Global hr forum2008-hongyul_paik-challenges for globally competitive human resources in the aerospace sector

Global HR Forum 2008 November 6, 2008 Challenges for Globally Competitive Human Resources in the Aerospace Sector Paik, Hongyul Korea Aerospace Research Institute

Contents 1 Space Korea, Present and Future 2 World Aerospace Economy Overview 3 Korea’s Aerospace Economy Overview 4 Current Human Resources in the Aerospace sector 5 Policy for Aerospace Human Resources 6 KARI’s Implementation as a Leading Aerospace Institute 2

1 Space Korea, Present and Future v Space in the 21st Century - 2nd Space Race Ignited in Asia - New Space Technology Development Yang Ri Way (Chinese first astronaut) - Space Development Initiative in Civil Sector Spaceship One 3

1 Space Korea, Present and Future v National Space Development Plan 2025 Lunar Lander 2006 KOMPSAT 2 2008 2008 2003 KSLV-1 STSAT 2 2009 STSAT 1 1999 COMS 2020 KOMPSAT 1 Lunar Orbiter 1999 KITSAT 3 2010 2017 KOMPSAT 5 KOMPSAT 7 2010 Geo-Stat. 2010 MultiSat 2017 2011 STSAT 3 KSLV-I I 2015 2012 KOMPSAT 3 KOMPSAT 6 KOMPSAT 3A 4

1 Space Korea, Present and Future v Future : To Be 7th Space Country in the World by 2020 1) Independent Space Capabilities - KSLV-II in 2017(1.5 ton class) - Lunar Orbiter in 2020 - Lunar Lander in 2025 2) Participation of International Space Science & Exploration - Interested Areas: Robotics, IT, In-situ Resources Utilization - Participation on the international programs * GES (Global Exploration Strategy) : Participation of 14 Space Agencies (Including KARI) * ILN (International Lunar Network): 8 countries (including Korea) under discussion for participation 3) Space Industry as Engine of Economic Growth - Automobile: 5%, Shipbuilding: 40%, DRAM: 40% in world market - Space : 1% → 10% in the future 5

1 Space Korea, Present and Future v Strategies Space Science, Exploration 1) System Development and (Rockets, Satellites., etc) Space Application 2) Catch-up Space Powers Future Core Technology Development Promotion of Quality of Life, 3) National Demand Industrialization and Commercialization 6

1 Space Korea, Present and Future v Industrialization 1) PPP (Public Private Partnership) - Commercialization of KARI’s Accumulated Space Technologies through Establishment of Jointly Invested Company of Public and Private Sectors 2) Strong Support of Industrialization - Improvement of Technological Capabilities of Domestic Companies through National Space Development Projects - Increase of Participation of Local Companies in the National Projects - Enhancement of Technology Transfer 7

2 World Aerospace Economy Overview v World aerospace turnover (2007) - approx. US$ 550 B - the US is the dominant player - the European aerospace industry is in second place Source: ASD, Facts & Figures 2006, World Top 100 Aerospace Companies ranked in 2007 8

2 World Aerospace Economy Overview v World space turnover (2007) - approx. US$ 173 B (32% of total aerospace turnover) - the US is the dominant player - the Europe is in second place 180 173.9 160 140 120 106.1 US$ B 100 88.8 74.3 82.7 80 60 40 20 0 2003 2004 2005 2006 2007(E) Source: Futron, 2007, The Space Report 2008 9

2 World Aerospace Economy Overview v Aerospace has High profit potential - Attractive industry v World aerospace market size(2007) is - 1.5 times smaller than Automobile market - 2.8 times bigger than Shipbuilding market - 9 times bigger than Memory semiconductor market 800 800 700 600 550 500 US$ B 400 300 200 200 100 60 0 Automobile Aerospace Shipbuilding Memory Semiconductor 10

2 World Aerospace Economy Overview v World aerospace industry employment - 1.32 million employees Source: ASD, Facts & Figures 2006 11

3 Korea’s Aerospace Economy Overview v 2007 Aerospace turnover: US$4.9B v Strong domestic demand: US$4.3B - 100% of domestic demand is military Supply / Demand unit : in millions US$ 2002 2003 2004 2005 2006 2007 Production 1,366 1,243 1,187 1,398 1,515 1,861 Import 1,442 1000 1,410 1,902 3,118 3,129 Total 2,808 2,243 2,597 3,300 4,633 4,990 Domestic demand 2,468 1,951 2,226 2,911 4,161 4,393 Export 340 292 371 389 472 597 Source: KAIA, Aerospace Industry, Spring 2008 12

3 Korea’s Aerospace Economy Overview v Structure of the Korean aerospace industry in 2007 - comprises 70+ aerospace firms Prime • Korea Aerospace Industry (KAI) Contractors Production: $862 million(46%) | Jobs: 2,755(40%) • KoreanAir • Samsung Techwin Equipment • Hanhwa Manufacturers • WIA • LGInnotec • Samsung Thales Production: $763 million(41%) | Jobs: 3,082(44%) Electrical and electronic systems, information and software, Suppliers of specialized Calculation and certification, casting, containers, equipment products and services and tools, engine components and accessories, satellite equipment etc. Production: $236 million | Jobs: 1,065 Machining, sheet metal and welding, testing and control, Subcontractors plastic processing, surface treatment, heat treatment etc. Total Production: $ 1.8billion | Jobs: 7,150 13

3 Korea’s Aerospace Economy Overview v 2007 Government aerospace R&D Spending - Aeronautics: $110.9 million - Space: $293.4 million (18.5%↑) 1,258 1,062 US$ in million 2006 2007 (8.1%↑) 404 374 Defense Aerospace Source: MEST, 2007 14

3 Korea’s Aerospace Economy Overview v Aerospace Workforce - Employs approx. 8,300 people · industry: 7, 150 · research institution: 890 · academia: 260 < Aeronautics Employment by qualification and activity > Managerial staff 13% others 44% R&D, 26% Engineers 17% Source: KAIA, 2007 15

3 Korea’s Aerospace Economy Overview < Space Employment by subsector > Source: MEST, 2007 16

4 Current Human Resources of Aerospace v Situational Analysis - Science and technology have been and will continue to be engines of national economic growth · innovation in science, technology & engineering derives from a well-educated workforce - Growing technological complexity and increased competition of aerospace · increased use of composites and new technologies * fusion technology, environmental and safety technologies · highly competitive industrial environment * Boeing & Airbus + Bombardier, Embraer,…. + China, India etc. 17

4 Current Human Resources of Aerospace v Situational Analysis - Aerospace industry has the highest R&D intensity · higher than the mean intensity of high-technology industries → carrying out research activities consequently demands highly qualified personnel < Each industry’s R&D Intensity > Industry Mean intensity (1991~1999) High-technology industries 9.3 Medium-high-technology industries 3.0 Medium-low-technology industries 0.8 Low-technology industries 0.3 · Aircraft and spacecraft 13.3 · Pharmaceuticals 10.5 · Office, accounting and computing machinery 9.2 · Radio, TV and communications equipment 8.0 · Medical, precision and optical instruments 7.7 Source: OECD, Science, Technology and Industry Scoreboard, 2005 18

4 Current Human Resources of Aerospace v Situational Analysis - The U.S. aerospace industry, including its supplier network, accounts for 1/7 U.S. jobs. · 4.0% of the U.S. manufacturing workforce → This key industry is facing a critical human capital crisis ※ The U.S. aerospace workforce is 47.8% of world total → Main concern: · the Aging Workforce · the Loss of Technical Talent 19

4 Current Human Resources of Aerospace v Situational Analysis - The Aging Workforce: NSF’s most recent Science and Engineering Indicators reports that 29% of all S&E degree holders and 44% of all S&E doctorate holders in the workforce are now age 50 or over. - About 26% of aerospace workforce will retire by 2008. - The average production worker is 53 years of age - The average engineer % of Workforce is 54 years of age Source: National Foundation for American Policy, 2008 Age of Engineer 20

4 Current Human Resources of Aerospace v Situational Analysis - The Loss of Technical Talent: Engineering workforce within aerospace is critically inexperienced. The industry is having a difficult time retaining its existing workforce, attracting young people into the field and building its skills base. “We believe that a declining experience level has been a contributing factor to the problems we observe in many recent aircraft programs.” RAND 21

5 Policy for Aerospace Human Resources v Plans and Political Recommendations - USA · The Presidents Commission on the Future of the United States Aerospace Industry (November 2002) · National Science Board (August 2003) : The Science and Engineering Workforce - Realizing America’s Potential · America’s Aerospace Industry: Identifying and Addressing Workforce Challenges (May 2005) 22

5 Policy for Aerospace Human Resources v Plans and Political Recommendations - Europe · Advisory Council for Aeronautics Research in Europe (ACARE): ‘European aeronautics: a vision for 2020’ (January 2001) * Strategic Research Agenda (SRA) “ACARE is concerned about the quality of our university aerospace programmes, but we are also here to talk about quantity. That is, we need to get more young people, more school children, interested in aerospace engineering. And then we need to make sure that these students are trained and prepared in such a way that they can be of the greatest use to the industry.” 23

5 Policy for Aerospace Human Resources v Plans and Political Recommendations - Korea · Increase R&D Spending for the Creative Human Resource Development * basic science research: 3.2%(2007)→3.4%(2008) * generic technology research: 25.3%→25.6%(2.8 trillion) * creative research for small groups: 370 billion 24

5 Policy for Aerospace Human Resources v Plans and Political Recommendations - Korea · Plans for the Science, Technology and Engineering Workforce * Bridging Research Institutions and Academia - Higher Education and Research Team (HEaRT) program : for the sake of resource effectiveness <Research Institutions> <Academia> Facilities, Students Research Knowledge 25

5 Policy for Aerospace Human Resources v Plans and Political Recommendations - Korea · Plans for the Science, Technology and Engineering Workforce (continue) * increase investment for managing ST&E education and career : 935.2 billion(2007) → 994.8 billion(2008) * Retired Scientists & Engineers for Advancement of Technology (ReSEAT) and Technodoctor Program : bring back to work of retired professionals in order to support small firms 26

KARI’s Implementation as a Leading 6 Aerospace Institute v Towards ‘open innovation’ environment - exchange human resources among research institutes · MoU signed with KIMM, ETRI, KASI, KRISS (7~8, 2008) · HR exchange will begin within 2008 - preparing to join Create Human Capital (CHC) research center initiative · in order to enhance aerospace professionals mobility and generate synergy effect among research institutes ※ develop pool of aerospace professionals 27

6 KARI’s Implementation as a Leading Aerospace Institute v To provide hands-on learning opportunities within research surroundings for students - preparing DRC (Degree & Research Center) Program · comprises three parts: aeronautics, satellite, and launch vehicle · KARI has excellent educational resources: researchers, facilities, technological know-how, etc. 28

6 KARI’s Implementation as a Leading Aerospace Institute v To provide competitive aerospace professionals globally - plan to establish graduate aerospace schools · MoU signed with Korea Aerospace University and Gyeongsang National University (2008) Space school Aeronautics school 29

6 KARI’s Implementation as a Leading Aerospace Institute v Concluding Remarks - Aerospace has played a vital and exciting role in the growth of nation - The aerospace industry is identified as one of the high growth industries. Other sectors of economy depends on aerospace businesses and related disciplines for technical skills and technologies - What we need to realize challenges for globally competitive workforces of aerospace : · Strong institutional support of government ※ create incentives within NIS (National Innovation System) to attract people and sustain competitiveness of aerospace industry · Develop efficient partnerships among players ※ bring aerospace resources all together to increase synergy effect 30

Global hr forum2008-hongyul_paik-challenges for globally competitive human resources in the aerospace sector

by Byeong-Seok Jang

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Global hr forum2008-hongyul_paik-challenges for globally competitive human resources in the aerospace sector Presentation Transcript