Manufacturers have never loved regulations and compliance, but at PNDC we hear every day from manufacturers who are increasingly frustrated. There are more rules for key certifications like ITAR, ISO and EAR, not to mention the pending CMMC regulations which appear to be poised to go into effect in 2024. 

Still, the opportunities are undeniable. The Defense Federal Acquisition Regulation Supplement (DFARS) Buy American Act clause is poised to expand the domestic content threshold requirement to align with the Federal Acquisition Regulation. This means that domestic content for cost of components will go from 55 percent to 65 percent in 2024 and 75 percent by 2029. 

Howard Roth, a partner with Smith Currie Oles said, “The point of course is to allow more U.S. companies to get into the space and create American jobs, but that also means that prime contractors and those farther up the chain have to add more U.S. manufacturers — and if they can’t do that due to lack of U.S. suppliers they have to request a waiver, which is increasingly difficult to get.”

American Precision Industries (API) has been preparing to take advantage of the increasing opportunity by adding AS9100D and medical device ISO13485 certifications, so they can expand their partnerships in Washington and Oregon, especially in aerospace.

“This was a decision that required a great deal of hard work for our QC manager as well as our upper management team,” said Todd Cook of API, “But we realized that these two certifications were vital to our new sales and marketing plan. It’s critical to be able to differentiate API from other shops out there.”

They are determined to make the effort pay off. They feature their certifications front and center on their website, and have plans to highlight their capabilities in marketing campaigns — things that a surprising number of manufacturers overlook. “In the future we know that other certifications and security requirements are going to be necessary in order to continue to be a cutting edge manufacturer,” said Todd.

Howard Roth is critical of the added cost of federal compliance regulations, stating that, “None of this is good for companies. While there is an influx of money going into defense manufacturing the government vastly underestimates the cost of compliance programs such as cybersecurity. Therefore, for compliance in an area such as the International Traffic in Arms Regulations (ITAR), the key is to figure out what elements of ITAR compliance apply. For suppliers with products not on the munitions list, this means focusing on the identification and protection of any ITAR technical information obtained under defense subcontracts or contracts. Any organization participating in ITAR-controlled activities should review the ITAR guidelines in detail and develop an action plan to address any gaps.” 

Added to this, the Cybersecurity Maturity Model Certification (CMMC) 2.0 program is poised to become reality in 2024. What does that mean for businesses who supply the aerospace industry? 

“You could view it as a cost burden that makes it harder to do business,” says Dave Miller, director of business development and a certified CMMC professional with Future Networking Inc., “But it’s important to keep in mind why the DoD is doing this. The U.S. has been losing the information war for many years. As soon as we develop a new capability, major U.S. foes are ready and able to steal that innovation. In an actual armed conflict, that will cost lives.”

He feels that companies seeking a competitive advantage in the commercial aerospace industry would be wise to start positioning themselves in accordance with CMMC guidelines rather than waiting. “It will have a huge impact on the supply chain. First, the requirements will trickle down to tier 2 and 3 suppliers. At the same time getting assessments will be increasingly hard as we approach the deadline, which will cause delays and drive up prices.Every contract that involves DoD will require all suppliers in the chain to provide proof of compliance. And this isn’t a cursory glance under the hood. Regulators will assess every single control, not just spot check.” 

Circumventing the regulation will come at a higher cost than ever before, with the False Claims Act (FCA) and Whistleblower Protection Act playing a major role. In 2019, Cisco Systems marked the first payout to a whistleblower on a False Claims Act case — brought over a failure to meet cybersecurity standards. It cost them $8.6 million. 

The amount of time it will take suppliers to meet CMMC depends on many factors. “Company culture and the state of their current technology vary widely. CMMC also requires company-wide behavioral change.”

So, is it worth it? PNDC thinks it is. Their goal is to connect manufacturers in the Pacific Northwest with the experts, resources and information that can help them assess the potential advantages of the defense and security and with those resources that can guide them through the process.  

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He added, “We are uniquely situated outside an OEM as a smaller company that can help bring a wide range of products to market.” 

Bringing those products to market requires depth in the dynamic flow of information in products, delivery, management, and communication. This is where Applied CAx comes in. The name “CAx” may seem odd in its taxonomy and appearance. According to Taylor Saul, managing partner, “CAx” is an umbrella term that refers to various computer-aided technologies used throughout the design, engineering, and manufacturing processes. The “CA” stands for “Computer-Aided,” and the “x” is a placeholder that can be replaced with various letters to signify different tools and technologies. He refers to computer-aided design, manufacturing, and engineering as the stand-ins for ‘x’ depending upon the application need. Therefore, CAD, CAM, and CAE are the acronyms for their applications. 

In the case of AeroTEC the applications needed, via the services provided by Applied CAx, are great. Saul said the software used by AeroTEC includes “multiple Siemens software solutions throughout the design lifecycle, including NX, Teamcenter, and a range of Siemens Simcenter Tools for advanced simulation applications. They utilize STAR-CCM+ for CFD analysis, Simcenter FEMAP for FEA, Simcenter 3D, and AMESIM for 1D system simulation and system performance analysis.” 

If the tools sound complex, it is because they are. But, Goulding said, “We’ve helped companies around the world design, test, and, if needed or requested, certify their product — everything from aerodynamic modifications to clean-sheet aircraft, including hybrid/electric, hydrogen technology, supersonic, and eVTOLs.” 

Thus, the software running everything in the company must also have depth. Developing that process has been a joint effort between Applied CAx, the Siemens-based application development, and the identified needs and problem-solving of AeroTEC. Goulding enjoyed the process because with Applied CAx, “They take the time to listen and understand how you will use the tool. Their people have seen this installed in multiple ways. They discover what we are trying to achieve, define the process, and work with us on the journey. It is a tailored deployment of those tools.” He said that they work together to achieve the best possible result.

Saul explained that this success has been built over many years. He started with Applied CAx in 2015 in sales and business development after earning a degree in architecture. When he earned his degree, there was a housing market crash, so he worked in construction until he found a job with a construction-based customer at his software company. But added, “I had a draw to aerospace and defense,” so after a time, he approached Applied CAx. 

When he started his job search, Applied CAx was hiring an aerospace and defense sales executive in the Pacific Northwest, which appealed to Saul. “Working in design, engineering, and manufacturing software was something that I was always interested in, and sales was something I was good at,” Saul said. CAx was considered a Silver Siemens partner, which he said was the lowest end of the tier. During his eight-year tenure, they’ve been “North American Partner of the Year” three times. 

Last year, they were Siemens’ top sales company. Saul said, “Part of that success was that we’ve focused on a couple of industries. Most of our client base is in the Northwest, almost all aerospace and defense. In the last four or five years, we’ve also branched out to work in renewable energy.” 

He said that because of their relationships with customers, “There are a lot of aerospace engineers that we’ve worked with that have led to (additional) work in hydrogen and nuclear fusion companies,” and others. 

He said that, like architecture, where he received his initial training, software sales are all about solving problems for the customer. “Ultimately, they come to us with a problem, a repetitive process they are trying to eliminate, and we are bringing them solutions that save them time, energy, and money.” 

Conversely, Goulding said that AeroTEC, because “We have the tools and systems in place,” can help bring a wide range of products to market. They can navigate the certification processes more easily than aerospace start-ups or even more experienced manufacturers. “We can accelerate that, for example, in a start-up company that doesn’t have all the tools and processes in place; we can leverage (what they have).” He said they fulfill processes like risk management and have a hangar in place. He shared that they bring the resources to help customers bring their products to market much more quickly. 

One of the purviews presented by AeroTEC on their website, www.aerotec.com is, “At AeroTEC, we know what it takes to successfully develop aerospace products that sell.” Through their certification process, they must understand if a component can survive in austere environments – hot and cold, vibrational spectrum, salt and fog environments, dust, and humidity. He said it is their job to demonstrate the survival and viability of an aerospace component or part through various tests.

At the aircraft performance level, they also assess air systems, avionics, electrical, structural, etc. These system tests need to be documented and monitored, which is where the software comes in. 

“We must make a business case for the products. We understand different elements of success,” Goulding said.

For smaller to mid-sized businesses like AeroTEC and some customers, third-party partners like Applied CAx sell and support customers using Siemens software. Product Lifecycle Management (PLM), through their product Teamcenter, is how they measure success. By understanding a customer’s problems, they can understand what is needed. A software foundation is configured based on the customer’s requirements. “We have many options we can choose and configure for a customer,” Saul said.  

Any company with a significant engineering base starts with product data management (PDM). Product lifecycle management takes the design/data they are managing and turns it into a relational database. Everyone on the design and engineering team has one database they will use for product management. All changes are logged in the system. A design lifecycle starts with requirements, and ultimately, there is system modeling, mechanical design, validation, simulation, and prototyping. All of these systems can be integrated into Teamcenter. “Any changes in the design process can be seen upstream or downstream,” Saul said. A company can make decisions for engineering parts based on what they see in Teamcenter, with all factors in front of them. 

In Summary

As with many aerospace suppliers, it often takes a partnership in expertise, listening, and understanding to help both companies survive and thrive. In the case of AeroTEC and Applied CAx, productive problem-solving has allowed both companies to thrive. 

Contact: 

AeroTEC 

5601 6th Avenue S. #410, Seattle, WA 98108

206.763.6087

Applied CAx

Portland Office

555 SE. Martin Luther King Jr. Blvd., Suite 105

Portland, OR 97214

 800-746-8134

info@AppliedCAx.com

The post Peaceful, Productive Partnership — AeroTEC and Applied CAx have found harmony in partnering, which has led to prosperity for both companies.  appeared first on Northwest Aerospace News.

The Pacific Northwest is known for aerospace manufacturing due to Boeing’s imprint on the region over a century ago. Hundreds of aerospace manufacturers within the supply chain in commercial aerospace, space, drone, and electric vertical take-off and landing (eVTOL) aircraft are in the region. Therefore, applying for the Tech Hub designation through the federal government’s Economic Development Administration (EDA) sounds like a natural fit. 

After all, we have the workforce and educational infrastructure in place. Yet, following a few rough years with the pandemic and regulatory approval of Boeing aircraft, there were layoffs, and the aerospace economy has been unsettled. 

This impacted both larger tier 1 Boeing suppliers and had a trickle effect on smaller machine shops in the area. However, this region is resilient. When the EDA released the opportunity for regions across the U.S. to partner and apply to become designees for the Tech Hub, the greater Spokane and Coeur d’Alene regions, spreading across what is known as the I-90 aerospace corridor, jumped in with both feet. 

With Gonzaga and others leading the charge in phase 1 and strong partnerships across the region, the area has been awarded as a designee for the American Aerospace Materials Manufacturing Tech Hub. The consortium is preparing to apply for phase 2 by February 2024. There are nearly 50 partners: education, government, energy, manufacturing, tribal, economic development, and labor. 

“Designated Tech Hubs are now eligible to apply for the next phase of the Tech Hubs Program that will invest $50-$75 million in each of 5-10 Designated Hubs.” (eda.gov)

Spotlight on aerospace composites manufacturing 

Aircraft parts are traditionally made from titanium, aluminum, and thermosetting composites for strength and resilience. However, the volume of aircraft orders is ticking up post-pandemic. With the ramp-up, there is a drive for readily available raw materials and stronger, resilient, lightweight aircraft parts that can be manufactured at higher rates, lower costs, and are recyclable.

According to ATC Manufacturing in Post Falls, Idaho, that material is advanced thermoplastic composites. Currently used in structural applications in aircraft, the material will become more central to commercial aerospace manufacturing. 

Jacob Bonwell, CEO of ATC Manufacturing, said that the Tech Hub funding if awarded would be like having a “testbed” of aerospace composites in the region. While in Post Falls, he cited that they are “a stone’s throw from Spokane Valley, where many organizations are focused on aerospace. We want to build our relationships with our colleagues in the region. We are building something special here. ATC is working heavily on its workforce development pipelines.”

He spoke about how trades have become a dying breed, but with the opportunities for commercial airline manufacturing rapidly ticking up, “We need to build it back up.”  

He noted that the work is here, and as Boeing plans to increase monthly manufacturing volumes, he wants to be prepared. “Local[ML1]  supply chain and economic development organizations are ready for growth; they are having these conversations. The growth is coming.” He said he’s been in the area for a long time and has seen it change. He said city leaders are “ecstatic” about the possible Tech Hub coming here. 

According to the EDA website, “The American Aerospace Materials Manufacturing Tech Hub, led by Gonzaga University, aims to develop new domestic supply chains to meet the immediate demand for high-rate production of advanced composite aerostructures in defense and commercial markets. This Tech Hub will build on its established aerospace foundation, relationships among its research institutions and private sector, and existing and growing labor market to meet the strong and growing demand for the materials that will enable more — and more sustainable — air travel. By pursuing a testbed facility to prove high-rate methods thermoplastic composites, this Tech Hub seeks to become a global leader in making the ribs, beams, doors, and more critical to the next generation of lightweight aircraft.”

Maria Lusardi, marketing[ML2]  director with Lakeside Companies, said receiving the designation in Phase 1 was a vital first step because only the 31 hubs designated are eligible to apply for the funding in Phase 2. “Now that we are designated, we are working with the consortium members to build a competitive Phase 2 application, which requires input from the workforce, research institutions, industry, and the community.  An effort like this demands a regional view, strong commitments, and buy-in across the region.” She said that ATC and others in the consortium are working toward submitting a Phase 2 plan, due in February. “A part of getting that funding is demonstrating how you’ll move forward,” she said. 

Nationally, 300 applications were submitted in Phase 1, and 31 groups were selected for Phase 2. In the future, as a consortium, they are adding details about how they would implement funds that would lead to economic growth in the region. Lusardi said they would detail what is needed for buildings, equipment, and infrastructure and how collaborations will occur with other industrial partners. 

Another player on the ATC Manufacturing side is David Leach, business development director. Leach has been with ATC since 2016 and has engaged in the advanced thermoplastic composites community worldwide. Leach is a Fellow of the Society for the Advancement of Material and Process Engineering (SAMPE) and serves as the chair of the thermoplastics technical committee. He is also involved in international trade shows to demonstrate what ATC can bring to the project with longer structural beams and primary structural applications using uni-directional tapes instead of fabric-reinforced materials. 

Like many regional manufacturers, ATC Manufacturing has invested heavily in its business growth. They moved to a new facility in 2015 and have invested in capital equipment and workforce. They are sitting at 100 employees now but are down from their peak in 2019 due to the pandemic and other market factors. With the Tech Hub designation, they are prepared for growth. He also noted that when Triumph Composites exited the Spokane area, ATC picked up highly skilled employees from that operation, like Pat Jones, president. Additionally, they are engaged with Gonzaga, North Idaho College, KTEC (a Post Falls technical high school), and Elevate Academy in North Idaho to foster training programs. 

Leach said they also like to promote from within, “A lot of equipment is highly automated, computer-controlled — a lot of detail with requirements and specificity — (we) can bring people from the shop floor up to leadership and supervisory roles.” Plus, with the focus on the Tech Hub and the ability to prove new manufacturing and parts, there is a high possibility of creating many new jobs in the coming years. 

In Summary

The broad goal is to build up the regional aerospace manufacturing workforce. New opportunities exist for increased partnerships between consortium members. The federal government has spurred on regions across the U.S. to increase job opportunities and training in each region. The Pacific Northwest, specifically the I-90 Aerospace Corridor region, has exhibited strength in numbers for some time. Now, it is time to continue to build the spotlight on the region and solidify an already $70 billion industry. 

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Since assuming his role in November 2022, Dan Gillian has led the division through a critical time for Boeing’s defense business. With a focus on delivering advanced capability, Boeing suppliers and stakeholders have supported the U.S. and allies in their evolving mission to ensure security and stability for a rapidly changing global environment.

Now in his 24th year with the company, Gillian says that Boeing’s skilled workforce in the Puget Sound region is essential to delivering the military airplanes they manufacture for the Department of Defense and U.S. allies.

Q: When people think of Boeing’s impact in the Pacific Northwest, they tend to think of Boeing Commercial Airplanes (BCA) first. What is the Mobility, Surveillance & Bombers (MS&B) portfolio and how is it connected to the region?

A: It’s understandable why Washingtonians would think that way. Since William Boeing launched The Boeing Company from the “Red Barn” more than 100 years ago, some of the most iconic commercial aircraft in history have been built in the Pacific Northwest.

Mobility, Surveillance & Bombers is one of four divisions in Boeing Defense, Space & Security (BDS) and is headquartered in Seattle. The portfolio includes several aircraft built or modified in the Pacific Northwest. The KC-46A Pegasus (a multi-mission aerial refueler) and P-8A Poseidon (a multi-mission maritime patrol aircraft), are currently in production in Everett and Tukwila, respectively.  The 747-based airframes for VC-25A — or Air Force One when the president of the United States is on board — and its next-generation replacement, VC-25B, were built in Everett. The E-3 AWACS (Airborne Warning & Control System) was originally designed and built here, and some modifications still occur here. Design work for the U.S. Air Force E-7 AEW&C (Airborne Early Warning & Control) aircraft is also taking place in the Puget Sound region. 

The portfolio features commercial derivative products — like the Pegasus and Poseidon — that share the same airframes as their commercial cousins. Leveraging an existing design of an airframe with thousands in service around the globe creates remarkable production and lifecycle sustainment advantages for Boeing’s military customers. Of course, our defense aircraft are purpose-built and modified to meet the needs of the military customer.

Speaking of commercial aircraft, MS&B builds parts for the 777X — which will be the world’s largest and most efficient twin-engine jet — in the Pacific Northwest. This is another example of a united and collaborative production effort between employees from the two business units, BDS and Boeing Commercials Airplanes (BCA).

MS&B also includes bombers, like the B-52 Stratofortress. The B-52 is a long-range bomber once built in Seattle that has been in service since the 1950s. It continues to undergo upgrades that will allow it to contribute to the U.S. National Security Strategy for decades to come. 

MS&B’s mission is delivering advanced military solutions for refueling, mobility, reconnaissance and early warning, and deterrence. Along with the rest of our BDS colleagues, we recognize and embrace that our work is mission critical, and it drives all that we do.

Q: What is the current demand for MS&B products and how are these aircraft adapting to meet the needs of the customer?

A: Our products are performing well for our customers, and they are needed in today’s global security environment to maintain peace. We continue to see a strong demand for our products — especially the products built in the Pacific Northwest — because of their reliability and proven performance, as well as the advanced capabilities they provide for the modern mission, such as data connectivity.

Data is the most important strength in the battlespace right now. Victory belongs to the side with decision superiority. The ability to know and make sense of a complex situation, then act smarter and more swiftly — that is who wins. Our portfolio puts data connectivity in the field now, and we are working with the U.S. Air Force and allies to evolve it.

The E-7 is a great example of maintaining peace through strength. This platform provides unparalleled ability to scan the battlespace, communicate with surface, ground and air assets and enable integration across the joint force. These advantages allow it to “conduct” its peers, just like a maestro in front of their world-class orchestra. Australia, South Korea and Turkey are operating this aircraft today, and the United States and United Kingdom will take advantage of its advanced capability soon. NATO recently announced its intent to replace its AWACS fleet with E-7s, as well.

The KC-46A Pegasus is another Washington-built platform that is providing next-generation capability to joint forces around the world. The KC-46A is a combat-proven multi-mission aerial refueler that can capture and relay information to the crew and fleet. It is much more than an aerial refueler and has been called a “game changer” as it replaces the Boeing-built KC-135.

Q: Can you share more about the Boeing defense workforce in Washington?

A: There are thousands of BDS employees in Washington supporting the aircraft we deliver to the U.S. military and allies.

There are software engineers like Son Tran, who fled Vietnam as a seven-year-old to escape an oppressive regime. Son is now honored to help defend the country he loves by supporting the E-7 program alongside his older brother, Vinh. 

There are systems engineers like Jami Bunker, who grew up in rural Michigan. Jami learned the value of hard work from her parents, and that has motivated her throughout her career. She is now a systems integration engineering team manager for the KC-46 program.

These employees constantly find new ways to innovate our products through enhanced connectivity, software upgrades, logistical support, production processes and more. 

About 20 percent of BDS employees are veterans, like KC-46 Quality Senior Manager Kareem Foster. Kareem grew up with a passion for aviation and served 20 years in the military as an aircraft maintenance technician. Now, he continues to proudly support a global mission as a civilian.

Of course, a robust network of suppliers located across the country is also essential for providing the thousands of components that are used to build each aircraft. Take the KC-46 program, for instance. More than 37,000 American workers representing more than 670 businesses in 43 states support this single program. From Farwest Aircraft in Pacific, Washington (which builds ground support equipment and tooling for the Pegasus) to Sensor Systems in St. Petersburg, Florida (which makes every pressure sensor for the tanker’s refueling boom by hand), each business plays a crucial role in keeping dozens of aircraft in the skies and operating effectively.

All of these citizens in the Puget Sound region and across the United States, play a huge role in defending American freedoms. They are extremely proud of the work they do, and it shows every single day.

Q: You have led the MS&B division for just over a year now. What type of culture do you want to cultivate both in this region and across the portfolio?

A: Instilling a strong culture of transparency and collaboration has been my priority since day one. That means listening to others, asking for help when needed and being intentional with our time spent together. We encourage feedback from all corners of the business by using Seek, Speak & Listen skills that are a core part of our culture. We use that feedback to strengthen our team and our work. 

Another priority is embracing Lean principles, which are aimed at maximizing productivity and minimizing waste. The goal here is to drive stable and predictable performance for customers and stakeholders. The P-8 program is an excellent example of Lean implementation. It is focused on projects that will optimize maintenance tasks to increase operating efficiency while still placing the utmost importance on safety and quality. Over the past decade, the team has reduced the time and cost it takes to build the aircraft by focusing on continuous improvement.

Instilling a strong culture of collaboration also means hiring the right people. Working alongside teammates who believe in our culture makes all the difference. We are always on the lookout for skilled and curious candidates who can elevate our team by working with teammates to solve tough and complex problems.

Q: What has been your greatest challenge to this point during your tenure with MS&B?

A: My goal in 2023 was to drive stability, productivity and predictability into everything we do. This has been the priority for all of BDS. As we talked earlier, building a culture of transparency was the first step — then getting back to the fundamentals such as using Lean practices. We also must take a realistic view of the world when it comes to cost and delivery time lines. Things are different after the COVID-19 pandemic and as an industry, we are turning the corner, but there is more work to be done in getting the global supply chain healthy again. 

I am proud of the team. Together we have made great progress in returning BDS to a more predictable business and meeting customer commitments. I look forward to the gains we will make in 2024.

Q: You mentioned passionate employees as a key to MS&B’s success. When did you find a passion for aviation?

A: From an early age, I wanted to build airplanes. I grew up going to air shows with my family and constantly talking about aviation, which came easy since several of my family members are pilots. That’s when the passion began. Naturally, I chased that passion to college, where I studied aerospace engineering. Fast forward to 2012, and I was the P-8 program manager when we delivered the first P-8A Poseidon to the U.S. Navy. If I wasn’t already completely hooked on this field by then, that airplane did the job!  I’m the same kid who used to spend summers at the Oshkosh Air Show, except now I get to build planes even more advanced than I ever could’ve imagined. I’m incredibly lucky that I get to live my childhood dream every day.  And working alongside thousands of teammates who share the same passion I do, makes the journey even sweeter. I love my job!

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Significant employers in the aerospace, aviation, and defense sector include Boeing and Erickson Air Crane; the search and detection sector has significant employers such as Garmin, Precision Castparts and Teledyne FLIR; and uncrewed aerial vehicles manufacturers like Insitu. Oregon boasts several FAA-approved UAV test ranges throughout the state.

Oregon has long been an innovator in metals manufacturing, developing more competitive, innovative products for end user goods. Using titanium and other metals, our manufacturers are internationally recognized for producing world-class precision parts and components for the aerospace, aviation, and defense industries.

Oregon is known for:

• Advanced metals manufacturers
• The use of titanium in aerospace parts
• Heavy lift helicopters 
• Composites
• Drone components, including software
• Aircraft designs and kit aircraft  

Oregon offers a skilled workforce, competitive business costs, affordable energy, and access to water. Centrally located between California and Washington, Oregon’s West Coast location and easy access to the Pacific Rim make it an ideal location for doing business both domestically and abroad.

Business Oregon, the state economic development agency, invests in Oregon businesses, communities, and people to promote a globally competitive, diverse, and inclusive economy.  The agency stands ready to help businesses of all sizes expand in Oregon. For those looking to locate in Oregon, we offer a variety of business incentives, site selection tools, and we are ready to connect you with supply chain manufacturers and partners. For those already located in Oregon, we offer export assistance to help you expand your business to new markets, with Business Oregon’s suite of programs and funding opportunities.   

To learn more about Business Oregon, visit: https://www.oregon.gov/biz/pages/default.aspx 

You can also find our Global Trade team at these upcoming events:                 

• Singapore Airshow 2024, February 2024 
• Xponential 2024, Los Angeles, April 2024
• International Aerospace Week, Montreal,  May 2024        
• World Trade Week, Oregon, May 2024 

If you are interested in attending these events with the state of Oregon, please contact Alexa Byers at alexa.byers@biz.oregon.gov. For businesses with fewer than 500 full time employees, grant funding may be available to cover the cost of attendance. 

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U.S. Federal Government’s Role in Economic Development

Washington State’s economic development ecosystem, like every state’s economic development ecosystem, is complex and consists of collaborative efforts (and occasionally combative efforts) by a variety of stakeholders, ranging from elected officials to state agencies to industry associations to academia to private sector. If we were to spell out every stakeholder, then the list would span several issues of this magazine! In order to remain competitive and drive economic development, these partners and stakeholders must tap into a limited pool of resources comprised of different incentives, grants, infrastructure funds, and workforce development dollars. One of the key sources of economic development support is the United States federal government.

The U.S. federal government plays a key role in state economic development through its policies, programs, and initiatives. While the federal government primarily focuses on national and international issues, it recognizes the importance of fostering economic growth at the state level. Some ways in which the federal government contributes to state economic development include funding and grants, tax policy and incentives, infrastructure investment, workforce development, and emergency assistance. These dollars flow from the White House, Congress, cabinet-level agencies, and additional sources. The relationship is complex, with policies and strategies changing over time. While the effort to win federal funding doesn’t always result in a win, the reward is worth continuous pursuit. Below is a highlight of some of Washington State’s recent victories in federal support.

Regional Hydrogen Hubs

In October 2023 and after a competitive years-long multi-group, multi-state effort, the U.S. Department of Energy (DOE) selected the Pacific Northwest Hydrogen Association’s PNWH2 Hub as one of seven Regional Clean Hydrogen Hubs. The DOE’s Hydrogen (H2) Hubs will infuse public and private funding into the clean economy sector of the Pacific Northwest and scale up the national network of clean hydrogen producers, consumers, and private funding connecting infrastructure. The H2 Hubs will create tens of thousands of jobs while strengthening communities and the national and regional energy security.

The Pacific Northwest Hydrogen Association is a multi-state nonprofit coalition of public and private partners spanning Washington, Oregon and Montana. The coalition includes representatives from Tribal Nations, labor, business and industry, higher education, government and the environmental community. The PNWH2 Hub aims to leverage the abundancy of clean power and innovative technology of the Pacific Northwest to accelerate the region’s transition to clean hydrogen production and use. The hub will focus on decarbonizing hard-to-abate industries across the Northwest.

The PNWH2 Hub is eligible to receive up to $1 billion in federal funding over four DOE-defined development phases spanning nine years, with $20 million allocated for Phase 1. DOE will evaluate the hub’s activities and deliver go/no-go decisions at each phase. DOE and the Pacific Northwest Hydrogen Association will negotiate the final funding and scope for the hub throughout fall 2023.

Tech Hubs

October 2023 was a great month for Washington State as the winning streak continued. American Aerospace Materials Manufacturing Center (AAMMC) located in Spokane, Washington was designated as one of the 31 inaugural Tech Hubs through the U.S. Department of Commerce’s Economic Development Administration (EDA). Led by Gonzaga University, AAMMC Tech Hub brings together more than 50 public and private partners in the development and manufacturing of composite materials for the future of aircraft.

AAMMC’s proposal focused around repurposing the former Triumph Composite Systems manufacturing plant. The site hosts a 50-acre, 386,000-square foot facility in Spokane, and will transform into an applied research, workforce training, and production facility where research conducted by academic and industry experts contributes directly to new composite materials components built on site for global customers. The refurbished facility will be supported by a network of workforce development training centers located across the region, enhancing job creation and investment across aerospace manufacturing.

The 31 Tech Hubs announced by the EDA were selected from 198 applications from regional consortia of economic development, industry, academia, and workforce partners. A neighboring Pacific Northwest Mass Timber Tech Hub proposal, led by Oregon State University, was also among those designated. Through a memorandum of understanding between OSU and Washington State University, Washington’s legacy timber industry also stands to potentially benefit from the advancement of this regional work in sustainable forest products’ innovation and manufacturing. Funding for the Tech Hub program came from the U.S. CHIPS and Science Act.

Inflation Reduction Act

Washington State businesses and residents are eligible for energy-related savings through the Inflation Reduction Act (IRA), which was passed by the federal government in 2022. The IRA will provide $370 billion in funding for clean energy and environmental justice initiatives nationwide, representing the largest investment in climate action by the U.S. government.

A significant portion of IRA funding includes tax credits and rebates for businesses and residents (homeowners and renters) to make energy efficiency upgrades to their homes or buildings, or purchase clean energy equipment like solar panels, electric vehicles (EVs), and heat pumps. IRA incentives are set to be offered through 2032, providing ample time and opportunity for Washingtonians to plan for and take advantage of IRA savings to make the switch to EVs, heat pumps, and other low-carbon technologies. Many of the IRA incentives can be combined with Washington’s tax credits or rebates to maximize savings. The infusion of IRA money will accelerate Washington’s transition into a carbon-free economy.

Wrapping Up

It is no secret that the U.S. federal government plays an important role in statewide economic development. Federal funds flow to Washington’s rivers, roads, power grid, communities and businesses, supporting the economic output of the state. Washington State’s gross domestic product (GDP) in 2022 exceeded $725.5 billion dollars and is forecasted to climb above $760 billion dollars in 2023, which would put it in the top 40 countries (yes, you read that correctly). With the influx of once-in-a-generation federal support via the Inflation Reduction Act, CHIPS and Science Act, and other sources, Washington State’s economy will soar even higher.

Transitioning to upcoming aerospace events

The aerospace and defense industry is set to take center stage in 2024 with a series of pivotal events that promise to shape the future of this dynamic sector. Kicking off the calendar is the Aerospace and Defense Supplier Summit, scheduled for March 12-14. This summit provides a unique platform for suppliers, manufacturers, and industry leaders to collaborate and explore innovative solutions. With a focus on networking and forging new partnerships, this event is crucial for businesses aiming to expand their global footprint. The summit’s significance lies in its ability to foster international collaborations, opening doors for the growth of exporting businesses in the aerospace and defense supply chain.

Following closely on its heels is the Aircraft Interiors Expo, scheduled for May 28-30. As the aviation industry continues to evolve, the importance of cutting-edge aircraft interiors cannot be overstated. This expo offers a comprehensive showcase of the latest advancements in cabin design, technology, and materials. For companies looking to enhance their presence in the global market, the expo serves as a gateway to connect with potential clients, fostering partnerships that can propel their exporting business to new heights.

Come July 22-26, the aviation world will turn its attention to the renowned Farnborough International Airshow. With a storied history dating back decades, this event is a cornerstone for the aerospace and defense industry, attracting a global audience of professionals, enthusiasts, and key decision-makers. Beyond the spectacular aerial demonstrations and groundbreaking innovations on display, the airshow serves as an unparalleled platform for businesses to showcase their capabilities and explore opportunities for international collaboration. As countries strive to bolster their defense capabilities, the Farnborough International Airshow is a pivotal arena for companies seeking to expand their exporting ventures.

The Japan International Aerospace Exhibition, scheduled for October 16-18, 2024, provides a strategic conclusion to the year’s major events. Japan’s growing aerospace and defense sector presents a wealth of opportunities for businesses looking to tap into new markets. This exhibition facilitates dialogue and partnerships between international companies and Japanese counterparts, fostering cross-cultural collaborations that can significantly impact the growth of exporting businesses. As the global aerospace and defense landscape continues to evolve, the Japan International Aerospace Exhibition stands out as a key event for companies seeking to establish a foothold in the Asian market.

For those interested in learning more or registering as a delegate for these events — get in touch with Joanna Boatwright, international trade specialist for the Washington State Department of Commerce. You can reach out to Joanna Boatwright via email at joanna.boatwright@commerce.wa.gov. Her expertise and guidance will ensure that your participation in these events is seamless and tailored to maximize the growth of your exporting endeavors in the aerospace and defense industry.

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In 2010 an executive networking group for women in metal forming was established. They called themselves Women in Metalforming and they were powered by Precision Metalforming Association (PMA). When looking for additional resources, they discovered there were no national resources for women in manufacturing. So, to meet this important need, “Women in Metalforming” was transformed into “Women in Manufacturing” (WiM). 

Allison Grealis is the woman with the vision. She’s also founder, and president of the Women in Manufacturing® Association and the president of the WiM Education Foundation, which provides effective, affordable educational opportunities for women in manufacturing. 

In 2015 WiM received its 501(c)(6) designation and in 2016 received its 501(c)(3) nonprofit designation, creating the Women in Manufacturing Education Foundation (WiMEF). 

The Women in Manufacturing Association works to empower women workers and strengthen the manufacturing sector. As a nonprofit trade association, WiM is dedicated to supporting, promoting, and inspiring women who have chosen careers in the manufacturing industry. Over the course of the last decade, WiM  has grown to be the only national and global trade association dedicated to providing year-round support to career women. 

• Membership has surpassed 20,000 
• More than 3,000 individual manufacturing companies are associated with WiM
• 48 U.S. states and 47 countries are represented
• 32 chapters, with 200-plus volunteer chapter leaders, create events and powerful programs

WiM’s Women in Manufacturing Education Foundation (WiMEF) is committed to developing and supporting powerful programs and resources that further the advancement of women in the manufacturing workforce. WiMEF’s educational programs focus on leadership, career advancement, managerial training, development of production floor employees and other objectives that help participants succeed in manufacturing.

WiMEF offers three professional development programs: Leadership Institute for Women (STEM), Empowering Women in Production, and a Management Development Program. 

The Virtual Learning Series, a monthly program, covers industry-related topics geared toward leadership, action-oriented and solution-driven objectives. 

Signature Events support learning and strengthen WiM’s commitment to year-round support:

• WiM Annual SUMMIT 2023.  This was the 13th annual WiM SUMMIT. The theme, Explore New Horizons, punctuated how important it is to explore and expand our horizons. The Summit hosted a total of 1,741 attendees; 1,587 in-person and 154 virtual, reflecting a significant increase in attendees from 2022. Industry leaders — men and women, innovators, and first-timers — experienced the global expanse of our Women in Manufacturing network (16 countries and 338 companies).

• Virtual Career Fair, Working Parents Chat, and summer and winter Leadership Conferences. 

• Three-part regional conferences: WiM North with a focus on the Northern U.S. manufacturing trends and networks; WiM South; and WiM West working with manufacturing professionals navigating their career path. 

Women in Manufacturing, Washington Chapter (WiM WA)

Jessica Kinman, 

Chair & Membership Director

WiM Washington (WiM WA) 

Jessica is our talented and supportive leader to the WiM WA chapter. The chapter has an active presence and a good base of members in and around Washington. 

WiM WA hosts some of the most amazing tours and events, which are integral to our Manufacturing FUNdamentals Series. Geared for our manufacturing community, the workshops and facility tours are extraordinary learning opportunities. We learn from the experts doing the day-to-day work. The benefit? Seeing manufacturing operations up close, gaining new insights, and understanding the major functional groups within a manufacturing firm. 

These events provide outstanding openings to expand and connect with our local networks, build valuable business relationships, and enjoy industry-related programming.

On a New Member Quarterly call with Jessica this past March, WiM WA regional co-directors Diane Gibson and Mariann Miller both asked, “How do we get WiM events into the Spokane area?” Jessica’s reply was “volunteer.”  We did!  Jessica and the WiM WA team helped us do what we needed to do, to make events happen for Eastern Washington and Northern Idaho.

Diane Gibson                                                      Mariann Miller

WiM WA Regional Co-Director                     WiM WA Regional Co-Director

DMG Consultancy, LLC                           Advanced Materials at Honeywell 

Founder & President                            Senior Finance Manager

WiM WA Spokane Events

June 2023, our first Meet & Greet at Trailbreaker Cider in Liberty Lake.

September 2023, our first Manufacturing Fundamentals & Tour Event, hosted by Jubilant HollisterStier. 

We are planning Manufacturng Fundamentals events for 2024. If your company is interested in hosting a WiM tour and/or event, please let us know.

For more information on Women in Manufacturing, go to: www.womeninmanufacturing.org

Diane Gibson

Regional Co-Director

Women in Manufacturing

Washington Chapter

509-710-4398

diane@dmgconsultancy.com

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