Journal of Logistics Management 2013, 2(1): 15-25 DOI: 10.5923/j.logistics.20130201.03 Competitiveness of Small- and Medium Enterprises of the Arizona Aerospace and Defense Supply Chain Gary R. Waissi * , Jane E. Humble, Mustafa Demir College of Technology and Innovation, Arizona State University, Mesa, Arizona 85208, USA Abstract This paper discusses the development of a database and an interactive data visualization of Arizona aerospace and defense suppliers. The paper also summarizes key results of a survey of those companies focusing on their strategic competitiveness and next generation manufacturing (NGM) readiness.The survey categories included: company demographics, supply chain management, global engagement, sustainability and green, process improvement, and innovation. Development of the database andselected key findings of the survey are reported. To summarize: Arizona aerospace and defense companystrengths include: Product portfolio and product diversity; Frequency and scale of process and system improvements; Balance of revenue sources between private- and public; Balance of customers between military and commercial. Weaknesses include: Strategic planning and strategic plan implementation; Utilization of lean manufacturing techniques; Underperformance in on-time delivery of products and services; Automation; Certifications; Global engagement; Interest toward, and knowledge of, strategy for global, sustainability and green, as well as innovation. We believe that the database and findings will, whilerepresenting a snapshot only, add to the knowledge base relating to NGM readiness of the aerospace- and defense companies in the United States, as well as provide new information about the competitiveness of small- and medium aerospace- and defense suppliers. Keywords Aerospace, Defense Supply Chain, SME Competitiveness, Next Generation Manufacturing, Arizona Aerospace, Defense Company Database, Database Visualization, Company Size Classification 1. Introduction The aerospace and defense industry of Arizona consists of companies, both original equipment manufacturers (OEM) and suppliers, in a variety of key strategic manufacturing sectors. The industry is considered a source of innovation, an incubator of advanced technologies, and a generator of highly specialized jobs. The competitiveness of aerospace and defense companies for the global competitiveness of the United States is considered strategically critically important. The industry already serves, and can serve even in a more strategic way, as an engine for product- and process innovation, as well as can help other manufacturing industries to become more competitive globally. This, however, requires strategic attention to this industry sector by policymakers and policy implementers at both the Federal- and the State levels. The State of Arizona has one of the well-established and growing aerospace and defense manufacturing clusters in the United States. According to the report “Aerospace & Defense in Arizona: A Sector Profile” the aerospace and * Corresponding author: gary.waissi@asu.edu(Gary R. Waissi) Published online at http://journal.sapub.org/logistics Copyright © 2013 Scientific & Academic Publishing. All Rights Reserved defense industry is Arizona’s most active and fastest growing industry,[1]. Other significant aerospace clusters are located in California, Connecticut, Ohio, Kansas, Texas, Virginia and Washington, see e.g.[2]. Already in 1988 Arizona was reported[3] as having several highly specialized clusters such as helicopters, semiconductors, electronic testing labs and optics. This paper (based on[4]) summarizes the development of the database and the data visualization, discusses key findings of selected sections of the survey. Strengths, weaknesses and opportunities are identified for a new strategy framework for SMEs relating to supply chain management, global engagement, innovation, product-, and process improvement, and the resulting competitiveness of a company. The study was divided into three phases. In the first phase a database, and an online interactive data visualization, of aerospace and defense companies were built. In the second phase the companies were surveyed to gain understanding of their Next Generation Manufacturing (NGM) competencies, including their role and relations in the supply chain, management of the supply chain, level and extent of global engagement (export, import, partnerships, joint ventures), strategic consideration and adoption of concepts of “sustainability” and “green”, implementation of concepts of process improvement, and