Labor unions and labor market Aerospace industry has an employment around 1.7 million workers according to (www.aia-aerospace.org) this provisions more than 1.1 million jobs. The U.S. aerospace industry is facilitated by a huge group of well-trained machinists, aerospace engineers, highly skilled employees with ability in the aerospace industry. (selectusa) The salary median of an employee that is working in the U.S. Aerospace & Defense industry is 44 percent above the national average, or $93,000 in wages and benefits. Employees in the aerospace industry commonly get standard benefits, including paid vacation, health insurance, and sick leave, and pension plans. According to the Bureau of Labor Statistics in 2006, 21 percent of all workers in the aerospace industry were union members or covered by union contracts, compared with about 13 percent of all …show more content…
There are major players in this industry including Boeing, Lockheed Martin and other major aerospace industries. The costs to start up an aerospace manufacturing company are exceptionally high. The threat of new entrants is low. A great sum of money must be invested to be able to start up an aerospace industry. In doing this it makes the industry highly competitive, making it difficult for new markets to emerge. (IBISWorld) Threat of substitute products’ Substitute products in the aerospace and defense industry are very slim. Clients of the defense companies are very specific in what they demand or any major customer in general, reason is because of the high prices of the products.. Thus, making this industry very difficult to substitute. For example, commercial aerospace industry like Boeing or Lockheed Martin, an airframe manufacturer and Pratt & Whitney, an engine manufacturer face almost no threats of substitute products because of an airplane's uniqueness in speed and ability to travel over water. Bargaining power of