The Changing Face of Aerospace in Southern California
Industry Cluster Series
What the Industry Says Results of survey and interviews.
W
here do industry players themselves see their industry going and what might their individual challenges and opportunities be? To help answer these questions, an online and telephone survey was conducted of known firms in the industry in Southern California, a universe of approximately 1,000 firms, of which 192 completions were achieved over a three-month period in late 2015. The survey was administered by BW Research Partnership. Once these were received, in-person interviews were conducted with high level executives of a number of firms. The results of the survey and interviews are discussed here.
Overview of Survey Responses The survey instrument was broadly divided into three sections. The first asks a series of questions about the respondent’s business profile and supplier connections. The second inquires about the firm’s research funding sources and employment outlook. The third section inquires about the firm’s general business outlook and the availability of needed inputs. Survey responses are as follows: How long has your firm been in Southern California?
5%
Firm permanence 49%
18%
18%
5 to 10 years
10 to 20 years
10%
Less than 2 2 to 5 years years
More than 20 years
Are your suppliers and customers primarily regional, statewide, national or international?
35% 36%
28%
Thirty percent of respondents had more than 100 employees in Southern California, while more than a third of respondents reported fewer than ten employees;
Two-thirds of respondents have been in Southern California for more than 10 years.
Aerospace firms in Southern California are competing in a global marketplace.
35% 26%
20%
16%
Almost 35 percent of respondents identified their primary customers as being outside the United States, and almost 20 percent identified their primary suppliers as being outside the United States;
Approximately 59 percent of respondents sold their products in the national marketplace and 60 percent purchased from the suppliers across the nation.
6%
Multiple responses allowed. Percentages may sum to more than 100%.
38
Global marketplace
Suppliers Customers
60% 59%
Aerospace and defense is a mature industry in Southern California, with larger firms that have considerable experience and longevity in the region.
LAEDC Institute for Applied Economics