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Aerospace Industry Aerospace Industry Report 2011 Aerospace Aerospace Industry Facts, Figures & Outlook for the Aviation and Aerospace Report 2011 Manufacturing Industry Facts, Figures & Outlook for the Aviation and Aerospace Manufacturing Industry Manufacturing and Aerospace & Outlook for the Aviation Facts, Figures Published by the Aerospace Industries Association of America and the Center for Aviation & Aerospace Leadership at Embry-Riddle Aeronautical University – Worldwide Photo Credits: Chap. 1: F-35 fighters (Credit: Lockheed Martin Corporation) Chap. 2: Boeing 787 Dreamliner in flight (Credit: The Boeing Company) Chap. 3: C-130J production line in Marietta, Ga. (Credit: Lockheed Martin Corporation) Chap. 4: The flightline at the Paris Airshow (Credit: Lockheed Martin Corporation) The cover of this report is a tribute to the U.S. Space Shuttle program. For Chap. 5: Student rocketeers at the Team America Rocketry Challenge 30 years the space shuttle has been the workhorse of the American space (Credit: Aerospace Industries Association) enterprise. With the last shuttle launch this year, the program comes to an end but the future of space exploration endures as a new era in space Chap. 6: Gulfstream G450 (Credit: Gulfstream) travel takes flight. Chap. 7: PW1524G engine ground testing (Credit: Pratt & Whitney) Chap. 8: Embraer 175 in flight (Credit: Embraer) Chap. 9: SpaceX Falcon 9 First Flight Liftoff (Credit: Chris Thompson, SpaceX) Acronyms: Raytheon SM3 launch (Credit: U.S. Navy) Glossary: Global Hawk (Credit: Northrop Grumman Corporation) Appendices: Bell 206L (Credit: Bell Helicopter) Aerospace Industry Report 2011 Facts, Figures & Outlook for the Aviation and Aerospace Manufacturing Industry By William A. Chadwick, Jr. Director, Aerospace Research Center Aerospace Industries Association Bruce W. C. Ellis, MBA, Ph.D. Cantab Senior Aerospace Economist and Manufacturing Strategist Center for Aviation & Aerospace Leadership Embry-Riddle Aeronautical University – Worldwide Brig. Gen. Robert E. Mansfield, Jr., USAF, Ret. Executive Director Center for Aviation & Aerospace Leadership Embry-Riddle Aeronautical University – Worldwide Robert Materna, Ph.D. Professor of Business Administration Center for Aviation & Aerospace Leadership Embry-Riddle Aeronautical University – Worldwide All authors contributed equally and are presented in alphabetical order. Published by: Aerospace Industries Association Center for Aviation & of America, Inc. Aerospace Leadership 1000 Wilson Blvd. Embry-Riddle Aeronautical University Suite 1700 600 South Clyde Morris Blvd. Arlington, VA 22209-3928 Daytona Beach, FL 32114 Phone: (703) 358-1015 Phone: (386) 226-6115 Web: www.aia-aerospace.org Web: www.erau.edu The views contained in this document are those of the authors and should not be interpreted as representing the official policies or endorsements, either expressed or implied, of the Aerospace Industries Association of America or Embry-Riddle Aeronautical University. This report is for information only and should not be used for investment purposes. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the written consent of the Aerospace Industries Association of America or Embry-Riddle Aeronautical University, including but not limited to, in any network or other electronic storage or transmission or broadcast for distance learning. Any quotation must be accompanied by appropriate bibliographic credit. © 2011 Aerospace Industries Association of America, Inc. and Embry-Riddle Aeronautical University ISBN-13 978-0-615-48561-4 iii Foreword Welcome to the first joint publication of the Aerospace Industries Association of America (AIA) and the Center for Aviation & Aerospace Leadership (CAAL) at Embry- Riddle Aeronautical University – Worldwide. Earlier this year, the organizations signed Marion C. Blakey an agreement to share their considerable President and CEO resources to produce an authoritative report Aerospace Industries Association on the industry. The information contained in this report builds on AIA’s Aerospace Facts & Figures and CAAL’s Aerospace Economic Report and Outlook to create a new publication designed to help manufacturers and policy makers make more informed decisions about the aviation, aerospace, and growing commercial space industry. We have tried to adopt a “systems view” of the industry to enhance the ability of policymakers, manufacturers, and operators at all levels to comprehend the many factors that are influencing the industry and ulti- John R. Watret, Ph.D. mately improve decision-making. As a major Executive Vice President and Chief Academic Officer reference tool for companies of all sizes, Embry-Riddle Aeronautical Aerospace Industry Report 2011 compiles into University—Worldwide one document data, analysis, and emerging trends that are shaping the industry. At the same time, it is also important to realize that small- to medium- size firms produce as much as 80 percent of the content of aircraft and major end items designed and assembled by the large aerospace iv Aerospace Industry Report 2011 corporations. Many of these small- to medium-size firms have neither the time nor resources to collect and analyze market trends, but having such information can be critical to a firm’s success. As a nation we are just beginning to “re-learn” that manufacturing is important. Making products with a skilled and well-paid workforce is still necessary for a strong economy and aerospace manufacturing, in particular, is vital to the economy and national defense. Aerospace manufacturing is America’s technology advantage. It has been at the vanguard of innovation and productivity for the past 100 years and the secondary benefits of service-based jobs and a positive balance of trade are significant. In other words, “manufacturing matters.” The best way for America to prosper and grow is to be the best at what we do. It is our hope that the information in this report will help decision-makers at all levels understand what is driving the aviation and aerospace industry, and make decisions that will sustain our leadership position in the years to come. v About AIA Founded in 1919, the Aerospace Industries Association of America (AIA) is the most authoritative and influential trade association rep- resenting the aerospace and defense industry. The association is the leading voice for the industry on Capitol Hill, within the administra- tion, and internationally. In times like these, AIA’s strong representation and advocacy is essential to protecting the business interests of the nation’s aerospace and defense industry, while helping to establish new opportunities for growth. AIA represents nearly 350 aerospace and defense manufacturers and suppliers. The association is at the forefront of critical issues, such as ensuring a strong U.S. industrial base, advocating for defense mod- ernization and acquisition reform, increasing deployment of Next Generation Air Transportation System technologies and equipment, modernizing export controls, and obtaining additional resources for aeronautics research and space exploration. Unlike many other associations, chief executive officers of member companies and their senior managers define and drive AIA’s agenda. Working together, the association shapes regulatory and legislative policies, and is a leader in developing and publishing national aero- space standards that are used in aerospace design and manufacturing across the globe. The aerospace and defense industry supports and drives our nation’s economy. It fuels innovation, creates competition, and employs millions of Americans. AIA is proud to represent our members and our nation. To learn more about AIA and the benefits of membership, visit www.aia-aerospace.org vii About Embry-Riddle Aeronautical University Embry-Riddle Aeronautical University was founded in 1925, just 22 years after the Wright brothers’ first flight. Today, the University and its graduates have built an enviable record of achievement in every aspect of aviation and aerospace. At Embry-Riddle, our mission is to teach the science, practice, and business of aviation and aero- space, preparing students for productive careers and leadership roles in service around the world. The curriculum covers the operation, engineering, research, manufacturing, marketing, and management of modern aircraft and the systems that support them. The University also engages in extensive research and consulting that addresses the unique needs of aviation, aerospace, and related industries. Residential campuses in Daytona Beach, Florida and Prescott, Arizona provide education in a traditional setting. The residential campuses also have over 90 instructional aircraft and offer FAA- approved programs in flight and flight dispatch. Flight programs include private, commercial, instrument, multi-engine, flight instruc- tor, and instrument flight instructor ratings. The Worldwide campus provides instruction at over 150 locations in the United States, Canada, Europe, the Middle East, and Asia, with more than 27,000 students. Combined annual enrollment for all three campuses is more than 34,000. Embry-Riddle Aeronautical University is an independent, nonsectar- ian, not-for-profit, coeducational university that is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools. ix About CAAL The Center for Aviation and Aerospace Leadership (CAAL) was founded in 2008 to capture, create,
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