Arizona, known for its sunshine and the Grand Canyon, offers an environment of favourable proportions for the aerospace industry. Combine a pro-business setting, excellent research universities, a modern aviation infrastructure, excellent year-round flying conditions and good quality of life, and Arizona has the top-flight ingredients.

With annual revenues of about $36bn, Arizona is regarded as one of the fastest-growing locations for aerospace in the US: it ranks ninth. High-tech companies located there employ more than 108,000 workers at an average annual wage of $62,946. Among the top aerospace companies in the state are ATK, Boeing, Bombardier, General Dynamics, Goodrich, Hamilton Sundstrand, Honeywell, Lockheed Martin, Northrop Grumman and Raytheon.

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Defence electronics manufacturing, a key sector for the state, employs more than 5000 people and ranks seventh nationally. Department of Defense (DOD) contracts are also significant there. With more than 1,200 Arizona companies or agencies receiving military contracts in 2002, the state ranked fifth in the US for DOD awards.

R&D strengths

At the heart of Arizona’s aerospace industry is research and development (R&D) led by Arizona State University (ASU), University of Arizona (UA), Northern Arizona University (NAU) and Embry Riddle Aeronautical University. All offer degrees in various technology-related fields and conduct sponsored research for a number of government departments and agencies, including the National Aeronautics and Space Administration (NASA), the Air Force Office of Scientific Research (AFOSR), and the DOD.

Located in Tempe, ASU provides specialised laboratory facilities for combustion, design automation, fluid dynamics, integrated manufacturing engineering, integrated mechanical testing, material-wave interaction and novel materials. Facilities include subsonic and supersonic wind tunnels.

“The Flight Research Center and the ASU Satellite Lab are two examples of university resources providing R&D for the aerospace industry,” says Robert Peck, chairman of ASU’s Department of Mechanical and Aerospace Engineering, Ira A. Fulton School of Engineering. “Research projects contribute to improved air/space craft design, safety and performance for air transportation, security and space exploration. Students who work on these projects gain valuable experience that prepares them for rapid, productive entry into the aerospace workforce.”

Partnership

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Boeing, Raytheon, Intel, Honeywell, Spectrum Astro, Motorola, Lockheed Martin, and General Dynamics Decision Systems participate in the school’s Department of Mechanical and Aerospace Engineering Industrial Advisory Board, which designs undergraduate and graduate curricula and plans recruitment for undergraduate and graduate students.

“One of the goals of the department is to improve communication with local industries and agencies, promote collaborative efforts and encourage faculty participation in the professional community,” says Mr Peck. All corporate participants employ graduates and interns from the department.

Entrepreneurship is highly encouraged through initiatives such as Arizona Technology Enterprises, ASU Technopolis, the Engineering Entrepreneurship Institute, and Entrepreneurial Programs. Spin-off companies from faculty research add another layer to the relationship between local industry and the university.

ASU’s Department of Mechanical and Aerospace Engineering’s Flight Research Center is the nation’s only fully dedicated flight research enterprise in the country aligned with a major research university. Three unique aircraft can be used to research the control of air-flow and resulting turbulence across the surface of the wing as well as air quality.

UA in Tucson is also actively involved in partnerships with industry and government agencies. Currently, it is working with NASA to develop shielding for a space-based nuclear reactor and with Boeing to develop the VCC Osprey integrated defence system.

UA research programmes include aerospace and mechanical engineering, biosystems engineering, chemical and environmental engineering, civil engineering and engineering mechanics, electrical and computer engineering, engineering physics, hydrology and water resources, materials sciences, geological engineering, optical sciences, and systems and industrial engineering.

Academic support

Universities participate in government-sponsored programmes, such as the Arizona Space Grant College Consortium, a NASA sponsored programme to develop engineered devices and systems that produce telescopes, satellites, instruments, materials, optics and electronics; and the Advanced Helicopter Electromagnetics (AHE) Industrial Associates Program. The AHE programme is based at ASU and is a three-way partnership between industry, government and the university. Research efforts are supported by Boeing Helicopters, Boeing Helicopter Systems, Rockwell International, United Technologies-Sikorsky Aircraft Division, NASA Langley Research Center, US Army AATD, US Army CECOM, US Army Research Office, US Army Electronic Proving Ground and US Naval Air Warfare Center.

ASU and UA also offer research parks to leverage research and to innovate and commercialise technology. Companies at the University of Arizona Science and Technology Park include Arizona Microsystems, NP Photonics, Raytheon and IBM. Among the tenants at the ASU Research Park are ASML, Iridium Satellite LLC and the Motorola Physical Science Laboratory.

Corporate strength

With so much support, corporate commitment to Arizona is strong. Goodrich Corporation’s Aircraft Interior Products (AIP) division, for example, is headquartered in Phoenix, with three additional sites in the state and seven more worldwide. The division manufactures safety products for the aerospace industry, both commercial and military. Among its products are evacuation slides, seating for flight attendants and pilot crews as well as ejection seats and aviation life rafts. Of the company’s 1300 worldwide employees, more than 700 are based in Arizona.

“The city of Phoenix and the state of Arizona provide an excellent environment for our business,” says Christine Probett, president of AIP at Goodrich Corporation. “Through our solid relationships with city/state officials, we enjoy favourable labour, land and tax benefits. In addition, the overall employment climate of Arizona, such as favourable labour rates and workers compensation, supports our business needs.”

Arizona’s universities factor in as an important ingredient to AIP. “AIP hires many graduates from ASU into entry-level (bachelors degrees) and management positions (graduate degrees), as well as interns for summer and part-time positions,” she says. “In addition, current employees pursue degrees at local colleges and universities with our tuition assistance programmes. We are pleased with the co-operation and support from local educational institutes.”

She says that AIP finds the cost of doing business in Arizona is among the best in the US. “Over the past two years, we have closed three plants in other states and moved this work to Arizona to consolidate our operations and to reduce overall business costs,” she says. “To support these moves, we have added manufacturing and support area, and over 100 new employees, within a reasonable cost and timeframe. AIP is very satisfied with its location, employee base, cost structure and local/state support of our business in the Phoenix area.”

Military contracts

The Boeing Company has similar praises. Boeing is one of the world’s leading manufacturers of military rotorcraft and electrical subassemblies for Boeing military and commercial aircraft. The site in Mesa is responsible for building the Apache Longbow helicopter for the US Army and other nations, as well as wire harnesses and electrical subassemblies for Boeing’s military and commercial aircraft.

“Development of high technology innovations for future rotorcraft applications is also a focus of the company through Rotorcraft Phantom works, an advanced R&D unit of Boeing with a new generation of products, including the Canard Rotor/ Wing, a multi-role aircraft that can hover like a helicopter and fly like an airplane,” says Mary Baldwin, community and government relations manager for Boeing’s Mesa facility.

“The site is one of the state’s top employers with 4100 employees in two million square feet of production and administrative workspace,” she says.

Ms Baldwin says that Boeing moved to Mesa because of its isolated, unobstructed airports and overflight areas, compatible zoning, the educated workforce and low business costs. “The City of Mesa and State of Arizona were especially helpful in that relocation,” she says.

Boeing holds an important relationship with Arizona’s universities by making donations to ASU, UA, NAU and Embry Riddle Aeronautical University, providing engineering and business scholarships, and contributing to student engineering retention programmes and student engineering organisations.

“We also have executives that serve on various advisory boards for the universities,” says Ms Baldwin.

Labour supply

Boeing also supports continuing education programmes at the universities and community colleges. “We find that we have an ample supply of workers that we can train for our touch labour activities, such as wire assembly work,” she says.

“We generally do see a short supply in our critical skills engineering areas, such as embedded software, avionics, systems and optics. Through JACMET (Joint Alliance of Companies Managing Education for Technology – a partnership of companies and the universities in Arizona), affordable and accessible career-long learning for engineers and technical professionals is provided by making use of innovative and appropriate means of design, development and delivery of curriculum.”

Currently, JACMET is developing new approaches to updating the engineering and manufacturing technical workforce, generally at the post-graduate level.

Arizona plays an important role in expanding aerospace opportunities for unmanned air vehicles (UAVs). Some of the most advanced UAV technologies in the world are being developed in Arizona’s greater Sierra Vista area. These technologies have multiple applications for homeland security, low intensity conflict and the latest in battlefield surveillance.

Putting Sierra Vista on the map for UAV activity is Fort Huachuca, home of US Army Intelligence. The post holds some of the military’s top technology, a fact that has attracted military contractors from around the country.

Encouraging growth

To grow the business, the City of Sierra Vista, in partnership with the Arizona Department of Commerce, has designed customised incentive and grant programmes that significantly reduce operating and overhead costs for UAV industries. The programmes include incentive lease rates on built-to-suit facilities; job training grants that support the design and delivery of training that meet UAV industry standards and challenges; countywide enterprise zone benefits that reimburse company employment taxes; and R&D income tax credit for qualified UAV R&D done in Arizona. In addition, IT training tax credits reimburse companies for training in high-tech programmes.

Sierra Vista is already home to large employers, such as Northrop Grumman, Lockheed Martin, and AAI. But companies locating throughout the state can take advantage of additional incentives such as Arizona’s Military Reuse Zone (MRZ) Program. Another plus is Phoenix Sky Harbor International Airport, home to two major airlines: Southwest and America West. Not only does Sky Harbor offer flights to 110 non-stop destinations, including international flights to Europe, Canada, Mexico and Central America, but the airport is also fifth in the world for aircraft movements and ninth for passenger emplanements. It is part of the package that fosters aerospace in the Grand Canyon state.

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