USITC Looked At Manufacturing, Business Competitiveness And Productivity
NBAA President and CEO Ed Bolen and GAMA president and CEO Pete Bunce had pretty glowing reviews for a new report issued Wednesday by the U.S. International Trade Commission (USITC), confirming the critical importance of business aircraft manufacture to America’s industrial base, and the value of business aviation in making companies of all sizes more efficient, productive and competitive.
The report, entitled, Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness (Investigation No. 332-526, USITC Publication 4314, April 2012), was requested last year by U.S. House Representatives Mike Pompeo (R-KS) and Lynn Jenkins (R-KS), in order to provide a comprehensive government examination of the challenges and opportunities confronting the industry. The two were joined in their request for the study by Rep. Dave Camp (R-MI), who Chairs the House Ways and Means Committee.
The release of the study comes eight months after Bolen testified at a USITC hearing to explore the issues examined in the report.
Following the release of the study Wednesday, Bolen said: "This new report underscores the fact that business aviation is an essential industry, strengthening America’s manufacturing base, fostering economic development and serving as an indispensable tool for thousands of companies trying to operate in a fiercely competitive global marketplace."
Pointing specifically to a passage in the study noting that the industry's future competitiveness may be influenced by factors that create uncertainty for manufacturers, including "fees/taxes," Bolen said: "We hope the study serves as a reminder to Congress and the Administration that government actions can directly impact the future of this great industry, and that policymakers will advance proposals that promote business aviation instead of impeding it. "We thank Chairman Camp, and Representatives Pompeo and Jenkins, for requesting the study, and we appreciate the work done by the USITC to provide this authoritative review of business aviation, and its value to citizens, companies and communities in America and around the world."
“The USITC report comes at a time of significant economic challenges for the global business jet industry," GAMA's Pete Bunce said in a statement. "General aviation manufacturers around the world are collectively suffering through one of the worst economic downturns the industry has ever experienced. This report usefully highlights a number of key factors impacting the industry, including the slow economic recovery in the largest markets - North America and Europe - as well as tight financing, the threat of new taxes and fees, and delays in certification which impact manufacturers’ ability to bring new, safety-enhancing technologies to market in a timely manner.
"The report also emphasizes the importance of research and development investment by both private industry and governments as well as new markets which have emerged around the world," Bunce continued. With further economic growth expected in these key regions, general aviation manufacturers will continue to spread their reach in order to take advantage of market opportunities. As a result, the quintessentially global nature of the general aviation manufacturing industry and its supply chain will become even more pronounced.” (Images: Top, Ed Bolen. Bottom, Pete Bunce)