Airbus currently spends $1 billion-plus in region, seeks to double spending with U.S. companies
Airbus Americas Chairman Allan McArtor today announced an effort to forge new partnerships with Southern California manufacturers, with the goal of creating new contracts and new job opportunities for businesses in the region. The announcement was made to an audience of more than 100 local manufacturers attending an educational summit at the Los Angeles Area Chamber of Commerce, focused on attracting new supplier companies for Airbus. Backed by a strong global backlog of more than 4,400 aircraft and growing future demand, Airbus plans to double its annual $12 billion spending with U.S. manufacturers in the coming years.
“For many years, Airbus has been a critical partner for Southern California businesses, which translates into jobs and economic activity,” said Mayor Antonio Villaraigosa. “By seeking new partnerships with businesses here, Airbus can help us grow the aerospace industry and ensure that it remains the strong economic engine that it is today.”
Airbus spends more than $1 billion in Southern California each year, with more than 100 supplier companies. Every year, Airbus spends more than 40 percent of its procurement dollars with U.S.-based suppliers. In 2011 alone, Airbus spent more than $12 billion on parts, components, tooling and services from more than 400 suppliers in more than 40 states. According to the U.S.
Commerce Department formula, that spending equates to the support of some 210,000 American jobs.
“Hundreds of American companies, with hundreds of thousands of jobs, are supported through Airbus’ partnership with the U.S., and with our commitment to expand, we believe those numbers will increase in the coming years,” said McArtor. “We are proud to have the support of Mayor Villaraigosa and the City of Los Angeles. California has always been known for its innovative companies and creative spirit, and we are excited for the potential impact our growth could have on the industry and the region.”
At today’s summit, Airbus presented suppliers with an overview of its plans for growth, including sales projections, manufacturing needs, procurement strategy and details about what it takes to join the Airbus supply chain. Current suppliers also shared their experiences on working with Airbus, focusing on the areas of risk management.
“This effort by Airbus to increase partnerships with local manufacturers is a win for local manufacturers, a win for job seekers and a win for the aerospace industry,” said Gary L. Toebben, Los Angeles Chamber of Commerce President and CEO. “The potential growth of the aviation industry brings great hope to Southern California at a critical time for the region, as we slowly recover from the economic downturn.”
Airbus is the leading manufacturer of commercial aircraft in the 100+ seat market. Airbus Americas helps engineer the entire product line, and supports and sells to customers in the Americas. In addition, Airbus is building an A320 Final Assembly line in Mobile, Alabama, with the first delivery to come in 2016. Airbus has spent more than $127 billion in the U.S. since 1990.