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Aerospace-Facts-And-Figures-1972 COMPILED BY THE OFFICE OF PUBLIC AFFAIRS Vice President for Public Affairs • Carlyle H. Jones Editor • Gerald J. McAllister Statistician • Sally H. Bath Consultant • Rudolf Modley Art Director • James J. Fisher PUBLISHED BY Aviation Week & Space Technology A MCGAAW·Hill PUBLICATION 330 West 42nd Street New York, N. Y. 10036 Library of Congress Card 46-25007 © Aerospace Industries Association, Inc., 1972 $3.95 Per Copy AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA, INC. FOREWORD This 20th edition of Aerospace Facts and Figures, like its predecessors, is designed to serve legislators, writers and editors, administrators and man­ agers in industry, analysts, and teachers and students as a standard reference work concerning the aerospace industry. It is an effort by the Aerospace Industries Association to set forth the basic economics of the industry and its level of effort in various fields of activity. The state of the aerospace industry today, as indicated in this volume, is one of continuing decline in almost all areas of activity. This decline, which was predicted in 1970 and 1971, did show some levelling trends which may presage a bottoming out and a possible modest upturn in 1973 or soon thereafter. Among the basic economic indicators of continued decline in the aero­ space industry in 1971 were: • Sales: Aircraft sales to all customers fell by $1.2 billion during the 1970-1971 period, pulling overall sales of the aerospace industry down from $24.9 billion in 1970 to $23.2 billion in 1971. This was the third consecutive year of declining sales. • Profits: Aerospace industry profits (as a percentage of sales after taxes) declined from 2.0 percent in 1970 to 1.8 percent in 1971, about 56 percent lower than the profits for all manufacturing industries. • Employment: During 1971 the work force in the U.S. aerospace in­ dustry declined by another 230,000--or from a high of 1,502,000 in 1968 to 969,000 during 1971. This is a drop of 35 percent in three years, and a drop of 19 percent from the 1970 level of 1, 199,000. • Backlog: The backlog of orders throughout the aerospace industry reached a high point of $30.7 billion in 1968. By 1970 it had dropped to $24.7 billion (down 20 percent) . In 1971, the overall backlog of orders 2 was reduced to $21.8 billion, a decrease of 12 percent from the preceding year and 29 percent from the 1968 high point. • Research and Development: It is interesting to note that while the total of Federal and corporate spending for all R&D declined from $18.3 bil.lion in 1969 to $17.9 billion in 1970 (a drop of $400 million), the aero­ space industry share of the overall program dropped by $600 million (from $5.8 billion to $5.2 billion). • Aircraft Production: In 1971, for the third consecutive year, aircraft production declined. However, the 9.6 percent drop from 10,558 aircraft produced in 1970 to 9,548 in 1971 did show a levelling trend in comparison to the 37 percent decline between 1969 and 1970. There were two bright aspects of the aerospace picture in 1971, aspects that may be less bright in the years ahead. • Balance of Trade: For the eighth consecutive year, the net balance of U.S. aerospace exports versus imports continued to climb. In 1971 the net positive figure was $3.9 billion, the largest segment of which can be attributed to the sale of U.S.-made commercial jet transports. This bright spot is expected to fade during the next two or three years as orders for current models are filled; this trend can be expected to continue as foreign manufacturers move into market segments in which the United States, at this time, is not competing-short landing and takeoff passenger aircraft, short-range jet airbusses, and supersonic transports. • Aircraft in Use: U.S.-built commercial aircraft continue to dominate the fleets of free world airlines. In 1970 some 76.4 percent of such air­ craft in operation were U:S.-built. This amounted to 3,042 units out of 3,983 in use. The U.S. share of the market in 1969 was 75.8 percent. The basic data for this volume comes from the best sources available, including the Executive Office of the President (including the Office of Management and Budget); the Departments of Commerce (Bureau of the Census), Defense (Comptroller, Public Affairs, Army, Navy, Air Force), Labor (Bureau of Labor Statistics), Transportation (Federal Aviation Administration); Civil Aeronautics Board; Federal Communications Com­ mission; Federal Trade Commission; National Aeronautics and Space Administration; Securities and Exchange Commission; Atomic Energy Commission; Air Transport Association; International Air Transport Asso­ ciation; General Aviation Manufacturers Association; Library of Congress; National Science Foundation; Export-Import Bank of the United States; International Civil Aviation Organization; and surveys of AlA member companies. To all information sources we express appreciation for their cooperation in making this volume possible. KARL G. HARR, JR. President Aerospace Industries Association 3 CONTENTS PACE 5 AEROSPACE SUMMARY 28 AIRCRAFT PRODUCTION 50 MISSILE PROGRAMS 58 SPACE PROGRAMS 70 RESEARCH AND DEVELOPMENT 77 FOREIGN TRADE 91 MANPOWER 102 FINANCE 111 AIR TRANSPORTATION 131 GLOSSARY 134 INDEX 4 Aerospace Summary For the third consecutive year, sales of the aerospace industry continued to decline, dropping to $23.2 billion in 1971 compared with $24.9 billion in I 970. Largest decline was in aircraft sales which fell $1.2 billion during the 1970-1971 period. By major product group, 1971 sales were: aircraft, $12.1 billion (compared with $13.3 billion in 1970); missiles, $5.4 billion (a slight decrease from I 970); space vehicles, $3.2 billion (compared with $3.6 billion in 1970); non-aerospace, $2.5 billion (compared with $2.6 billion in 1970). Net profits of the aerospace industry, as a percentage of sales, in 1971 dipped to the lowest point since 1961. Profits amounted to 1.8 percent of sales which compares to profits of all manufacturing corporations of 4.1 percent. The aerospace industry profit percentage in 1970 was 2.0 percent. Backlog of the industry declined nearly $3 billion in 1971 from 1970, the lowest total since 1965. Backlog at the end of 1971 was $21.8 billion. 5 AEROSPACE FACTS AND FIGURES, 1972/73 All the decline was in the category of sales other than to the U.S. government. Government backlog increased almost $500 million. The principal decline occurred in the backlog for aircraft and engines other than U.S. government. In the same pattern as sales and backlog, employment declined for the third consecutive year, falling below one million workers for the first time in a decade. During 1971, employment was estimated at 969,000 employ­ ees (471,000 in production) which compares with an average 1,199,000 employees in 1970. This is about one-third less than the peak of 1,502,000 employees reported at the end of 1968. Aerospace during 1971 accounted for 5.2 percent of the employment for all manufacturing industries and 9.1 AEROSPACE SALES (IN BILLIONS OF DOLLARS) $30.0r-----...------.------.------..~----.... 15.0 )-----+------\-----+------+-----~ ' -----196~ -----3 ' -----19651 -----h---- 1967• ----- 1971 Source : A erospace Ind ustries A ssociat ion 6 AEROSPACE SUMMARY percent of all durable goods employment. Total aerospace payroll during 1971 amounted to $10 billion compared with $12 billion in 1970. Despite emerging foreign competition, U.S. aerospace exports again were a positive factor in international trade and in total industry sales (more than 18 percent). Aerospace exports have exceeded $1 billion since 1957, and in 1971 reached a record $4.2 billion, accounting for nearly 10 percent of all exports of U.S. products. Civil transports accounted for the largest portion of total exports with $1,567 million, other civil products amounted to $1,472 million, and military exports reached $1,157 million. U.S.-built commercial transports continued to dominate the Free World's airline fleets. In 1969 there were 3,999 transports in operation of which AEROSPACE BALES AND THE NATIONAL EcoNOMY Calendar Years 1960 to Date (Dollar Figures in Billions) AEROSPACE SALES AS SALES OF PERCENT OF Year Total Ending Gross Manu- Decem- National Manufac- Durable Aero- factur- Dur- ber 31 Product turing Goods space GNP ing In- able Industries Industry Industry dustries Goods 1960 $503.7 $368.7 $189.5 $17.3 3.4 4.7 9.1 1961 520.1 370.7 186.5 18.0 3.5 4.9 9.7 1962 560.3 397.4 205.2 19.2 3.4 4.8 9.4 1963 500.5 420.4 219.0 20.1 3.4 4.8 9.2 1964 632.4 448.0 235.6 20.6 3.3 4.6 8.7 1965 684.9 492.0 266.6 20.7 3.0 4.2 7.8 1966 747.6 538.5 295.6 24.6 3.3 4.6 8.3 1967 793.5 548.5 299.7 27.3 3.4 5.0 9.1 1968• 864.2 603.7 331.0 29.0 3.4 4.8 8.8 1969• 929.1 643.5 354.5 26.1 2.8 4.1 7.4 1970• 974.1 653.1 352.2 24.9 2.5 3.8 7.1 1971 1,046.8 695.0 378.6 23.2 2.2 3.3 6.1 r Revised. NOTE: The AIA estimate of Aerospace Industry Sales is arrived at by adding 1. DoD expendi· tures for "procurement" of aircraft and missiles. 2. DoD expenditures for research, develop­ ment, test and evaluation for aircraft, missiles, and astronautics, a.
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