AEROSPACE FACTS AND FIGURES 1978/79 AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA, INC. This 26th edition of Aerospace Facts and Figures com­ memorates the 75th anniversary of powered flight. In the logo above, the Department of Transportation's symbol for aviation's diamond anniversary, the circular area represents the world, divided into two hemi­ spheres; the original Wright Flyer of 1903 is superim­ posed on the outline qJ a modern jet. The emblem signifies the impact on the world of the extraordinary progress achieved in three quarters of a century of flight. 1978/79 AEROSPACE FACTS AND FIGURES Compiled by Economic Data Service Aerospace Research Center Aerospace Industries Association of America, Inc. 1725 DeSales Street, N.W., Washington, D.C. 20036 Published by Aviation Week & Space Technology A MCGRAW-HILL PUBLICATION 1221 Avenue of the Americas New York, N. Y. 10020 $6.95 Per Copy (212) 997-3289 1978/79 Aerospace Facts and Figures Aerospace Research Center Director Allen H. Skaggs Chief Statistician Sally H. Bath Acknowledgments Air Transport Association Civil Aeronautics Board Export-Import Bank of the United States ' Federal Trade Commission General Aviation Manufacturers Association International Air Transport Association International Civil Aviation Organization National Aeronautics and Space Administration National Science Foundation U. S. Departments of Commerce (Bureau of the Census) Defense (Comptroller, Public Affairs, Army, Navy, Air Force) Energy Labor (Bureau of l,.abor Statistics) Transportation (Federal Aviation Administration) Copyright. June 1978 by Aerospace Industries Association of America, Inc. Library of Congress Catalog No. 46-25007 2 CONTENTS Page 4 FOREWORD 6 AEROSPACE SUMMARY 26 AIRCRAFT PRODUCTION 43 MISSILE PROGRAMS 53 SPACE PROGRAMS 69 AIR TRANSPORTATION 96 RESEARCH AND DEVELOPMENT 106 FOREIGN TRADE 121 EMPLOYMENT 131 FINANCE 142 GLOSSARY 148 INDEX 3 Foreword For the aerospace industry, 1977 was an encouraging year of solid gain and brightening outlook. Sales, profits and backlog increased substantially and the signposts pointed to further improvement in 1978. Sales in 1977 were the highest in aerospace history. However, such a record must be qualified, since our current economy is tainted by the effects of inflation. Industry activity, as measured in inflation-adjusted sales volume, was well below that of the peak years of the latter sixties. Still, there was real improvement in 1977 as sales gains outstripped inflation; in constant dollars, 1977 was the best year of the last four. Gains of a similar order are anticipated in 1978. Thus, the industry is experiencing a moderate but welcome upturn of real productivity after a net decline during the earlier seventies. Profits as a percentage of sales reached their highest level in recent memory, a heartening improvement for a high-technology industry whose capital investment needs are of an exceptionally high order. The aerospace profit ratio remained below fhe average for all U.S. manufacturing indus­ tries but edged appreciably closer to the average. The industry's performance in international trade continued strong in 1977; for the fourth straight year exports topped the $7 billion level and imports amounted to less than one-tenth the dollar value of exports. The resultant aerospace trade surplus represented a significant contribution to the U.S. economy, particularly in view of the massive international trade deficit experienced by the nation as a whole. 4 Looking toward tomorrow, the picture is hazy in some respects due to uncertainties as to future levels of government outlays for defense hardware, traditionally the largest source of industry contractual effort. There are, however, indicators of increasing activity in other areas. Foremost among them are the impressive gains in traffic and the corre­ sponding earnings of the air transportation industry. Financially reinvigo­ rated, the airlines have already embarked on major re-equipment pro­ grams, and projections for the 1980s indicate transport aircraft purchases on a scale heretofore unmatched. There remains the question as to what percentage of this business U.S. plane builders can secure in the face of increasing competition from their foreign counterparts. Foreign manufacturers enjoy a distinct advantage: they have the solid backing of their governments. Aware of the importance to their economies of capturing a greater share of the international market, foreign producers are either nationalized corporations or are subsidized by their governments, thus enabling foreign manufacturers to offer more attractive financial arrangements to potential customers. It is a situation that demands the attention of the U.S. government. Given opportunity to operate in a truly free competitive marketplace, American manufacturers are confident of continuing leadership in the international market, with attendant high levels of commercial airplane production. Research, development and production of space equipment is another area of future promise for the industry. For the years immediately ahead, only moderate gains are expected; however, the 1980 operational debut of the Space Shuttle, together with increasing opportunities for economic benefit from space, augurs well for expansion of the industry's space workload in later years. A third area of industry effort which shows an encouraging upward trend is non-aerospace products and services, sales of which have more than doubled over the past five years. Generally, there is cause for optimism that the decade of the eighties will bring industry activity levels higher than those of the seventies. This 26th edition of Aerospace Facts and Figures presents a statistical summary of the aerospace year 1977, together with estimates for near­ future years to the extent they are possible. We trust this useful and informative volume will meet with the wide acceptance enjoyed by its predecessors. Karl G. Harr, Jr. President Aerospace Industries Association 5 AEROSPACE SUMMARY From the standpoint of sales, profits national inflation rate for the first and workload, 1977 was a good year time in several years. The year for the aerospace industry. Statisti­ marked a new upturn in what has cally, sales reached a new re~ord been a mildly fluctuating, more or level, as they had in the prevwus less flat activity curve throughout year. The bare statistics, how~ver, the decade of the seventies. do not recognize the effects of mfla­ The principal reason for the up­ tion; adjusted to constant dollars, turn in the activity curve is the im­ 1977 sales were some $12 billion proving financial posture of U.S. below those of I %8, the industry's airlines and the consequent resump­ real peak year. tion of order placements for new Nonetheless, there was marked transport aircraft; this was reflected improvement in 1977 because sales in a sharp increase in commercial increased at a rate greater than the transport backlog during 1977. 6 AEROSPACE SUMMARY Further increases were expected in to increasing orders for commercial view of stated plans of the air trans­ transports, but the backlog of gov­ portation industry to spend about ernment orders also climbed almost $65 billion for re-equipment in the $900 million. period from 1977 to 1990. Industry Civil Aircraft Production. Sales of activity in space equipment fabrica­ commercial transport aircraft de­ tion was also expected to gain mod­ clined in both numbers and dollar erately, due to approaching opera­ value. The industry delivered 185 tional status of NASA's Space jetliners valued at $2.9 billion, com­ Shuttle and planned increase in the pared with 238 aircraft worth $3.2 number of U.S. payloads launched billion shipped in the previous year. annually. Due to the lead time involved, the Following is a breakdown of the decline reflects in part the lag in industry's 1977 performance by transport orders experienced in the major category: mid-1970s, but was aggravated by a Sales. Total sales amounted to strike in the industry during the last $32.3 billion, compared with $30 quarter of the year. However, a billion in 1976, which was previ­ major increase in future transport ously the statistical peak. The sales production is indicated by a new gain was composed of increases in surge of orders in late 1977. Backlog all four major product groups­ climbed from $5 billion in 1976 to aircraft, missiles, space and non­ $8.9 billion at the end of 1977. aerospace products. Aerospace Transport manufacturers reported sales as a percentage of the Gross orders, at year-end 1977, for 466 National Product declined slightly, airplanes which compares with 326 to I. 7 percent from 1.8 percent in orders on the books at the end of the 1976; the figures compare with an previous year. average of 2 percent for the preced­ Manufacture of general aviation ing years of the 1970s. Aerospace planes continued its steady growth sales also declined in relation to in 1977. Sales reached a new peak of total sales of all U.S. manufacturing $1.5 billion, up more than $300 mil­ industries, down to 2.4 percent from lion above the 1976level, which was the previous year's 2.6 percent. the previous high. The number of units delivered-16,920-was also a Profit. The industry's net profit record; it compared with 15,447 in after taxes as a percentage of sales 1976 and 15,747 in 1966, the previ­ amounted to 4.2 percent, a substan­ ous peak. tial gain over the 3.4 percent in 1976. Civil helicopter production also Backlog. The industry's backlog reached record levels. The industry at year-end 1977 was $44.3 billion, produced 884 helicopters, 20 more an increase of$4.6 billion over 1976. than the previous high ( 1975) and The gain was due for the most part 109 more than were shipped in 1976. 7 AEROSPACE FACTS AND FIGURES 1978/79 In dollar value, helicopter sales in Space Programs. Civil and mili­ 1977 amounted to $316 million, tary space programs accounted for compared $305 million in 1976.