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Prepared by:
2015 ECONOMIC
IMPACT OF GEORGIA’S
AEROSPACE INDUSTRY
June 2017
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 1
Table of Contents
Executive Summary 2
Section 1: Introduction 9
Section 2: Economic Impact of Aerospace in Georgia 12
Section 3. Fiscal Impact of Aerospace in Georgia 16
Section 4. Contribution of Aerospace to Georgia’s GDP 16
Section 5. Location of Aerospace Firms in Georgia 17
Section 6. Special Interest Aerospace Regions 17
Section 7. Unmanned Aircraft Systems Companies 22
Section 8. Space Companies 23
Appendix 1. Economic Impact by Regional Commission 24
Appendix 2: Methodology, Definitions, and References 28
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 2
Executive Summary
This 2015 economic impact study of aerospace related activity in the state of Georgia is an
update of similar economic studies commissioned by Georgia’s Center of Innovation for
Aerospace (COIA) to assess the industry’s contribution to the state’s economy in 2011 and
2013.
This analysis quantifies the level of economic activity conducted by the components of the
aerospace industry in 2015, estimates its fiscal impact, and quantifies the industry’s
contribution to the state’s Gross Domestic Product using an input-output economic model
and available industry data. The study also estimates the economic impact of aerospace
activities in four selected regions of the state and analyzes two small but emerging niches –
unmanned aircraft systems (UAS) and space related companies located in the state of
Georgia.
The aerospace industry continues to expand across the state, and saw significant growth
between 2013 and 2015. Aerospace direct employment increased by 10,632 or 12
percent in 2015 compared to 2013. The total economic impact of the industry is
estimated to be almost $64 billion in FY2015, an increase of 22% over 2013 results.
Direct output of aerospace industry increased by nearly $6.5 billion, an increase of 20
percent, from 2013 to 2015. Total output also increased by 25 percent between 2013
and 2015. The key findings of this study are shown below in Table E-1.
In 2015, the aerospace industry supported 268,232 jobs in Georgia, representing 6.5%
of the state’s total employment, contributing $29.3 billion to the state’s GDP (6 percent
of the total GDP). Wages and salaries of direct employment increased nearly $10 billion in
2015, an increase of $826 million (9 percent) from 2013. The wages and salaries of total
aerospace related jobs also grew by $2.8 billion (18 percent) in the same period. Each job
in the aerospace industry supported 1.71 additional jobs in Georgia in 2015. Table
E-1 provides a summary of the key metrics.
Table E-1: Georgia’s Aerospace Industry Economic Activity: 2015
Direct Indirect Induced Total
Employment 98,991 71,277 97,964 268,232
Wages &
Salaries $9,986,897,729 $4,184,769,135 $4,212,834,918 $18,384,501,782
Output $38,909,655,978 $11,406,271,664 $13,470,173,137 $63,786,100,779
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 3
Definition of Aerospace Industry in Georgia
The Georgia Center of Innovation for Aerospace uses “Aerospace” as an inclusive term
covering the full range of life cycle activities for vehicles that fly in the air or in space. To
measure the economic impact of the broad span of these activities in this analysis, this
study’s aerospace industry includes the six-digit North American Industrial Classification
System (NAICS) industries shown in Table E-2 to describe their operations. The data used
in this analysis were carefully examined and tailored to exclude any non-aerospace related
companies and organizations.
Economic Impact
The aerospace industry, as defined by the NAICS codes shown on page 2 and tailored to
exclude non-aerospace firms, employed 98,991 workers in 2015. This estimate includes
civil service employment at Robins AFB, Dobbins AFRB and Moody AFB, which together
comprise nearly 15 percent of the total direct employment in aerospace industry.
Employees in the aerospace industry were paid nearly $10 billion in wages and salaries
and generated an economic output of $38.9 billion in 2015.
While a large share of the impacts is attributed to direct employment, the total economic
impact (direct, indirect and induced) of aerospace industry is significant. The ongoing
Table E-2: Aerospace Industry Definition Components by NAICS Code
Sector Category Sector Category
Soil preparation, planting, and cultivating Support Fueling aircraft (except on contract basis) Support
Forestry Services (Crops spraying) Support Durable goods agents and brokers,
wholesale trade Support
Tire manufacturing, except retreading Support Scheduled passenger air transportation Core
Insulated wire or cable made in aluminum
wire Support Scheduled freight air transportation Core
Aircraft and automotive wire or cable made
from purchased copper in wire Support Nonscheduled air passenger chartering Core
Hardware manufacturing Core Nonscheduled air freight chartering Core
Machine Shops Core Other nonscheduled air transportation Core
Metal Coating Support Air traffic control Core
Electroplating, Plating, polishing Support Other airport operations Core
Fluid power valve and hose fitting mfg. Support Other support activities for air transport Core
Bearing Manufacturing Support Applications software programming
services, custom computer Support
Overhead cranes, hoists, and monorail
systems Support
Computer hardware consulting services or
consultants Support
Industrial truck, trailer, and stacker mfg. Support Business management consulting services Support
Search, detection, and navigation
instruments Core Other physical and biological research Support
Motor vehicle seating and interior trim mfg. Core Aircraft janitorial services Support
Aircraft manufacturing Core Flight training Support
Aircraft engine and engine parts mfg. Core Other technical and trade schools Support
Other aircraft parts and equipment Core Reupholstery and furniture repair Support
Gasket, packing, and sealing devices
manufacturing Support Transportation program administration Core
Other transport. goods merchant wholesalers Support
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 4
operations of aerospace generated ripple impacts throughout the state supporting an
additional 169,241 indirect and induced jobs with earnings of $8.4 billion and
economic output of $24.9 billion. This brings the total economic output to nearly
$63.8 billion (see Table E-1).
Study findings show that wages of aerospace employees are higher than Georgia’s overall
average wages of all industries. The 2015 average wage rate, including benefits, of
aerospace workers in Georgia was $100,887. The annual average wage rate without
benefits was $72,639 or 47 percent higher than the state’s overall average wage
rate of $49,5511.
The employment multiplier of aerospace industry in Georgia was 2.71 and the income
multiplier was 1.84. The industry’s high level of output and high wages, which translates
in higher spending and demand for goods and services, has resulted in higher multipliers
than the average multipliers of all sectors.
Fiscal Impact
The fiscal impact of aerospace industry was calculated by
estimating the revenues associated with the industry’s total
economic activity and subtracting the costs associated with
providing state services to Georgia’s households and companies associated with that
activity. Revenues included individual and corporate income taxes, sales and use taxes,
highway taxes, fees, and miscellaneous revenues. Costs included education; public health,
safety, and welfare; highways; administration; and miscellaneous. Table E-3 provides the
fiscal impact estimates based on the estimated industry total impacts. The aerospace
industry generated nearly $2 billion in revenues for the state budget in calendar
year 2015. When the costs of providing services to all employees were deducted from these
revenues, the net contribution of aerospace industry to the state revenues in 2015
was nearly $1.2 billion.
Table E-3: Aerospace Fiscal Impact Analysis: 2015
Annual State Government Revenues $1,951,040,627
Annual State Government Costs $796,665,601
Net Annual Revenues $1,154,375,026
1 Source: Quarterly Census of Employment and Wages - Bureau of Labor Statistics: 2015 Annual Averages, All establishment sizes.
Each job in the
aerospace industry
supported 1.71
additional jobs in
Georgia in 2015
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 5
Aerospace Industry and the State’s GDP
Aerospace industry is an
important driver of the
state’s economic activity. It
creates and supports high-
paying jobs for Georgia’s
citizens. In calendar year
2015, aerospace
supported 268,232 jobs
or 6.5 percent of the
state’ total
employment2, and it
contributed $29.3 billion
to the state’s GDP or 6
percent.
Location of
Aerospace Firms in
Georgia
Georgia‘s diverse
aerospace industry
includes a range of firms
that manufacture,
operate, service, and
repair aircraft, provide air
transportation, and
operate flight schools. The
map below shows the
location of aerospace
firms in Georgia. Firms
were geocoded and
mapped based on their
physical address.
2 Source: Quarterly Census of Employment and Wages - Bureau of Labor Statistics: 2015 Annual Averages, All establishment sizes.
Aerospace
Industry
6%
Figure E-1: Contribution of Aerospace Industry to the State of Georgia's GDP (2015)
Figure E-2: Georgia Aerospace Firms by County: 2015
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 6
Special Interest Aerospace Regions
As the map clearly shows, there are specific clusters of aerospace activity, which closely
correlate to administratively assigned economic development regions in Georgia3. As a
result, this study’s process of economic modeling and analysis was used to create a regional
view of economic impact in four selected regions:
Region 3 – Atlanta Regional Commission
Region 6 – Middle Georgia
Region 8 – River Valley
Region 12 – Coastal
Table E-4 shows a list of these regions and their respective counties.
The Atlanta Regional Commission (Region 3) is a 10-county area with the largest aerospace
activity compared to the other eleven regions. The economic impact that stemmed from
aerospace activities in 2015 accounts for more than 50 percent of the industry’s overall
economic impact in the state of Georgia. There were 56,757 jobs associated directly with
aerospace industry in 2015. These jobs generated $5.8 billion in direct wages and salaries
and $19 billion in output. Using a regional economic model, it is estimated that aerospace
activities created and supported 145,883 total jobs with earnings of nearly $10.7 billion,
and output of nearly $32.5 billion.
The Middle Georgia Region (Region 6) is comprised of eleven counties. Aerospace companies
employed 23,665 people in the region, who earned $2.3 billion in wages and salaries. The
3 The state’s regional commissions (RCs) function as multicounty planning and development
agencies. A map of RCs can be found here: http://www.georgia.org/business-resources/expand-a-
business-in-georgia/
Table E-4: Regional Commissions
Regions Counties
ATL Regional
Commission
(Region 3)
Cherokee, Clayton, Cobb, DeKalb, Douglas, Fayette, Fulton, Gwinnett,
Henry, Rockdale
Middle Georgia (Region 6)
Baldwin, Bibb, Crawford, Houston, Jones, Monroe, Peach, Pulaski,
Putnam, Twiggs, Wilkinson
River Valley
(Region 8)
Chattahoochee, Clay, Crisp, Dooly, Harris, Macon, Marion, Muscogee,
Quitman, Randolph, Schley, Stewart, Sumter, Talbot, Taylor, Webster
Coastal (Region 12)
Bryan, Bulloch, Camden, Chatham, Effingham, Glynn, Liberty, Long,
McIntosh, Screven
Source: Georgia Department of Community Affairs
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 7
regions’ direct employment includes 13,600 jobs held by civilians employed at Robins Air
Force Base. Companies in this region generated nearly $8.5 billion in direct output during
that year. The total economic impact of aerospace activities in the region totaled to 48,928
jobs with wages and salaries of $3.2 billion and output of nearly $11.6 billion.
The River Valley Region (Region 8) encompasses 16 counties. In 2015, there were 899 direct
jobs with wages and salaries of $63.5 million related to aerospace activity in the region.
Direct output was $426.9 million. The overall industry economic impact in the region totals
to 1,724 jobs, $98.3 million in earnings and $537.7 million in output.
The Coastal Region (Region 12) includes 10 counties. This region is the state’s third largest
in terms of aerospace activity. There were 12,166 direct jobs connected to aerospace activity
in the region in 2015 that injected $1.4 billion of direct wage and salaries into the region’s
economy. Direct output was $9 billion. Individual and business spending supported
additional regional economic activity bringing the total economic impact to 28,367 jobs, $2.1
billion in wages and salaries and $11.2 billion in output.
Unmanned Aircraft Systems (UAS) Companies
Unmanned aircraft systems (UAS) have been used by the military for decades and the
technology has now been authorized by Congress and FAA regulations to be applicable
commercially. Commercial use of UAS has rapidly expanded since its initial authorization
in 2015. Given the growing commercial use of UAS in a wide variety of industries such as
agriculture, media and construction, this study quantified the economic impact of UAS
companies operating in the state of Georgia in 2015 to be used as a baseline in future
studies.
Using data provided by the Georgia Department of Labor, it was determined that UAS
companies employed 603 people in year 2015, who earned nearly $44 million in wages and
salaries and generated $130 million in economic activity. Spending by these companies and
their employees generated additional activity in other sectors of the state’s economy.
Overall, UAS companies in 2015 created and supported 1,330 jobs with wages & salaries of
$78 million and generated nearly $233 million of economic activity.
Table E-4: Economic Impact of Unmanned Space Systems Companies in Georgia:
2015 Direct Indirect Induced TOTAL
Employment 630 285 415 1,330
Wages &
Salaries $44,057,919 $16,135,058 $17,858,485 $78,051,462
Output $129,810,685 $45,616,544 $57,098,990 $232,526,219
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 8
Space Companies
An increasing number of companies in Georgia are actively pursuing activities in the space
industry. The Center of Innovation for Aerospace has determined that there were 12
companies with some activities in the space sector in 2015. These companies employed 915
employees that earned $122 million in wages and salaries and $333 million in economic
activity. Further spending by space companies and their employees resulted in supporting
an additional 1,548 indirect and induced jobs with wages of $74.3 million that resulted in
output of $220.7 million. Table E-5 shows the total impact of space companies in the state
of Georgia.
Table E-5: Economic Impact of Space Companies in Georgia: 2015
Direct Indirect Induced Total
Employment 915 503 1,045 2,463
Wages &
Salaries $121,859,842 $29,362,220 $44,944,721 $196,166,783
Output $333,076,945 $79,006,681 $143,706,628 $555,790,254
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 9
SECTION 1
Introduction
The economic impact study of Georgia’s aerospace industry measures the industry’s
contribution to the state’s economy in 2015 by quantifying its activity in terms of economic
output, employment, and employee compensation. The study also assesses the industry’s
impact in state government costs and revenues. This report is an update of the economic
study conducted in 2013.
Economic output is typically defined as business revenues, and employee compensation is
defined as wages and salaries including benefits, paid by employers. Total activity is
generally referred to as the “multiplier effect.” This effect occurs whenever dollars are
brought into a state’s economy and recirculated before exciting or “leaking out.” Section 2
explains the methodology used to estimate total economic activity, and provides perspective
on how important these activities are in the overall Georgia economy. Section 3 quantifies
the industry’s impact on state government costs and revenues. Sections 4 and 5 compare
the economic activity of aerospace industry to the state’s GDP and show the location of
aerospace firms in Georgia, respectively. Section 6 is an addition to the 2013 study and it
quantifies the economic impact of unmanned space systems companies located and
operating in the state of Georgia. The latest study quantifies the economic impact of space
companies shown in Section 7.
Definition of the Aerospace Industry in Georgia
The aerospace industry in Georgia has many diverse functions including research,
development, manufacturing, maintenance/repair and overhaul, operations, education and
training. To collect data for this study, the North American Industry Classification System
(NAICS) was used to group and identify aerospace companies. In its classification scheme,
NAICS does not always explicitly identify aviation or aerospace activity, making a
consistent definition difficult. For example, soil preparation, NAICS 115112 includes a
wide range of activities related to irrigation, tilling and fertilization. Aerial application of
chemicals by aircraft is embedded in this classification. This tendency to embed aviation
and aerospace related products and services in broad NAICS classification causes the
definition of aerospace industry to vary by state. The NAICS classification data included in
this study were carefully examined by the Georgia Center of Innovation for Aerospace and
tailored to exclude any non-aerospace related companies and organizations. NAICS codes
used in this study are described in Table 1-1. The industry definition was updated in the
2013 study to include a more extensive list of sectors and make adjustments due to
revisions of the NAICS code classification. The list of sector was further expanded in the
2015 study.
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 10
Table 1-1: Aerospace Industry Definition Components by NAICS Code
Industry Sector
Industry
(NAICS)
Code
Category
Soil preparation, planting, and cultivating 115112 Support
Forestry Services (Crops spraying) 115310 Support
Tire manufacturing, except retreading 326211 Support
Insulated wire or cable made in aluminum wire 331318 Support
Aircraft and automotive wire or cable made from
purchased copper in wire 331420 Support
Hardware manufacturing 332510 Core
Machine Shops 332710 Core
Metal Coating 332812 Support
Electroplating, Plating, polishing 332813 Support
Fluid power valve and hose fitting mfg. 332912 Support
Bearing Manufacturing 332991 Support
Overhead cranes, hoists, and monorail systems 333923 Support
Industrial truck, trailer, and stacker mfg. 333924 Support
Search, detection, and navigation instruments 334511 Core
Motor vehicle seating and interior trim mfg. 336360 Core
Aircraft manufacturing 336411 Core
Aircraft engine and engine parts mfg. 336412 Core
Other aircraft parts and equipment 336413 Core
Gasket, packing, and sealing devices manufacturing 339991 Support
Other transport goods merchant wholesalers 423860 Support
Fueling aircraft (except on contract basis) 424720 Support
Durable goods agents and brokers, wholesale trade 425120 Support
Scheduled passenger air transportation 481111 Core
Scheduled freight air transportation 481112 Core
Nonscheduled air passenger chartering 481211 Core
Nonscheduled air freight chartering 481212 Core
Other nonscheduled air transportation 481219 Core
Air traffic control 488111 Core
Other airport operations 488119 Core
Other support activities for air transport 488190 Core
Applications software programming services, custom
computer 541511 Support
Computer hardware consulting services or consultants 541512 Support
Business management consulting services 541611 Support
Other physical and biological research 541712 Support
Aircraft janitorial services 561720 Support
Flight training 611512 Support
Other technical and trade schools 611519 Support
Reupholstery and furniture repair 811420 Support
Transportation program administration 926120 Core Source: North American Industrial Classification System (2012); Georgia Center of Innovation for Aerospace,
Georgia Tech’s Enterprise Innovation Institute
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 11
Top Aerospace Companies in Georgia Georgia is home to companies in three major aerospace market sectors: manufacturing, air
transportation and maintenance, repair and overhaul (MRO). With the world’s busiest
commercial airport, Georgia is home to Delta Air Lines and several of the largest air
carriers. Georgia is also the home base for two large aircraft manufacturers and a
multitude of their lower tier suppliers. With the large number of aircraft and airports,
Georgia is the natural home for several large Maintenance, Repair and Overhaul (MRO)
enterprises. Georgia is also home for companies and academic centers that do significant
amount of research and development for aerospace. Table 1-2 displays a list of the top 20
aerospace employers in Georgia.
Table 1-2. Top 20 Aerospace Employers in Georgia: FY 2015
No. Company Name
1. Delta Air Lines
2. Warner Robins Air Logistics Center (civilian employees only)
3. Lockheed Martin Aeronautics
4. Gulfstream Aerospace Corp.
5. ExpressJet
6. FAA
7. Southwest Airlines (Air Tran)
8. AirServ Security
9. MEGGITT
10. Moody Air Force Base (civilian only)
11. Dobbins Air Reserve Base (civilian only)
12. The Boeing Company
13. SITA
14. City of Atlanta-Hartsfield Jackson International Airport (HJIA)
15. Northrop Grumman Corp
16. ViaSat
17. PCC Airfoils LLC
18. Precision Components International Inc.
19. Triumph Aerostructures
20. Honeywell (formerly EMS Technologies)
Sources: Georgia Center of Innovation for Aerospace, GDEcD
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 12
SECTION 2
Economic Impact Analysis
The conceptual basis for estimating economic benefits of an industry is that resources
brought into a state’s economy by that industry raise the level of economic activity. The
aerospace industry provides a wide range of direct economic benefits in Georgia. These
benefits are measured by analyzing employment, income (wages & salaries), and output
(business revenues). From these direct impacts, multiplier effects are also evaluated, as
income and other spending are re-spent in the local economy thereby supporting increased
employment, income, and business revenues. These increases are estimated from an input-
output (I/O) economic model.
The analytical process of estimating the economic impacts (direct, indirect, and induced) of
aerospace in this study involved the following steps:
Direct employment for each sector (by NAICS code) was quantified. This study counted
the number of employees working for companies whose primary business supports the
aerospace industry in Georgia. The best source for employment and wages is the
employment security data collected and maintained by the Georgia Department of
Labor. Commonly called ES202 data, it has the advantage of being current, allowing
an estimate of the economic benefits occurring in 2014. It has the drawback, however,
of not including single proprietorships (because they have no employees).
Review of employment data was a critical part of this analysis due to the broad definition
of NAICS codes for aerospace sectors. Employment was verified by calling individual
firms (calls were conducted by Georgia’s Center of Innovation for Aerospace), and changes
were made where necessary. During the vetting process, it became apparent that many
companies were classified under the wrong code. Every attempt was made to capture all
aerospace–related employment as defined by the NAICS codes listed on page 10. We
recognize that there may be many supporting companies that are not included in this
study.
The third step was to use the I/O model to estimate total impacts, which were divided
into three components. The first was the direct impacts (the value of resources brought
into the state); the second was indirect impacts (impacts from recirculation of resources
resulting from aerospace industry purchases from other industries); and the third was
induced impacts, resulting from activities in the household sector. The total impact
was the sum of direct, indirect, and induced impacts.
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 13
Table 2-1 provides estimates of the impacts of aerospace industry sectors contained in the
industry’s definition. Georgia’s aerospace industry employed 98,991 workers in 2015,
who earned nearly $10 billion in wages and salaries and generated an economic
output of $38.9 billion. The direct employment included civilian employment at Robins
AFB, Moody AFB and Dobbins ARB, which in 2015 accounted for 15 percent of Georgia’s
direct employment in aerospace industry.
While a large share of the impacts is attributed to direct employment, the total economic
impact (direct, indirect and induced) of aerospace industry is significant. The ongoing
operations of aerospace generated ripple impacts throughout the state supporting an
additional 169,241 indirect and induced jobs with earnings of $8.4 billion and
economic output of $24.9 billion.
Overall, wage rates of aerospace employees were higher than Georgia’s average wage rates
of all industries. In 2015, the annual average wage of aerospace industry workers,
excluding benefits, was $72,639 or 47 percent higher than the state’s overall
average wage rate of $49,551. The average wage rate, including benefits, of aerospace
workers in Georgia was $100,887.
The employment multiplier of the aerospace industry was Georgia was 2.71 and the income
multiplier was 1.84. These multipliers were higher than state’s average multiplier of all
sectors due to the industry’s high level of output and high wage rates.
Other Impacts not captured in this study
Aerospace industry generates additional impacts that are not captured in this
study. Single Proprietor businesses are not required to report employee totals, and
therefore have not been included in this analysis. There are a number of these
types of employers in the aerospace industry in Georgia, particularly in the
emerging sector of UAS. Additionally, the small airports have a significant impact
on the success of local economies and businesses, and that impact has not been
assessed as part of this report.
Table 2-1: Georgia’s Aerospace Industry Economic Activity: 2015
Direct Indirect Induced Total
Employment 98,991 71,277 97,964 268,232
Wages &
Salaries $9,986,897,729 $4,184,769,135 $4,212,834,918 $18,384,501,782
Output $38,909,655,978 $11,406,271,664 $13,470,173,137 $63,786,100,779
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 14
Findings of 2011, 2013 and 2015 Studies
The Georgia Center of Innovation – Aerospace engaged Georgia Tech to conduct the
economic impact of Aerospace industry in Georgia in 2011. The economic impact study was
updated using 2013 data. The latest update is based on 2015 industry data. Figures 2-1
through 2-3 show a summary of the studies’ findings. It is important to note that aerospace
industry definitions (sectors included) vary in each study. Furthermore, revisions of NAICS
code definitions have an impact on the direct effect numbers. Therefore, caution should be
exercised in comparing the results of the three studies.
Aerospace direct
employment
increased by
10,632 or 12
percent in 2015
compared to
employment in
2013. The
increase in direct
employment
resulted in total
impact
increasing by 22
percent.
As shown in
Figure 2-2,
wages and
salaries4 of
direct
employment
increased to
nearly $10
billion in
2015.
This is an
increase of
$826 million,
or 9 percent from 2013 rates. The wages and salaries of total jobs also grew by $2.8 billion
or 18 percent. This is contrary to the slight decline of total wages and salaries from 2011 to
2013.
4 Wages and salaries presented in Figure 2-2 are not adjusted for inflation
88,873
47,874
105,416
242,163
88,359
52,776
78,043
219,178
98,991
71,277
97,964
268,232
-20,000
30,000
80,000
130,000
180,000
230,000
280,000
Direct Effect Indirect Effect Induced Effect Total Effect
Figure 2-1. Aerospace Industry Employment in Georgia2011; 2013; 2015
2011 Employment 2013 Employment 2015 Employment
$8.28
$2.61
$4.82
$15.71
$9.16
$2.97
$3.44
$15.57
$9.99
$4.18
$4.21
$18.38
$0 $5 $10 $15 $20
Direct Effect
Indirect Effect
Induced Effect
Total Effect
Billions
Figure 2-2. Aerospace Industry Wages & Salaries in Georgia2011; 2013; 2015
2011 Wages & Salaries 2013 Wages & Salaries 2015 Wages & Salaries
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 15
Direct
output5 of
aerospace
industry
increased by
nearly $6.5
billion, an
increase of 20
percent, from
2013 to 2015.
Total output
also
increased at a
robust rate of
25 percent.
5 Output figures shown in Figure 2-3 are not adjusted for inflation.
$30.42
$6.82
$13.47
$50.71
$32.45
$8.16
$10.26
$50.86
$38.91
$11.41
$13.47
$63.79
$0.00 $15.00 $30.00 $45.00 $60.00 $75.00
Direct Effect
Indirect Effect
Induced Effect
Total Effect
Billions
Table 2-3. Aerospace Industry Output in Georgia2011; 2013; 2015
2011 Output 2013 Output 2015 Output
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 16
SECTION 3
Fiscal Impact Analysis
This analysis also includes a fiscal assessment of how aerospace affects state tax revenues.
The fiscal impact analysis was calculated by estimating the revenues associated with the
aerospace industry’s total economic activity and subtracting the costs associated with
providing state services to Georgia’s households and companies associated with that activity.
Revenues included individual and corporate income taxes, sales and use taxes, highway
taxes, fees, and miscellaneous revenues. Costs included education; public health, safety, and
welfare; highways; administration; and miscellaneous. Table 3-1 provides the fiscal impact
estimates based on total impacts. The aerospace industry generated nearly $2 billion
in revenues for the state budget in calendar year 2015, which represents nearly
10% of the total state budget for its 2015 Fiscal Year6. When the costs of providing
services to all employees were deducted from these revenues, the net contribution of
aerospace industry to the state revenues in 2015 was nearly $1.2 billion.
Section 4 Aerospace Industry’s Contribution to
Georgia’s GDP
Aerospace industry is an important
driver of the state’s economic activity.
It creates and supports high-paying
jobs for Georgia’s citizens. In 2015,
aerospace supported 268,232 jobs
or 6.5 percent of the state’ total
employment7, and it contributed
$29.3 billion to the state’s GDP or
6 percent.
6 Source: GA 2015 Department of Revenue Annual Report-
https://dor.georgia.gov/sites/dor.georgia.gov/files/related_files/document/ADM/Report/2015_Statistical_Report.pdf
7 Source: Quarterly Census of Employment and Wages - Bureau of Labor Statistics: 2015 Annual Averages, All establishment sizes.
Table 3-1: Aerospace Fiscal Impact Analysis: 2015
Annual State Government Revenues $1,951,040,627
Annual State Government Costs $796,665,601
Net Annual Revenues $1,154,375,026
Aerospace Industry
6%
Figure 4-1: Contribution of Aerospace Industry to the State of Georgia's GDP (2015)
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 17
SECTION 5
Location of Aerospace Firms
Georgia‘s diverse aerospace industry includes a range of firms that service and repair
aircraft, provide air transportation, and operate flight schools.
The following map
shows the location of
aerospace firms in
Georgia. Firms were
geocoded and mapped
based on their physical
address. Incomplete
addresses were either
not displayed on the
map or mapped based on
the address information
available – e.g., P.O. Box
or zip code maps to the
center of the 5-digit zip;
city name only maps to
the center of the
city. Note that there is
widespread activity
throughout the state,
with high-activity
clusters surrounding the
Atlanta Regional
Commission, Middle
Georgia, River Valley
and Coastal Regions.
SECTION 6
Special Interest Aerospace Regions
As shown in Figure 5-1, the majority of aerospace activity is centered in four economic
development regions as defined by the state. This section shows the economic impact of this
activity in each of the four selected regions:
Region 3 – Atlanta Regional Commission
Region 6 – Middle Georgia
Region 8 – River Valley
Region 12 – Coastal
Figure 5-1: Georgia Aerospace Firms by County: 2015
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 18
i. Atlanta Regional Commission- Region 3
The Atlanta Regional Commission (ARC) is the 10-county area of Cherokee, Clayton, Cobb,
DeKalb, Douglas, Fayette, Fulton, Gwinnett, Henry and Rockdale counties, including
the city of Atlanta. The region is home to Lockheed Martin Aeronautics, the Hartsfield-
Jackson Atlanta International Airport, the Dobbins Air Reserve Base and a number of
other companies therefore, it is no surprise the majority of aerospace activity occurs within
the ARC. The impact that stemmed from these activities in the region accounts for more
than 50 percent of the industry’s overall economic impact in the state of Georgia. There
were 56,757 jobs associated directly with aerospace industry in 2015. These jobs generated
$5.8 billion in direct wages and salaries and $19 billion in output. Using a regional
economic model, it is estimated that aerospace activities created and supported 145,883
total jobs with earnings of nearly $10.7 billion, and output of nearly $32.5 billion.
Table 6-1: Economic Impact of Aerospace Related Activities in the Atlanta Regional
Commission (Region 3) in 2015
Direct Indirect Induced Total
Employment 56,757 39,306 49,820 145,883
Wages &
Salaries $5,831,753,528 $2,409,546,511 $2,429,909,750 $10,671,209,789
Output $19,008,759,938 $6,198,540,858 $7,252,158,196 $32,459,458,992
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 19
ii. Middle Georgia- Region 6
The Middle Georgia Region is comprised of Putnam, Monroe, Jones, Baldwin, Crawford,
Bibb, Twiggs, Wilkinson, Peach, Houston and Pulaski Counties. It also home to the Robins
Air Force Base8, the region’s largest employer. Aerospace companies in the region employed
10,065 people in addition to 13,600 civilians employed at the base, totaling 23,665
aerospace jobs in year 2015. These employees earned $2.3 billion in wages and salaries and
the companies’ activities generated nearly $8.5 billion in direct output during the year. The
total economic impact of aerospace activities in the region 48,928 jobs, wages and salaries
of $3.2 billion and output of nearly $11.6 billion. See Table 6.2 for a breakdown of the
region’s economic impact.
Table 6-2: Economic Impact of Aerospace Related Activities in Middle Georgia
Regional Commission (Region 6) in 2015
Direct Indirect Induced Total
Employment 23,665 8,578 16,686 48,928
Wages
&
Salaries
$2,304,309,079 $375,756,838 $553,006,096 $3,233,072,013
Output $8,464,205,125 $1,161,633,872 $1,949,553,363 $11,575,392,360
8 Military jobs are not included in this study.
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 20
iii. River Valley Region- Region 8
The River Valley Region includes Chattahoochee, Clay, Crisp, Dooly, Harris, Macon,
Marion, Muscogee, Quitman, Randolph, Schley, Stewart, Sumter, Talbot, Taylor, and
Webster Counties. In 2015, there were 899 direct jobs with wages and salaries of $63.5
million related to aerospace activity in the region. Direct output was $426.9 million. The
overall industry economic impact in the region totals to 1,724 jobs, $98.3 million in earnings
and $537.7 million in output.
Table 6-3: Economic Impact of Aerospace Related Activities in River Valley
Regional Commission (Region 8) in 2015
Direct Indirect Induced Total
Employment 899 473 352 1,724
Wages &
Salaries $63,455,515 $22,880,339 $11,932,720 $98,268,574
Output $426,849,826 $69,108,510 $41,725,310 $537,683,646
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 21
iv. Coastal Region- Region 12
The Coastal regions encompasses 10 counties: Bryan, Bulloch, Camden, Chatham,
Effingham, Glynn, Liberty, Long, McIntosh and Screven. This region is the state’s third
largest in terms of aerospace activity. There were 12,166 direct jobs connected to aerospace
activity in the region in 2015 that injected $1.4 billion of direct wage and salaries into the
region’s economy. Direct output was $9 billion. Individual and business spending supported
additional regional economic activity bringing the total economic impact to 28,367 jobs, $2.1
billion in wages and salaries and $11.2 billion in output.
Table 6-4: Economic Impact of Aerospace Related Activities in the Coastal Regional
Commission (Region 12) in 2015
Direct Indirect Induced Total
Employment 12,166 6,655 9,545 28,367
Wages &
Salaries $1,408,550,648 $321,339,591 $339,192,868 $2,069,083,107
Output $9,042,738,736 $1,017,393,995 $1,143,849,094 $11,203,981,825
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 22
SECTION 7
Unmanned Aircraft Systems (UAS)
Companies
Unmanned aircraft systems (UAS)9 have been used for decades evolving from being used for
basic operations to currently being used in a number of applications across many
industries. Given the growing use of UAS in the commercial and civil market, this study
quantifies the economic impact of this sector in the state of Georgia.
The Georgia Center of Innovation for Aerospace researched and identified 55 UAS
companies currently operating in the state of Georgia. However, we were able to get
employment data for only 12 companies; therefore, the impact incudes only these 12
companies.
Using data provided by the Georgia Department of Labor,10 it was determined that these
companies employed 630 people in year 2015 who earned $44 million in wages and salaries
and generated nearly $130 million in economic activity. The spending by these companies
and their employees generated additional activity in other sectors of the state’s economy.
Overall, UAS companies in 2015 created and supported 1,330 jobs with wages and salaries
of $78 million and generated nearly $233 million of economic activity.
Table 7-1: Economic Impact11 of Unmanned Space Systems Companies in Georgia:
2015
Direct Indirect Induced Total
Employment 630 285 415 1,330
Wages &
Salaries $44,057,919 $16,135,058 $17,858,485 $78,051,462
Output $129,810,685 $45,616,544 $57,098,990 $232,526,219
9 Definition of UAS: An unmanned aircraft system (UAS), sometimes called a drone, is an aircraft without a
human pilot onboard – instead, the UAS is controlled from an operator on the ground https://www.faa.gov/uas/ 10 Source: Georgia Department of Labor, ES202 data (Firm level data) 11 The economic impact was calculated using companies’ self-reporting employment and NAICS code data.
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 23
SECTION 8
Space Companies
An increasing number of companies in Georgia are actively pursuing activities in the space
industry. This study shows the economic impact of the growing space sector. The Center of
Innovation for Aerospace has determined that there were 12 companies with some activities
in the space sector in 2015. These companies employed 915 employees that earned $122
million in wages and salaries and $333 million in economic activity. Further spending by
space companies and their employees resulted in supporting an additional 1,548 indirect
and induced jobs with wages of $74.3 million that resulted in output of $220.7 million.
Space companies are an important part of the overall aerospace industry. An increase in
commercial space opportunities has resulted in growth of the space companies whose
operations have generated an economic impact in the state of Georgia. As Table 8-1 shows,
space companies supported 2,463 total jobs that generated $196.2 million in wages and
salaries and $555.8 million in output
Table 8-1: Economic Impact of Space Companies in Georgia: 2015
Direct Indirect Induced Total
Employment 915 503 1,045 2,463
Wages &
Salaries $121,859,842 $29,362,220 $44,944,721 $196,166,783
Output $333,076,945 $79,006,681 $143,706,628 $555,790,254
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 24
APPENDIX 1
Economic Impact by Region
While the majority of aerospace related activities are concentrated in a five regions, the
industry has presence in all twelve regions in the state of Georgia. Table A.1 shows a
breakdown of the economic impact of aerospace industry by region. Note that Wages and
Salaries and Output are slightly lower (less than one percent) than figures shown in Table
2-1 due to rounding.
Table A.1-1. Economic Impact of Aerospace Industry by Regions
Employment Wages and
Salaries Output
Atlanta Regional
Commission 56,757 $5,831,753,528 $19,008,759,938
Middle GA 23,665 $2,304,309,079 $8,464,205,125
Coastal 12,166 $1,408,550,648 $9,042,738,736
Northwest GA 1,214 $74,423,464 $346,513,190
South GA 1,160 $79,127,471 $351,409,404
River Valley 899 $63,455,515 $426,849,826
Southwest GA 828 $38,998,953 $259,382,893
Three Rivers 670 $42,181,287 $201,731,703
Northeast GA 507 $30,347,411 $127,521,273
GA Mountains 403 $23,713,550 $80,792,765
Heart of Georgia Altamaha 401 $31,541,898 $118,401,036
Central Savannah 321 $22,807,540 $116,222,995
TOTAL 98,991 $9,951,210,344 $38,544,528,884
Figures A-1.1 through A-1.3 show each region’s output, employment, and wages and
salaries.
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 25
Figure A-1.1: Aerospace Employment by Region: 2015
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 26
Figure A-1.2: Aerospace Industry Wages and Salaries by Region: 2015
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 27
See Appendix 2 for a definition of Output.
Figure A-1.3: Aerospace Industry Output by Region: 2015
Economic Impact Analysis of Georgia’s Aerospace Industry: 2015 Page 28
APPENDIX 2
Methodology, Definitions and
References
METHODOLOGY AND DEFINITIONS
The economic impact of the aerospace industry was measured using IMPLAN, an economic
impact assessment model customized to reflect Georgia’s economy. The model estimates
the multiplier (indirect and induced) effects of direct economic activity for each sector of the
aerospace industry.
Output: Economic output is defined as the value of a company’s or industry’s
production. Simply, output is total sales revenue minus its cost of goods sold.
Wages and Salaries: Wages and salaries are defined as income paid by employers.
Direct Impacts: Direct impact measures employment, wages and salaries, and
expenditures of goods and services attributable to aerospace industry.
Indirect Impacts: Indirect impact results from the purchase of goods and services by
suppliers to the aerospace industry.
Induced Impact: Induced impact results from the expenditures of aerospace employee
wages and salaries.
Total impact: Total Impact is generally referred to as the “multiplier effect.” This effect
occurs whenever dollars are brought into a region’s economy and recirculated before exiting
or “leaking out.”
REFERENCES
Bureau of Economic Analysis Input-Output Sectors as contained in “IMPLAN Pro: Data
Guide,” Minnesota IMPLAN Group Inc., Stillwater, MN, 2015.
Georgia Department of Labor, ES202 Wage and Employment Data: 2015.
North American Industrial Classification System (NAICS),
http://www.census.gov/epcd/www/naicstab.htm