Aerospace States' Incentives To Attract The Industry: An Update
Rosa Moller (CRB-08-005, May, 2008)
This paper originated from a request by Senator Roy Ashburn to update the California Research Bureau’s report: "Other States' Incentives to Attract or Encourage Aerospace Manufacturing," published in June 1999.
The aerospace industry includes the manufacturing sectors of: aircraft and related parts; guided missiles, space vehicles and related parts; and, search, detection, and navigation instruments. This industry is important because it contributes significantly to the economy of the state, provides a number of well-paid jobs and is a spring board of innovation for other sectors. This paper includes a section on the history of California aviation and aerospace to emphasize the historical importance of this industry in California. The presence of the aerospace industry in the state is still strong. A significant proportion of aerospace electronic components and parts are produced in California and the state has a leading role in space activities and programs. California, can enhance the competitiveness of its aerospace industry by offering (as other states are doing) a variety of incentives discussed in this paper. One of the industry's main challenges is that its current workers are approaching retirement age and it will be difficult to replace them, since the pool of labor with the skills required by aerospace activities is limited. Hence, the support of development programs that enhance these skills in the labor force is important.
PDF version (2MB) is available online.
For this and other online California Research Bureau reports, please visit the California Research Bureau page on the California State Library website.