OKLAHOMA AERONAUTICS OKLAHOMA AERONAUTICS

COMMISSIONCOMMISSION

Aerospace Industry Aerospace Industry PresentationPresentation

Oklahoma’s Big ProblemOklahoma’s Big Problem

The “Brain The “Brain Drain”Drain”

How do we keep How do we keep our children in our children in Oklahoma?Oklahoma?

Perception/Perception/ImageImage

We Are Better Than You We Are Better Than You Think!Think!

In a 2005 report published by Pollina Corporate In a 2005 report published by Pollina Corporate Real Estate, Oklahoma was among America’s Top Real Estate, Oklahoma was among America’s Top Ten Pro-Business States (ranked 3rd).Ten Pro-Business States (ranked 3rd).

In 2003 the North American Business Cost Review In 2003 the North American Business Cost Review ranked Oklahoma ranked 5th among the Top Ten ranked Oklahoma ranked 5th among the Top Ten States with the Lowest Cost of Doing Business.States with the Lowest Cost of Doing Business.

Oklahoma City and Tulsa have earned a spot on Oklahoma City and Tulsa have earned a spot on Expansion Management magazine’s list of Top Expansion Management magazine’s list of Top Business Opportunity Metros for 2005. Business Opportunity Metros for 2005.

Oklahoma’s state and local tax burden is one of Oklahoma’s state and local tax burden is one of the lowest in the nation. the lowest in the nation.

Oklahoma’s per capita property taxes are 4th Oklahoma’s per capita property taxes are 4th lowest in the U.S. lowest in the U.S.

More Good Stuff About More Good Stuff About OklahomaOklahoma

Oklahoma City ranked 18th among the Top 25 Best Oklahoma City ranked 18th among the Top 25 Best Workforce Education Level and 9th on the Top Ten Workforce Education Level and 9th on the Top Ten High School Diploma list. Oklahoma exceeds the High School Diploma list. Oklahoma exceeds the average ACT scores among Southern states and average ACT scores among Southern states and Oklahoma’s students achieved the highest average Oklahoma’s students achieved the highest average score in the 14-state southern region. Oklahoma is score in the 14-state southern region. Oklahoma is ranked 1st in the nation for early childhood education. ranked 1st in the nation for early childhood education.

According to Economy.com, Inc., Oklahoma ranks 6th According to Economy.com, Inc., Oklahoma ranks 6th among the 10 states with the overall lowest labor among the 10 states with the overall lowest labor costs.costs.

Due to the recent reforms by the Legislature, Due to the recent reforms by the Legislature, Oklahoma is now among those states with the lowest Oklahoma is now among those states with the lowest workers’ compensation insurance rates.workers’ compensation insurance rates.

U.S. Chamber of Commerce does not list Oklahoma as U.S. Chamber of Commerce does not list Oklahoma as a state in lawsuit crisis. Oklahoma’s liability insurance a state in lawsuit crisis. Oklahoma’s liability insurance rates are among the lowest in the 50 states. rates are among the lowest in the 50 states.

Helping CompaniesHelping Companies Since its inception in 1994, the state has Since its inception in 1994, the state has

issued more than 400 contracts to locating, issued more than 400 contracts to locating, expanding, and start-up businesses through expanding, and start-up businesses through its Quality Jobs Incentive Program. To date, its Quality Jobs Incentive Program. To date, more than $400 million in performance-based more than $400 million in performance-based wages rebates has been paid. wages rebates has been paid.

Our nationally acclaimed Training for Industry Our nationally acclaimed Training for Industry Program (TIP), delivered by Oklahoma’s Program (TIP), delivered by Oklahoma’s CareerTech System provides resources to help CareerTech System provides resources to help create and maintain the highly-skilled create and maintain the highly-skilled workforce companies need to be competitive. workforce companies need to be competitive. Best of all – it’s free. Since 1968, TIP has Best of all – it’s free. Since 1968, TIP has served over 2100 companies in virtually every served over 2100 companies in virtually every industry. industry.

Aerospace – Oklahoma’s Largest Aerospace – Oklahoma’s Largest Industry!!Industry!!

Over 140,000 jobs (1 in 10 Oklahomans Over 140,000 jobs (1 in 10 Oklahomans derive their income from aerospace). derive their income from aerospace).

Nearly $12 billion in industrial output. Nearly $12 billion in industrial output. This is about 10 % of Oklahoma’s This is about 10 % of Oklahoma’s economy. economy.

$4.7 billion in payroll. $4.7 billion in payroll. Over 400 aerospace companies. Over 400 aerospace companies. In 2005, the aerospace industry in

central Oklahoma (10-county region) supported 73,000 jobs (38,000 direct) resulting in economic output of $6.1 Billion and a payroll of $2.85 Billion.

The average salary of an employee in the aerospace industry in Central OK is $49,660 compared to the overall state average of $29,720 and regional average of $32,050.

Top EmployersTop Employers Tinker – 26,000 employees (16,000 civilian & Tinker – 26,000 employees (16,000 civilian &

10,000 military). Annual economic impact on 10,000 military). Annual economic impact on Oklahoma is $4 Billion dollars. It’s the largest Oklahoma is $4 Billion dollars. It’s the largest state employer.state employer.

American Airlines aircraft maintenance base in American Airlines aircraft maintenance base in Tulsa is the largest facility of its kind in the Tulsa is the largest facility of its kind in the country. Among the more than 8,000 employees country. Among the more than 8,000 employees in Oklahoma are 7,000 mechanics that perform in Oklahoma are 7,000 mechanics that perform heavy maintenance on American's fleet. heavy maintenance on American's fleet.

The NORDAM Group, a leader in aircraft The NORDAM Group, a leader in aircraft component manufacturing and repair, has its component manufacturing and repair, has its headquarters in Tulsa and employs nearly 2,000.  headquarters in Tulsa and employs nearly 2,000. 

FAA Mike Monroney has 5,300 employees. FAA Mike Monroney has 5,300 employees.

Oklahoma’s Aviation Oklahoma’s Aviation LegacyLegacy

Clyde Cessna’s test Clyde Cessna’s test flights began in the flights began in the Great Salt Plains.Great Salt Plains.

Tom and Paul Braniff Tom and Paul Braniff started one of the first started one of the first commercial airlines - commercial airlines - Braniff Airways.Braniff Airways.

Wiley Post around the Wiley Post around the world flight.world flight.

Oklahoma has produced Oklahoma has produced more astronauts than more astronauts than any other state in the any other state in the country.country.

Maintenance, Repair and Maintenance, Repair and Overhaul (MRO) IndustryOverhaul (MRO) Industry

Oklahoma ranks 8th in the nation for the size of Oklahoma ranks 8th in the nation for the size of its aerospace engines manufacturing cluster its aerospace engines manufacturing cluster and 20th for its defense related cluster. and 20th for its defense related cluster.

Oklahoma has one of the highest concentrations Oklahoma has one of the highest concentrations of skilled aviation workers and airplane repair of skilled aviation workers and airplane repair facilities, making it a leader for refurbishing facilities, making it a leader for refurbishing aging military and civilian aircraft. aging military and civilian aircraft.

We are one of the 6 centers in the world for the We are one of the 6 centers in the world for the MRO of aircraft. MRO of aircraft.

Tinker is the largest repair facility for aircraft in Tinker is the largest repair facility for aircraft in the Department of Defense & is the largest the Department of Defense & is the largest logistics center. They are the DoD engine logistics center. They are the DoD engine capital of the world!! capital of the world!!

More MROMore MRO As the US Air Force fleet ages, As the US Air Force fleet ages,

the market for the MRO the market for the MRO industry is expected to grow to industry is expected to grow to be a $60 billion dollar industry be a $60 billion dollar industry with an annual growth rate of with an annual growth rate of 5.3%. 5.3%.

Aircraft maintenance accounts Aircraft maintenance accounts for roughly 5% or $52.7 billion for roughly 5% or $52.7 billion of the total defense spending. of the total defense spending.

Engine overhaul is the largest Engine overhaul is the largest segment of the commercial segment of the commercial MRO market, currently valued MRO market, currently valued at $12.4 billion. at $12.4 billion.

Oklahoma is poised to be the Oklahoma is poised to be the leading edge on this leading edge on this technology the world will need.technology the world will need.

MROTCMROTC Maintenance Repair Maintenance Repair

and Overhaul and Overhaul Technology Center – to Technology Center – to be built adjacent to be built adjacent to Tinker. Tinker.

More opportunity for More opportunity for our companies to our companies to obtain contracts with obtain contracts with Tinker.Tinker. Tinker outsources Tinker outsources

$5 billion dollars a $5 billion dollars a year. year.

Oklahoma Oklahoma companies only get companies only get about $700 million.about $700 million.

Oklahoma Airports – Your Oklahoma Airports – Your Gateway to the World!Gateway to the World!

Over 18,345 private and public Over 18,345 private and public airports. Airlines only serve airports. Airlines only serve 540 of these airports, or less 540 of these airports, or less than 3%. than 3%.

General Aviation passengers General Aviation passengers have access to over 5,400 have access to over 5,400 public use community airports.public use community airports.

Today, 35,000 U.S. companies Today, 35,000 U.S. companies use 50,000 General Aviation use 50,000 General Aviation aircraft to succeed in business.aircraft to succeed in business.

For every dollar spent on For every dollar spent on airport improvements, $6.70 is airport improvements, $6.70 is generated in off-airport generated in off-airport economic gains for the economic gains for the surrounding community.surrounding community.

General Aviation contributed General Aviation contributed to more than $900 billion and to more than $900 billion and 11.3 million jobs to the U.S. 11.3 million jobs to the U.S. economy. economy.

5,000 Foot Runway – A 5,000 Foot Runway – A Reason to Locate in Reason to Locate in

OklahomaOklahoma Woodward - Mutual of Omaha call center with Woodward - Mutual of Omaha call center with

1,200 employees. 1,200 employees. Guymon - Seaboard with 4,500 employees.Guymon - Seaboard with 4,500 employees. Ardmore - Michelin Plant with 2,200 Ardmore - Michelin Plant with 2,200

employees & the Dollar General distribution employees & the Dollar General distribution center with 750 employees.center with 750 employees.

Poteau - Bremer incorporated with 350 Poteau - Bremer incorporated with 350 employees.employees.

Idabel - Weyerhaeuser has 900 employees Idabel - Weyerhaeuser has 900 employees and Tyson, has 1,200 employees. and Tyson, has 1,200 employees.

Grove - Precision Communication and Jacobs Grove - Precision Communication and Jacobs Manufacturing.Manufacturing.

The Numbers Don’t LieThe Numbers Don’t Lie Oklahoma has 114 Oklahoma has 114

airports. That’s airports. That’s number 4 per capita number 4 per capita in the country. in the country.

49 of those are 49 of those are regional business regional business airports.airports.

40 of those are jet- 40 of those are jet- capable.capable.

92% of our population 92% of our population is within 25 miles of a is within 25 miles of a jet-capable runway. jet-capable runway.

Oklahoma Oklahoma Aeronautics Aeronautics CommissionCommission

The Aeronautics Commission receives about $3 million a The Aeronautics Commission receives about $3 million a year. year.

Leverage federal funds through our channeling authority. Leverage federal funds through our channeling authority. Oklahoma receives $9 million dollars a year for our general Oklahoma receives $9 million dollars a year for our general

aviation airports. from the Federal Aviation Administration aviation airports. from the Federal Aviation Administration through the Airport Improvement Program. through the Airport Improvement Program.

We receive about $13 million (6th highest in the US) under We receive about $13 million (6th highest in the US) under the General Aviation Entitlement Program. That is the General Aviation Entitlement Program. That is $150,000 straight out to the airports that are federally $150,000 straight out to the airports that are federally designated. designated.

In FY 2000, the federal investment in our general aviation In FY 2000, the federal investment in our general aviation airports was just over $5M. In FY 2005, the federal airports was just over $5M. In FY 2005, the federal investment in our general aviation airports was just over investment in our general aviation airports was just over $22M. We have come a long way.$22M. We have come a long way.

Give me a mile of highway and that’s Give me a mile of highway and that’s exactly what you have, but you give exactly what you have, but you give

me a mile of runway, and you give me me a mile of runway, and you give me the world.the world.

It’s YOUR gateway to the It’s YOUR gateway to the world!!world!!