World Conference for the Aerospace Industries Sam Marnick Sr. - - PowerPoint PPT Presentation

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

2 July 2015 Sam Marnick

• Sr. Vice President/Chief Administration Officer

World Conference for the Aerospace Industries

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Sam Marnick

• Sr. Vice President/Chief Administration Office

Agenda

• Spirit AeroSystems Company Overview
• Spirit AeroSystems Video
• Global Aerospace Industry: Spirit AeroSystems View
• Spirit AeroSystems and International Association
• f Machinists Partnership

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Sam Marnick

• Sr. Vice President/Chief Administration Officer
• 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

Spirit AeroSystems – Company Overview

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

Fuselage Fuselage Propulsion Propulsion Wing Wing

Broad Presence On Best Programs

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

Spirit AeroSystems 2005

Employees: ~8,000 5 programs – all Boeing Facilities: 12 Million Square Feet Wichita Tulsa McAlester

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

Spirit AeroSystems 2015

Wichita Tulsa McAlester Employees: ~15,000 Multiple programs for diverse customers Facilities: 15 Million Square Feet Kinston Prestwick Subang

• St. Nazaire

Chanute

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

Company Video

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

Agenda

• Spirit AeroSystems Company Overview
• Spirit AeroSystems Video
• Global Aerospace Industry: Spirit AeroSystems View
• Spirit AeroSystems and International Association
• f Machinists Partnership

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

200 400 600 800 1,000 1,200 1,400

1995 2000 2005 2010

Boeing Airbus Other

Over 17,000 deliveries in the last 20 years, ≈ 870/yr.

Commercial Aerospace Trends: Prolonged Up-cycle, Emergence of Duopoly

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

The Next 20 Years: Double the Deliveries . . .

17,392 35,560 32,585

1995-2014 BA AB

Source Average per year 1995-2014 870 2015-2034 Boeing CMO 1,778 2015-2034 Airbus GMF 1,629

1995-2014 1995-2014

20-yr. Deliveries -- jets >90 seats

Boeing View 2015-2034 Boeing View 2015-2034 Airbus View 2015-2034 Airbus View 2015-2034

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

Over 17,000 deliveries in the last 20 years, ≈ 870/yr.

The Next 20 Years: . . . and Alter Mix of Destination Markets

18% 39% 20% 8% 9% 3% 3%

Sources: ACAS, Boeing Current Market Outlook

2015-2034 Deliveries (outer ring)

North America Asia-Pacific Europe South America Middle East Africa CIS

37% 27% 23% 5% 5%

1995-2014

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Sam Marnick

• Sr. Vice President/Chief Administration Officer
• Core Competencies
• Cost/skill/capacity
• Investment (e.g. Capital)
• Supply Chain
• Where to do work
• Customer requirements
• Cost/skill/capacity
• Logistics
• Availability of workforce

Companies Facing These Decisions

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

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

Workforce Outlook – T alent Shortages

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

Agenda

• Spirit AeroSystems Company Overview
• Spirit AeroSystems Video
• Global Aerospace Industry: Spirit AeroSystems View
• Spirit AeroSystems and International Association
• f Machinists Partnership

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

IAM/Spirit Partnership History – Wichita

787 Fuselage 737 Leading Edge Slat CS300 First Flight

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.

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Sam Marnick

• Sr. Vice President/Chief Administration Officer

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

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Sam Marnick

• Sr. Vice President/Chief Administration Office

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

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Sam Marnick

• Sr. Vice President/Chief Administration Office

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

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Sam Marnick

• Sr. Vice President/Chief Administration Office

People: Our Greatest Asset

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Thank You