Aerospace Facts and Figures 1981/82
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~€RO)P,LJC€ F,LJG) ,LiND FIGUR€) 1981/BQ i , Published by Aviation Week & Space Technology A MCGRAW-HILL PUBLICATION 1221 Avenue of the Americas New York, N.Y. 10020 (212) 997·3289 $ 7.95 Per Copy Copyright, July 1981 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) 347·2315 Director Allen H. Skaggs Chief Statistician Janet Martinusen Editorial Consultant James J. Haggerty Acknowledgments 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·HIII 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) Defense (Comptroller; Directorate for Information, Operations and Reports; Army, Navy, Air Force) Labor (Bureau of Labor Statistics) Transportation (Federal Aviation Administration) CONTE: NT~ 6 ~€WOID 8 AE:ROOACE: S'UMMARV 30 AIRCRAFT PRODUCTiai 47 MIS'S'ILE: PROGRAMS' 57 WAC€ PROGRAMS' 73 AIR TRANS'~TATiai 90 HE:LICOPTE:R TRANS'~TATiai 99 Re:S'E:ARCH AND DE:\IE:la>ME:NT 110 FORE:IGN TRAD€ 124 E:MPLOVM€NT 'i;., 134 FINANCE: 145 GLOOARV 152 INDE:X For the U.S. aerospace industry, 1980 was a year of solid growth in virtually all categories of activity. Sales reached a new record level, which-even allowing for the high rate of in flation-reflected an excellent year overall. In terms of inflation-adjusted cons tant dollars, sales in 1980 topped those of every year since 1969. Measured as a percentage of sales, earnings dipped well below the all-time high recorded a year earlier. Still, for the fourth consecutive year, the profit rate was above 4 percent. The general improvement in profit levels is encouraging since future capital needs of the industry will be considerable if it is to fund future generations of commercial aircraft and the expected buildup in the defense sec tor. Once again, we are gratified by the industry's achievements in the international marketplace, which underscore the importance to the U.S. economy of high value, high-technology aerospace exports. The industry recorded its highest-ever levels of export sales and trade balance, thus offsetting to a great extent the lag ging U.S. performance in other areas of international trade. The aerospace trade balance, best among U.S. manufacturing industries, is particularly impressive in view of growing foreign competition and a resultant significant increase in aerospace imports. During 1980, the industry's total backlog increased by more than 20 percent, with gains in all major categories. This assures continuing high activity levels for immediate future years. The outlook for the longer term is similarly brigh 1 The industry's defense pro duction, which declined as a percentage of the total uuring the 1970s, seems head ed for a new upturn in light of the Administration's projected defense outlays for coming years. 6 Despite the debut of the Space Shuttle, there is little immediate prospect for ex pansion of the industry's workload in development and fabrication of civil space systems. However, funding for military space development has been increasing steadily in recent years, to the point where civil and defense space outlays are now almost equal. Moderate growth is expected in the space sector during the first half of this decade. With the expanded capability the Shuttle affords for both civil and defense space operations, space activity could increase significantly in the latter part of the decade. While deliveries of commercial transports in 1981 are expected to be fewer than in 1980, the large backlog of orders indicates a continuing hjgh level of pro duction in the near-term. The financial problems of the world's airlines have slowed the flow of orders, but the airlines' need for new and replacement aircraft has not changed; projections ow a world transport market of about $125 billion over the next 10 years. Given expected improvement in the airlines' finan cial status, and consequent resumption of earlier-contemplated re-eqwpment plans, transport manufacturing activity may go well beyond its current level. In summary, the year was a good one for aerospace. The strong performance of sales and exports and record backlog, along with excell ent prospects for the commercial transport and defense sectors, hold out the prornise of continued health and growth for the industry. Karl G. Harr, Jr. President Aerospace Industries Association 7 AE:R(J)PAC€ ~UMMARY The aerospace industry closed out the dustry's 1980 performance: first year of the new decade on a high Sales. Total sales amounted to note, recording new statistical peaks $53.3 billion, an increase of $8.4 in sales, backlog, exports and con billion over 1979. Most of the in tribution to the U.S. trade balance. crease-more than $5 billion-was Much of the statistical growth, of due to a sharp boost in aircraft sales, course, was due to the high U.S. infla but there were gains in all categories. tion rate. However, there was also Aerospace industry sales as a substantial real growth, as gains in percentage of the Gross National Pro many categories exceeded the nine duct increased from 1.9 percent in percent inflation rate by wide 1979 to two percent in 1980. In rela margins. Sales, for example, increas tion to tot-t! sales of all U.S. manufac ed almost 19 percent, backlog more turing i11J ustries, aerospace sales than 20 percent and exports more amounted to three percent; the figure than 32 percent. compares with 2. 7 percent in the Here is a breakdown of the in- previous year. 8 AEROSPACE SUMMARY Profit. The industry's net profit the previous year, but the dollar value after taxes, measured as a percentage of shipments increased substantially, of sales, was 4.2 percent. This from $10.6 billion in 1979 to $13.1 represented a substantial drop from billion in 1980. A marked decline in the five percent recorded in the general aviation aircraft deliveries previous year. A major factor in the reduced total civil aircraft shipments reduced profit rate was high interest to 13,634 units, down from 18,450 in on borrowings necessary to finance 1979 . new plant and equipment expendi As is generally the case, the bulk of tures at a time when such expendi- the dollar value of 1980 shipments was • tures were at their highest-ever level. in commercial transports-$9.9 billion As in previous years, the aerospace or more than 75 percent of the total; profit remained well below the the amount represents an increase of average for all U.S. manufacturing $1.9 billion over 1979 sales. The in corporations, which was 4.9 percent dustry delivered 387 transports, 11 in 1980. more than in 1979. In both dollar Backlog. Once again-as in the value and numbers, gains were far previous year-the industry's backlog below those of the previous year. climbed dramatically. At year-end General aviation plane shipments 1980, orders on the books amounted totaled 11,881, the lowest level since to more than $95 billion, up almost 1972; the figure compares with 17,055 $17 billion over year-end 1979. The in 1979. However, the value of backlog included $53.6 billion in non shipments increased by some $300 government orders and $41.5 billion million, to $2.5 billion. The major in government work. portion of the production drop was in Following the traditional pattern, relatively low-value single-engine air orders for aircraft-including engines craft, an area severely impacted by the and parts-constituted the principal state of the U.S. economy, fuel costs, element of the backlog-$59.5 bl!lion and, in particular, high interest rates. or more than 62 percent. There were But the industry delivered 330 jet air also major gains in orders for non craft (up 14 percent) and 795 turbo aerospace products produced by props (up 25 percent). Increases in manufacturers, and for "other these higher-value categories more aerospace,'' a category which includes than offset lower single-engine sales. conversions, modifications, and Civil helicopter production con ground support equipment, as well as tinued the upward trend in evidence basic and applied research, and design since 1976. The industry's rotary-wing and development. A moderate in segment produced 1,366 civil helicop crease was recorded in missile/space ters, 347 more than in 1979. Dollar backlog. value increased from $403 million in Civil Aircraft Production. In 1980, 1979 to $656 million in 1980. shipments of civil aircraft were down Military Aircraft Production. The almost 5,000 units below the level of declining trend of earlier years was 9 AEROSPACE FACTS AND FIGURES 1981/82 reversed in 1980 as military aircraft than at the end of the previous year. production increased in number of deliveries and in dollar value. The Space Programs. Combined sales of Department of Defense accepted 606 civil and military space vehicle aircraft for operation by the U.S. systems, excluding propulsion units, military services, compared with 531 amounted to $3.3 billion in 1980. The in 1979. The Air Force led in accep figure is not directly comparable to tances with 359 aircraft, 48 more than 1979's $2.5 billion due to a change in in the previous year. Army accep statistical reporting procedures in tances totaled 160, up 43 from 1979, which the 1980 total includes, for the and deliveries to the Navy declined first time, sales to customers other from 103 units in 1979 to only 87 in than U.S.