Welcome to the Aerospace Industry
The aerospace industry is comprised of many companies who produce aircraft, guided missiles, space vehicles, aircraft engines, propulsion units, and related parts. Aircraft overhaul, rebuilding, and conversion are also included.
The industry is primarily dominated by a few large firms that contract to produce aircraft for the government and private businesses, such as commercial airline and cargo transportation companies. These large firms, in turn, subcontract with smaller firms to produce specific systems and parts for their vehicles. Government purchases are largely related to defense. Typically, the Department Of Defense announces its need for military aircraft or missile systems, specifying a multitude of requirements. Large firms specializing in defense products subsequently submit bids, detailing proposed technical solutions and designs, and cost estimates, hoping to win the contract. Firms may also research and develop materials, electronics, and components relating to their bid, often at their own expense, to improve their chances of winning the contract. Following a negotiation phase, a manufacturer is selected and a prototype is developed and built, then tested and evaluated. If approved by the Department of Defense, the vehicle, craft or system enters production. This process usually takes many years.
Recent developments
The way in which commercial and military aircraft are designed, developed, and produced continues to undergo significant change in response to the need to cut costs and deliver products faster. Firms producing commercial aircraft have 
reduced development time drastically through computer-aided design and drafting (CADD), which allows firms to design and test an entire aircraft, including the individual parts, by computer; the drawings of these parts can be sent electronically to subcontractors who use them to produce the parts. Increasingly, firms bring together teams composed of customers, engineers, and production workers to pool ideas and make decisions concerning the aircraft at every phase of product development. Additionally, the military has changed its design philosophy, using commercially available, off-the-shelf technology when appropriate, rather than developing new customized components.
Commercial airlines and private businesses typically identify their needs for a particular model of new aircraft based on a number of factors, including the routes they fly. After specifying requirements such as range, size, cargo capacity, type of engine, and seating arrangements, the airlines invite manufacturers of civil aircraft and aircraft engines to submit bids. Selection ultimately is based on a manufacturer's ability to deliver reliable aircraft that best fit the purchaser's stated market needs at the lowest cost and at favorable financing terms.
Aerospace Occupation
The design and manufacture of the technologically sophisticated products of the aerospace industry require the input and skills of various workers. Production, professional,
administrative, and managerial occupations make up the bulk of employment. Those employed in managerial and administrative support occupations manage the design process and factory operations, coordinate the hundreds of thousands of parts that are assembled into an aircraft, and ensure compliance with Federal record keeping regulations.
The industry invests a great deal of time and money in research and development of aerospace products, and much of this work is performed by professional and related workers, who made up 31 percent of the aerospace workforce in 2006 ( Appendix 1). In addition, many more aerospace-related professionals work in the scientific research and development services industry.
Training and Advancement
The proportion of workers with education beyond high school is larger in the aerospace industry than the average for all industries. Because employers need well-informed, knowledgeable employees who can keep up with the rapid technological advancements in aerospace manufacturing, the industry provides substantial support for the education and training of its workers. Firms provide onsite, job-related training to upgrade the skills of technicians, production workers, and engineers. Classes teaching computer skills and blueprint reading are common. Some firms reimburse employees for educational expenses at colleges and universities, emphasizing 4-year degrees and postgraduate studies.
The aerospace industry is on the leading edge of technology, constantly striving to create new products and improve existing ones. Many workers are employed in research and development in the aerospace products and parts manufacturing sub-industry. A bachelor's degree in a specialized field, such as engineering, is required for most of these jobs; a master's or doctoral degree is preferred for some. For many technician occupations, however, a 2–year program of technical training after high school is favored.
Employment change
Wage and salary employment in the aerospace product and parts manufacturing industry is expected to grow by 5 percent over the period, 2006-16, slower than the 11-percent growth projected for all industries combined. Employment in the aerospace industry declined in the first half of this decade as a result of a drastic reduction in commercial transport aircraft orders, but an increase in air traffic and the improving financial health of the nation's airlines have caused this trend to reverse since 2004. The introduction of several major new aircraft in both the civil and military segments of the industry should lead to a substantial increase in production and a moderate increase in employment over the projection period. Concern for the Nation's security has increased the need for military aircraft and military aerospace equipment.
Job prospect
In addition to some growth in employment opportunities for professional workers in the industry, there will be many job openings arising from replacement needs, especially for aerospace engineers. Many engineers who entered the industry in the 1960s are approaching retirement. Among those in the aerospace manufacturing sub-industry, professionals typically enjoy more job stability than do other workers. During slowdowns in production, companies prefer to keep technical
teams intact to continue research and development activities in anticipation of new business. Production workers, on the other hand, are particularly vulnerable to layoffs during downturns in the economy, when aircraft orders decline.
Industry earnings
Production workers in the aerospace industry earn higher pay than the average for all industries. Weekly earnings for production workers averaged $1,153 in aerospace product parts manufacturing in 2006, compared with $691 in all manufacturing and $568 in all private industry. Above-average earnings reflect, in part, the high levels of skill required by the industry and the need to motivate workers to concentrate on maintaining high quality standards in their work. Non-production workers, such as engineering managers, engineers, and computer specialists, generally command higher pay because of their advanced education and training (Appendix 2).
* Source: Bureau of Labor Statistics
