A.T. Kearney: California accounts for 9% aviation market

05 May 2014 Consultancy.uk

The aviation industry plays an essential role in California’s economy. The aviation market in this region accounts for a $62 billion turnover coming down to almost 10% of the global turnover in the aviation sector. This can be concluded from a market analysis executed by A.T. Kearney.

According to the market analysis ‘California Aerospace Industry’, California’s aviation industry substantiated a $62 billion turnover. With a $ 38.8 billion indirect turnover in adjoining industries, the total economic impact of the industry accounts for more than $100 billion. This makes it one of California’s biggest industries, being equal to the combined turnovers in agriculture and entertainment branches.A.T. Kearney California Aerospace IndustryOutside of California, the regional aviation industry accounts for 21% of the American market and 9% of the global market.A.T. Kearney California account for 9 percent of global marketFrom an employment generating point of view, the study shows that the industry has created 510.880 jobs in all of California. Out of this total amount of jobs, 203.400 jobs became available in the so-called direct industries, among them, commercial, military and civil employment. Indirect related industries accounted for 307.400 jobs, these are industries like: finance, real estate, agriculture, construction and transport.A.T. Kearney Total employment''The investigation shows that the aviation industry plays a major part in California’s economy. It generates a significant amount of highly paid jobs, but it is also a very stimulating force behind technological innovation'' says Randall Garber, partner at A.T. Kearney in the United States. 

Points of interest

The report also identifies a number of improvement opportunities in this sector. There a number of challenges when it comes to underlying competition. This includes high company and personal income taxes, the necessity for improving the whole supply chain and high-tech infrastructure and a personnel database that becomes more and more outdated. “Even though the current policy is one step in the right direction. In order to expand California’s aviation industry, a proactive competition policy is needed. A policy that enhances investments in students and encourages employment” according to Garber.

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