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Aerospace Facts and Figures 1986/87

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Aerospace Facts and Figures 1986/87 AEROSPACE FACTS AND FIGURES 1986 1987 AEROSPACE FACTS AND FIGURES 1986 1987 AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA, INC. 1725 DeSales Street, N. W., Washington, D.C. 20036 $12.95 Compiled by Economic Data Service Aerospace Research Center Aerospace Industries Association of America, Inc. 1725 DeSales Street, N.W. , Washington , D.C. 20036 (202) 429-4600 Director, Research Center: Virginia C. Lopez Manager, Economic Data Service: Carl M . Pascale Editorial Consultant: James J. Haggerty Design: Gwen Hoelscher and Associates Published by Aviation Week & Space Techr·ology A MCGRAW-HILL PUBLICATION 1221 Avenue of the Americas New York, N.Y. 10020 (212) 512-2123 Copyri ght. October 1986 by Ae rospace Industri es Associati on of Ameri ca, In c. Library or Congress Catalog No. 46-25007 Acknowledgments Air Transport Association of America Council of Economic Advisers Export-Import Bank of the United States Exxon International Company General Aviation Manufacturers Association International Air Transport Association International Civil Aviation Organization McGraw-Hill Publications Company National Aeronautics and Space Administration National Science Foundation Office of Management and Budget Price Waterhouse U.S. Departments of Commerce (Bureau of the Census, Bureau of Economic Analysis, International Trade Administration) Defense (Comptroller; Directorate for Information, Operations and Reports; Army, Navy, Air Force) Labor (Bureau of Labor Statistics) Transportation (Federal Aviation Administration) High precision, high performance requirements constantly force the aerospace industry to develop improved, leading­ edge techniques. The industry's products are the backbone of our air transportation system and our national defense, and they extend our reach into the frontier of space. Aerospace products reflect the industry's technological vitality and the ingenuity and persistence of a dedicated cadre of research professionals. Research and development is the essence, the very pulse of an industry synonymous with flight. Through research and development, aerospace scientists, engineers and technicians discover . learn . give shape to the future. CONTENTS Foreword 6 Aerospace Summary 8 Aircraft Production 26 Missile Programs 48 Space Programs 58 Air Transportation 82 Helicopter Transportation 104 Research and Development 112 Foreign Trade 128 Employment 148 Finance 166 Glossary 176 Index 182 This 34 annual edition of Aerospace matter of particul ar concern because such Facts and Figures chronicles the stati sti cal year-to-year fluctu ations are not uncommon. story of the aerospace industry in the year The 1985 rate of 3. 7 percent after taxes 1985, a year of robust acti vity in virtually exactly matched the rate for all U.S. manu­ every category of industry workload. It was a facturing corporations. The average profit rate year in which the industry 's sales, new orders, for the decade of the 1980s remain s well backlog and export volume all reached new above that of the 1970s, an encouraging sta­ peaks. ti sti c for an industry whose capital investment Such peaks are not unusual because dol­ needs are of such extraordinary order. lar values are elevated by inflati on, however Perhaps more than ever before, the indus­ moderate, coupled with the increased cost of try 's 1985 achievements in the international greater performance inherent in hi gh tech­ marketplace underscored th e importance to the nology products. It has been our practice to U.S. economy of hi gh-value, hi gh technology provide better perspective by comparing the aerospace exports. At a time when the U.S. as Industry's current performance with th at of a whole recorded the worst international trade earlier record years in inflation-adjusted con­ deficit in its history , an alarming $ 136.6 bil­ stant dollar terms. On that basis we find that li on, the U.S. at"ospace industry set an all ­ I ~85 sales were hi gher than tho ~e of the pre­ time record for <port sales, offsetting to a VIO us peak year ( 1968) by the conversion for­ great extent th e lagging U.S. performance in mul a currently employed in this publication other areas of international trade. Our gra­ but lower by a prior formula. With such in­ ti ficati on, however, is tempered by the fact concl usive results, 1985 hardly merits record that aerospace imports also reached a new rec­ status, so we will rank it as one of th e best ord level, concrete evidence that competition sales years in the industry's hi story. from abroad is still growing. The industry 's profit rate on sales dipped The industry 's unprecedented backlog below the previous year's but that is not a indicates continuing hi gh levels of aerospace 6 Foreword ac ti vity fo r the immediate future years. A big factor is the resurgence of commercial trans­ port sales and , with competiti ve new designs for th e 1990s takin g shape among commercial a irpla ne builders, we expect continuing stre ngth in that segment of the industry 's busi­ uess. However, any attempt to project fo r the long term encounters a mist of uncertainty, because almost two-thirds of the industry 's workload is in government contracts and Con­ gressional emphasis on deficit-cutting has had , and probably will continue to have, sig­ nificant impact on defense and space funding. It is impossible to predict the degree of future impact. Generally, we fee l that the widening range of opportuniti es fo r space exploitati on, together with continuing public support for an adequate system of defense, will result in ap­ propriations levels-he nce industry con­ tracts-sufficient to maintain a healthy aero­ space workload into the next decade. Karl G . Harr, Jr. President Aerospace Industries Association 7 In 1985 , the aerospace industry recorded sile systems (up $ 103 million to $11 .4 billion) sales gains in all categories, including civil and in the "related products and services" aircraft, an area that had been sharply de­ grouping (up $2.2 billion to $ 16 . 1 billion). pressed in the three prior years. As a result, Aerospace sales in 1985 represented 2.4 the industry 's total sales increased by almost percent of the Gross National Product (up 16 percent in current dollars. Adjusted for from 2.2 percent in 1984) and 4 . 1 percent of inflation by means of a new conversion for­ total sales by all U.S . manufacturing indus­ mula being used in this publication for the first tries (up from 3.7 percent). time, the 1985 sales volume is the hi ghest in Earnings. The industry recorded a profit the industry 's hi story . aft er taxes of $3 .7 billion. In dollar terms, this Here is a breakdown of the industry's represented a small gain over the previous performance in 1985: year but in percentage terms-whether a per­ Sales. The industry' s to tal sa les centage of sales, assets or equity-the 1985 amounted to $96.6 billion , up from $83.5 bil­ profit rate was below that of 1984. As a per­ li on in 1984. As is customary, sales of aircraft centage of sales, it was 3.7 percent, down predominated in the breakdown by product from 4.1 percent. Expressed as a percentage group . At $50.5 billion, aircraft sales were up of assets, the aero ~, c~ce profit was 4.3 percent, more th an 20 percent over 1984's $41.9 bil­ down from 4 . 7 percent, and as a percentage of lion and they accounted for well over half of equity it was 13 .8 percent , down from 14 . 1 the industry 's total sales volume. percent. In the latter case (equity), the aero­ As was the case in each of the two pre­ space fi gure was higher than the percentage ceding years, sales of space systems took sec­ for all U.S. manufacturing industries (I 0.0 ond pl ace among the various product groups; percent) but it was lower as a percentage of they amounted to $ 18.6 billion , up from $ 16.3 assets and exactly equal as a percentage of billion in 1984, an in crease of 14 percent. sales, the most often employed yardstick. Increases were also recorded in sales of mi s- Orders and Backlog. A record fl ow of 8 Aerospace Summary 86 87 The 1985 backlog was composed of $9 1. 8 billion in orders from the U.S. govern­ ment and $5 1.0 billion in work for other customers. As is perenniall y true, orders for aircraft-inc luding e ngines and parts­ constituted the principal element of the back­ log, $76.2 billion or more th an 53 percent of the total. The aircraft backlog was split evenly, $38.2 billion in government orders, $38.0 billion in orders from other customers. The government fi gure, primarily orders for military aircraft, increased moderately over 1984 by $ 1. 9 billion , but the "other" orders-largely airline orders for transport aircraft-registered a sharp gain of $4. I bil­ lion. Civil Aircraft Production. Back in 1978 , the number of civil aircraft manufac tured by the U.S . aircraft industry reached its peak- 18,962 planes. In every year since, the num­ ber has dropped, sometimes dramatically. The declining trend continued in 1985 when the industry produced 2,683 aircraft, the lowest number produced in more th an 30 years and less than one-seventh the peak year produc­ ti on. The decline in the number of units was new orders in 1985 and the highest ever year­ due entirely to depressed activity in general end backlog augured continuing hi gh levels of av iation plane manufac ture; helicopter produc­ aerospace industry activity. Net new orders ti on remained the same as in the previous year received during th e year totaled $ 110.5 bil­ and production of commerical transport ai r­ li on, up from $ 104.9 billion at the end of the craft increased substantiall y.
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