1. Economic Impact of NASA Programs on the U.S. Economy Aerospace Industries Association President & CEO John Douglass March 2, 2006

2. State of the Industry

3. Aerospace Industry Sales

5. Aerospace Sales by Customer Commercial and FMSDODNASA

6. Orders, Shipments, and Backlog

7. “Aerospace” Employment NASA makes up an estimated 1/10 of aerospace employment

8. Economic Impact of NASA Programs on the U.S. Economy

9. U.S. Competitiveness in Question America’s Asian and European competitors understand the strategic role of space exploration in building political and economic power. China- China National Space Administration’s 20 year strategic plan Russia- Russo-Chinese Sub-commission on Space Cooperation India- India Space Research Association The European Union- European Space Agency

10. Truth in Space Budgeting NASA accounts for a fraction of the federal government’s budget and has never diverted resources from domestic discretionary spending programs For 36 of the last 48 years in existence NASA has accounted for less than one penny of every federal dollar expended No trade-offs exist between NASA and other priority programs

11. The Real Connection Between Space and Life on Earth Space exploration technologies have transformed health care, environmental protection, transportation, and public safety programs These tangible benefits generate economic growth According to NASA, “For every space-related R&D dollar that NASA spends, the government captures seven dollars in tax revenue as a result of the net gain in jobs and contracting activities.”

12. NASA Aeronautics Funding FY1994 – FY2011 FY2007 President’s Budget Request cuts aeronautic by $178.3 million or 18.1 percent

13. Where do we go from here? And why? The Administration has shown a clear preference to deemphasize its aeronautics programs (18.1% cut in FY07 submission). Our foreign competitors continue to ramp up targeted funding for aeronautics research. The U.S. lead in aeronautics is at grave risk. NASA must once again play its historical role in funding critical, pre-competitive research. Funding at proposed levels of approximately $720 million per year is not sufficient. NASA must fully reengage with its Industry partners to ensure a dynamic and fruitful aeronautics program.

14. AIA Aeronautics Strategy Stop the bleeding - Aggressive strategy resulted in $912.3 million (+ $60 million) for NASA aeronautics in FY 2006 - Space Exploration left harmless - Challenge ahead to do the same for FY2007 Develop & implement healthy, long-term U.S. aeronautics policy - Work with administration, Congress, and stakeholders to develop policy that is consistent with aviation’s importance to the U.S. economy - Mandated by Nov. 2006 by NASA Reauthorization and Appropriations bills NASA must regain mission as world’s leader in aeronautics research

15. www.aia-aerospace.org