Oklahoma City s growth potential in aviation is

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1 OKLAHOMA city aviation Reaching New Heights greater Oklahoma City Region s Aviation & aerospace Industry Oklahoma City s growth potential in aviation is grounded in an impressive list of findings in the latest assessment of the industry recently completed by the Greater Oklahoma City Chamber. The study outlines Oklahoma s rise to one of the top 10 states in terms of traditional aerospace occupation employment, and how the Greater Oklahoma City region s steady growth created the largest aviation cluster in the state. Completed by Oklahoma State University Center for Applied Economic Research economist Mark Snead, Ph.D, the study identifies the industry s government entities and private firms, and assesses the industry s size and composition in the Oklahoma City region. The report provides an estimate of the direct economic impact of business activity generated by public and private sector aviation and aerospace firms. City region employ nearly 38,000 workers producing an estimated $3.3 billion in goods and services and earning $1.9 billion in income. Two federal government facilities Tinker Air Force Base and the FAA s Mike Monroney Aeronautical Center form the foundation of the industry in the region and employ a combined 31,600 federal and civilian contract workers, with a payroll of more than $1.5 billion. A strong training infrastructure is in place with nearly 400 workers in aviation and aerospace whose primary job activity is education and training. A large pool of aviation and aerospace industry managerial talent is concentrated in the region, with more than 550 workers whose primary job activity is management. Procurement contracting activity is concentrated in the Greater Oklahoma City region, where 609 vendors secured $1.089 billion in funding, or more than 75 percent of the statewide total. The estimated economic multiplier effects from aviation and aerospace activity in the region results in an additional 35,600 workers statewide earning $995 million in income and producing $2.8 billion in goods and services. Many comparative studies only focus on private sector employment, which does not adequately portray the strength of Oklahoma City s aerospace and aviation sectors. This assessment considers federal employees, making it more comprehensive and reflective of the unique structure of aerospace in Oklahoma City. Key findings from the assessment include: A total of 265 public and private-sector aviation and aerospace firms in the 10-county Greater Oklahoma The MRO operation at Tinker AFB relies on the largest group of civilian Air Force personnel in the country. Oklahoma ranks 12th nationally in the number of aerospace engineers, fifth in aircraft mechanics and service technicians and eigth in avionic technicians when using occupation-based data that includes federal employees. In total, firms engaged in aviation and aerospace activities in the Greater Oklahoma City regional economy in 2005 supported, either directly or through spillover effects, the jobs of more than 73,600 workers earning $2.9 billion in income, and the production of $6.1 billion in goods and services.

2 Boeing Building on Success in oklahoma city Ben Robinson Boeing Oklahoma City Site Director Our mission at Boeing Oklahoma is to support the warfighter s efforts in maintaining mission readiness. The Boeing people in Oklahoma provide engineering and logistics services, aircraft maintenance support, software development, training and mission courseware for various Boeing weapon systems. These include: B-l, B-2, B-52 bombers E-3 AWACS, E-4B KC-10, KC-135, 767 tankers C-32, C-40, 737 derivative T-43, E6 TACAMO F/A-18 at Fallon, Nevada C-17, T-38, T-1 In addition, our people provide functional and management support on U.S. Navy, U.S. Air Force and U.S. Army programs at 75 different sites around the U.S. and 18 foreign countries. We are proud of the work we do and the warfighter we support. Boeing has been in Oklahoma since Our operation here started with 10 employees and has grown to more than 900 in the state. To accommodate our growth, we are breaking ground on a new, 200,000-square-foot office building that will open in April of Boeing is proud to work together with more than 220 companies in Oklahoma that create jobs and economic opportunity. In 2006, Boeing made purchases from these companies in the amount of $481 million. Education and community outreach are also very important to us. Not only do we offer further education to our employees, but we invest in local schools by partnering with them in the areas of math, science and literacy. We also partner with many non-profits and donated more than $200,000 back to the community last year. Quality Training Programs Lift Students and Industry Central Oklahoma s highly proficient aerospace workforce is growing and evolving as fast as the industry, thanks to top-ranked training programs and educational institutions. Workers and students in Oklahoma City are equipped with the skills needed to make any aviation or aerospace operation a success. A large part of this success is due to partnerships between education and training facilities, like Oklahoma City s Aviation and Education Alliance. The Alliance is a collaborative effort between technology centers, community colleges, colleges and universities to build a capable aerospace workforce through the delivery of training and academic degree programs. Its members share a common goal: to improve the overall quality, effectiveness and efficiency of aviation/aerospace programs delivered by public education institutions serving the Oklahoma City Metropolitan area. Private and public sector industry partners, such as Boeing, the Federal Aviation Administration (FAA) and Tinker Air Force Base, maintain an active dialogue with educational members to ensure workers have the latest technology skills needed by the industry. At the CareerTech level, Metro Technology Centers nationally acclaimed Aviation Career Campus offers a quality training experience to prepare aircraft maintenance technicians. Classrooms, practical labs, and separate airframe and powerplant hangars are available for academic and hands-on training. The Aviation Maintenance Technician program is an 18-month, FAA certified and approved course. Metro Technology Centers Adult and Continuing Education Division provides specialized training programs to meet the rising technological demands of the aviation community. Oklahoma also invests in aerospace training on a statewide level, with the nationally recognized Training for Industry Program (TIP). TIP helps aerospace companies by providing customized training for employees to create a workforce that is ready for operations from opening day. TIP is free and delivered through Oklahoma s CareerTech system, with 54 state-of-the-art technology centers across the state. The technology centers also provide ongoing, customized training for existing employees at significant cost savings. Other efforts, like the Oklahoma Research Initiative, focus on linking higher education and the state s aviation and aerospace firms. A key component of the Oklahoma Research Initiative, sponsored by the Oklahoma State Regents for Higher Education, is the development of technologies related to aviation/aerospace. The Regents also formed the Center for Aircraft and Systems/Support Infrastructure (CASI), making it easier for the aviation community and businesses to access university-based training and support. At the college level, Oklahoma State University s Aviation Education programs range from a bachelor s degree, with options for professional pilot, aviation management and technical services management, to a doctorate in applied educational studies with an Aviation and Space Science Specialization. No matter what the degree level, all courses prepare students for careers of sustained advancement and achievement in the aviation and aerospace industry. Since 1981, the University of Oklahoma has assisted the FAA Air Traffic Academy in its efforts to train air traffic controllers at the Mike Monroney Aeronautical Center. In addition, the university s aviation department offers B.S., M.S. and Ph.D. s in aviation/aerospace management and engineering. Programs at Oklahoma s technology centers, colleges and universities offer training, certificates and degrees in all the necessary specialties including: Air Frame and Power Plant Technicians Nondestructive Testing Transport Aircraft Training Flight Simulator Maintenance Technician Avionics Piloting Aviation Sciences Aviation Management Aerospace Administration Quality Control Mechanical and Aerospace Engineering

3 A Century of Aviation in Oklahoma City Since statehood, the aviation industry has flourished in Oklahoma City, beginning with the state s first powered flight on March 18, 1910, which took place just south of Oklahoma City s Capitol Hill. During WWI, the Oklahoma City Chamber operated the city s first airfield. The seeds for military aviation in Oklahoma City were planted early, as this airfield was used by military from Ft. Sill, Oklahoma. With the help of the Oklahoma City Parks Department, the Chamber opened two more airports in the 1920s County Line Airfield, and Southwest Aviation Park. WW II brought tremendous expansion in the military, and Oklahoma City benefited. In 1940, 12 local business leaders founded the Oklahoma Industries Foundation to attract a military facility, and were rewarded in 1941 when the War Department announced it would build a new air materiel depot, employing 3,500 people, in Oklahoma City. What became Tinker Air Force Base was originally known as the Midwest Air Depot. Shortly after, the Army Air Forces built what was then one of the largest buildings in the world the Douglas Aircraft Assembly Plant (now the Oklahoma City Air Logistics Center) next to the Depot. During the war, more than 18,000 military and civilian employees overhauled thousands of aircraft engines. The Douglas factory employed 24,000 people and produced more than 5,300 C-47 Skytrain aircraft, and parts to build C-54 cargo planes and A-26 invader bombers. A bomber base was built at what s now Will Rogers World Airport, which served as a light bomber and aerial photography training center, preparing thousands of personnel for the war. By this time, Oklahoma City s status as a major center of aircraft manufacturing and modification was secure. The federal Air Standardization Center, responsible for standardization of air traffic controllers, moved to Oklahoma City from Houston in Soon after, the Civil Aeronautics Authority s Midwest Aircraft Maintenance Base and Signals Division School were combined. Later, the facility also housed the CAA s Civil AeroMedical and Aircraft Registration divisions. This facility became the FAA Mike Monroney Aeronautical Center, where most of the world s air traffic controllers are trained. It is home to the second largest concentration of federal Department of Transportation personnel outside of Washington, D.C. Today, Tinker AFB, with its Air Logistics Center, is the largest single-site employer in Oklahoma, providing 26,000 jobs. Tinker s economic impact is between $3-4 billion a year. Its payroll is $1.1 billion. Tinker is a major reason why Oklahoma is one of the top six centers in the world for aircraft maintenance, repair and overhaul. In Oklahoma, one in 10 employees derive income from the aviation industry. The industry has an industrial output of nearly $12.5 billion a year. Aviation jobs are attracting talented people within Oklahoma and beyond, especially as the industry continues to thrive. aviation history highlights Oklahoma s sense of exploration, pioneering spirit and entrepreneurship are synonymous with aviation history. The state is credited with many aviation firsts that sealed its fate as an industry leader. Wiley Post, famed for his 1931 flight around the world and the invention of the pressure suit, and Clyde Cessna, who started testing aircraft near Enid in 1911, paved the way for the future of aviation pioneers in Oklahoma. In the 1920s, Oklahoma oilman Erle Halliburton started one of the first commercial airlines in the nation. Halliburton s Southwest Air Fast Express, also known as S.A.F.E. Way, soon began operating flights throughout the region. American Airlines eventually acquired S.A.F.E. Way. Also in the 1920s, Oklahoma entrepreneurs Tom and Paul Braniff started the first passenger airline in the Southwest the Tulsa-Oklahoma City Airline. Every airplane in the U.S. is registered in Oklahoma and all U.S. pilots have their licenses on record in Oklahoma City through the FAA Civil Aviation Registry. The drop down oxygen masks and emergency lighting in airplanes were developed in Oklahoma at the FAA s Civil AeroMedical Institute.

4 Will Rogers World Airport Completes Renovation; Adds Nonstop Flights and MRO Hangar Aviation is the greatest advancement of our time Will Rogers No doubt the newly completed, $110-million renovation of Oklahoma City s Will Rogers World Airport would make its namesake proud. The project, which began in 2001, nearly doubled the size of the terminal, adding a new concourse; a redesigned baggage delivery system; two Transportation Security Administration (TSA) security checkpoints; expanded ticketing, lobby and baggage claim area; name brand retail, food and beverage concessions; and wireless internet service. Most importantly, travelers agree the changes have achieved the expansion s ultimate mission: to make traveling as effortless and enjoyable as possible. Officials say the airport was redesigned not just to make travelers feel as if they have landed, but as if they have arrived. Will Rogers World Airport serves approximately 3.6 million passengers a year. Cities have just one chance to make a first impression, and Oklahoma City officials are confident the $110 million renovation of Will Rogers World Airport makes a good one for the city and the state, said Roy H. Williams, Greater Oklahoma City Chamber President & CEO. Future plans include constructing a second, five-story parking garage, as well as another expansion of the Terminal, which will add eight more gates. Will Rogers World Airport is the center for commercial aviation services in the region, with approximately 10,000 employees and 67 tenants, including the FAA Mike Monroney Aeronautical Center, the U.S. Federal Transfer Center, ARINC, Metro Tech Aviation Career Center and Southwest Airlines Reservation Center. Nonstop Flights Grow Officials at Will Rogers have also been busy developing air service. In the last ten months, 11 new daily, roundtrip nonstop destinations have been announced. Will Rogers now serves 27 cities with nonstop service. The trend started when United Airlines began service to Los Angeles in September United also started service to Washington Dulles in June Houstonbased carrier ExpressJet began rolling out nonstop service in February 2007 to San Diego, Sacramento, LA/Ontario, Austin, San Antonio, and Albuquerque. In August 2007, Southwest Airlines began service to Baltimore/Washington. Continental Airlines recently announced it will begin nonstop service to Cleveland and Delta Airlines will add nonstop service to Los Angeles. Southwest Airlines is adding nonstop service to Denver. Other carriers are upgrading their fleet and adding additional seats to flights. More Flights, More Cargo Carriers serving Will Rogers World Airport posted an increase in freight transportation of more than 13 percent to 2.88 tons in May 2007, led by a 16.3 percent increase of in-bound freight. This improvement came despite a 4.4 percent hike in freight prices by domestic airlines the largest hike since October 2000 according to Logistics Management magazine. Beyond the Terminal Since its beginning in 1930, Will Rogers World Airport has grown from an 80-acre municipal aviation park to one of the largest airports in the country in land area, covering some 8,000 acres. Approximately 2,000 acres of vacant land is available for aviation-use development at the airport. The initial step in developing this extensive area was the recent completion of a $13.6 million aircraft hangar on the east side of Will Rogers World Airport. The hangar is used by ARINC, an engineering and communications company that serves aviation, airports, defense, government and transportation industries. ARINC, a world-class provider of aviation services for more than 75 years, is expected to add 100 jobs at the facility over the next five years. The ARINC hangar was designed to accommodate a second hangar to capitalize on ARINC s growth and the potential of the land surrounding Will Rogers Airport. So many good things have been happening at Will Rogers, said Mark Kranenburg, Director of Airports for Oklahoma City. Our passenger traffic is at record numbers, and our terminal expansion was a huge success. Updated, wide-open facilities, great new concessions, increased air service and WiFi all further enhance the travel experience for our customers.

5 Profile: Mike Monroney Aeronautical Center T he Federal Aviation Administration s (FAA) Mike Monroney Aeronautical Center serves as a cornerstone for the Greater Oklahoma City region s aviation/aerospace industry. But, as the principal source of all FAA aviation training and a nerve center for the nation s air transportation system, the Center s influence extends far beyond the region and the state. Established in 1946 as a centralized training and logistics facility, the Mike Monroney Center has grown to employ more than 5,500 federal and civilian contract workers, who provide training and logistics services, aviation safety-related services and business support products and services. It houses the FAA Academy, the FAA Logistics Center and a host of other organizations serving the FAA, including military units and the Department of Transportation. In fact, the Center is home to the largest concentration of Department of Transportation personnel outside of Washington, D.C. A breakdown of the workforce at the Center shows the FAA maintains a highly skilled labor force in Oklahoma City. Engineering and architecture occupations account for nearly one-fourth of the Center s workforce. A large pool of FAA engineers based in Oklahoma City provide ongoing technical services to FAA customers nationwide. The workforce at the Monroney Center grew in 2006 when the Federal Base Realignment and Closure (BRAC) Commission directed the relocation of the Air Force Flight Standards Agency (AFFSA) from Andrews Air Force Base to Oklahoma City. Similar to the FAA, AFFSA s mission entails the acquisition and sustainment of air traffic control facilities, setting standards for Air Force aviation, air traffic control and airfield management. The FAA and Air Force partnership leverages each organization s resources and provides significant cost savings. FAA provides aircraft and AFFSA provides flight inspection crews (trained by FAA) to support theater combatant commanders by flying into hostile areas to flight inspect navigational equipment used by combat aircraft. The Mike Monroney Center is renowned for offering highly individualized training that enables personnel to operate and maintain the busiest and most complex airspace system in the world. More than 60,000 students are trained at the center each year. Trainees include all air traffic control system personnel; electronic technicians; system specialists; engineers; manufacturing inspectors; aviation safety inspectors; FAA and non FAA airport personnel; and international civil aviation personnel. This training combines the resources of a slate of aviation education partners in the region, including the University of Oklahoma FAA/ATC training Support Program and the Career Tech Aviation Career Campus located at the Will Rogers World Airport. ARINC Soars in oklahoma city ARINC opened its Oklahoma City office in 1990 with a small staff and high expectations. A skeleton group of three worked to support the KC-10 and various corrosion research jobs primarily for the KC-135. By 1993, ARINC was supporting industrial and engine repair work at Tinker AFB, and as our growing workload Mike Young Vice President, Aerospace Systems Engineering & Support required more resources, our staff increased to 40. This prompted a move to a new building, as healthy growth continued with additional work at Tinker. However, a major turning point was when our Oklahoma office won the R2CSR (Rapid Response to Critical System Requirements) contract with U.S. Army Communications and Electronics Command (CECOM) in August of Rapid growth followed with another move to a new state-of-the-art office and industrial facility, with an employee count exceeding 250. At that point, we fully recognized the potential for further growth in Oklahoma City a market with a wide range of military activities and a highly skilled and growing workforce. We started planning for expansion. In April of this year, ARINC opened a sophisticated 81,000-square-foot Aircraft Modification and Operations Center at the Will Rogers World Airport. It is the largest commercial aircraft hangar in the Oklahoma City region four times the size of our previous facility with room to continue our unprecedented growth. ARINC now offers academic and on-aircraft training at the Center, including pilot proficiency and mission training; avionics and missions systems training; and aircraft maintenance training. Our experience indicates Oklahoma City is a smart location for companies looking to innovate and grow. We expect to benefit from this positive business environment for a very long time, and we expect to contribute to the community as well.

6 Company snapshots NORTHROP GRUMMAN CORPORATION Northrop Grumman, a $30-billion global defense and technology company, recently teamed with Taboada Research Instruments and Cherokee CRC to design, build and integrate a one-of-a-kind laser positioning system. Work on the project was conducted at the FAA s Mike Monroney Aeronautical Center in Oklahoma City and Brooks City Base in San Antonio, Texas. This technology will help define how U.S. Air Force pilots respond to lasers pointed at aircraft during flight. The researchers integrated eye-safe lasers in the flight simulator to monitor pilots reaction so that new flight safety measures can be developed to counter the threat. Visit to learn more. Pratt & Whitney Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. The company s Oklahoma City operations include a joint maintenance facility in partnership with the U.S. Air Force for the overhaul of F119 engines at the Oklahoma City Air Logistics Center (OC-ALC) at Tinker Air Force Base. The F119 Heavy Maintenance Center (HMC) is the result of a partnership between the U.S. Air Force and Pratt & Whitney s Military Aftermarket Services (MAS) unit to support the U.S. government s transformational goals for the military. The HMC is considered the center of excellence for depot-level support of F119-PW-100 engines powering the F/A-22 Raptor stealth fighter. Find out more at JET SERVICE ENTERPRISES, INC Jet Service is an industry leader in superior service and quality products for the aviation and aerospace sector. Their location in Oklahoma City ensures quick delivery and turn times as an authorized repair station for Goodrich Corporation (a distributor for Marathon Technologies) and an approved supplier for Gulfstream and Raytheon Aircraft Company. For more information, visit Transformation Creates Efficiency for Tinker Tinker Air Force Base (TAFB) has made remarkable strides in dramatically increasing productivity at its Oklahoma City Air Logistics Center (OC-ALC) Air Depot. Since 1999, TAFB has focused on improving its manufacturing operations through the application of lean and process improvement techniques. With the development of the Lean Institute at Tinker in 2004, the Depot has made remarkable strides in establishing a lean culture. The result: lean manufacturing has become a way of life for all Tinker employees and maximizes support to the warfighter in the Global War on Terror. The OC-ALC is well into a 10-year lean transformation of the manufacturing process designed to provide unprecedented warfighter support at a fraction of the cost to the U.S. Air Force. In all, seven OC-ALC business units are scheduled for transformation by March Tinker s aggressive lean process revolves around implementing Air Force Smart Operations for the 21st Century (AFSO21).The first step in establishing the lean culture is 5S+1, which stands for: Sort (eliminate what is not needed) Straighten (get organized) Shine (keep work areas clean and solve problems along the way) Standardize (standardize tasks across the board so everyone knows the standard operating procedure regardless of how big or small the task) Sustain (develop procedures for maintaining and sustaining best practices) Safety (maintaining a safe working environment) The next step is training the workforce to accomplish continuous process improvement, which is the primary mission of the Lean Institute. In partnership with the University of Oklahoma, the OC-ALC has developed curriculum for Lean Awareness, as well as Six Sigma Greenbelt and Blackbelt training. In the last year, all senior OC-ALC leaders have completed Greenbelt training and worked real-life projects to improve processes. The final step is integrating transformation activities, including those directed from higher headquarters, as well as local initiatives for Wing and Staff organizations. A governance structure has been established, consisting of OC-ALC key process owners, to ensure all initiatives align to the strategic plan, and to monitor execution of transformation initiatives. While the total projected investment in the overarching transformation is estimated at $496.6 million, officials hope to recoup the entire amount in just eight years by virtue of increased efficiencies.

7 Aviation Center Taking Off: Boeing Anchors New Aviation Park The Greater Oklahoma City region s soaring status as a national maintenance hub is bolstered by the completion of The Boeing Company s first hanger at the Oklahoma City Maintenance, Repair and Overhaul Technology Center (MROTC), a 370-acre aviation park adjacent and connected to Tinker Air Force Base (AFB). The hanger, which will be used to make contract modifications on Air Force E-3 AWACS aircraft, is the first of three planned at the center by Boeing. Scheduled for completion in August 2008, the two additional hangers will bring Boeing s total investment in the MROTC to $100 million and create more than 300 jobs for the region. Workers at Boeing s three hangars will initially update flight navigation and communications systems on the AWACS. Future modernizations will include new mission hardware and software, improved operational consoles and upgraded radar equipment. With the first hangar and tow-ways connecting to Tinker AFB finished, the initial development phase in the MROTC is well underway. The $500 million MROTC will eventually grow to 17 hangers, with more than one million square feet of space designed for industrial, educational and training facilities for commercial and military operations. The MROTC allows contractors like Boeing to locate literally across the street from Tinker s Oklahoma City Air Logistics Center. The MROTC is designed to assist the Air Force by allowing Tinker the potential to lease hangars for some of its current maintenance work, relieving congestion and freeing space on base for new work, and to foster partnering opportunities between industry and the government. By providing businesses the opportunity to locate next to the largest aircraft/jet engine repair center in the U.S., Greater Oklahoma City provides a competitive edge unmatched by other locations, said Greater Oklahoma City Chamber President & CEO Roy H. Williams. The MROTC strongly complements Tinker AFB s military aviation emphasis, significantly diversifies the region s aerospace activity and ultimately strengthens Oklahoma s status as a national maintenance hub. The MROTC is the result of a partnership between Oklahoma Industries Authority and Trammell Crow Company. MROTC by the Numbers $500 million investment in Oklahoma s aerospace industry 17 hangars planned for military and commercial operations 370-acre aviation park More than one million square feet of hangar and back-shop space 500,000 square feet of industrial space 100,000 square feet of research and classroom space 1,000 new jobs created with an estimated payroll of $50 million annually when completed

8 OKLAHOMA city aviation Oklahoma city aviation: Reaching for the sky OKLAHOMA city aviation 123 Park Avenue Oklahoma City, OK Oklahoma City Region s Aviation & Aerospace Cluster The Oklahoma City region s aviation & aerospace industry consists of 265 public and private-sector firms in the 10-county area employing nearly 38,000 workers. The Greater Oklahoma City Chamber is deeply committed to developing this important industry, whose economic impact in Oklahoma, including spillover into other industry sectors, exceeds $6.1 billion. For more information on the Oklahoma City Region s Aviation & Aerospace Cluster, contact: Gary Pence Sr. Business Development Manager Aviation & Aerospace (405) (800) gpence@okcchamber.com