Professional Documents
Culture Documents
Our company is beginning an extraordinary transformation. In the last few months, we have
gone from what some have called a “small, cash-strapped” defense subcontractor, to one of the most
talked about companies in the aerospace industry, bidding on the largest defense contract in history:
the KC-X Tanker Modernization Program. But this
first bid is only one step in effectuating our ongoing
“You
do
things
when
the
long-term business strategy. Together we will continue
seeking to forge an improved path, creating both a new opportunities
come
along”
paradigm in modern aviation, and extraordinary value
for all of those who believe in our strategic vision. —Warren
Buffett
Next, we began seeking new partners, partners who will join us because they wish to make a
long-term investment in a business with common goals and a shared vision. Our representatives are
meeting with senior government, financial and business leaders in the United States, China, India,
and Eastern Europe. Our experience, connections and relationships are just beginning to bear fruit.
The changing world economy is creating an uncommon business opportunity, for those agile
enough to recognize and capitalize on it. The fundamental circumstances relating to globalization in
the context of the aerospace industry were explained by Secretary of Defense Robert M. Gates in his
speech to the U.S. Air Force:
“We
need
to
be
thinking
about
how
we
“An unconventional era of warfare
requires unconventional thinkers. That
accomplish
the
missions
of
the
future,
is because this era's range of security
challenges, from global terrorism to
in
the
most
affordable
and
sensible
ethnic conflicts, from rogue nations to
way.
We
must
ask
if
the
ways
we
do
rising powers, cannot be overcome by
traditional military means alone.
business
make
sense”
Conflict will be fundamentally political
in nature and will require the integration
—Secretary
of
Defense
Robert
M.
Gates
of all elements of national power.
Success, to a large extent, will depend
less on imposing one's will on the enemy or putting bombs on targets, though we must never lose
our ability or our will to unsheathe the sword when necessary. Instead, ultimate success or failure
will increasingly depend more on shaping the behavior of others, friends and adversaries, and most
importantly, the people in between.
“The Air Force procurement program that the President has approved and requested and that I
have supported is an appropriate and responsible one that will allow the service to reset from current
operations and prepare for future challenges. Those challenges will be immense and they will be
diverse.
“To our international brothers in arms, I appreciate your nations’ partnerships, and I hope we
can find new, creative ways to keep working together -- and in ways that capitalize on our respective
areas of expertise.
“We must expect continuing radical change and upheaval around the world -- at times
promising, at times frightening -- before the form
and patterns of a new era settle into place. As this
new era actually continues to unfold before us, the “To
our
international
brothers
challenge that I pose to you today is to become a
forward-thinking officer who helps the Air Force in
arms,
I
appreciate
your
adapt to a constantly changing strategic
nations’
partnerships,
and
I
environment.
hope
we
can
find
new,
“Other questions I would ask you to consider go
to the heart of how the service is organized, manned creative
ways
to
keep
working
and equipped. What new priorities should drive
procurement? In addition, we need to be thinking together—and
in
ways
that
about how we accomplish the missions of the future, capitalize
on
our
respective
in the most affordable and sensible way. We must
ask if the ways we do business make sense. areas
of
expertise”
“For the good of the Air Force, for the good of —Defense
Secretary
Gates
the armed services and for the good of our country, I
urge you to reject convention, and to make decisions that will carry you closer toward rather than
further from the officer you want to be and the thinker who advances airpower strategy and meeting
the complex challenges to our national security.”
Our strategic vision is centered around the principles of globalization and the efficiencies that
can be offered to U.S. aerospace consumers—both military and commercial—by taking advantage of
the engineering capability, manufacturing capacity, and lower cost of production overseas.
Our goal is to leverage our U.S. customer relationships, marketing capabilities, and high-
technology manufacturing expertise, by forming strategic relationships with international concerns
whose interest are to enter the U.S. aerospace markets by offering products and services of superior
or comparable quality, while offering lower cost and greater value.
In addition, enabling the expanded utilization of foreign subcontractors will provide the U.S.
government with the unique ability to utilize the defense budget in a new geostrategic role that
fosters economic cooperation among those who are and would strive to be our allies.
Ultimately, making quality products at lower prices will benefit the U.S. taxpayer by delivering
the most value for the money, the U.S. warfighter by conserving limited defense spending for more
capabilities, the U.S. worker by preserving and creating more of the most desirable U.S. jobs, and
U.S. Aerospace, Inc. by accelerating increased growth and profitability.
We believe that our growing relationships in Asia and Eastern Europe will provide us with
numerous competitive advantages when entering into aerospace manufacturing contract
competitions solicited by commercial and government sectors.
Our ongoing efforts have met with strong initial success, resulting in a Strategic Cooperative
Agreement with Antonov Company of Ukraine, which designs and manufactures the largest military
transport aircraft in the world. Together we have
submitted our first bid to the U.S. Air Force—to supply The
first
of
many
bids
for
179 refueling tankers at a total cost of $29.5 billion.
military
and
commercial
This historic and unprecedented event represents only aerospace
projects
in
the first of what will be many bids for military and cooperation
with
our
commercial aerospace projects that we intend to submit in
strategic
partners
cooperation with our strategic partners. We anticipate this
process will be both challenging and rewarding.
Changing the status quo will not be easy, and will not take place over night. Our success has
already met with its share of detractors. As President Barack Obama said, “The impulse in
Washington is to protect jobs back home, building things we don't need at a cost we can't afford.
The special interests, contractors, and entrenched lobbyists—they're invested in the status quo, and
they're putting up a fight.” We accept this challenge, and will continue to drive forward over any
such “bumps in the road,” implementing our long-term strategic vision, and expanding our
company’s manufacturing and sales capabilities.
U.S. Aerospace, Inc. is organized and able to attain the higher performance that current and
future business environments will demand. We believe that the more rational economy, coupled
with a stronger emphasis on corporate governance and ethical business practices, create an even a
more favorable environment for success at U.S. Aerospace, Inc. Our integrated operations offer the
ability to secure an expanded breath of manufacturing advantages and scale our production
capacities through diverse enterprise relationships with multi-national providers. We believe that the
fundamental foundations of our strategies will be successful in meeting government and commercial
needs for the aerospace industry.
Conclusions
U.S. Aerospace, Inc. has a deep respect for the inventions and accomplishments in aviation over
the last century, as well as great enthusiasm for the innovation and creativity that will lead us into
the next hundred years.
We thank our shareholders, partners, and customers for your continuing support, as we look to
grow and profit together into the future.
Sincerely yours,
Jerrold S. Pressman
Chairman of the Board