501 .A818 197S...76 1975/76 Aerospace Facts and Figures
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TL 501 .A818 197S...76 1975/76 AEROSPACE FACTS AND FIGURES Compiled by Economic Data Service Aerospace Research Center Aerospace Industries Association of America, ln,c. 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. V. 10020 $4.93 Per Copy 1975/76 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 Consultant Rudolf Mod~ey Acknowledgments Atomic Energy Commission Air Transport Association Civil Aeronautics Board Export-Import Bank of the l:lnited States Federal Trade Commission Gene"ral 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 J,.abor Statistics) Transportation (Federal Aviation Administration) 2 CONTENTS Page 4 FOREWORD 6 AEROSPACE SUMMARY 30 AIRCRAFT PRODUCTION 47 MISSILE PROGRAMS 57 SPACE PROGRAMS 70 AIR TRANSPORTATION 91 RESEARCH AND DEVELOPMENT 101 FOREIGN TRADE 115 EMPLOYMENT 125 FINANCE 134 GLOSSARY 138 INDEX FOREWORD This volume tells the statistical story of the aerospace industry's performance in 1974, the most economically troubled year in recent memory. It was a year of sharp recession, with attendant industrial disruption, unem ployment, materials shortages, insufficient investment capital, declining demand and myriad other difficulties. Most of all there was rampant inflation that snowballed into double-digit percentages. Beca use of this inflation, a word of qualification is in order with respect to the statistical detail of this edition of Aerospace Facts and Figures. In most bf the categories covered, you will read of record sales. The statistics are accurate, but unless adjusted to compensate for inflation they present a somewhat dis torted picture. As indicators of the industry's real productive effort, they are aki n to measurement with a four-foot yardstick. 4 By the most accepted measurement of assessing real productivity-i.e., constant dollars-the aerospace industry achieved new highs in only two of the several categories statistically detailed on the following pages. As a whole, the industry experienced another downturn. The declining trend in evidence since 1968 continued, although the downward curve was less pronounced. Despite the lower constant dollar level, the industry fared better than had been expected at the beginning of the year. In view of the general business climate, the results, though not gratifying, are at least encouraging. There are two areas of industry performance which bear special mention. One was the wide acceptance of American aerospace products in the foreign market-solid evidence of superior quality. In 1974, aerospace exports amounted to an impressive $7.1 billion, $2 billion more than in the previous year. Since aerospace imports were relatively slight, the industry produced the greatest-ever aerospace trade surplus of $6.3 billion. In light of the overall U.S. trade deficit, this accomplishment was of vital importance to the national economy. The other area of solid gain was the category embracing non-aerospace products. For some time, the industry has been diversifying its product line with an eye toward a broader sales base. Non-aerospace sales have increased consist ently in dollar volume and as a percent of overall sales. In 1973, these sales topped the $3 billion level for the first time, but in 1974 they reached the $4 billion mark. This trend is satisfying testimony to the industry's technological versatility and a heartening augury for the future. Sales considerations aside, the industry has cause to be proud of its achieve ments in 1974. Its performance as a supplier of equipment to the military services, manufacturing partner in the national space program and spearhead of American technological advance, places it in the forefront of industrial efforts in the national interest. The statistical information on the pages that follow presents a comprehensive account of a major industry's effort in a year of historical import. We trust that government and industry officials, news writers and editors, legislators, analysts and students will find this 23rd edition of Aerospace Facts and Figures both useful and inteyesting. Karl G. Harr, Jr. President Aerospace Industries Association 5 Aerospace Summary For the aerospace industry, 1974 was a paradoxical year. The account books regis tered gains in sales, income and backlog. Still, there was a decline in terms of real output as the year's double-digit inflation distorted the true picture of the industry's performance. Aerospace recorded total sa le s of $26.3 billion, up $1.5 billion over 1973. Backlog at year-end reached $35.8 billion, which compares with $29.7 billion at the end of 1973. Profits as a percent of sales were 3 percent, better than any year since 1969 but still significantly below the average for al l manufacturing industries, 5.4 percent. In terms of constant dollars, the industry experienced a slight downturn rather than the indicated gain. Generally speaking, declines were in major product areas funded by the government. Principal gains were in non-government sales, particularly civil jet transports, and non-aerospace products and services. 6 AEROSPACE SUMMARY Following is a breakdown of industry performance by major category: OVERALL SALES Translated into constant dollars (1958 = 100), the $26.3 billion in aerospace sales for I 974 represents a "real" level of about$ I 5 billion, approximately the level of the three preceding years. Aerospace sales as a per cent of the gross national product (GNP) amounted to 1.9 percent, the same as the previous year but far below the rates of the sixties. CIVIL AIRCRAFT PRODUCTION Units built in I 974 totaled I 5,325 com pared with 14,709 in the previous year. In terms of dollar volume, the great bulk of the sales was in jetliners, which accounted for a record level $4 billion, up more than $200 million from 1973. There was a comparable increase in the number of jet transports delivered: 332 in I 974, up from 294 in 1973. Production of general aviation airplanes continued to climb to I 4,165 units with a total value of $908 million, an all-time high. The comparable figures for 1973 were 13,645 planes worth $826 million. Manufacture of civil helicopters also reached a new peak. Output in I 974 was 828 rotary-wing craft valued at $189 million compared with 770 and $I 2 I million in 1973. MILITARY AIRCRAFT PRODUCTION Department of Defense (DOD) outlays for aircraft actually decreased slightly, from $7.1 billion in fiscal year (FY) 1973 to $6.9 billion in FY 1974. This drop continped the downward trend beginning in 1967 in the number of aircraft delivered to the military. Aircraft built in 1974 are estimated at I ,000 units, the lowest figure in a quarter of a century. MISSILES At $5. I 9 billion, industry sales in the missile category almost exactly matched those of the previous.year ($5.18 billion). Adjusted for infla tion, the 1974 figure represented a substantial decline in weapon acquisition. SPACE PROGRAMS Space systems accounted for slightly more than $3 billion of the year's total aerospace sales. Funding for space was up slightly from the previous year, partially due to the fact that the National Aeronautics and Space Administration (NASA) was engaged in three separate manned space programs during the year. The first, Skylab, was in effect only during the first two months of I 974. The second, Apollo-Soyuz, involved preparations for a single flight scheduled for mid-1975 and represented a relatively small effort compared with previous Apollo hardware projects. The third, the Space Shuttle, was in early development and funding levels were well below expectations. Also, there was an increase in military astronautics activity as the armed services stepped up work on a variety of unmanned satellite applications for defense support. Outlays for military astronautics climbed from $512 million in FY 1973 to an estimated $560 million in FY 1974. 7 AEROSPACE FACTS AND FIGURES 1975/76 RESEARCH AND DEVELOPMENT Industry research and development (R&D) activity, in current dollars, remained at approximately the level of the earlier years of the decade. Aerospace R&D outlays of DOD-traditionally the principal source of industry R&D contracts-were up negligibly: $4.61 billion as compared with $4.59 billion in the previous year. Adjusted for inflation, the funding bought less research effort. The largest expenditures for defense R&D were in the missile category, $2.2 billion. Aircraft R&D outlays amounted to $1.9 billion. EXPORTS Aerospace exports made a significant contribution to the balance of trade in I 974. Having set an all-time record in I 973 with export sales totaling $5.I billion, the industry improved substantially on that performance in 1974, posting a $2 billion increase. The to,ytl value of aerospace products exported in I974 was $7.1 billion, while aerospace imports amounted to only $745 million, thus producing an aerospace trade surplus of $6.4 billion. The main contribution to the trade balance came from sales abroad of American-built jetliners-228 planes worth $2.7 billion. EMPLOYMENT Where national employment declined for the most part in I 974, the aerospace industry registered a slight gain. Average employment was 965,000 employees, up from 948,000 in the previous year. The gain was not indicative of an upward trend, but rather of temporary fluctuations in industry workload. A decline to near 1973 levels is forecast for 1975.