Dubai Airshow: Commercial and defense spending in aviation to grow domestically and abroad

Seven thousand miles separate Detroit from Dubai, but within this span, there is a vast amount of opportunities between these two regions.  Last week, the United Arab Emirates (UAE) hosted the Dubai Airshow, promising to hold the most significant airshow in the world.  Even though this year did not topple the 2013 record breaking $200 billion in sales orders, there were many indicators on where the world is heading in aviation.

znV7AjM2pWuc_6b-7lcdaU9LP3q572uYQzgucJER6gwI was fortunate to be able to join Automation Alley on this trade mission to the Middle East and was joined by three other Macomb County companies, Alpha Precision Aerospace, Hydra-Lock and Mobile Data Holdings.  Other regional partners included Detroit Airport Corporation, the Michigan Economic Development Corporation, MAMA and Wayne County.  My strategy on this trip was very different than other business attraction missions, as I went there specifically to talk about the mature aerospace and defense market in Macomb County and to explore export and supply chain opportunities.

There are many opportunities for aerospace parts, tooling and automation manufacturers to become immersed in this market as Boeing and Airbus struggle to fulfill back orders on new aircraft platforms.  These production orders will dominate the global commercial aviation market and the trend is expected to continue over the next 10 to 15 years.  Couple this with the growing demand for maintenance and repair of existing aircraft, Macomb County aerospace companies have the ability to join the supply chain – on a global scale.

One of my meetings in particular was with a subsidiary of the Saudi Arabian airlines where I learned about a major aircraft repair and overhaul facility planned at Jeddah Airport in Saudi Arabia.  They are seeking repair and spare part component manufacturers.  In Abu-Dhabi, the giant investment partner, Mubadala is investing in companies that can bring new manufacturing technologies to the market. And the big news was UAE’s space program strategy which has an aggressive mission to send unmanned probes to Mars by 2021.

The big theme that emerged from the Dubai Airshow is commercial and defense spending in aviation is here now and will continue to grow both domestically and abroad.  Companies looking to expand into this market will need to strategically grow their international presence and their global footprint in the Middle East and Asian markets.  Trade missions such as this provide us a window to meet and build relationships with decision makers who can bring these opportunities front and center for our businesses.

Radd- Vicky IMG_0001 LOW_RES

 

Vicky Rad is the deputy director for the Macomb County Department of Planning & Economic Development.

 

Macomb County touts aerospace opportunities at international expo

Organized by the U.S. Department of Commerce, the first-ever National Aerospace Foreign Direct Investment Exposition was an opportunity for states across the country to showcase their growing aerospace industries to international companies.

Department Deputy Director Vicky Rad and I attended the expo in Los Angeles on behalf of Macomb County. Prior to the event, we had been able to secure meetings with companies from Australia, Canada, Germany and Mexico looking to expand or establish a presence in the United States. Once we arrived, we were able to meet with U.S. Commercial Service and Trade & Investment representatives from Switzerland, China, Italy and the United Kingdom.

During each of these meetings, and in conversations with companies throughout the conference, we had the opportunity to enlighten and inform attendees about Michigan’s economic comeback. Moreover, we were able to demonstrate that Michigan is more than automotive – a recent PriceWaterhouseCoopers report named Michigan No. 2 in the nation for aerospace manufacturing competitiveness, and it doesn’t stop there. Jobs in Michigan related to aerospace have grown 35 percent since 2009, and one third of the top 100 global aerospace companies are now present in the greater Detroit region.

Macomb County in particular has seen impressive growth in this industry, with companies such as KUKA Systems North America and Global Tooling Systems recently investing a combined $15 million and creating nearly 200 local jobs. Macomb County’s aerospace industry has grown 52 percent over the last decade, outpacing both the state at 46.6 percent and the nation at 2.6 percent.

We have a great story to tell at Macomb County, and it’s only getting better. As we continue to travel the country (and world!) to promote our county’s assets, we have the opportunity to change perceptions about our region’s competitiveness, growth and future potential.

Tracey, Alyssa IMG_0194Alyssa Tracey is a senior economic development specialist for the Macomb County Department of Planning & Economic Development.