aBerlin Presentation JVC_KK_R2

World Conference for
the Aerospace
Industries
Sam Marnick
Sr. Marnick
Vice President/Chief Administration Officer
Sam
Sr.
Administration Officer
2 Vice
JulyPresident/Chief
2015
1
Agenda
• Spirit AeroSystems Company Overview
•
Spirit AeroSystems Video
• Global Aerospace Industry: Spirit AeroSystems View
• Spirit AeroSystems and International Association
of Machinists Partnership
Sam Marnick
Sr. Vice President/Chief Administration Office
2
Spirit AeroSystems – Company Overview
• Large aerostructures and components of the world’s premier aircraft
• Our core products include fuselages, pylons/nacelles & wing components
• Boeing and Airbus are our largest customers
• Other major customers : Bombardier, Rolls-Royce, Mitsubishi, Sikorsky
and Bell Helicopter
• Based in Kansas, we operate sites in the U.S., U.K., France and Malaysia
Sam Marnick
Sr. Vice President/Chief Administration Officer
3
Broad Presence On Best Programs
Fuselage
Propulsion
Sam Marnick
Sr. Vice President/Chief Administration Officer
4
Wing
Spirit AeroSystems 2005
Wichita
Tulsa
McAlester
Employees: ~8,000
5 programs – all Boeing
Facilities: 12 Million Square Feet
Sam Marnick
Sr. Vice President/Chief Administration Officer
5
Spirit AeroSystems 2015
Prestwick
St. Nazaire
Wichita Chanute
Tulsa
Kinston
McAlester
Subang
Employees: ~15,000
Multiple programs for diverse customers
Facilities: 15 Million Square Feet
Sam Marnick
Sr. Vice President/Chief Administration Officer
6
Company Video
Sam Marnick
Sr. Vice President/Chief Administration Officer
7
Agenda
• Spirit AeroSystems Company Overview
•
Spirit AeroSystems Video
• Global Aerospace Industry: Spirit AeroSystems View
• Spirit AeroSystems and International Association
of Machinists Partnership
Sam Marnick
Sr. Vice President/Chief Administration Officer
8
Commercial Aerospace Trends:
Prolonged Up-cycle, Emergence of Duopoly
1,400
1,200
1,000
Boeing
Airbus
800
Other
600
400
200
0
1995
2000
2005
2010
Over 17,000 deliveries in the last 20 years, ≈ 870/yr.
Sam Marnick
Sr. Vice President/Chief Administration Officer
9
The Next 20 Years: Double the Deliveries . . .
20-yr. Deliveries -- jets >90 seats
35,560
32,585
Source
1995-2014
17,392
1995-2014
1995-2014
BA
AB
Boeing View
2015-2034
Airbus View
2015-2034
Sam Marnick
Sr. Vice President/Chief Administration Officer
10
Average
per year
870
2015-2034
Boeing CMO
1,778
2015-2034
Airbus GMF
1,629
The Next 20 Years: . . . and Alter Mix of Destination
Markets
3% 3%
2015-2034
Deliveries
(outer ring)
18%
9%
North America
5%
Asia-Pacific
5%
8%
Europe
37%
23%
South Am erica
1995-2014
Middle East
20%
Africa
27%
39%
CIS
Over 17,000 deliveries in the last 20 years, ≈ 870/yr.
Sam Marnick
Sr. Vice President/Chief Administration Officer
Sources: ACAS, Boeing Current Market Outlook
11
Companies Facing These Decisions
• Core Competencies
• Cost/skill/capacity
• Investment (e.g. Capital)
• Supply Chain
• Where to do work
• Customer requirements
• Cost/skill/capacity
• Logistics
• Availability of workforce
Sam Marnick
Sr. Vice President/Chief Administration Officer
12
Workforce Outlook – Talent Shortages
Globally What Jobs Are Employers Having Difficulty Filling?
• Three of the top four are critical to the Aerospace Industry
₋
Skilled Trade Workers, Engineers, Technicians
• To meet market demand for aircraft we need to find ways to address shortages
Sam Marnick
Sr. Vice President/Chief Administration Officer
13
Agenda
• Spirit AeroSystems Company Overview
•
Spirit AeroSystems Video
• Global Aerospace Industry: Spirit AeroSystems View
• Spirit AeroSystems and International Association
of Machinists Partnership
Sam Marnick
Sr. Vice President/Chief Administration Officer
14
IAM/Spirit Partnership History – Wichita
2005-2010 Groundbreaking Initial Agreement
• Divested from Boeing
₋
₋
Align with a buyer that wanted to grow and invest in the business
Negotiated bargaining agreement that provided the business additional flexibility,
provided cost downs but shared the success of the business with the employees.
787 Fuselage
CS300 First Flight
Sam Marnick
Sr. Vice President/Chief Administration Officer
15
737 Leading Edge Slat
IAM/Spirit Partnership History – Wichita
2010-2020 Groundbreaking Long-Term Agreement
• Long-term agreement provides predictability for employees and the
business
• Strengthened the shared destiny
Sam Marnick
Sr. Vice President/Chief Administration Officer
16
IAM/Spirit Partnership History – North Carolina
2012-2024 Initial Groundbreaking Long-Term Agreement at a New Location
• Established a long-term living agreement
₋
₋
An agreement based on partnership and shared commitment
Flexible agreement that is adaptable to keep the facility competitive
• Working jointly on the issues
Sam Marnick
Sr. Vice President/Chief Administration Office
17
Worldwide Union Partnerships
Spirit Bargaining Units
US
– IAM - International Association of
Machinist and Aerospace Workers
– UAW - United Automobile, Aerospace &
Agricultural Workers of America
– SPEEA - Society of Professional
Engineering Employees in Aerospace
– IBEW - International Brotherhood of
Electrical Workers
UK
– Unite the UNION
Sam Marnick
Sr. Vice President/Chief Administration Office
18
People: Our Greatest Asset
Sam Marnick
Sr. Vice President/Chief Administration Office
19
Thank You
20