January 2017 Aerospace INDUSTRY PROFILE

January 2017 Aerospace INDUSTRY PROFILE for Arapahoe & Douglas Counties Colorado WIOA Central Planning Region

AEROSPACE Background Colorado is an aerospace center of excellence, paving the way for new discovery in the frontier of space. The state has a rich history in aerospace development and is at the forefront of space travel, exploration, and leading aerospace research. In addition to its strategic location, the state s educated workforce, dynamic atmosphere for business growth, and hub of high-tech innovation have revolutionized the state s growing aerospace industry. Combined, these assets support Colorado s position as a top aerospace state. In fact, Colorado ranked second in the nation in 2016 for both private aerospace employment as a percentage of total employment, and in total private-sector employment. Colorado s aerospace industry includes a broad range of companies, products, and systems for commercial, military, and civil space applications. Colorado s aerospace companies research, develop, design, and manufacture guided missiles, spacecraft, satellites and communications equipment, as well as navigation and detection instruments. Colorado companies also produce planetary spacecraft and launch systems, and provide mission support. The state s companies and public agencies have achieved some of the most innovative advancements in space exploration technology in recent history and are leading the nation s major commercial, civil, and military space missions and projects. Eight of the nation s top aerospace contractors have significant operations in the state, leading the country s space projects. Along with major U.S. Department of Defense (DoD) facilities and the National Aeronautics and Space and Administration (NASA) research and development activities, the state s universities are home to leading aerospace programs. Colorado continues to experience growth in aerospace, with nearly 180 businesses classified as aerospace companies, and more than 400 companies and suppliers providing spacerelated products and services. Direct employment in the aerospace cluster totals 25,500 private sector workers and approximately 29,090 military personnel. These 54,590 workers in the aerospace cluster support an additional 133,690 workers in all industries throughout Colorado, bringing direct and indirect employment supported by the aerospace cluster to 188,280 workers. Further, Colorado s aerospace cluster payroll exceeded $3.4 billion. The majority of Colorado s key aerospace businesses, facilities, and research institutions are located in the nine-county Metro Denver and Northern Colorado region.1 The region s 20,020 private sector aerospace workers represent about 78.5 percent of all aerospace workers in Colorado. The region s 130 aerospace companies represent 74 percent of the state s total companies in the cluster. - Courtesy of Metro Denver Economic Development Corporation Rankings Business Insider ranked Colorado s economy the third best in the country, based on recent change in housing prices, nonfarm payroll growth, unemployment rate, GDP per capita, average weekly wage, and state government surplus and deficit. Forbes ranked Metro Denver sixth of fastest growing cities in 2015. Factors that earned us this standing included our 4 percent unemployment rate 2.66 percent job growth rate. According to Money magazine, Denver is the best city to live in the West. The ranking called Metro Denver a mecca for millennials and that the city has relatively affordable real estate and great access to recreation. WalletHub ranked three Metro Denver cities among the best in the country for first-time home buyers: Centennial ranked third, Longmont ranked ninth, and Thornton ranked 10th.

AEROSPACE Employment Concentrations This map show where the highest concentration of employment are in the aerospace sector, by county, within the Colorado Central Planning Region. Top Employment Concentrations by County County 2016 Jobs Business Establishments Jefferson County, CO 9,397 98 5.21 Boulder County, CO 6,952 168 5.07 Arapahoe County, CO 2,098 64 0.86 Larimer County, CO 1,862 62 1.57 Adams County, CO 821 40 0.55 Broofield County, CO 490 19 1.78 Denver County, CO 483 70 0.13 Douglas County, CO 279 34 0.31 Clear Creek County, CO <10 2 0.09 Gilpin County, CO 0 0 0.00 Source: EMSI 2016.4 QCEW Employees, Non-QCEW Employees & Self-Employed Class of Worker National Location Quotient 2

AEROSPACE Competitive Analysis This table shows employment within the Colorado Central Planning Region in the top 20 occupations in the sector. Regional wage ranges and the median wage are shown, with yellowed cells indicating where wage offers may have to fall to attract and retain qualified candidates based on labor supply (applicants per job opening). SOC Code 15-1132 Description Software Developers, Applications Total Number Total Number Jobs (in Jobs (across industry) industries) Annual Openings Available Applicants Medical Scientists, 19-1042 400 1,173 79 25 Except Epidemiologists 625 20,232 724 263 13-2011 Accountants & Auditors 339 29,474 1,445 589 Applicants Per Job Opening Average 10th Percentile 25th Percentile Median 75th Percentile 90th Percentile 0.31 $40.17 $19.11 $23.08 $31.57 $37.68 $71.56 0.36 $49.79 $31.66 $39.16 $48.92 $59.11 $71.44 0.41 $36.42 $20.67 $25.76 $33.14 $43.26 $56.06 15-1133 Software Developers, Systems Software 721 10,888 335 142 0.42 $52.32 $32.72 $41.85 $51.50 $61.94 $74.58 19-4021 Biological Technicians 785 2,469 109 52 Purchasing Agents, Except 13-1023 Wholesale, Retail & Farm 341 4,837 190 97 Products 0.48 $22.32 $13.99 $16.56 $20.95 $27.25 $33.53 0.51 $33.51 $20.05 $25.31 $31.90 $40.93 $49.07 51-4041 Machinists 336 3,104 177 93 0.53 $21.76 $12.94 $16.46 $21.55 $26.97 $30.86 19-2031 Chemists 351 1,646 64 35 17-2141 Mechanical Engineers 796 5,322 302 176 19-2021 Atmosphere & Space Scientists 354 1,687 57 35 17-2112 Industrial Engineers 474 2,557 129 84 0.54 $38.22 $19.02 $24.86 $36.74 $50.81 $60.02 0.58 $44.36 $27.09 $33.11 $41.07 $54.18 $68.35 0.62 $45.79 $29.32 $35.74 $44.59 $55.31 $66.74 0.65 $45.08 $27.60 $34.97 $43.89 $54.92 $65.19 17-2011 Aerospace Engineers 783 1,958 86 65 0.75 $64.03 $36.85 $45.60 $58.73 $75.49 $93.32 17-2071 Electrical Engineers 346 3,094 124 102 Business Operations 13-1199 867 32,765 779 655 Specialists, All Other 0.82 $46.00 $28.97 $34.76 $43.81 $54.87 $67.31 0.84 $38.46 $20.21 $26.28 $35.93 $47.24 $61.41 Architectural & 11-9041 Engineering Managers 292 2,970 158 157 1.00 $76.97 $51.73 $60.67 $71.72 $87.81 $147.15 Secretaries & Admin 43-6014 Assistant, Except Legal, 358 42,821 1,055 1,071 Medical & Executive 11-1021 General & Operations Managers 372 30,440 1,381 1,613 Electrical Engineers, 17-2072 491 4,749 128 157 Except Computer Electrical & Electronic 51-2022 366 2,768 66 83 Equipment Assemblers 1.01 $18.22 $11.65 $14.37 $17.78 $22.00 $26.71 1.17 $64.77 $24.40 $35.58 $54.23 $84.55 $123.58 1.22 $48.74 $31.19 $37.16 $46.73 $59.13 $72.13 1.26 $16.96 $10.20 $11.92 $15.45 $20.62 $26.87 11-9121 Natural Sciences Managers 379 1,264 50 67 1.34 $67.85 $42.29 $50.80 $61.10 $75.53 $124.68 Source: EMSI 2016.4 QCEW Employees, Non-QCEW Employees & Self-Employed Class of Worker 4

AEROSPACE Industry Growth This table shows projected yearly job growth through 2021. The National Location Quotient shows the relative concentration of employment in this industry in the Colorado Central Planning Region versus the national average. For example, with a Location Quotient of 9.68, you would read, employment is 9.68 times more concentrated in the Colorado Central Planning Region than the national average. 14,000 2.50 12,000 10,000 8,000 10,404 11,828 2.00 1.50 6,000 1.00 4,000 2,000 0 24 44 402 503 69 83 504 573 300 330 381 398 0.50 0.00 2016 Jobs 2021 Jobs Nonferrous Forging Radio & TV Broadcasting Broadcasting & Wireless Aluminum Foundries (except Die-Casting) Optical Instrument & Lens Manufacturing Research & Development in the Physical, Engineering & Life Sciences (except Biotechnology All Other Telecommunication Surgical Appliance & Supplies Manufacturing National Location Quotient Source: EMSI 2016.4 QCEW Employees, Non-QCEW Employees & Self-Employed Class of Worker

AEROSPACE Difficult to Hire This chart shows the relationship between the number of job listings versus the number of hires for each of the top occupations in the sector. If there are more listings than hires, it suggests that there are not enough qualified people to fill all the jobs. If there are more hires than listings, it suggests there may be too many qualified people to fill too few jobs. Difficulty to Hire Very Easy Easy Medium Difficult Very Difficult Occupation (SOC) Avg Monthly Postings Avg Monthly Hires Hires Per Listing Atmospheric & Space Scientists 31 95 3.02 Chemists 28 83 2.96 Machinists 52 149 2.85 Secretaries & Administrative Assistants, Except Legal, Medical & Executive 1,053 2,715 2.58 Business Operations Specialists, All Other 763 1,677 2.20 General & Operations Managers 1,021 1,970 1.93 Electrical & Electronic Equipment Assemblers 115 156 1.36 Aerospace Engineers 75 65 0.87 Electronic Engineers, Except Computer 188 160 0.85 Software Developers, Systems Software 1,999 1,622 0.81 Accountants & Auditors 122 94 0.77 Biological Technicians 598 437 0.73 Software Developers, Systems Software 330 224 0.68 Mechanical Engineers 378 231 0.61 Purchasing Agents, Except Wholesale, Retail & Farm 201 110 0.55 Architectural & Engineering Managers 397 132 0.33 Electrical Engineers 153 50 0.33 Natural Sciences Managers 2,697 865 0.32 Medical Scientists, Except Edpidemiologists 232 43 0.18 Industrial Engineers 678 102 0.15 6

AEROSPACE Top Jobs Top Jobs Currently Listed in the Central Planning Region, Last 120 Days Industrial Engineers 17211200 108 Prior Year 36 Electronic Engineers, Except Computer 17207200 100 Prior Year 21 Software Developers, Applications 15113200 80 Prior Year 108 Electrical Engineers 17207100 76 Prior Year 37 Information Security Analysts 15112200 74 Prior Year 55 Aerospace Engineers 17201100 69 Prior Year 13 Network & Computer Systems Administrator 15114200 69 Prior Year 182 Computer System Engineers/Architects 15119902 61 Prior Year 72 Software Developers, Systems Software 15113300 56 Prior Year 38 Electronics Engineering Technicians 17302301 47 Prior Year 22 Computer Systems Analysts 15112100 42 Prior Year 26 Computer User Support Specialists 15115100 41 Prior Year 31 Information Technology Project Managers 15119909 38 Prior Year 19 Marketing Managers 11202100 32 Prior Year 21 Purchasing Agents, Except Wholesale, Retail & Farm Products 13102300 30 Prior Year 15 Software Quality Assurance Engineers & Testers 15119901 28 Prior Year 31 First-Line Supervisors of Production & Operating Workers 51101100 26 Prior Year 9 Mechanical Engineers 17214100 24 Prior Year 14 Electricians 43101100 23 Prior Year 7 Management Analysts 13111100 22 Prior Year 18 Source: Wanted Analytics

AEROSPACE Training Pipeline Here are the top 20 jobs in the industry, by number employed and educational attainment level. High School or equivalent Secretaries & Admin Assistants, Except Legal, Medical & Executive SOC Code: 43-6014 2016 Jobs: 42,821 Annual Openings: 1,055 Regional Completions: 45 Completers/Opening: 0.04 Electrical & Electronic Equipment Assemblers SOC Code: 51-2022 2016 Jobs: 2,768 Annual Openings: 66 Regional Completions: 4 Completers/Opening: 0.06 Machinists SOC Code: 51-4041 2016 Jobs: 3,104 Annual Openings: 177 Regional Completions: 82 Completers/Opening: 0.46 Bachelor s Degree General & Operations Managers SOC Code: 11-1021 2016 Jobs: 30,440 Annual Openings: 1,381 Regional Completions: 6,084 Completers/Opening: 4.40 Architectural & Engineering Managers SOC Code: 11-9041 2016 Jobs: 2,970 Annual Openings: 158 Regional Completions: 3,499 Completers/Opening: 22.12 Natural Sciences Managers SOC Code: 11-9121 2016 Jobs: 1,264 Annual Openings: 50 Regional Completions: 2,841 Completers/Opening: 57.05 Purchasing Agents, Except Wholesale, Retail & Farm Products SOC Code: 13-1023 2016 Jobs: 4,837 Annual Openings: 190 Regional Completions: 0 Completers/Opening: 0.00 Business Operations Specialists, All Other SOC Code: 13-1199 2016 Jobs: 32,765 Annual Openings: 779 Regional Completions: 50 Completers/Opening: 0.06 Accountants & Auditors SOC Code: 13-2011 2016 Jobs: 29,474 Annual Openings: 1,445 Regional Completions: 831 Completers/Opening: 0.58 Software Developers, Applications SOC Code: 15-1132 2016 Jobs: 20,232 Annual Openings: 724 Regional Completions: 918 Completers/Opening: 1.27 Software Developers, Systems Software SOC Code: 15-1133 2016 Jobs: 10,888 Annual Openings: 335 Regional Completions: 1,035 Completers/Opening: 3.09 Aerospace Engineers SOC Code: 17-2011 2016 Jobs: 1,958 Annual Openings: 86 Regional Completions: 180 Completers/Opening: 2.10 Electrical Engineers SOC Code: 17-2071 2016 Jobs: 3,094 Annual Openings: 124 Regional Completions: 375 Completers/Opening: 3.02 Electronics Engineers, Except Computer SOC Code: 17-2072 2016 Jobs: 4,749 Annual Openings: 128 Regional Completions: 441 Completers/Opening: 3.45 Industrial Engineers SOC Code: 17-2112 2016 Jobs: 2,557 Annual Openings: 129 Regional Completions: 0 Completers/Opening: 0.00 Mechanical Engineers SOC Code: 17-2141 2016 Jobs: 5,322 Annual Openings: 302 Regional Completions: 721 Completers/Opening: 2.39 Atmospheric & Space Scientists SOC Code: 19-2021 2016 Jobs: 1,687 Annual Openings: 57 Regional Completions: 47 Completers/Opening: 0.82 Chemists SOC Code: 19-2031 2016 Jobs: 1,646 Annual Openings: 64 Regional Completions: 227 Completers/Opening: 3.56 Biological Technicians SOC Code: 19-4021 2016 Jobs: 2,469 Annual Openings: 109 Regional Completions: 1 Completers/Opening: 0.01 Doctoral or Professional Degree Medical Scientists, Except Epidemiologists SOC Code: 19-1042 2016 Jobs: 1,173 Annual Openings: 79 Regional Completions: 730 Completers/Opening: 9.29 Source: IPEDS Data Compiled by EMSI 2016.4 8

AEROSPACE Top five Below are the top five core skills, workplace skills, certifications and companies in the aerospace industry. Core Skills 1 Oral & Written Communication 2 Microsoft Office 3 Integrity 4 Troubleshooting 5 Self-starting, Self-motivated Workplace Skills 1 Remote Sensing 2 C/C++ 3 Linux 4 Python 5 Java Certifications 1 Secret Clearance Top Secret Sensitive Compartmented 2 Information (TS SCI) 3 DOD Clearance Certified Information Systems Security 4 Professional (CISSP) 5 DOD 8570 Certification Companies 1 Lockheed Martin 2 Ball Aerospace 3 ViaSat 4 Medtronic 5 DigitalGlobe Source: Wanted Analytics

AEROSPACE Age Bands & Age Bands It is helpful to know the age bands in a sector, because if there is a substantial percentage of people above 55 years old, it means there will be opportunity as retirements happen. Based on Age Distribution, Arapahoe/Douglas Works! has developed a way to measure the age gap in an industry by comparing the number of workers over age 45 to the number under age 34. Age gap is shown both as a percentage and a count. 65+ 3.7% 55-64 22.0% 45-54 29.6% 35-44 23.9% 25-34 17.7% 19-24 3.0% 14-18 0.1% Source: EMSI 2016.4 QCEW, Non-QCEW & Self-Employed This graph shows the week over week volume. 1000 900 800 700 600 500 400 300 200 100 0 Source: Wanted Analytics 10

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