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Aerospace-Facts-And-Figures-1988 Facts and Figures 8 8 8 9 Key Technologies Legacy for the 21st Century Aerospace Industries Association of America, Inc. $16.95 Compiled by Economic Data Service Aerospace Research Center Aerospace Industries Association of America, Inc. 1250 Eye Street, N.W., Washington , D.C. 20005 (202) 371 -8400 Director , Research Center: Virginia C. Lopez Manager, Economic Data Servi ce: Carl M. P ~ s ale Ed itorial onsultant: Jam s 1. Hagg rty De~ign : wen Hoelscher and Associates Published by Aviation Week 1221 Avenue of the Americas New York, N.Y. 10020 1-800-433-0880 Copyright © 19tl!l by Aerospace Industries A ss ociution u f i\mericu. Inc . Library o f Congre ss utalog N<> . 46-25 007 Ackno-wledgments 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) Focused development of key "enabling" technologies will determine the U.S. aerosp~ce. industry's technological and market leadership mto the next century. These technologies will help ensure U.S. defense superiority and will also provide endless possibilities for a range of products to revolutionize the way we live-from fully-automated factories to crash-resistant, ultra­ safe automobiles to greatly improved medical diagnostic equipment. Technological foundations laid now will provide a legacy for tomorrow. The technologies that will make the difference: o advanced composites; o software development; o artificial intelligence; o propulsion systems· o advanced sensors; o optical information processing;' o ultra- reliable electronic systems; and o very large scale integrated circuits. ON THE COYER: Technician works with ion micro-probe used for microelectroni c chip fabrication. A focus on electronics micromimatunzation has provided very large scale integrated (VLSI) Circuits. By the turn of the century, the number of transistors pe r chip will reach Into the tens of millions. Contents Foreword 6 Aerospace Summary 8 Aircraft Production 26 Missile Programs 48 Space Programs 58 Air Transportation 76 Helicopter Transportation 98 Research and Development 106 Foreign Trade 122 Employment 142 Finance 158 Glossary 168 Index 174 Foreword This 36th edition of Aerospace Facts and Figures tell s th e stati sti cal story of th e aero­ space industry in 19 87, a banne r year by a lmost every yardstick. The industry posted new records for sales , backlog, earnings, export volume and inter­ national trade balance. This outstanding per­ formance, however, was tempered by some di squieting indicators of a coming decline in the industry's defense workload coupled with sharply reduced earnings on defense programs. Overall sales in 1987 increased by a solid 6.5 percent over the inflation rate and backlog grew by six percent. And, as has been th e case for many years, the most gratifying aspect of the industry' s 1987 performance was its ac hievement in international trade. Aerospace exports represented almost I 0 percent of the total dollar value of all U.S. exports and our impressive $24 billion export volume offset U.S. deficits in other areas of international trade. Those achievements once again under­ line the importance to the U.S . economy of hi gh value, high technology aerospace exports. The industry's profit was at record high, due in large part to the record sales level and to some extent to hi gh levels of commercial business (generally more profitable than gov­ ernment business); a cylical influence in which some defen se programs evolved in 1987 from R&D status to the more profitable production phase; a favorable change in tax rates; and the industry's considerable success in cost cutting heralding substantiall y lower government programs. sales-particul arly defense sales- as we begin Looking down the road , however, we see th e decade of the 1990s. a seri ous threat to th e in dustry's fin anci al health The degree of defense decline cannot ac­ occasioned by a number of legislati ve and reg­ curately be quantified at this time, nor how ul atory changes in the defense procurement long it will continue. But th e prospects are good process introduced over the last several years. for offsetting gains in other areaS of our busi­ Generall y, these so-call ed procurement re­ ness. We look fo r a rather large increase in forms threaten industry with substantiall y in­ civil space workload, assuming on-schedule creased ri sk on defense contracts. continuance of th e Space Stati on Freedom pro­ Since defense sales in 1987 represented gram. And , if we are able to cope with inten­ 66 percent of th e industry 's total sales, this sify ing foreign competition in the commercial prospect is a matter of great concern . Aero­ aerospace arena, the very large market for com­ space Industries Association is making a vig­ mercial transport aircraft suggests high levels orous effort to seek modification of these " re­ of civil aircraft manufacture through the end forms," which are not in the nati onal interest of the centu ry. because they threaten the defense industri al To summarize the industry's outlook, civil base as well as the defense industry. orders for aerospace systems are taking over Anoth er negative factor is evidence of a from the military sector as the primary driver marked decline in defense business in coming of industry workl oad. Our prospects for civil years. Due to th e long lead times of hi gh tech­ space and commercial aircraft business are suf­ nology defense equipment , th e industry has not fi ciently bright th at we hope to maintain some­ yet felt the full impact of several years of zero thing close to our current acti vity level despite growth or negati ve growth defense budgets. the indicated decline in defense business. But th e fi rst indicators showed up in 1987 data. For example , although the industry 's overall backlog grew at a healthy rate, it was due la rgely to a big surge in orders for commercial aircraft. Orders from government agencies de­ clined markedl y for th e second straight year, Don Fuqua President Aerospace In dustries Association 7 Aerospace Summary In I 987, the aerospace industry achieved of the U.S. Gross National Product and 4.7 a new record level of sales and an inflation­ percent of total sales by all U.S. manufacturing adjusted increase of 61/z percent over the prior industries (both figures were the same as in year's sales. New orders for aerospace systems 1986). and the yearend backlog similarly reached all­ Earnings. The industry recorded a net profit time highs, as did export volume and the aero­ after taxes of $4.6 billion, an all-time high. l space trade balance. The profit reversed a downward trend in evi­ Here is a breakdown of the industry's per­ dence for the two prior years. The record sales formance in I 987: level was a contributing factor to the record Sales. Total sales amounted to$ I I 2. I bil­ earnings, but there were other factors, among lion , up from $ 106.2 billion in the previous them strong commercial business, which is year. As is customary, sales of aircraft pre­ generally more profitable than government dominated in a breakdown by product group, business; a cyclical influence in which a num­ representing well over half of total sales. Air­ ber of major programs were evolving from R&D craft sales amounted to $60.3 billion, com­ status to the more profitable production phase; pared with $56.4 billion in I 986. and considerable success in industry cost-cut­ Sales of space systems ranked second ting programs. among product categories, as they have since Aerospace profit rates also increased, but I 983. Space sales, civil and military, totaled they remained below the averages for all U.S. $22.9 billion, up from $20.1 billion in the manufacturing corporations when expressed as previous year, an increase of more than 13 a percentage of sales or assets. As a percentage percent. There was also an increase in the of sales, the rate was 4.1 percent (2.8 percent " related products and services" grouping (up in 1986) compared with the all-industry av­ roughly $ 1 billion to $18.7 billion). erage of 4.9 percent (3.7 percent in 1986). Aerospace sales represented 2.5 percent When the 1987 profit is expressed as a per- 8 centage of equity, the aerospace figure is 14.6 percent (up from 9.4 ~rcent in 1986) , topping the all-industry average of 12 .8 percent. Orders and Backlog. Reflecting the zero growth or negative growth defense budgets of Fiscal Years 1985-88, the flow of new orders from government agencies dipped for the sec­ ond straight year, but a surge of non-govern­ ment orders more than offset declining gov­ ernment business. Total new orders amounted to $ 119. 1 billion, up from $110.8 billion in 1986. The breakdown: U.S. government orders $64.9 billion (down from $68 billion in 1986), non-government orders $54.2 billion (up from $42.8 billion). The major component of net new orders was $35.3 billion in non-govern­ ment orders for aircraft, engines and parts (mostly airline transport equipment).
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