1. OKLAHOMA AERONAUTICS COMMISSION Aerospace Industry Presentation

2. Oklahoma’s Big Problem The “Brain Drain” The “Brain Drain” How do we keep our children in Oklahoma? How do we keep our children in Oklahoma? Perception/Image Perception/Image

3. We Are Better Than You Think! In a 2005 report published by Pollina Corporate Real Estate, Oklahoma was among America’s Top Ten Pro-Business States (ranked 3rd). In a 2005 report published by Pollina Corporate Real Estate, Oklahoma was among America’s Top Ten Pro-Business States (ranked 3rd). In 2003 the North American Business Cost Review ranked Oklahoma ranked 5th among the Top Ten States with the Lowest Cost of Doing Business. In 2003 the North American Business Cost Review ranked Oklahoma ranked 5th among the Top Ten States with the Lowest Cost of Doing Business. Oklahoma City and Tulsa have earned a spot on Expansion Management magazine’s list of Top Business Opportunity Metros for 2005. Oklahoma City and Tulsa have earned a spot on Expansion Management magazine’s list of Top Business Opportunity Metros for 2005. Oklahoma’s state and local tax burden is one of the lowest in the nation. Oklahoma’s state and local tax burden is one of the lowest in the nation. Oklahoma’s per capita property taxes are 4th lowest in the U.S. Oklahoma’s per capita property taxes are 4th lowest in the U.S.

4. More Good Stuff About Oklahoma Oklahoma City ranked 18th among the Top 25 Best Workforce Education Level and 9th on the Top Ten High School Diploma list. Oklahoma exceeds the average ACT scores among Southern states and Oklahoma’s students achieved the highest average score in the 14-state southern region. Oklahoma is ranked 1st in the nation for early childhood education. Oklahoma City ranked 18th among the Top 25 Best Workforce Education Level and 9th on the Top Ten High School Diploma list. Oklahoma exceeds the average ACT scores among Southern states and Oklahoma’s students achieved the highest average score in the 14-state southern region. Oklahoma is ranked 1st in the nation for early childhood education. According to Economy.com, Inc., Oklahoma ranks 6th among the 10 states with the overall lowest labor costs. According to Economy.com, Inc., Oklahoma ranks 6th among the 10 states with the overall lowest labor costs. Due to the recent reforms by the Legislature, Oklahoma is now among those states with the lowest workers’ compensation insurance rates. Due to the recent reforms by the Legislature, Oklahoma is now among those states with the lowest workers’ compensation insurance rates. U.S. Chamber of Commerce does not list Oklahoma as a state in lawsuit crisis. Oklahoma’s liability insurance rates are among the lowest in the 50 states. U.S. Chamber of Commerce does not list Oklahoma as a state in lawsuit crisis. Oklahoma’s liability insurance rates are among the lowest in the 50 states.

5. Helping Companies Since its inception in 1994, the state has issued more than 400 contracts to locating, expanding, and start-up businesses through its Quality Jobs Incentive Program. To date, more than $400 million in performance-based wages rebates has been paid. Since its inception in 1994, the state has issued more than 400 contracts to locating, expanding, and start-up businesses through its Quality Jobs Incentive Program. To date, more than $400 million in performance-based wages rebates has been paid. Our nationally acclaimed Training for Industry Program (TIP), delivered by Oklahoma’s CareerTech System provides resources to help create and maintain the highly-skilled workforce companies need to be competitive. Best of all – it’s free. Since 1968, TIP has served over 2100 companies in virtually every industry. Our nationally acclaimed Training for Industry Program (TIP), delivered by Oklahoma’s CareerTech System provides resources to help create and maintain the highly-skilled workforce companies need to be competitive. Best of all – it’s free. Since 1968, TIP has served over 2100 companies in virtually every industry.

6. Aerospace – Oklahoma’s Largest Industry!! Over 140,000 jobs (1 in 10 Oklahomans derive their income from aerospace). Over 140,000 jobs (1 in 10 Oklahomans derive their income from aerospace). Nearly $12 billion in industrial output. This is about 10 % of Oklahoma’s economy. Nearly $12 billion in industrial output. This is about 10 % of Oklahoma’s 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.

7. Top Employers Tinker – 26,000 employees (16,000 civilian & 10,000 military). Annual economic impact on Oklahoma is $4 Billion dollars. It’s the largest state employer. Tinker – 26,000 employees (16,000 civilian & 10,000 military). Annual economic impact on Oklahoma is $4 Billion dollars. It’s the largest state employer. American Airlines aircraft maintenance base in Tulsa is the largest facility of its kind in the country. Among the more than 8,000 employees in Oklahoma are 7,000 mechanics that perform heavy maintenance on American's fleet. American Airlines aircraft maintenance base in Tulsa is the largest facility of its kind in the country. Among the more than 8,000 employees in Oklahoma are 7,000 mechanics that perform heavy maintenance on American's fleet. The NORDAM Group, a leader in aircraft component manufacturing and repair, has its headquarters in Tulsa and employs nearly 2,000. The NORDAM Group, a leader in aircraft component manufacturing and repair, has its headquarters in Tulsa and employs nearly 2,000. FAA Mike Monroney has 5,300 employees. FAA Mike Monroney has 5,300 employees.

8. Oklahoma’s Aviation Legacy Clyde Cessna’s test flights began in the Great Salt Plains. Clyde Cessna’s test flights began in the Great Salt Plains. Tom and Paul Braniff started one of the first commercial airlines - Braniff Airways. Tom and Paul Braniff started one of the first commercial airlines - Braniff Airways. Wiley Post around the world flight. Wiley Post around the world flight. Oklahoma has produced more astronauts than any other state in the country. Oklahoma has produced more astronauts than any other state in the country.

9. Maintenance, Repair and Overhaul (MRO) Industry Oklahoma ranks 8th in the nation for the size of its aerospace engines manufacturing cluster and 20th for its defense related cluster. Oklahoma ranks 8th in the nation for the size of its aerospace engines manufacturing cluster and 20th for its defense related cluster. Oklahoma has one of the highest concentrations of skilled aviation workers and airplane repair facilities, making it a leader for refurbishing aging military and civilian aircraft. Oklahoma has one of the highest concentrations of skilled aviation workers and airplane repair facilities, making it a leader for refurbishing aging military and civilian aircraft. We are one of the 6 centers in the world for the MRO of aircraft. We are one of the 6 centers in the world for the MRO of aircraft. Tinker is the largest repair facility for aircraft in the Department of Defense & is the largest logistics center. They are the DoD engine capital of the world!! Tinker is the largest repair facility for aircraft in the Department of Defense & is the largest logistics center. They are the DoD engine capital of the world!!

10. More MRO As the US Air Force fleet ages, the market for the MRO industry is expected to grow to be a $60 billion dollar industry with an annual growth rate of 5.3%. As the US Air Force fleet ages, the market for the MRO industry is expected to grow to be a $60 billion dollar industry with an annual growth rate of 5.3%. Aircraft maintenance accounts for roughly 5% or $52.7 billion of the total defense spending. Aircraft maintenance accounts for roughly 5% or $52.7 billion of the total defense spending. Engine overhaul is the largest segment of the commercial MRO market, currently valued at $12.4 billion. Engine overhaul is the largest segment of the commercial MRO market, currently valued at $12.4 billion. Oklahoma is poised to be the leading edge on this technology the world will need. Oklahoma is poised to be the leading edge on this technology the world will need.

11. MROTC Maintenance Repair and Overhaul Technology Center – to be built adjacent to Tinker. Maintenance Repair and Overhaul Technology Center – to be built adjacent to Tinker. More opportunity for our companies to obtain contracts with Tinker. More opportunity for our companies to obtain contracts with Tinker. Tinker outsources $5 billion dollars a year. Tinker outsources $5 billion dollars a year. Oklahoma companies only get about $700 million. Oklahoma companies only get about $700 million.

12. Oklahoma Airports – Your Gateway to the World! Over 18,345 private and public airports. Airlines only serve 540 of these airports, or less than 3%. Over 18,345 private and public airports. Airlines only serve 540 of these airports, or less than 3%. General Aviation passengers have access to over 5,400 public use community airports. General Aviation passengers have access to over 5,400 public use community airports. Today, 35,000 U.S. companies use 50,000 General Aviation aircraft to succeed in business. Today, 35,000 U.S. companies use 50,000 General Aviation aircraft to succeed in business. For every dollar spent on airport improvements, $6.70 is generated in off-airport economic gains for the surrounding community. For every dollar spent on airport improvements, $6.70 is generated in off-airport economic gains for the surrounding community. General Aviation contributed to more than $900 billion and 11.3 million jobs to the U.S. economy. General Aviation contributed to more than $900 billion and 11.3 million jobs to the U.S. economy.

13. 5,000 Foot Runway – A Reason to Locate in Oklahoma Woodward - Mutual of Omaha call center with 1,200 employees. Woodward - Mutual of Omaha call center with 1,200 employees. Guymon - Seaboard with 4,500 employees. Guymon - Seaboard with 4,500 employees. Ardmore - Michelin Plant with 2,200 employees & the Dollar General distribution center with 750 employees. Ardmore - Michelin Plant with 2,200 employees & the Dollar General distribution center with 750 employees. Poteau - Bremer incorporated with 350 employees. Poteau - Bremer incorporated with 350 employees. Idabel - Weyerhaeuser has 900 employees and Tyson, has 1,200 employees. Idabel - Weyerhaeuser has 900 employees and Tyson, has 1,200 employees. Grove - Precision Communication and Jacobs Manufacturing. Grove - Precision Communication and Jacobs Manufacturing.

14. The Numbers Don’t Lie Oklahoma has 114 airports. That’s number 4 per capita in the country. Oklahoma has 114 airports. That’s number 4 per capita in the country. 49 of those are regional business airports. 49 of those are regional business airports. 40 of those are jet- capable. 40 of those are jet- capable. 92% of our population is within 25 miles of a jet- capable runway. 92% of our population is within 25 miles of a jet- capable runway.

15. Oklahoma Aeronautics Commission The Aeronautics Commission receives about $3 million a year. The Aeronautics Commission receives about $3 million a 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 aviation airports. from the Federal Aviation Administration through the Airport Improvement Program. Oklahoma receives $9 million dollars a year for our general aviation airports. from the Federal Aviation Administration through the Airport Improvement Program. We receive about $13 million (6th highest in the US) under the General Aviation Entitlement Program. That is $150,000 straight out to the airports that are federally designated. We receive about $13 million (6th highest in the US) under the General Aviation Entitlement Program. That is $150,000 straight out to the airports that are federally designated. In FY 2000, the federal investment in our general aviation airports was just over $5M. In FY 2005, the federal investment in our general aviation airports was just over $22M. We have come a long way. In FY 2000, the federal investment in our general aviation airports was just over $5M. In FY 2005, the federal investment in our general aviation airports was just over $22M. We have come a long way.

16. Give me a mile of highway and that’s exactly what you have, but you give me a mile of runway, and you give me the world. It’s YOUR gateway to the world!!