WASHINGTON STATE AEROSPACE
For more than a century, Washington State has been at the forefront of revolutionizing the aerospace industry, designing and building some of the most advanced and successful commercial and military aircraft, unmanned aerial systems (UAS) and space exploration vehicles the world has ever seen. Washington’s aerospace industry ushered in the age of successful commercial jet service, made international travel affordable with the introduction of the jumbo jet, and reinvented the way aircraft are designed and built by harnessing the power of computer-aided design and composites. Building on our century of know-how, Washington continues to be a dominant force in the industry, not only producing more than 1,400 aircraft and unmanned aerial systems annually, but building nearly 95% of all the commercial aircraft in North America. More than 1,350 aerospace-related companies benefit from this dense ecosystem of innovation and invention, serving as the supply chain for every major aircraft manufacturer and air carrier in the world. What’s more, Washington State has a growing space sub-sector featuring such visionary firms as Aerojet Rocketdyne, Blue Origin, SpaceX, Vulcan Aerospace and Spaceflight Industries.
Washington State Department of Commerce
The state is anchored by Boeing, which opened its doors for business along the shores of Seattle’s Lake Union in 1916. In the ensuing years, the company has turned out some 20,000 aircraft – including every 737, 747, 757, 767 and 777 built, as well the vast majority of 787 Dreamliners. Next generation 737 MAX and 777X commercial airliners and a backlog of nearly 6,000 orders ensure decades of opportunities for supply chain partners. Of course, Washington State is hardly a one-hit wonder when it comes to aerospace. While aircraft design and manufacture continues to play an important role in the state’s economy, Washington offers exciting opportunities across the board, from interiors, tooling and composites to avionics, navigation systems and research and development. While other parts of the country tout their lower costs and potential as an aerospace hub, Washington State already has a mature industry supported by a well-respected research and development core, a steady supply of seasoned, trained workers, lucrative partnership opportunities based on collaboration and crosspollination between industries, and a favorable tax environment to spur further industry growth and investment over the next two decades.
SOARING TO NEW HEIGHTS
www.choosewashingtonstate.com
A DIVERSE, ROBUST INDUSTRY Aerospace companies can be found in 35 of Washington’s 39 counties. The bulk of the industry – more than 800 suppliers – is located in the Puget Sound region, which is also home to the state’s primary aircraft manufacturing hubs in Everett and Renton. The northwest part of the state has a strong composites and advanced manufacturing and materials cluster. Southwest Washington is the center of UAS manufacturing, avionics, engineering and an aerospace supply chain focused on metal finishing, plastics and electronics. Eastern Washington offers low-cost, renewable energy for composites production, a 13,500-foot runway for flight testing surrounded by a million square feet
of building space, and an established cluster of suppliers and pre-permitted industrial sites that can be built to suit. One of the things that truly sets Washington apart in the aerospace industry is our highly skilled, superbly trained workforce of more than 132,500 workers. Designing and building state-of-the-art air structures, components and parts isn’t an unfamiliar or new skillset for Washington workers. Many come from second and third generation families of airplane builders – they not only bring tremendous know-how to the workplace, but a passion for aerospace and pride in a job well done.
THE WASHINGTON ADVANTAGE Following are just a few of the competitive advantages you gain as a Washington State business:
•
•
•
•
The opportunity to be part of the Boeing supply chain as well as other global manufacturers and air carriers. Washington’s supply chain is the second biggest supplier to Airbus. Access to a seasoned workforce that can contribute from the get-go, leveraging their tremendous knowledge and experience in design, production, manufacturing and MRO.
Washington State Department of Commerce
•
The ability to tap into synergistic industries, including Washington’s information and communication technology, advanced materials, space and clean energy sectors. An export hub that is equidistant between European and Asian markets and a day’s sail closer to major Asian seaports. A supply chain that is interconnected at every level, from R&D and production to training and apprenticeship programs that are closely aligned with current and emerging industry needs.
www.choosewashingtonstate.com
SUPPLY CHAIN OPPORTUNITIES Aerospace businesses are drawn to our state by our broad and deep supply chain, skilled workforce and pioneer spirit, which has spawned such legendary businesses as Amazon, Boeing, Costco, Expedia, Microsoft, Nordstrom and Starbucks. More than 800 multinationals employing nearly 100,000 workers are already in the state, including: • • • • • • • •
AIM Aerospace, Inc. BAE Systems Controls Dassault Systemes Fokker Aerostructures GKN Aerospace Mitsubishi Heavy Industries Toray Composites America, Inc. Zodiac
Whether you are looking for an investment, a new partnership or a new location for expansion, Washington’s economy is booming. The state’s aerospace sector supplies Boeing, Airbus, Bombardier, Embraer and Mitsubishi and all major air carriers. This ecosystem supports $76 billion in economic activity in the state and contributes $11.5 billion in wages annually. With a worldwide market requirement for 30,000+ new aircraft over Washington State Department of Commerce
the next two decades, companies doing business in Washington can expect to be busy for years to come.
STATE INCENTIVES
To encourage industry growth, the state has instituted a special incentive package for the aerospace sector, offering significant savings through 2040, including: • • •
• •
Reduced tax credits for preproduction development expenditures Property/leasehold tax credits on aerospace business facilities Reduced business and occupation tax rates for the manufacture and sale of commercial airplanes, component parts and tooling Sales and use tax exemptions for computer hardware, software and peripherals Tax exemptions on construction of new facilities to manufacture airplanes, fuselages and wings
A complete list of industry incentives can be found at: dor.wa.gov
LOOKING TO THE FUTURE Washington’s culture of creativity and collaboration has advanced civil and military aviation on many fronts over the last 100 years, from aerodynamics and avionics to unmanned aerial systems and fly-by-wire control systems. The aircraft that have emerged from our factories continue to redefine the industry, from the groundbreaking 707 to the revolutionary 787 Dreamliner. The impact has been so great, in fact, that a Washington-made Boeing 737 uses a runway somewhere in the world every 2.2 seconds. As older generations of workers near retirement, the state’s educational system is bringing a steady supply of new workers online through publicprivate partnerships designed to teach real world skills using the same tools, technologies and best practices in use at the industry’s leading companies. Many of these programs are bringing aerospace businesses and colleges together to create customized curriculum to move students from the classroom to the shop floor. Workforce training programs such as the Center of Excellence for Aerospace and Advanced
Manufacturing, Washington Aerospace Training & Research Center and the Joint Center for Aerospace Technology Innovation expose students to the latest in avionics, robotics, logistics, production, interiors and advanced materials. Spurred by a $20 million federal grant, the Air Washington Initiative consortium of 11 community and technical colleges and one apprenticeship program has nearly 4,000 enrolled in training programs statewide. Research and development at the state’s major universities as well as the Pacific Northwest National Laboratory drives additional innovation and invention in the sector. Businesses and educators alike are working together to expand internships for state high school and college students, bring new technologies into the classroom and strengthen STEM education in K-12 schools. Innovative new programs such as Aviation High School, the Pierce County Skills Center and the Aerospace Education Center at the Museum of Flight continue to expose students to opportunities in the aerospace industry to bring new talent into the fold.
WELCOME ABOARD! If you’re an aerospace company that wants to soar to new heights, you’ll want to put Washington State on your radar. We have a talented team of business experts at the Washington State Department of Commerce to help you maximize your potential in Washington, whether you’re looking to add more production capacity, invest in an established business, expand your company or find new partners in the most sophisticated and advanced aerospace supply chain in the world. To find out more about Washington State’s booming aerospace sector and how you can do business with us, call (206) 256-6100 or email us at: moreinfo@choosewashingtonstate.com.
Washington State Department of Commerce