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Aerospace Facts and Figures 1988/89

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Aerospace Facts and Figures 1988/89 ABOUT THE COVER: Centuries of lessons learned ... and mistaken turns ... preceded man's first powered flight in a heavier-than-air craft . In less than a century since then, man has been to the moon and begun to explore the vast universe. The United States - "first in fli ght ," thanks to the Wright brothers­ has become a world leader in aerospace. For most of that time-for 70 years- U.S. aviation, space and defense efforts have been served by the Aerospace Industries Association. ! I I 89/90 FACTS AND FIGURES Aerospace Industries Association of America, Inc. $20.00 Compiled by Economic Data Service Aerospace Research Center Aerospace Industries Association of America, Inc. Director, Research Center: Virginia C. Lopez Manager, Economic Data Service: David H. Napier Editorial Consultant: James]. Haggerty Design: Gwen Hoelscher and Associates Published by Aerospace Industries Association of America, Inc. 1250 Eye Street, N.W. Washington, D.C. 20005 (202) 371-8400 For information & orders, call: (202) 371-8561 Copyright © 1989 by Aerospace Industries Association of America, Inc. Library of Congress Catalog No. 46-25007 Acknowledgments Air Transport Association of America Battelle Memorial Institute Council of Economic Advisers Export-Import Bank of the United States Exxon International Company General Aviation Manufacturers Association Helicopter Association International International Air Transport Association International Civil Aviation Organization McGraw-Hill Publications Company National Aeronautics and Space Administration National Science Foundation Office of Management and Budget Price Waterhouse U.S. Departments of Commerce (Bureau of the Census, Bureau of Economic Analysis, International Trade Administration) Defense (Comptroller; Directorate for Information, Operations and Reports: Army, Navy, Air Force) Labor (Bureau of Labor Statistics) Transportation (Federal Aviation Administration) Early U.S. aviation photos reprinted with permission of the National Air and Space Museum, Smithsonian Iustitution. On December 17, 1903, the Wright brothers achieved the ftrst power-driven fli ght in a heavier-than-air craft. However, it wasn't until the outbreak of World War II more than 10 years later, that the potential of this ' breakthrough was exploited. The war provid ed the first real impetus to aircraft producti on in the United States . Production figure s for those early years are scarce although the U.S. Census first undertook to report on aircraft production in 1914. (Export data had been available since 1912.) Up to 1925, aircraft and engine production data were unreli able for other than trend indications. From 1925 to 1937, production figures were publi shed by the Aeronautical Chamber of Commerce-today, the Aerospace Industries Association. In 1945, the association, then called the Aircraft Industries Association, first published a separate statistical handbook on industry data. .. the relative shortness of time in which aviation has asstuned major significance has prevented an accumulation of records on ,,·hich stude nts normally ba se long-range historical and economic inte rpre tations. Security re,:ulations during the ,,·ar added to this difficulty. All these factors have contributed to the lack of ba sic information on the role of air pO\\·er in our national life . "Only no\\. is it possible to furnish some of the fa ctual data for objectiYe studies. The new handbook on aviation, of which this volume is the first. should do much to help students of some or all of the questions confrontin g aviation. To our knowledge this is the first compre hensi,-e survey of aviation statistics ." from Aviat io11 Facts & Figures, 1945 first in a series of statistical handbooks of which thi s is the 37th edition. Contents Foreword 6 Aerospace Summary 8 Aircraft Production 26 Missile Programs 48 Space Programs 58 Air Transportation 76 Research and Development 100 Foreign Trade 116 Employment 136 Finance 152 Glossary 162 Index 168 Foreword For the U .S . aerospa ce industry, 1988 was a "good news, bad news" year. The good news is that the industry once again posted new records for sales . earnings, orders, backlog. export volume and trade balance . The bad news, which is not r eally news but confirmation of a long-expec ted outcome, lies in stati stica l evidence of a coming decline in military bu siness. The fu ll impact on in ­ du stry s~ l es of four consec utive nega ti ve growth defense budgets has been delayed be­ ca use of the long lea d times involve d in major 6 aerospace systems, but inklings of diminishing I am confident, however, that the indus­ defense ac ti vity appear in 1988 data. try's ac ti vity level in the 1990s will be suffi­ For example, the indu stry's sales to the ciently health y to preserve our personnel and Department of Defense of aerospace products teclmological strengths, so that we will be we ll and services decl ined fo r the fir st time since positioned to take on the great aerospace chal­ 1974 . And although the indu stry's overall lenges envisioned for the 21st century. backlog of orders increased monumentall y in With this 37th annual edition, Aerospace 1988 - by more than 20 percent- the backlog Industties Association resumes responsibility of orders from the U.S. government actuall y fo r publishing and marketing Aerospace Facts dipped for the second straight yea r. The de­ a11 d Figures aft er a productive 20-year as­ fense budget trend indicates that we can ex­ sociation with Aviation Week & Space Tech­ pect substantiall y redu ced sales to the military nology. I trust that the government and in­ services at least through the mid-1990s and dustry officials, jom11ali sts, analysts, legislators probabl y for the remainder of the century. and students who comptise the ptincipal read­ On a positi ve note, the indu stry is gra­ ership of this publica ti on will fi nd the 1989/ tified at its once-again-outstanding perform­ 1990 volume as useful and informative as its ance in international trade. In a year in which predecessors. the United States as a whole experi enced it s 13th consecutive trade defi cit , the industry recorded an all-time record level of exports and a new peak trade balance. Thi s is encouragi ng evidence of the con­ tinuing for eign acceptance of U.S. aerospace products. The aerospace achievement of nearly $2 7 billion in sales abroad, offsetting to sub­ stantial degree U.S. defi cits in other areas of Don Fuqua internati onal trade, also underlines the im­ Preside11f portance to the U.S. economy of high va lue, Aerospace Industries Associatio11 hi gh technology aerospace exports. When final data are ava ilable for 1989, we expect to see another banner year and probabl y a new overall sales record. Beyond that, however, the anticipated continuance of the downward trend in defense budgets por­ tends a downtmn in the industry's overall sales for at least several years. Fortunately, the defense bu siness de­ cline comes at a time when prospects look good in two other major areas of industry ac tivit y. The commercial aircraft manufactur­ in g segment of the industry is experiencing a cascade of orders for airline transports and projections suggest a sales level in the 1990s doubl e or more than of the 1980s. Space Sta­ ti on Freedom and other new programs, in­ cluding some military space projec ts, bid to expand significantly the industry's space fab­ rication work load. AlA feels. therefore, that ga ins in these areas will offset to consid erabl e degree the indicated redu ction in defe nse bu sin ess. But not entirely: we see a moderate declin e in overa ll sa les fo r the ind ustry as a whole, prob­ ably begin ning in 1990. 7 89 90 Aerospace Summary The aerospace industry's total sales in 1988 reached a new all-time high more than four percent above the prior record set in 1987. The industry also posted new record levels of earnings, orders received for aero­ space systems, backlog at yearend , export volume and trade balance. Here is a breakdown of the industry's performance in 1988: Sales . Total sales amounted to $114. 6 billion, according to Aerospace Industries As­ sociation data; the figure compares with $110 billion in the previous year. As is customarily the case, sales of air­ craft predominated in a breakdown by product group. Aircraft sales amounted to $60.9 bil­ lion, roughly 53 percent of total sales; the comparable figure for 1987 was $59.2 billion. The 1988 total was compounded of a large increase in sales of civil aircraft and a signif­ icant decline in sales of military aircraft. As they have since 1983, sales of space systems ranked second among product cat- 8 egmies. Combined civil/military space sales As might be expected ''~ th such a heavy totaled $24.3 billion, up from $22.3 billion in fl ow of new orders, the industry's 1988 back­ 1987. Sales of missiles increased slightly ($10.3 log not only reached a record level but topped billion, compared with $10. 2 billion in the pre­ the p1ior record by more than 20 percent. As vious year) and there was also an increase in of December 31, 1988, backlog was $191. 5 the "related products and services" grouping, billion, up from $158.7 billion at the end of up to $19.1 billion from the previous year's 1987. The 1988 total was compounded of $92.4 $18.3 billion. billion in U.S. govenm1ent orders, $99 .1 bil­ For 1988, aerospace sales represented lion in non-government orders. As is custom­ 2.3 oercent of the U.S. Gross Na tional Prod­ ary, the principal element of the backlog was uct ~ nd 4.4 percent of total sales by all U.S.
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