INTERREGIONAL SUBCONTRACTING PATTERNS IN THE AEROSPACE INDUSTRY - THE SOUTHERN CALIFORNIA NEXUS

In this paper, I examine the geographic distribution of NASA prime contract awards, highlighting the dominant role of California as a recipient of these awards. The paper describes first- and second-tier interregional subcontracting patterns based on these awards. Much of this subcontracting is concentrated in the Sunbelt, with the Manufacturing Belt receiving trickle-down benefits. The primary importance of Southern California as a nexus of subcontracting activity is brought out in this discussion. Intercounty patterns of subcontracting within Southern California are then reviewed, and it is shown that Los Angeles County plays a focal role in the region, analogous to that played by the region in the nation as a whole. The paper ends with a brief remark on the vulnerability of Southern California's economy to actual and anticipated downturns in federal defense and space procurements.