State of US Aerospace the Industry and Northrop Grumman Heritage - PDF document

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 State of US Aerospace the Industry and Northrop Grumman Heritage August 16, 2019 Approved for Limited Public Distribution # 18-1289 1 Presentation • The State of Aerospace • California’s role in the Global Aerospace Market • Northrop Grumman Overview • Doing Business with Northrop Grumman • Questions and answers 2 2 1

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 U.S. Defense Exports 3 3 U.S. Defense Imports 41% increase from 2005 to 2016 4 4 2

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 California’s Aerospace Heritage: 118+ years Farman III aeroplane flown by Louis Paulhan at the Dominguez International Air Meet, Los Angeles, Jan. 10-20, 1910 Population, Innovation, Climate, Land, Public Policy Early Adopters (Aviation) • 1910-First airshow attended by 250,000 people • 1920-30’s-Entertainment, energy, rail, tourism helps grow aviation • Organic growth, west coast isolation, small skilled industry R&D and Manufacturing (Aviation to Aerospace) • 1929 to 1945-Population grows by 40% • 1940-WW II-defense manufacturing labor growth Technology Pivot (Space Exploration) • 1950-15 of 20 US aerospace firms based in Southern CA • 1960-Public Policy-Public higher education and infrastructure helps propels the industry Earhart on factory floor,LockheedAircraft Co., 5 Burbank, CA. 1930 Source: Washington Center for Equitable Growth 2015 Huntington Library 5 California Is A Global Aerospace Leader  The State Holds 9% of the Combined Global Space and Aircraft Market, and 21% of the overall U.S. Industry  California now ranks second in the nation for defense contract spending (Virginia #1)  California’s aerospace industry revenue of $62 billion is equivalent to the agriculture and arts & entertainment industry combined 6 Approved for Public Release: NG17-0560, 3/15/17 6 3

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 Aerospace in California – A Healthy Employer • The California aerospace industry includes 203,000 direct jobs and a total of 511,000 direct and indirect jobs across multiple industries 1 in 5 aerospace jobs in the nation is in California 7 Approved for Public Release: NG17-0560, 3/15/17 7 Northrop Grumman Today • Leading global security company • $30.1 Billion sales in 2018 • $52.6 Billion total backlog work • Sales + Backlog larger than GDP of 142 countries • Leading capabilities in: - Cyber - Logistics - Autonomous Systems - C4ISR - Strike 8 8 4

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 Northrop Grumman Vision Be the most trusted provider of systems and technologies that ensure the security of our nation and its allies 9 Approved for public release; distribution unlimited. Northrop Grumman case 14-0466 Dated 030514. 9 Our Mission Advancing Human Discovery Preserving Freedom 10 10 5

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 Four Operating Sectors Mission Systems Technology Services Innovation Systems Aerospace Systems 11 11 11 NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I Northrop Grumman National Centers of Excellence Palmdale Aircraft Integration Center of Excellence Palmdale, CA Autonomous Systems Center of Excellence Rancho Bernardo, CA St. Augustine Aircraft Integration Space Systems Center of Excellence and Advanced Concepts St. Augustine, FL Center of Excellence Redondo Beach, CA Manned Aircraft Design Center of Excellence Melbourne, FL 12 12 6

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 Northrop Grumman – A Fixture in California  Northrop Grumman has been present in California since 1939 when Jack Northrop founded the company in Hawthorne.  We are also one of the largest employers in the state with 128 sites and 27,500 employees statewide and 30,000 retirees. 13 13 California – Birthplace to Some of Northrop Grumman’s Most Innovative Products • Changing the face of security and discovery for the world. B-2 Spirit Stealth Bomber B-2 Spirit Stealth Bomber World’s Fastest Microchip (1000 GHz, 2014) James Webb Space Telescope 14 Approved for Public Release: NG17-0560, 3/15/17 14 7

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 Plus … We Get to Work on Cool Stuff 15 Approved for Public Release: NG17-0560, 3/15/17 15 Supplier Engagement 16 8

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 Suppliers in Los Angeles County • 3,753 county suppliers (2015-17) • Supplier contracts valued over $3.4 Billion in 2018 • 50% of the suppliers in the county are – Small – SDB – WOSB – HUBZone – SDVOSB 17 17 How to Become a Northrop Grumman Supplier Become Familiar With Northrop Grumman Products & Requirements Input CompanyInformation into Submit Letter of Introduction and Potential Northrop Grumman Potential Supplier CompanyLiteratureto Global Supplier Supplier Database Diversity Office Northrop Forward Materials to Grumman Advise Supplier on Purchasing/ Global Potential Subcontract Evaluation Engineering/Other Opportunities Supplier Using Organizations Diversity Office Direct Any Questions to and Keep In Contact With: Northrop Grumman Global Supplier Diversity Office or Specific Procurement Department 18 18 9

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 Do Your Homework Before You Make Contact Basic Marketing Research Logistics / Timing • How is the Company Structured? • Proximity of Supplier to Company? • What are the Principal Products? • Who is My Competition? • Does This Company Buy What I Sell? • Has the Company Received New Business • How Does the Purchasing Process Work? Contracts? • Could my company’s capabilities fit a • When Will Materials / Services be Needed? special niche within this company? • Should I consider teaming with one or more companies to gain access to more opportunities? • How can I add value to this Company? 19 19 Developing the Prime/ Subcontractor Relationship What Works What Doesn’t • Credibility • Quality Products / On-time Delivery / Cost Affordability • Proven Performance • Conferences / Trade Fairs • Perseverance • Knowing the System 20 20 10

The Aerospace & Defense Forum Los Angeles Chapter August 16, 2019 Contact Information • For Background InformationAbout Northrop Grumman Corporation: www.northropgrumman.com • Follow us on: Social Media Website Twitter www.twitter.com/northropgrumman Facebook www.facebook.com/northropgrumman Tumblr www.northropgrumman.tumblr.com For More Information go to the Northrop Grumman Supplier Oasis site: http://www.northropgrumman.com/suppliers/Pages/default.aspx Click on the Box: “Supplier Information for Northrop Grumman Innovation Systems” 21 21 22 11