... ...... :,tt ·.. .~ ... : · -~~- :·.=. .. ·' .·.' ...' .,~ -.. ·. • .:. ~ . i ~ -,, r'J.d, . -.-_,...)!_ r ' • ·• ·.·, ·, ; -·'.~. ... • • :.r --------------~-- ~ - ';'l~i.. ' f(";'' .:~_,• '-· -"~' · '..:,o···':..·: ~-'-'-""'-"-" ' '----'-' -'--------= 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, August 1982 by Aerospace Industries Association of America, Inc. Library of Congress Catalog No. 46-25007 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 Acknowledgments 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 Aeronautics 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) 4 Contents 6 Foreword 8 Aerospace Summary 29 Aircraft Production 48 ~sile Pro~s 58 SpaceProgranns 77 Air Transportation 95 Helicopter Transportation 104 Research and Development 116 Foreign Trade 130 Employment 142 Finance 153 Glossary 160 Index ' Foreword I For the U.S. aerospace in­ dustry, 1981 was a curiously paradoxical year. From the standpoint of sales, it was the best year in history-even after inflation is taken into account. But in certain statistical cate­ gories, there was evidence of disquieting trends, declines in activity or zero growth patterns one would not expect to see in a record-setting year. The industry's sales picture is best outlined by removing the distorting inflation factor, i.e., by converting the data to constant dollars. In constant dollar terms, 1981 marked the fifth consecutive year of sales growth and total sales exceeded those of the previous peak year (1968) by more than four percent. For 1981 , there was real sales growth in every major product group except one-civil aircraft. The decline in civil aircraft sales growth is paramount among the disquieting trends mentioned earlier. The industry's profit rate on sales remained at about four percent for the fifth straight year. That compares with an average of well below three percent for the prior decade. Aerospace profit is still below the average for all U.S. manufacturing industries, but the general improvement in earnings is encouraging to an industry having capital investment needs of such a high order. In 1981 , the industry once again made a major contribution to the overall U.S. economy by setting new records for export sales and net trade balance. The importance to the economy of high-value, high­ technology aerospace exports is underlined by this fact: in the last five years, when the U.S. as a whole experienced annual trade def­ icits totaling $145 billion, the adverse impact was softened by an offsetting aerospace trade surplus of more than $51 billion. Among th e troubling statistics for 1981 is the fact that the indus­ try's backlog of orders declined in real , inflation-adjusted terms after five years of solid gain during which the backlog increased by more than 80 percent. The major reason was a lull in orders of civil air­ craft, occasioned by foreign competition, the rec essi on, high interest rates and the depressed financial status of many of t r~ world's airlines. The backlog of civil jetliners, which had grown in big jumps fo r several years, declined by some $3.6 billion dollars. And that doesn't tell the whole story because the statistics cited are for 1981 ; continuing airline fin ancial di stress has brought a numbe r of can- 6 cellations of transport orders in 1982. Despite the peak levels attained in 1981, international trade is another area of concern; while we were exporting more aerospace products than ever, we were also importing aerospace products at a record pace. Another factor in the international trade picture was a sharp reduction in the backlog of orders from foreign airlines, a drop in value of more than one-third in 1981. That is an especially disturb­ ing note, because jetliner sales to foreign customers have for many years constituted not only the major element of the aerospace export volume but also the primary dollar-value component of the industry's overall civil aircraft production. Thus, the immediate future outlook is dim for the civil aircraft manufacturing segment of the industry, due to the combined effects of the recession and the still-increasing competition from foreign manufacturers. But projections of the world civil aircraft market for the coming decade remain high; the need for new and replacement aircraft has not diminished, only the customers' ability to buy. Given an economic upturn and improvement in the airlines' financial health, civil aircraft production could rise well beyond current levels in the latter half of the decade. There is a brighter outlook in the other major areas of industry effort. The Administration's defense buildup is moving into high gear and projections indicate considerably expanded industry activity in .aircraft and missile research, development and production. Similarly, the industry's sales of space systems are increasing steadily, due largely to a rapidly growing military space program. Space funding for the Department of Defense is now greater than for NASA. Budget plans contemplate substantial growth in combined DOD/NASA outlays, suggesting broadened industry workload in development and fabrication of space equipment. The story of the aerospace industry in 1981 is further chronicled in this 30th edition of Aerospace Facts and Figures, a significantly improved version that has been comprehensively revised to en­ hance statistical precision and to reflect more accurately the changing character of the aerospace industry. We trust this useful and informative volume will meet the wide acceptance enjoyed by its predecessors. Karl G. Harr, Jr. President Aerospace Industries Association 7 Aerospace Swnmary Sales. Total sales amounted to The aerospace industry's 1981 sales $63.5 billion, up $10.6 billion, or 20 volume was the best in history, with percent above the 1980 level. Half of real (inflation-adjusted) gains in most the increase-$5.4 billion-was in categories and an overall real in­ sales of military r~ ircraft ; there were crease of about 10 percent. There also appreciable .ncreases in the were, however, some disquieting missiles, space and non-aerospace notes. In production of civil aircraft, categories. Considered in inflation­ sales increased in current dollars adjusted constant dollars, the 1981 but declined-for the first time in sales volume topped the previous four years- in real terms. And the peak (1968) by more than four industry's backlog showed zero real percent. gr<:>wth after five years of impressive Aerospace industry sales repre- gams. Here is a breakdown of the in­ sented 2.2 percent of the Gross dustry's 1981 peformance: National Product and 3.2 percent of B AEROSPACE SUMMARY total sales by all U.S. manufacturing shipments continued to increase, industries; both figures were the but only slightly, from $13.1 billion in highest in a decade. 1980 to $13.2 billion in 1981. The Profit. The industry's net profit latter figure does not include spare after taxes amounted to $2.9 billion, parts or payments for R&D work and or 4.3 percent of net sales; the latter other services related to civil aircraft figure exactly matched that of the manufacture; the grand total was previous year. The aerospace profit $17.4 billion. edged closer to, but remained As is customary, the bulk of the below, the average for all U.S. dollar value was in sales of commer­ manufacturing corporations, which cial transports-$9.7 billion, or $200 was 4.7 percent in 1981. million less than in 1980. The in­ Backlog. The aerospace backlog dustry delivered 387 transports, the increased by a substantial $8.2 same as in 1980; 255 of them went billion, but the rate of increase was to foreign customers (up from 237) far below the dramatic gains of the and 132 to U.S. buyers (down from three prior years; converted to 150). Backlog for transports dropped constant dollars, the backlog was sharply, from $20.8 billion in 1980 to almost exactly the same as last $17.2 billion at the end of 1981. Of year's. At year-end 1981, orders on special note was the fact that orders the books amounted to just under from foreign airlines, which tradi· $99 billion in current dollars, in­ tionally constitute more than half of cluding $45.8 billion in orders from the backlog, dropped by $4.5 billion, the U.S government and $52.9 billion reducing the foreign backlog to less in work for other customers. than 45 percent of the total. The four-year pattern of increasing As is traditional, orders for air· civil helicopter production was craft-including engines and parts broken as shipments declined -constituted the principal element almost 300 units to a 1981 total of of the backlog-$62.1 billion or 63 1,072. The dollar value of sales also percent of the total. The major declined, from $656 million in 1980 backlog increases were in U.S. to $597 million in 1981. government aircraft-largely military General aviation plane shipments aircraft and related R&D-and in totaled 9,457, down from 11,881 in "other aerospace," a category that the previous year.