Q4 2016 Economic Reporter Newsletter from Mesa OED



Let's put this newsletter for  the July-August-September Final Quarter FY2106 in some kind of perspective with its headline
Mesa: a strategic player in aerospace and defense
On this blogsite over 18 months there are many posts about the aerospace  and defense industries located here in Mesa and in The State of Arizona. We can probably thank Senator John McCain for that, along with the massive spending in FY 2017 for the federal budget dedicated go that sector.

A&D companies, particularly those in the U.S., have a few extremely important things going for them. The first is the bedrock support that they have from their core customers, their governments. The second is their history of technology innovation and engineering prowess. The third is the reliability of their cash flows.
As you can see in the image to the right from National Priorities 54% of the discretionary spending is military.
Two former military bases are located here in Mesa where aerospace and defense and related supply chain/logistics industries are in close proximity.
Just in time to get on the radar screen for this event in December, the emphasis for Q4 Mesa OED  Economic Reporter Newsletter is Aerospace & Defense 

American Aerospace & Defense Summit 2016

December 6–7, 2016 | Scottsdale, AZ

Venue:We-Ko-Pa Resort & Conference Center

10438 North Fort Mcdowell Road, Scottsdale/Fountain Hills, AZ 85264

 

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The Quick Jab

by Bill Jabjiniak
Mesa: a strategic player in aerospace and defense
Read the entire newsletter >>: here

Please take the time to take at the entire newsletter in the link above that has links to articles in various media.
Here are some excerpts specifically about incentives for A&D that can be used to attract companies to airport districts here in Mesa 


Mesa’s Two Airport Districts and Opportunities

Falcon Field Airport
At the center of the Falcon District is Falcon Field Airport, one of the nation’s most active general aviation airports and an ideal location for aerospace, aviation and defense companies involved in manufacturing, research and development, aviation services, and MRO operations.
Falcon Field is surrounded by a 1,000-acre business district that includes six industrial parks, which can accommodate aerospace companies of all types and sizes.

Phoenix-Mesa Gateway Airport
Phoenix-Mesa Gateway Airport with three long runways, (10,400 ft., 10,200 ft. and 9,300 ft.) is the keystone of the Mesa Gateway Area and is a prime location for aerospace, aviation and defense related businesses including high-tech manufacturers and suppliers, research and development, logistics and cargo services, and MRO operations.
The airport is developing the Gateway Aerospace Park that includes 350-acres of developable land with runway/taxiway access. Surrounding the airport are more than 1,000 acres of developable land.
The airport is designated as a Military Reuse Zone, which provides tax incentives to qualified companies and a property tax reduction of up to 72.9 percent.
We invite you to learn more about Mesa’s aerospace and defense sector by downloading our Aerospace Industry Profile or by visiting www.mesaaerospace.com.

It might seem there are two contradictory bits of information in the newsletter - while citing the 4,000 highly skilled workers at Boeing*, a whole topic highlighted is the low-cost workforce:
Abundant, Skilled, Low-Cost Workforce
The Phoenix-Mesa metro area is well supplied with an abundant and very skilled workforce boasting a labor pool of more than two million.
Furthermore, Arizona is a right-to-work state with a very low unionization rate, the second lowest unemployment insurance taxⁱⁱ, and workers compensations rates that are 86 percent of the national average.ⁱⁱⁱ
Mesa’s workforce talent pipeline is very strong. Mesa’s seven campuses for higher education offer specialized training for high-tech aerospace and defense industries including composites, manufacturing and electronics technology, aeronautical engineering, airport management, air traffic control, pilot training, aircraft maintenance and more.
Low Taxes, Business Friendly
Mesa and the State of Arizona are business-friendly with a low cost of doing business. Arizona has no franchise tax, business inventory tax, or estate tax, and is among the lowest in the nation for corporate and individual income tax rates. Also, businesses with multi-state operations will appreciate the transition to a 100 percent sales factor income appointment formula, which will be completely phased in by

"If you combine Arizona and the State of Sonora, Mexico, the region makes up the fourth-largest aerospace supply chain in the world and the  largest in North America, according to the Arizona-Mexico Commission."
READ THAT AGAIN

 

*This article appeared in Flight Global Army will not pursue AH-64F model Apache

04 October, 2016 by Leigh Gianfranco Washington DC

 "As Boeing prepares for a possible F model Apache as a bridge between the legacy helicopter and the Future Vertical Lift aircraft, the US Army says it will not pursue the development of the AH-64F. . . "

Source: Flight Global

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Key Themes for the A&D Summit

Manufacturing & Supply Chain

Maximizing production through optimizing workflow

Advanced manufacturing solutions

Innovations in Lean & OpEx

The emphasis on Quality Management

 

Supplier Oversight & Cost Optimization

Supplier Management that drives “should cost” mentality

Creating a robust requirements management strategy

Managing Counterfeit parts through the Supply Chain

Improved visibility with CMO’s and other vendors

 

Workforce Management

Employee involvement in OEE and other optimization efforts

Talent Management as a driver to reduce labor costs

Identifying top performers and building the talent pipeline

Engaging people product & process across a diverse network

 

Product Innovation

How the best companies approach growth opportunities

Introducing innovations into commercialized markets

The impact of additive printing in product innovation

Developing new engagement models with customers