Aerospace Facts and Figures 1983/84

Aerospace Facts and Figures 1983/84 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 (212) 997-3289 $9.95 Per Copy Copyright, July 1983 by Aerospace Industries Association o' \merica, Inc. · Library of Congress Catalog No. 46-25007 2 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 Janet Martinusen Editorial Consultant James J. Haggerty 3 ,- Acknowledgments Air Transport Association of America Battelle Memorial Institute Civil Aeronautics Board Council of Economic Advisers Export-Import Bank of the United States Exxon International Company Federal Trade Commission General Aviation Manufacturers Association International Civil Aviation Organization McGraw-Hill Publications Company National Aer~mautics and Space Administration National Science Foundation Office of Management and Budget U.S. Departments of Commerce (Bureau of the Census, Bureau of Economic Analysis, Bureau of Industrial Economics) Defense (Comptroller; Directorate for Information, Operations and Reports; Army, Navy, Air Force) Labor (Bureau of Labor Statistics) Transportation (Federal Aviation Administration The cover and chapter art throughout this edition of Aerospace Facts and Figures feature computer-inspired graphics-hot an original theme in the contemporary business environment, but one particularly relevant to the aerospace industry, which spawned the large-scale development and application of computers, and conti.nues to incorpora~e computer advances in all aspects of its design and manufacture of aircraft, mis siles, and space products. 4 CONTENTS 6 Foreword 8 Aerospace Summary 28 Aircraft Production 48 Missile Programs 58 Space Programs - 80 Air Transportatio!l , .. - 100 Helicopter Transportation 108 Research and Development "122 Foreign Trade 138 Employmemt 152 Finance 162 Glossary 168 Index 5 FOREWORD Throughout this 31st edition of Aerospace Fgcts and Figures there is one recurring note: activity in the civil aircraft manu facturing segment of the aerospace industry was depressed in 1982 under the combined effects of the recession, the financial difficulties of the world's airlines, high interest rates for financing aircraft purchases, and strong competition from foreign manufac~ turers. This civil aircraft decline influenced several areas of the industry's performance-total sales, of course, as well as backlog, profits, exports, trade balance and employment The net result was essentially a zero growth year, technically a decline in real terms but a decline of negligible proportions. A zero growth year is not one to rejoice about, but in this instance 1982 must be reckoned a good yeaT, by and large, because the sales volume wound up just a shade below that of 1981-and 1981 was the industry's all-time real peak year. In inflation adjusted terms, 1982 was the second best sales year in the indus try's history and in current dollars sales were the highest ever. The industry's profit rate dipped sharply, from 4.4 per.cent of sales in 1981 to 3.2 percent in 1982 . As in the past, it continued to remain well below that of total U.S. manufacturing industry, which also fell because of the recession, from 4.7 to 3.5 percent. In addi tion to the geflerally stagnant economic conditions, continuing high interest on large-scale borrowings contribut"ed to the lower aerospace profit. Also affecting the industry's financial well-being was the shift in the commercial/government business mix , as the 1982 decline in civil aircraft manufacture _coupled with a sharp rise in government sales, which usually generate lower earnings than commercial business. 6 Once again the aerospace industry can point with pride to its international trade performance-even though the export volume and trade balance dropped below the previous year's level. At a time when the nation as a whole was experiencing its worst-ever trade deficit, the aerospace industry recorded a substantial $15.6 billion export volume that offset to a considerable degree U.S. deficits in other areas of trade. The export figure was $2 billion less than 1981's record, but here again 1982 was the second best year for exports and trade balance, the latter a solid $11.2 billion, the best performance among U.S. manufacturing industries. The backlog data suggest that 1983 will be similar to 1982; we expect that civil aircraft sales will continue to be depressed but will be offset by further-increases in the defense and space work load. Predicting the aerospace future is, at any time, a chancy matter because industry activity is subject to so many variables. It is particularly imponderable today because of uncertainties in each of our primary areas of effort-defense, space and commercial aircraft. At the moment of writing, it appears that the defense budget for Fiscal Year 1984 will be substantially lower than the Admin istration envisioned, raising the question of how the Admin istr~tion's program will fare in future budgets. Projections indi cate a large increase in space workload-but most of the increase is in military funding, so we come back to the matter of future defense budgets. Air transportation experts are predicting a 1983 return to profitability for the airlines, but their health must im prove considerably before ·they can finance the large reequipment programs contemplated. So, in assessing the future, we must assume that, however the Administration's defense buildup may be scaled down by Con gressional action, there will be some military expansion in near future years, hence high levels of aerospace industry defense \\'Orkload. Also, latest estimates indicate that a real activity boost in commercial aircraft production will probably come in the latter part of this decade. Thus, in sum, the aerospace industry today is healthy and vigorous, and well positioned for greater challenges in the future. Karl G. Harr, Jr. President Aerospace Industries Association 7 AEROSPACE SUMMARY In 1982, the aerospace industry and parts and related ROT &E) were recorded an increase in total sales, up $5 billion over 1981, but civil but it was an increase that failed to aircraft sales were down $4.7 bil keep pace with the year's inflation. lion. The dollar value of the indus In inflation-adjusted constant dol try's space workload increased by lars, the industry actually experi $1.5 billion and there was a gain of enced a loss-a minute loss, only a $1.4 billion in missile sales. small fraction of one percent, but it Aerospace industry sales repre ended the upward sales trend in sented 2.2 percent of the Gross evidence since 1977. The statistical National Product (same as in 1981) tables clearly show the reason: a and 3.6 percent of rotal sales by all sharp drop in sales of civil ai_rcra_ft U.S. manufacturing industries; the while the industry was expenencmg latter figure compares with 3.2 per substantial gains in all other aero cent in 1981. space sales. Profit. The industry's net profit Here is a breakdown of the indlJS after taxes was $2.2 billion, down try's 1982 performance: from almost $3 billion in 1981. As a Sales. Total sales amounted to percentage of sales, the profit $67 billion, up $3.7 billion in current amounted to 3.2 percent, a big drop dollars but down $20 million in from 1981's 4.4 percent. The 1982 constant dollars, essentially a zero aerospace profit rate compares with growth year. There were sales. in an average of 3.5 percent for all U.S. creases in all product groups m manufacturing corporations. current dollar terms, but in some . Backlog. Despite a continuing lull cases-such as ahcraft production m orders for civil aircraft, the aero and non-aerospace sales-the ap .SJ?a.ce backlog increased by $6.5 parent gains were actually declines billion-seven percent-to $99.1 bil when adjusted for inflation. Sales of lion; converted to constant dollars military aircraft (including engines the backlog increased only $434 ' 8 million over the year-end 1981 fig: in which total dollar value had in ure. The 1982 backlog was com creased despite fewer deliveries. posed of $50.5 billioh in orders from Value of civil aircraft deliveries in the U.S. government and $48.6 bil 1982 was $8.6 billion, down from lion in work for other customers. $13.2 billion in the previous year. As As is traditional, orders for is customary, the bulk of the dollar aircraft-including engines and value was in sales of commercial parts-constituted the principal transports, $6.2 billion; this category element of the backlog, $59.5 billion was also the area of greatest de or 60 percent of the total. The · cline, down $3.5 billion from 1981. major backlog increases were in The industry delivered 232 trans military aircraft orders from the ports, a figure that compares with government and in "other aero~ 387 in the previous year. Backlog space," a category that embraces for commercial transports declined conversions, modifications, ground for the third consecutive year; at support equipment and certain R&D year-end 1982 it was $16.3 billion, contracts. The backlog for non compared with $17.2 billion in 1981. aerospace products and services in Units on order totaled 455, down creased in $1 billion and there were from 526. Of particular note is the backlog declines in the civil aircraft decline in. orders from foreign cus and missiles/space categories. tomers, which formerly constituted Civil Aircraft Production. In 1982, more than half the total backlog; at the industry shipped 5,085 civil air year-end 1982 it was down to 45 craft, fewer than half the number percent of transport backlog value.

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