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Aerospace Facts and Figures 1977/78

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Aerospace Facts and Figures 1977/78 PLACE STAMP HERE AVIATION WEEK & SPACE TECHNOLOGY f Book Department j i J 1221 Avenue ot the Americas I i New York, N. Y. 10020 ~ • 4 ( ' 1 j j 1 Aerospace Facts and Figures 1977/78 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 $5.95 Per Copy 1977/78 Aerospace Facts and Figures Library of Congress Catalog No. 46-25007 ©Aerospace Industries Assoc. of America, Inc. Aerospace Research Center Director Allen H. Skaggs Chief Statistician Sally H. Bath This 25th edition of Aerospace Facts and Figures is dedicated to Dr. Rudolf Modley who passed away Sep­ tember 27, 1976. He was editor of the first Facts and Figures in 1945 and was substantially involved in the preparation of all following editions. An economist whose consultant services made him well known throughout the aerospace industry, he contributed im­ portantly to the economic understanding of the industry through the development of improved methods of analysis and statistical presentation. Acknowledgments Air Transport Association Civil Aeronautics Board Energy, Research and Development Administration 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) Labor (Bureau of l,.abor Statistics) Transportation (Federal Aviation Administration) 2 CONTENTS Page 4 FOREWORD 6 AEROSPACE SUMMARY 27 AIRCRAFT PRODUCTION 44 MISSILE PROGRAMS 54 SPACE PROGRAMS 70 AIR TRANSPORTATION 93 RESEARCH AND DEVELOPMENT 104 FOREIGN TRADE 119 EMPLOYMENT 129 FINANCE 138 GLOSSARY 144 INDEX Foreword The terms "record" and "peak" crop up with increasing frequency in financial summaries. The Gross National Product sets a new record every year, as do revenues from sporting events and theatrical performances, costs of medical treatment and sales of consumer goods. But in most instances they are records only in the statistical sense. When the effects of inflation are taken into consideration, it is not unusual to find that a "record" high is actually a decline from the previous level. Such is the case as regards the aerospace industry's fmancial summary for 1976. The industry reached an all-time peak in overall sales and broke records­ statistically speaking-in several categories. Yet in terms of real productivity the industry's output dipped below the previous year's. Translated into constant dollars, sales were below those of 1975. Aerospace sales fell off as a percentage of the Gross National Product, as a percentage of durable goods sales, and as a percentage of all manufacturing sales. Reflecting a general upturn in the U.S. economy, the aerospace industry's profit ratio increased. Any increase in earnings is encouraging to an industry whose capital requirements are necessarily intensive, but here again qualification is in order. The aerospace profit ratio improved, but not to the degree of the durable goods manufacturing industry as a whole or the average for all U.S. manufacturing industries. A continuing source of gratification is the industry's performance in the international market. Aerospace exports and trade surplus set new "records," but the gains over the previous year were not sufficient to match the inflation rate. Nonetheless, exports and trade balance remained at high levels and 4 represented significant contributions to the U.S. economy. In view of ever­ strengthening competition from foreign nations, sales abroad constitute a testimonial to the continuing excellence of American aerospace products. As for the industry's near-future outlook, there appears cause for optimism. Continuing debate on the merits of certain major military programs clouds the picture as regards defense workload, but budget estimates for the current and upcoming fiscal years are indicators of potentially greater industry activity. Advancing development on NASA's Space Shuttle and projected increases in overall NASA outlays augur heightened industry effort in fabrication of space equipment. The improving financial posture of the air transportation industry is an indicator of business growth for manufacturers of commercial transports. Sales of non-aerospace products produced in aerospace facilities continue to increase annually, in real rather than inflated terms. These signposts point to an upward swing in the industry's long-declining activity curve. Moderately reduced workload notwithstanding, 1976 was a year of solid accomplishment for the aerospace industry-spearhead of free world technologi­ cal advance. The accomplishments are detailed in statistical and highlight fashion in this 25th edition of Aerospace Facts and Figures . We trust that this volume, like its predecessors, will prove useful and enlightening to govermnent and industry officials, legislators, news writers and editors, analysts and students. Karl G. Harr, Jr. President Aerospace Industries Association 5 In 1976, sales of the aerospace indus­ try reached what might be termed an illusory peak. As the following pages show, there were statistical gains in most major categories of industry ef­ fort. For the most part, however, the rate of gain was below the national rate of inflation. Thus, what appears to be an all-time sales record translates into another year of decline when the data is adjusted to reflect the erosive effect of a continuing high inflation. Despite the decline in real output, there are encouraging indicators of brighter near-future prospects for the aerospace industry. Estimates of De­ partment of Defense outlays for the fiscal years 1977 and 1978 show sub­ stantial increases in aerospace aspects of the budget, including both procure­ ment and research and development. A general improvement in the U.S. econ­ omy is bringing about a corollary improvement in the financial posture of the U.S. airlines, indicating a re­ sumption of long-deferred orders for commercial transports. A third factor is the 1976 increase in the aerospace industry's profit ratio, again a reflec­ tion of a strengthening national econ­ omy. The industry's profit after taxes remained well below the average for all U.S. manufacturing industries, but it reached its highest level in recent years, a heartening signpost for an in­ dustry that needs very large amounts of capital to finance its high-technology programs. Here is a breakdown of 1976 indus- try performance by major category: OVERALL SALES. Total sales amounted to $29.3 billion, an increase 6 AEROSPACE SUMMARY over the previous year of almost $1 corded in the number of units de­ billion. Statistically, this is the highest livered, 15,447 in 1976, 1,390 more figure ever recorded by the industry; it than in the previous year. compares with the previous peak, in Helicopter production failed to 1968, of just under $29 billion. For match the 1975 record, but remained measurement of real activity, however, at a high level with sales of $242 mil­ the data must be adjusted to take into lion, down only $32 million from 1975. consideration the impact of inflation. There was a greater drop in the num­ Converted to constant dollar terms, ber of units produced, 589 in 1976 using 1972 as the base year, the 1976 compared with 864 in 1975. sales volume was more than $13 bil­ MILITARY AIRCRAFT PRO­ lion below that of 1968. It was also DUCTION. After a temporary reversal some $400 million below 1975 sales, in 1975 of the declining trend in mar~g the third consecutive year of rnilit'ary aircraft production evidenced adjusted-value decline. Aerospace sales from 1968 to 1974, deliveries fell off also declined slightly as a percent of the again in 1976. Including planes for Gross National Product, to 1.7 percent, Security Assistance Programs, the in­ which compares with 3.3 percent in dustry delivered 1,192 military air­ 1968 and with an average of 2 percent craft, down 177 units from 1975 but for the preceding years of the 1970s. about 80 more than in 1974, the CML AIRCRAFT PRODUC­ bottom year. Fighter/attack aircraft TION. As had been anticipated, sales deliveries-numbering 682-accounted of commercial jetliners declined in for over half of the unit production. both numbers delivered and value. The high dollar value of these aircraft This reflects sharply reduced orders boosted overall flyaway value substan­ for new commercial transports in 1974 tially; despite the decline in numbers, and 1975, the major impact of which dollar value increased from $2.9 billion was felt in 1976 due to the long in 1975 to $4.8 billion in 1976. lead-time involved in production. The MISSILE PROGRAMS. Industry industry delivered 238 airline trans­ sales of missile systems and parts took ports worth approximately $3.2 bil­ a new dip in 1976. Sales amounted to lion, which compares with 31 5 planes $4.9 billion, down from $5.1 billion in valued at $3.7 billion in 1975-and the the previous year. Major missile pro­ latter year represented a drop below grams, in terms of fiscal year 1976 the 1974 sales level of $4 billion. funding levels, were the Air Force's Reduced jetliner sales were partially Minuteman III, the Navy's Trident I offset by another record performance and Harpoon, and the Army's Dragon in sales of general a:viation aircraft. and TOW weapons. General aviation sales climbed to $1.2 SPACE PROGRAMS. Space billion, more than $200 million above systems, civil and military, accounted the 1975 level, which was the previous for $3.4 billion of the industry's total all-time high. A similar peak was re- sales. This represented an increase of 7 AEROSPACE FACTS AND FIGURES 1977/78 about $160 million.
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