The US aerospace industry is losing its global competitiveness due to the lack of engineers with US citizens. We should work to drive more recruitment from the rising minority populations to ensure national competitiveness moving forward, starting in the Caribbean island of Puerto Rico.
Value Proposition canvas- Customer needs and pains
Briefing for aerospace industry
1. Nearshore to the USA
Briefing for the U.S. Aerospace Industry
Marcos Polanco
Managing Principal
Clearshore Management Services
www.clearshore.us
November 6, 2009
2. Where will our talent come from?
“…within 10 years half of the workforce
[of many AIA members] will be eligible
for retirement. And while the U.S.
graduates approximately 70,000
engineers each year, only 44,000 are
qualified for aerospace careers…the
talent pool is limited because of the
requirement for security clearances,
which non-U.S. citizens can’t obtain.”
- Marion Blakey, AIA CEO, August 2009
Source: www.aia-aerospace.org
6. Puerto Rico : Nearshore to the USA
•1898: U.S. Constitution
•1917: U.S. Citizenship
•3.94 million people
•89.7 billion dollar G.D.P.
•KPMG’s #1 cost competitive
location in the United States
•5,464 STEM degrees / year
7. Aerospace in Puerto Rico
Company Launch Jobs Operation Type
Honeywell Aerospace 2006 973 Shared Services
Essig Research 2006 100 Engineering Services
Pratt & Whitney / Infotech 2003 600 Engineering Services
Pratt & Whitney / HCL Axon 2008 300 IT Services
Lockheed Martin 2008 60 IT Services
Lockheed Martin / UPR 2007 6 Applied R&D
Florida Turbine Technologies 2006 25 Applied R&D
Cascades Technologies 2007 30 Software Development
National Science Foundation / UPR Engineering Research
Total 2,088 $100M industry
8. Abundant Talent Source
• 14th & 15th largest undergraduate ASEE 2008 Rankings
engineering programs nationwide
• UPR-Mayagüez by degree awards:
– 2nd (tied) in chemical engineering
– 10th in computer engineering
– 14th in industrial engineering
– 18th in electrical engineering
9. Compensation Comparison
Electrical Engineer I San Juan, PR Tucson, AZ
Base Salary $44,154 $54,292
Bonuses $358 $441
Social Security $3,405 $4,187
401k / 403b $1,602 $1,970
Disability $445 $547
Healthcare $5,722 $5,722
Pension $2,048 $2,518
Time Off $5,821 $7,157
Total $63,555 $76,835
Source: Salary.com
10. Leveraging Puerto Rico’s Incentives
Corporate Investment Incentive
Dividend Taxes 0%
Income Taxes 4% rate (general case)
Supplies 25% tax credit for local goods
R&D 50% R&D tax credit
Training 50% (max) cost reimbursement (WIA)
Salaries Up to $5K per job in 1st year
Utilities 50% renewable energy tax credit
Equipment 100% 1st year deduction
Infrastructure 50% (max) matching funds (PRIDCO)
Lease $3-$6/sq.ft. (PRIDCO)
Financing Tax-exempt debt securities
11. Puerto Rico: Nearshore to the USA
Clearable Talent
Financially Attractive
Proven by Industry
“Nearshore to the USA” is a new option that couples the advantages of nearshoring technology development (access to new talent pools at competitive rates) with the benefits of operating on US soil (US constitution, US citizenship). This is a new offer and idea!