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

World Conference for the Aerospace Industries Sam Marnick Sr. Vice President/Chief Administration Officer Sam Marnick 2 July 2015 Sr. Vice President/Chief Administration Officer 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 Fuselage Propulsion Propulsion Wing Wing Sam Marnick Sr. Vice President/Chief Administration Officer 4

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 800 Airbus 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 Average Source per year 17,392 1995-2014 870 2015-2034 1,778 Boeing CMO 2015-2034 1,629 Airbus GMF 1995-2014 BA AB 1995-2014 1995-2014 Boeing View Boeing View Airbus View Airbus View 2015-2034 2015-2034 2015-2034 2015-2034 Sam Marnick Sr. Vice President/Chief Administration Officer 10

The Next 20 Years: . . . and Alter Mix of Destination Markets 3% 3% 2015-2034 18% 9% North America Deliveries 5% (outer ring) Asia-Pacific 5% 8% Europe 37% South America 23% 1995-2014 Middle East 20% Africa 27% 39% CIS Over 17,000 deliveries in the last 20 years, ≈ 870/yr. Sam Marnick Sources: ACAS, Boeing Current Market Outlook Sr. Vice President/Chief Administration Officer 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 – T alent 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 737 Leading Edge Slat Sam Marnick Sr. Vice President/Chief Administration Officer 15

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 Carol ina 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