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Aerospace-Facts-And-Figures-1990-1991.Pdf $20.00 Compiled by Economic Data Service Aerospace Research Center Aerospace Industries Association of America, Inc. Executive Director, Research Center: Virginia C. Lopez Manager, Economic Data Service: David H. Napier Editorial Consultant: James J. Haggerty Design: Alpert & Alpert, Inc. Published by Aerospace Industries Association of America, Inc. 1250 Eye Street, N.W. Washington, D. C. 20005 (202) 371-8400 FAX (202) 371-8470 For information and orders, call: (202) 371-8561 Copyright© 1990 by Aerospace Industries Association of America, Inc. Library of Congress Catalog No. 46-25007 International Standard Book No. 0898-4425 Acknowledgments Air Transport Association of America Battelle Memorial Institute Council of Economic Advisers Export-Import Bank of the United States Exxon International Company General Aviation Manufacturers Association Helicopter Association International 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 TRW Space & Technology Group 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; Strategic Defense Initiative Organization) Labor (Bureau of Labor Statistics) Transportation (Federal Aviation Administration, Office of Aviation Information Management) Foreword .. .. ... .. .. ........ ....... .. .. .. 6 Aerospace Summary .... .. .. .. ... ... .. 8 Aircraft Production .. ....... .. ........ ... .. .. .. 26 Missile Programs .. ... ...... .... ..... .. ... .. 48 Space Programs . .. .. ...... ... ....... ..... 58 Air Transportation .. .... .. ....... ..... .. .. 7 6 Research and Development .. ... .. ... ... .. .. .. 102 Foreign Trade . 118 Employment .... ....... .. .... .. .... .. .. .... 138 Finance . ...... .. .. .. .. ... ...... .... .. .. .. 154 Glossary ... .... ... .... .. ... .. .. .. .. .. .. 164 Index . ..... ... ...... .. ... .. ... 170 AlA Members ... .. ... .. .. .... .. .. .. .. .. ... 176 AEROSPACE MANUFACTURING: PRODUCTION FOR PEACE AND PROGRESS The U.S. aerospace industry produces things that fly-airaaft, launch vehicles, satellites, missiles . No matter how high, how far, or how fast they soar, these products that defend, transport, and serve us in a multitude of ways all begin with some very 11 feet on the ground'' fundamentals. They are produced from things as basic as nuts, bolts, and sheet metal and as advanced as fiber-matrix composites and tiny chips with incredible computing power. The manufacturing processes that make today's airaaft, missiles and space vehicles possible range from the traditional skills of milling, planing and welding (now often computer-aided) to advanced capa­ bilities such as superplastic forming of composite parts and robotic assembly. The performance and endurance of aerospace products begin with design specifications, but become reality on the fac­ tory floor. Aerospace design and manufacturing personnel work closely together to see that quality is built in- from the beginning . For the U.S. aerospace industry, 1989 was a year of contradiction . It was a year in which the industry set records for sales, new orders, backlog , export volume and trade balance. On the down side, however, it was a year in which earnings dropped sharply despite peak-level sales, and a year in which the long-anticipated decline in defense sales became statistical fact . The impact on sales of five consecutive negative growth defense budgets-six, counting the Fis­ cal Year 1991 budget being finalized at publica­ tion time-had been delayed because of the long lead times involved in production of major aerospace systems. But 1989 data confirmed the start of the military sales decline: industry sales of aerospace products and services to the Department of Defense dropped by approxi­ mately $3 billion below the previous year's level. Although the backlog of military orders remains high, the defense budget trend of FY 1985-91 leaves no doubt that the industry's defense sales will decline substantially in the decade of the 1990s. On the positive side of the ledger, sales in the civil aircraft sector registered a strong increase for the second straight year-up 16 percent in 1989 after a 23 percent jump in 1988. These gains are due primarily to the industry's exceptional performance in sales of commercial transport aircraft. A record backlog of transport orders and a flow of new orders that continues strong suggests a sales level for thi s sector in the 1990s that might be double the level of the 1980s. Sales of space systems, civil and military The overall industry outlook, therefore, is combined, also reached a new record level in for a decline in real, inflation-adjusted business 1989. If adequately funded, the Administration's volume of moderate-but far from catas­ space plans for the 1990s, coupled with trophic-proportions. We are s~ding into another prospects for expansion of commercial space valley in the peak-and-valley profile that has business, promise significantly greater industry characterized the history of the U.S. aerospace space activity. industry-and as we have done so often before It has become almost routine to report we will emerge from the valley and begin a that the industry set new records for export sales new ascent. and trade balance; such, indeed, was the case again in 1989. Large scale aerospace sales off­ set to a considerable degree the 14th consecu­ tive trade deficit recorded by the nation as a whole, underlining once again the value to the U.S. economy of high value, high technology aerospace exports. It must be noted, however, that aerospace imports increased by some 10 Don Fuqua percent, a reminder of the still-intensifying com­ President petition our industry faces from abroad. Aerospace Industries Association For the aerospace industry, the decade of the 1990s will be a period of transition charac­ terized by declining defense activity, a shift in product mix and extensive changes in manage­ ment, R&D, manufacturing and other ways of doing business, changes designed to improve efficiency in every aspect of industry operations and maximize earnings at predictably lower sales levels. As regards future sales volume, the indus­ try is not going out of the defense business; the government's plans for a downsized, restruc­ tured defense force suggest a continuing impor­ tant role for the defense industry and a moderately healthy level of production and R&D activity despite lower defense budgets. We believe that the reduced defense bus­ iness volume will be offset to a substantial degree-but not entirely-by increased com­ mercial aircraft and space sales and possibly fur­ ther offset by expanded international ollaborations involving both civil and military products. 7 For the U.S. aerospace industry, 1989 was a peak year in terms of sales, new orders, backlog, export volume and trade balance. Earn­ ings, however, dipped sharply below the previous year's level, reflecting for the most part a continuance of defense procurement policies and practices that generally inhibit contractor profits. Here is the breakdown of the industry's perfor­ mance in 1989: Sales. Total sales amounted to $117.6 bil­ lion, according to Aerospace Industries Associ­ ation (AlA) data. The figure compares with $114.6 billion in 1988. Sales of aerospace products and services to the Department of Defense (DoD) fell off for the second consecutive year as the industry began to feel the impact of five straight nega­ tive growth defense budgets. Sales to DoD amounted to $58.5 billion, down from $61.3 bil­ lion in the previous year. Despite the drop, DoD sales accounted for half of total aerospace sales. In a breakdown by product group, aircraft sector sales predominated, as is customarily the case. Aircraft sales totaled $61 billion, up slightly from $60.9 billion in 1988. Military aircraft sales, however, dropped an even $3 billion while sales of civil aircraft increased by $3.1 billion. Sales figures for military aircraft totaled $38.9 billion in 1989 compared to $22.1 billion for civil aircraft. Sales of space systems ranked second among product categories for the seventh straight year. Combined civil/military space sales totaled $25.8 billion in 1989, up more than $1.4 billion from the 1988 total. Sales of missiles increased to $11.2 billion last year, compared with $10.3 billion in the previous year. The "related products and services" grouping showed only a slight increase to $19.6 billion from $19.1 billion in 1988. For 1989, aerospace sales represented 2 .3 percent of the U.S. Gross National Product and 4. 2 percent of total sales by all U.S. manufacturing industries. The comparable figures for 1989 were 2.4 percent and 4.4 percent. Earnings. The industry recorded a net profit after taxes of only $3.9 billion in 1989. This compares with a profit of $4.9 billion for the previous year. The precipitous drop in earnings occurred despite the record high sales level reached by the industry during 1989. The profit margins reflected the adverse impact that strin­ full effects of several negative growth defense gent procurement policies and practices had on budgets. Nonetheless, the overall downward the industry's defense business. trend in the budget foreshadows a shift in indus­ Aerospace profit levels remained far try product mix with the commercial sector
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