobs through exports — 488,000 —than any other industry in 2011.

Other promising transportation sectors that achieved significant export shipments last year include motor vehicles ($63.4 billion), motor vehicle parts ($53.2 billion) and ships and boats ($2.4 billion).  Behind all these numbers is a significant story. Every time a business makes a sale abroad, that impacts bottom lines, jobs, communities and futures here at home. 

Clearly, there are significant possibilities in this space. And the good news is that in the first five months of 2012, transportation equipment accounted for nearly $101 billion of U.S. exports, up 17.2 percent from the same months of 2011.

ITA is committed to keeping this momentum going. We continue to hold trade missions focused on transportation, including some later this year to South Africa, Zambia and Turkey.

We support the President’s recent announcement to help modernize and expand 5 major ports in the United States, thereby helping American businesses reach overseas markets more efficiently.

ITA is committed to keeping this momentum going.  We continue to raise a lot of awareness for our programs and will work hard to promote international trade, open foreign markets, and create jobs and opportunities for the American people.   

Together, we can help the world meet its transportations needs far into the future, while strengthening businesses on our shores.

Related

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Global Aerospace Industry Takes Off for the World’s Largest Aerospace Trade Exhibition in 2012

July 6, 2012

Jonathan Chesebro is an Aerospace International Trade Specialist in the International Trade Administration’s (ITA) Office of Manufacturing and Services.

It’s big and it’s coming soon. The world’s largest aerospace trade exhibition in 2012, the Farnborough International Air Show, will convene in the United Kingdom from July 9-15. Every other year for one week in July, the global aerospace industry descends upon England to do business, see what big deals will be announced and which new technologies will be unveiled.

Boeing Conducts Inaugural Flight of First 787 Built in South Carolina (Photo Boeing)

Boeing Conducts Inaugural Flight of First 787 Built in South Carolina (Photo Boeing)

The 2010 Farnborough Air Show was a smashing success, with $47 billion worth of orders announced during the show, over 120,000 trade visitors and 70 delegations attending from 44 countries. This year’s show is expected to be even bigger and will feature a special ‘Jubilee Day’, which involves a number of initiatives to highlight the success of the global aerospace industry, including ‘Futures Day’, an educational program to motivate young people to follow a career in the aerospace industry.

Other expected show highlights include:

  • Boeing will show off their 787 Dreamliner in flying displays at the air show for the first time and Qatar Airways will unveil its new Boeing 787 in Qatar Airways livery;
  • Turkish Airlines is expected to announce whether it will purchase up to 15 Boeing 747-8 or Airbus A380 aircraft.

Under Secretary for International Trade, Francisco Sánchez, will be at the show to support participating U.S. companies. The Under Secretary will officially open the U.S. International Pavilion and meet with small and medium-sized U.S. aerospace companies looking to expand their export markets. Several business roundtable events are planned with established exporters and new to market companies. The Under Secretary will also meet with foreign decision makers to advocate for U.S. companies competing to sell their products or services to foreign government buyers.  The Under Secretary’s activities support the President’s National Export Initiative (NEI), the goal of which is to double U.S. exports by the end of 2014.

The U.S. aerospace industry is the largest in the world and in 2011 the industry contributed more than $85.6 billion in export sales to the U.S. economy, a nine percent increase over 2010. The industry’s positive trade balance of $47.2 billion is the largest trade surplus of any manufacturing industry and came from exporting 53 percent of all aerospace production and 77 percent of civil aircraft and component production.  According to a study by the Commerce Department’s Economic and Statistics Administration, aerospace supports more jobs through exports than any other industry: the U.S. aerospace industry directly supported 488,000 jobs in 2011.

These impressive numbers demonstrate the importance of the U.S. aerospace industry to the NEI and to the U.S. economy as a whole. For all these reasons, ITA will continue to work hard to create economic opportunity for U.S. workers and firms by promoting international trade, opening foreign markets, ensuring compliance with our trade laws and agreements, and supporting U.S. commercial interests at home and abroad.

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