Story ID: 321
American States Seek Foreign Aerospace Investment
By: Charles Alcock
Caption: State representatives at Paris Air Show play down concern over Trump tariffs
Word Count: 856
Almost two dozen American states have crossed the Atlantic to the Paris Air Show, seeking to attract foreign investment. They do so against a backdrop of insecurity among global aerospace and defense companies, some of whom feel long-established partnerships with their U.S. counterparts have been compromised by the Trump administration’s aggressive imposition of tariffs.
While the tariffs are supposedly intended to induce foreign companies to establish job-creating U.S. facilities, uncertainty over how they are being applied has left prospective investors confused. Industry players like Airbus and GKN Aerospace, which already employ thousands of Americans, have found that they are nonetheless subject to tariffs on aircraft and systems produced elsewhere.
Among the states seeking to keep the door open to investment and collaboration are Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Illinois, Kansas, Louisiana, Mississippi, Missouri, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Utah, Virginia, and Washington. Those who spoke with AIN ahead of the show were generally eager to deflect the tariffs issue as a federal matter beyond their direct control.
Following in the Wright Brothers’ Footsteps
Ohio’s aviation heritage is grounded in the fabled history of the Wright Brothers, and Dayton, where they started their journey, is now home to leading institutions, including the Air Force Research Laboratory and the National Air and Space Intelligence Center. According to JP Nauseef, president and CEO of JobsOhio, the state views itself as an intersection offering all the elements needed for success.
“It’s where you can envision it [innovation], conduct research, and then manufacture and support new products,” he said. “We want to make sure that the complete ecosystem is here.”
Ohio has achieved breakthroughs in attracting new technology pioneers such as Joby, which is establishing a manufacturing facility in Dayton to build its eVTOL aircraft. Springfield is now home to the new National Advanced Air Mobility Center of Excellence, which is serving as an incubation facility for multiple new innovations in electric and autonomous aviation.
To bolster its value proposition in supporting the aerospace and defense supply chain, the state can help to develop training programs tailored to the needs of specific companies. “We provide a full concierge service to remove any drama and friction for companies wanting to move here,” Nauseef said.
In Georgia, home to major OEMs like Lockheed Martin and Gulfstream Aerospace, aviation exports total more than $12.6 billion annually. According to Elizabeth McLean, assistant director for statewide projects, the state is now looking to attract companies that can “build out the supply chain” with activities that complement existing companies.
Her team is intently focused on emerging technologies, such as electric aviation, as evidenced by Archer Aviation’s decision to build a new factory for its eVTOL vehicles in Covington. She believes new modes of propulsion, including hybrid-electric, and sustainable aviation fuel could be important strategic assets for the state.
Skills Bolster Supply Chains
“Georgia has a very diverse ecosystem and a robust network of suppliers,” McLean explained. She said the state is committed to delivering the advanced skills companies need to grow, not only through centers of excellence like Georgia Tech, but also through technical colleges, where its Quick Start team has helped companies like Pratt & Whitney source the employees they need for new production centers. The state also has a large crop of military veterans whose skills can be readily applied in the aerospace and defense sectors.
At a time of international trade turmoil, McLean said Georgia is committed to maintaining a stable business climate. The state didn’t change its corporate tax rate for 50 years before 2019, only to then lower it in response to the Covid pandemic.
Further west, in Oklahoma, aerospace and defense contribute almost $44 billion to the state’s economy, with a workforce of more than 120,000 at companies including Pratt & Whitney and Lufthansa Technik. Leshia Pearson, who directs the Department of Commerce’s engagement with these sectors, wants more.
Among the growth areas is uncrewed air systems technology, with Oklahoma State University and the Oklahoma Aerospace Institute for Research and Innovation established as centers of expertise. In 2023, the Choctaw Nation partnered with the National Air Transportation Association to establish one of the first 10 pilot programs for testing new aircraft at a 40,000-acre site that includes beyond visual line of sight capability.
“We are seeing lots of interest in foreign investment [in the UAS sector] as companies see the U.S. market as being one of the most successful and competitive, but also local companies are expanding,” Pearson said.
Oklahoma has worked hard to bolster the aerospace and defense industries’ struggling supply chains and is about to roll out a strategic sourcing feature for its Connects supply chain platform. This helps companies source products, components, and parts.
The state offers financial incentives, including the Aerospace Industry Engineer Workforce tax credit. This is available to companies and individual engineers, providing credits of $12,500 and $5,000, respectively, per year for five years.