California aerospace soaring

[question everything]

Long Beach Press Telegram

Pentagon contracts up drastically from a few years ago; Boeing leads way.
By Lisa Friedman
From our Washington Bureau

WASHINGTON — Defense spending in Southern California has nearly doubled under President George W. Bush, and economists say they are watching the region's aerospace industry take off for the first time in nearly 20 years. Throughout California, Pentagon contracts for everything from missiles to jet engines reached $28.7 billion in 2003 an amount equal to about a quarter of the state's entire annual budget... Boeing was the state's largest contractor, landing about $5.2 billion in 2003 defense contracts.

(snip)

Since taking office, Bush has overseen the largest increase in defense spending since the Ronald Reagan buildup of the 1980s that launched Southern California's aerospace glory days. Last year, the Pentagon awarded $202 billion in defense contracts nationwide, a 19 percent increase over 2002 and a 38 percent increase since Bush became president. In California, the contracting rose even faster about 44 percent between 2001 and 2003. And with defense spending in the state poised to reach $30 billion for the first time since 1984, economists say they are optimistic that the aerospace industry is finally getting back on its feet.

(snip)

The aerospace industry and defense were once the pillar of Southern California's economy. At the peak in 1984, the Pentagon spent $30.1 billion in the state, for contracts that employed 274,000 people. In Los Angeles County alone, aerospace jobs accounted for 10 percent of the national total. With the end of the Cold War, however, Pentagon budgets shriveled, bases closed and defense money and jobs steadily declined. It reached a low in 1999, when the Pentagon spent only $17.3 billion in California. The defense buildup following Sept. 11, 2001, Ransdell said, "is good news for the California economy, but it still hasn't reached even the level of 20 years ago."

(snip)

[catzies]

1. If you can't steal California's votes, bribe 'em

I saw this headline this morning and that was my first thought.

[Media_Lies_Daily]

7. My first thought, also...bet there will be a ton of layoffs pretty soon...

...after the elections.

[Barkley]

2. CA economy & pop is larger and more diversified than in 1984

So the $30 billion today is not the same as 20 years ago. Moreover, this figure is not inflation adjusted dollars, which would make $30 billion in 1984 much bigger than $30 billion today.

The Reagan defense build-up was fundamentally different from this one in that it was spending on NEW weapons systems rather than spending on replacing expended munitions. New systems have longer production runs and require hiring engineering and designer workers.

Still this California can use the extra cash and extra jobs.

I believe that other sectors/ factors of the CA economy are of equal or of greater importance than defense.

The cheaper dollar is helping boost CA farm exports and bring in more tourism dollars. Of course a cheaper dollar will help arms exports too.

I believe many Californians are rightly concerned about companies that outsource technical jobs overseas.

I also think many Californians are concerned about energy/ fuel prices.

Finally, I believe that many people here are concerned about impact higher interest rates are going to have on the value of their homes and their ability to purchase a home.

These economic issues go a long way explaining why Bush will not win California.

[bemildred]

3. First time in twenty years my ass.

The best times I ever saw (in defense) were late eighties,
and this is nowhere close. But we need real jobs, not defense
bullshit anyway.

[customerserviceguy]

5. Reminds me of what my father used to say

about defense jobs vs. space program jobs. He saw that there was a definite "product" out of the space jobs, back when a lot of people saw the space race only as a proxy war.

Manned space missions might be risky boondoggles, but all those satellites out there are doing humanity some solid good. I wish CA (and my home state of WA) would get more space related industry.

[Yavin4]

4. To Californians, Enjoy These New Defense Jobs Because...

you're paying for them. Your government is borrowing money and running up huge debts, that you and your children will have to pay for, in order to give you these jobs.

[Pax Argent]

6. Dude, ease up on us defense contract wienies

The C-17 contract referenced in the article (60 Aircraft) was negotiated during the Clinton Administration and signed in 2001 as the follow-on to a contract that was signed in 1996 and finally completed this year.

The C130 Avionics modernization is a little newer (within the past couple years) but not much. Boeing hasn't really been adding jobs to accomodate any of this in any real quantities and has been leaning out the C-17 Production side all the while. In the long scheme of things $100M for Avionics Modernization (in lieu of new purchases) is chump change. Ironically (although not unexpectedly), most of the work generated for the C130 program will take place in Texas.

As noted above, just because Boeing IDS is based out of California and the contract was awarded to Boeing IDS doesn't mean that the work will be done here. Boeing So Cal farms a lot of work to out-of-state components and vendors.

Up until this morning I didn't realize that the Long Beach Press Telegram had an editorial slant, but this article is a PURE Bush-whoring puff piece. From the way it sounded, Bush was single-handedly shoring up huge tracts of the So Cal Economy instead of it being noted that the Bush Administration has repeatedly screwed this state throughout his reign (denying funding for forest maintenance, allowing Enron & Co. to screw us, etc). I think a letter to the editor might be in order.......

[Yavin4]

9. I'm Just Being Honest

Sure, the contracts were negotiated under Clinton. However, Clinton paid for them in his budget. Bush is borrowing the money from your kids to pay for these jobs now.

[Trajan]

11. I am an experienced Electronic Systems Technician ....

From the Boeing-Rockwell-Autonetics sphere ....

Autonetics is the Systems Intergrator of IDS ....

I was laid off last year after 22 + years of employment ...

Hardly ANY production work in So Cal: most all of it will be done Texas, Alabama and Georgia ... Right to Work states where the wages are less than HALF those of California union techs and mechs ... Rockwell began 'outsourcing' their CA production to Texas and Alabama 15 years ago ....

UAW members in CA (Rockwell heritage) have been on the decline for decades, and are nearly gone .... McDonnall Douglas heritage union employees have been relatively steady for the last year, but that after steep declines over the decades, with the C17 work being all there really is now in Long Beach .....

Dont be fooled by these numbers: CA Aerospace may be good for Boeing, but it's been awful for the regular joes who need jobs the most ....

Visit the Boeing website: look at the available jobs: nearly ALL are salaried non exempt; ... out of 900 open positions: TWO are bargaining unit .....

[The_Casual_Observer]

8. but it still hasn't reached even the level of 20 years ago

And lets hope to god it never does. That money was a good a burnt or buried in the ground. Useless shit programs employing legions of freepers parading as "free market capitalists" showing up everyday to fill out a time card and eat a donut. That the "industry" still is allowed to exist is a fraud foisted on a naive public that has no knowledge or say in the matter.

[LibDemAlways]

10. Defense contractors like Boeing

are top heavy with managers who long-ago ceased to have any interest in anything other than counting down the days to their retirement. The amount of money wasted on their salaries alone is a crime, never mind the money wasted on programs that are eventually scaled back or cancelled outright - many of them never really needed in the first place.

Once a scientist or engineering type hops aboard the areospace gravy train, though, it's very tough to jump off. These guys bounce from company to company following the government contracts until they are too old to look elsewhere and become the deadwood piled at the top.

Efficient it isn't.