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Aerospace-Facts-And-Figures-1998 I Aero!ipace Fact:!i & Figure!i ga,gg ! Compiled by: Economic Data Service Aerospace Research Center Aerospace Industries Association of America, Inc. Director, Research Center David H. Napier Manager, Economic Data Service David H. Napier Editorial Consultant Dr. Stephen P. Aubin Design AAH Graphics, Inc. Published by: Aerospace Industries Association of America, Inc. 1250 Eye Street, N.W., #1200 Washington, D.C. 20005-3924 FAX (202) 371-8470 For information about orders, call (202) 3 71-8407 For information about content, call (202) 371-8563 Copyright ©1998 by Aerospace Industries Association of America, Inc. Library of Congress Catalog No. 46-25007 International Standard Serial No. 0898-4425 2 Acknowledgmenl:s Air Transport Association of America Council of Economic Advisers Export-Import Bank of the United States Exxon International Company General Aviation Manufacturers Association ~elicopter Association International International Civil Aviation Organization National Aeronautics and Space Administration National Science Foundation Office of Management and Budget U.S. Department of Commerce (Bureau of Economic Analysis; Bureau of the Census; International Trade Administration) U.S. Department of Defense (Air Force; Army; Ballistic Missile Defense Organization; Cq_mptroller; Directorate for Information, Operations, and Reports; Navy) U.S. Department of Labor (Bureau of Labor Statistics) U.S. Department of Transportation (Federal Aviation Administration, Office of Airline Statistics) 3 Cont:ent:s Foreword . 6 Aerospace Summary . 8 Aircraft Production . 26 Missile Programs . 48 ~pace Programs . 58 Air Transportation . 72 I Research and Development . 98 Foreign Trade.................................... 112 Employment . 134 Finance . 148 Glossary . 157 Index . 164 5 Farewward------------------------------------- THE U.S. AEROSPACE INDUSTRY'S thy. Aerospace exports jumped by recovery picked up more steam in 25%, reaching an all-time high of 1997 with a strong jump in sales. $50 billion. Exports outpaced the This second straight year of growth growth in imports resulting in a posi­ signals a turnaround from the reces­ tive trade balance of $32 billion, a sion that hit the aerospace industry 21% gain. in 1992 and bottomed out in 1995. There were also signs that the The engine that drove the recovery long slide in defense spending may was the commercial market. And, as have bottomed out. Although most commercial sales soared, the govern­ analysts had been predicting flat or ment market held steady, registering declining defense budgets in the only a slight drop in inflation­ years ahead, a greater awareness of adjusted dollars. military readiness problems and Overall industry sales increased underfunded modernization by 12% in 1997, reaching $134 bil­ accounts, alongside a federal budget lion. Behind that growth was a dra­ surplus, led to a $9 billion add-on to matic 29% boost in sales to non­ the Defense Department's budget for U.S. government customers-mainly Fiscal Year (FY) 1999. Of that, $1 bil­ airlines. The industry also recorded lion was earmarked for Research, its first significant increase in employ­ Development, Test, and Evaluation ment since 1989 with 62,000 work­ (RDT&E) funding of missile defense ers being added to the industry's programs. Future increases are by no work force. In other good news, the means assured, but the level of mod­ industry's backlog grew and exports ernization funding will continue to surged. be the subject of debate in the Of special note in the 1997 sales 106th Congress, and there is a figures is the strong market for civil strong case to be made for reversing transport aircraft, which accounted the long decline in defense spending. for 85% of the value of civil aircraft The space market enjoyed a third shipments. The industry delivered year of steady growth with $32 bil­ 3 7 4 jetI i ners, 1OS more than the pre­ lion in sales of space systems and vious year, for a total of $27 billion services. Expanding activity in the in sales. The backlog for civil trans­ areas of communications services ports also increased, rising to 1,744 and space infrastructure pushed the planes from 1,617. level of sales beyond the peak year The industry's performance in of 1992, when sales mounted to international trade is also notewor- $30 billion. With government spend- 6 tury. Today, the U.S. aerospace industry is smaller, leaner, and john W. Douglass more efficient than it President and Chief was w hen troubles in Exec utive Officer, the U.S . airline indus­ Aerospace Industries try depressed the Association commercial market in the early 1990s. Th e aerospace mar­ ket is also more ing leveling out, the commercial evenl y distributed space gains should continue to drive and better ab le to handle a down­ growth in this market. turn in one sector than in the past Despite the good news, th ere are w hen military sales dominated. In some warning signs on the hori zon . fact, the space market is now nearly For example, industry ea rnings were equal to the military aircraft market flat in 1997, with profit margins and is forecast to continue to grow down slightly from the gains made into th e next deca de. Finally, the in 1996. Th ere was also a steep steady decline in military moderniza­ drop in new orders for military aero­ tion funding during th e 1990s may space systems, which pulled total be finally bottoming out. new orders down to $120 billion, an As th e new Pres ident an d CEO of overall 5% drop. Although civil AlA, I have enormou s respect for the orders actua ll y rose by a healthy $8 aerospace industry's tec hnologica I billion, U.S . commercia l aircraft mak­ capability, the quality of its prod­ ers have not yet experienced the fall­ ucts, and its overa ll competitiveness. out from the As ian economic crisis, Th e tremendous demand for services which could lead to canceled from space-based satellites, both in orders. Already, a number of Asian the military and commercial mar­ countri es have delayed or canceled kets, the increased awareness of the military and commerc ial aircraft need to adequately fund military orders, and more 'may follow. modern ization, and the continual Nevertheless, the industry is in a demand for efficient airline travel good position to weather the down­ are all positive signs for the U.S. turn in the Asian market, which had aerospace industry. been expected to provide new sales opportunities well into the next cen- 7 Aerospace !iurnrnary THE U.S. AEROSPACE INDUSTRY craft and $33 billion for military air­ enjoyed a strong 12% increase in craft, with civil aircraft sales dominat­ total sales in 1997 (in inflation­ ing military sales for the first time adjusted constant dollars), nearly since 1993. doubling the gains made in 1996. Sales of space systems and ser­ This significant boost was fueled by vices (civil and military) grew for the higher sales, up an inflation-adjusted third year in a row, reaching $32 bil­ 29%, to the "other customers" cate­ lion, up from $29 billion in 1996. gory-"other customers" include air There was also a gain in sales of carriers, foreign governments, corpo­ "related products and services," rations, and private citizens. Sales of where sales reached $22 billion, up "related products and services" also from $19 billion the previous year. rose 12%, while sales to U.S. govern­ Missile systems sales held steady at ment agencies held steady. $8 billion for a second year. Here are the highlights of the For 1997, aerospace industry sales industry's 1997 performance: amounted to 1.6% of the Gross Sales. Overall industry sales Domestic Product and 3.4% of total totaled $134 billion, compared with sales by all U.S. manufacturing $117 billion in 1996. The "other cus­ industries, rising from 1.5% and tomers" category jumped to $56 bil­ 3.1 %, respectively, in 1996. lion in sales, up from $42 billion in Earnings. Net income after taxes 1996. Sales to the Department of was $7.2 billion, the same as the Defense (DoD) fell slightly, when previous year. As a percentage of measured in inflation-adjusted dol­ sales, the industry's profit amounted lars, to $43 billion in 1997, marking to 5.2%, a drop from the 1996 aero­ the tenth year of decline. Total U.S. space profit-to-sales ratio of 5.6%. government sales reached $56 bil­ By comparison, the average for all lion, up from $55 billion the previ­ U.S. manufacturing industries was ous year, but down slightly after 6.2%. As a percentage of assets, inflation adjustments are made. aerospace profits amounted to 4.8%; As usual, aircraft sales led all as a percentage of equity, 17.3%. other product groups. Sales of air­ The aerospace industry reported craft, engines, and parts (civil and net working capital of $14.2 billion, military combined) totaled $71 bil­ down from $16 billion in 1996. lion, compared with $60 billion in Stockholders' equity also dropped 1996. Total aircraft sales break from $39.8 billion in 1 q96 to $39.3 down into $39 billion for civil air- billion in 1997, while tOtal assets 8 climbed substantially from $136 bil­ increased to 1,569 (up 439 units) lion to $150 billion. worth $4.7 billion (up $1.5 billion). Orders and Backlog. Net new This sales level marked another orders for aerospace systems totaled record year for general aviation. $120 billion, down from $126 bil­ Military Aircraft Production. The lion in 1996, a 5% drop, marking Census Bureau reported 1997 sales the first decrease after three years of of military aircraft and parts, includ­ growth. A drop in military orders, ing engines, to be $24.6 billion in from $62 billion in 1996 to $48 bil­ 1997.
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