Statement of
Chairman Curt Weldon
Hearing on Aviation Industrial Base and
Department of Defense Rotocraft Programs
This morning the Tactical Air
and Land Forces Subcommittee meets to receive
testimony from government and industry
witnesses on three important subjects:
First, the
views and implementing action, where
appropriate, from representatives of the
Departments of Defense and Commerce on the
recommendations contained in the November
2002, "Final Report of the Commission on
the Aerospace Industry,"
Second, the
view of the American Helicopter Society
International provided by its Executive
Director on the health of the rotorcraft
industrial base and the issues of primary
interest to the rotorcraft industry, and
Thirdly,
the rotorcraft programs and the related
Fiscal Year 2005 budget requests from
witnesses from the Departments of the Army
and Navy.
The Final
Report of the Commission on the Future of the
Aerospace Industry was submitted to the
President and Congress in November 2002. That
report made some striking, broad conclusions,
in assessing the national aerospace industry.
These conclusions include:
The
"critical underpinning of this nation's
aerospace industry are showing signs of
faltering,"
The nation
stands "dangerously close to squandering
the advantage bequeathed to us by prior
generations,"
"The
federal government is dysfunctional when
addressing 21st century issues from a
long-term, national and global
perspective," and
"The nation
is at risk in the future if the United
States continues to proceed without a
policy that supports aerospace
capabilities."
The Commission
notes the number of aerospace suppliers has
dropped from 70 in 1980 to 5 prime contractors
today, 600,000 scientific and technical
aerospace jobs have been lost in the last 13
years, and the number of aerospace scientists
has dropped from 145,000 in 1986 to fewer than
25,000.
Further, the
Aerospace Industries Association reports that
U.S. market share of global commercial sales
dropped from 72 to 52 percent between 1985 and
2000, aerospace profits are at their lowest
level in eight years, and the aerospace trade
surplus has experienced a 32 percent drop
since its high of $41 billion in 1998.
The Commission
report also concludes that U.S. aerospace
companies are disadvantaged in the
international market place due to foreign
government market intervention in areas such
as subsidies, tax policy, export financing,
and standards.
The Departments
of Defense and Commerce, working through the
interagency process, have had over a year to
review and consider the report. We hope to
hear from the representatives of the
Departments of Defense and Commerce on whether
they agree with these general conclusions and
other specific conclusions and recommendations
of the Commission and if so, what has been
done or is contemplated as corrective action.
We also hope to
hear from our rotorcraft industry association
witness on his assessment of the Commission's
views and whether in his view adequate action
is being taken to provide our aerospace
industry an economic level playing field in
international commerce.
Our Army and
Department of the Navy witnesses will update
us on their rotorcraft programs. We are
particularly interested in the details of the
restructured Army Aviation program, the Joint
V-22 program and the status of the V-XX
program.
###
House
Armed Services Committee
2120 Rayburn House Office Building
Washington, D.C. 20515
