Lee Hudson Politico - At the Aerospace Industries Association, CEO Eric Fanning is more than happy with the lack of support for members.
Eric Fanning, Acting Secretary of State for the United States Army, on January 21st. He testified during his confirmation hearing on Capitol Hill. | Eric Fanning/Getty Images
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Disappointment is simmering in Washington's space and defense trade associations after several losses in the first year of the Biden administration.
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Boeing Lockheed Martin and BAE Systems, among other potential companies, are moving to pay annual dues to the Aerospace Industries Association, citing a lack of leadership from the group's CEO and chairman, Eric Fanning. .
Representatives of the three companies said in an email to AIA CEO Peter Prowitt in February that the trade association is not getting enough return on investment and that instead of relying on other groups like National to solve industry problems, the trade association is not getting enough return on investment. Defense Industry Association and Professional Services Council to better represent their interests;
"We have reached out to other agencies (PSC, NDIA) who are looking forward to our needs, responding promptly to requests for assistance and acting on our collective behalf," representatives said.
And then. Eric Fannin, Acting Secretary of State for the United States Army, has scheduled his confirmation hearing for January 21st. Arrived on Capitol Hill in 2016. | Alex Wong/Getty Images
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He also interviewed three industry officials, who were not authorized to speak on the record, and confirmed that some members had their dues withheld. They allege that Fanning failed to express concern on behalf of the industry to members of Congress and members of the administration.
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“I don't think our fees are well spent. "We don't want to use our money to do more," he said.
The audience declined to comment for this story. An AIA spokesperson said in a statement: “AIA has a strong record of meeting the priorities of our industry leaders, who shape our strategy. With our membership of over 300 diverse companies; Disputes between our companies are a normal part of our business. Our mission is to find consensus and bring the industry together; This means we listen to every perspective and every concern.
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"Whether it's one company or a small number of members, we're committed to addressing questions or concerns as they arise," he said. "We are working to support our business quickly and efficiently."
A detailed list of specific member complaints about Fanning's leadership was sent to the AIA. An AIA spokeswoman declined to comment beyond that statement.
As CEO and president of the largest aerospace and defense trade association in Washington, DC, Fanning represents nearly 350 companies. He joined the AIA in 2018 after serving as Secretary of the Army under the Obama administration, becoming the first openly gay service secretary. air force He held senior positions on the Navy and DoD staff.
"Given Fanning's credentials, one would think she would make more progress in convincing the Biden administration about industrial duties," said Loren Thompson, a defense analyst and consultant at the Lexington Institute. Lexington Institute, Lockheed Martin; Northrop Grumman; It receives contributions from Boeing and other defense contractors.
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Thompson called Fanning "talented and politically astute" with the best resume of an AIA leader. "But Fanning was primarily a technocrat, and the new administration's moderators were more ideological than technocratic."
Fees, totaling $2 million per employee, are a significant portion of the organization's revenue. for example, According to its latest 2019 990 tax form, the merger had $22 million in revenue. Fees for the company range from $7,600 to $450,000 and are paid on a sliding scale based on a member's last sale in US airspace. A spokeswoman for the AIA did not respond to questions about whether members were expelled without pay.
"Given Fanning's credentials, I think she will do much better in lobbying the Biden administration on industrial rights." Lauren Thompson
AIA works to advocate for its members on issues important to the aerospace and defense industry; Congress; Collaborates with the White House and other industry organizations.
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The group will follow the instructions of the Hluttaw, white papers policy documents; It does this by organizing events for House and Senate space causes. AIA also coordinates congressional delegations that visit international air shows.
On the political side, members say the AIA has not responded to President Joe Biden's order in September to provide federal contractors with the Covid-19 vaccine. They noted that even a few unvaccinated workers at large companies could mean thousands of workers.
"Looking at what these people are doing, we can't afford to lose them," said one industry official. He cited difficulties in finding certified welders to work on warships.
Last fall, members suggested Fanning write a letter explaining how the authority could affect the aerospace and defense industries, according to an October email.
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"Eric doesn't really do anything," said an industry official. "I asked him to participate, but he didn't do anything. Even when he said he wasn't doing anything, he didn't."
A spokesperson for the NDIA confirmed the agency attended the calls and shared information with the executive. A PSC representative did not respond to a request for comment.
Another loss cause for the aerospace and defense industries is corona relief, which allows federal contractors to be reimbursed if they are unable to work. Congress's refusal to authorize Section 3610 of the Economic Assistance and Security Act. Site due to Covid-19. The warranty expired on September 30th.
Members reached a milestone in a report released Feb. 15 by the Pentagon that plans to conduct a more thorough review of defense alliances. The AIA has not issued a statement on behalf of its members, two industry officials said.
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Another trade body, the NDIA, responded. "The NDIA believes that delivering the best ideas, capabilities and value to our soldiers is at the heart of it. We also know that key to improving competitiveness is a vibrant defense industrial base where companies can thrive and attract new entrants," an NDIA spokesperson said at the time.
As previously reported, members were also surprised when Fanning endorsed Pete Buttigieg in 2019 and endorsed Biden as the LGBTQ Democratic presidential candidate during Pride Month in June 2020.
The allegations angered members, who hoped the trade group's CEO would steer clear of partisan politics while leading the union. Member CEOs were not even given the title they preferred. "There is no personal opportunity," said one when you were the head of a major trade association.
Despite her criminal record, Fanning, whose 2019 salary is $1.2 million, has support among members and former government officials who say she is adept at lobbying on behalf of the industry.
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Ellen Lord, the Pentagon's top procurement official in the Trump administration, said that during her tenure, Fanning worked closely with several organizations and companies on issues related to her work.
It requires Fanning to "listen and be positive without getting emotional," and I've always found CEOs to communicate well with her in all the jobs I've been involved with.
"Eric is well respected both at the Pentagon and on the Hill, so it's unfortunate that this kind of misunderstanding has been made public because I don't think it helps the industry and the AIA." "I think it's disappointing."
Not all of the comments were negative: AIA Vice President Tom Gentile, CEO, praised Fanning on Thursday for creating the Aviation Job Protection Program, which provides $673 million in funding for aviation supply chain businesses at a time when the industry is struggling. Air travel due to the Covid epidemic.
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Although Fanning faced rebellion from some members, industry officials recognized that Washington's powerhouses and its top personalities were a valuable asset to the AIA.
"He brings deep useful insights and advanced communications to the organization," added a fourth senior official, who spoke on condition of anonymity because he was not authorized to speak publicly. "He's a well-known and influential figure in the Pentagon and the agencies he's involved with for a long time, so he can be involved at the highest levels of government."
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