Pride and Purpose AEROSPACE . - - ' Facts & Figures 91.-92 · Compiled by: Economic Data Service Aerospace Research Cente r Aerospace Industri es Association of America, Inc. Executive Director, Research Center Vi rginia C. Lopez Manager, Economic Data Service David H. Napier Editorial Consultant James J. Haggerty Design Xanthus Design Published by Aerospace Industries Association of America, Inc. 1250 Eye Street, N.W. Washington, D.C. 20005 (202) 37 1-8400 FAX (202) 37 1-8470 For information and orders. call (202) 371-856 1 Copyright © 1991 by Aerospace l n du s tr~ es Assoc•a t1on ol Amer~ca . Inc Library of Congress Catalog No 46-25007 International Standard Book No 0898-44 25 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 Civil Aviation Organization McGraw-Hill Publications Company National Aeronautics and Space Administration National Science Foundation Office of Management and Budget TRW Space & Technology Group U.S. Departments of Commerce (Bureau of the Census, Bureau of Economic Analysis, International Trade Administration) Defense (Comptroller; Directorate for Informa­ tion , Operations and Reports; Army; Navy; Air Force; Strategic Defense Initiative Organization) Labor (Bureau of Labor Stati stics) Transportation (Federal Aviation Administration, Office of Airline Stati sti cs ) Foreword 6 Aerospace Summary 8 Aircraft Production 26 Missile Programs 48 Space Programs 58 Air Transportation 76 Research and Development 102 Foreign Trade 11 8 Employment 138 Fin ance 154 Glossary 164 Index 171 The U. S. Aerospace Team. \ \ Pride and Purpose The U.S. aerospace workforce is a world class team. Smart, skilled, and resourceful , they are the people behind the products-those that move us.ahead in commercial aviation and space, and those that help America defend freedom at home and around the world. They are the people who helped make victory in Desert Storm possible. The U.S. aerospace team is committed to innovation, to new products and processes, to doing things better than yesterday. The team is 1.2 million strong, and dedicated to making tomorrow possible. or the U.S. aerospace industry, 1990 was a year remarkably similar to its predecessor in that the F industry set new records for sales, backlog, export volume and trade balance. But there was one significant difference: In 1989, the flow of new orders surged to an all-time high; in 1990, new orders declined for the first time since 1986. The reduction in total new industry orders was significant -15 percent. It was occasioned almost entirely by a sharp downward plunge- nearly 30 percent- in orders from the U.S. Government, meaning, for the most part, orders for defense systems. That fact exemplifies what the industry can expect from the dBcade of the 1990s: a continuing real -term decline in the defense sales level , offset to a degree by high levels of sales in non-defense areas. On the positive side, 1990 overall sales not only set a record but eclipsed the prior record by an impressive 14 percent. The principal factor in that record performance was a big increase in non-military sales, in particular, sales of commercial transport aircraft. Despite the decline in U.S. Sovernment orders, the industry's overall backlog grew appreciably, to $264 billion at year-end 1990, a gain close to $12 billion . Orders from non­ government sources constituted nearly two-thirds (65 per­ cent) of the backlog. Space sector sales continued their steady ri se and reached a new record level. In dollar terms, space business amounted to a solid 22 percent of total sales. The indicated future growth 6 of the industry's space workload offers a ber of calls for defense cuts below the good measure of compensation for de­ levels envisioned by the Administration clining defense activity. plan. Atthe moment of writing, however, The importance to the U.S. economy there has been' no concerted action to­ of high value, high technology aero­ ward drastic cuts below the appropria­ space exports was underscored once tion levels planned by the Administra­ again by the industry's record perfor­ tion. mance in foreign sales and trade bal­ AlA expects further downward pres­ ance. In a year in which the U.S. as a sure on the defense budget but not whole experienced a trade deficit of reductions of disastrous dimension. $101 billion, U.S. aerospace exports Therefore, the association stands by its amounted to more than $39 billion, just earlier projection that overall sales, in under 10 percent of all U.S. merchan­ real , inflation-adjusted terms, will de­ dise exports in 1990. The aerospace cline on a moderate curve throughout trade balance topped the prior record by the decade. The decline will be serious 23 percent. but not catastrophic. As regards the industry's future out­ To adjust to the changing environ­ look, AlA estimates - on the basis of ment, the aerospace industry is ener­ the Administration's force reduction pro­ getically pursuing new efficiencies in gram outlined by the Secretary of De­ every aspect of its operation. So there is fense - that DoD aerospace sales will a bright side to the outlook: the industry drop by 1995 to roughly 25 percent may emerge from this decade of transi­ below the 1990 level in real terms. tion in better financial , technological and That is a very large reduction and competitive strength than it enjoys to­ one that will pose a serious problem fo~ day. those companies most heavily commit­ ted to defense work. The picture is less grim for the industry as a whole, be­ cause it is expected that much of the business lost to defense downsizing will Don Fuqua be offset by gains in other areas. President In the weeks preceding publication Aerospace Industries Associati on of this volume, there have been a num- 7 he U.S. aerospace industry recorded an all-time sales peak in 1990 in both current and constant T dollars, according to data compiled by the Aero­ space Industries Association (AlA). In current dollar terms, the record volume was compounded of increases in all sales categories. Separately-reported data from the Bureau of the Census similarly showed peaks in current/constant dollar overall sales, and current dollar gains in most sales categories. The principal factor in the industry's record performance was another big increase in non-military sales- in particular, sales of commercial transport aircraft. An additional factor was an upward fluctuation in sales to the Department of De!ense, which had been on a declining curve since 1987. Here is the breakdown of the industry's performance in 1990: Sales In current dollars, overall sales amounted to $134.2 billion ; a 14 percent increase over 1989's $117.6 billion . Aerospace sales to the Department of Defense, after two years of decline, rebounded to $60.6 billion, well over half of total aerospace products and services sales and up 3.6 percent over the prior year's $58.5 bii P"'l n. In a breakdown by product group, dircraft sales predomi­ nated, as is customarily the case. Aircraft sales totaled $70.8 billion, 16 percent above the record $61 billion reported in the previous year. Military aircraft sales amounted to $39.9 billion, up slightly from 1989 in current dollars but actually a decline when 8 adjusted for inflation. Civil aircraft sales received by aerospace companies (including engines and parts) totaled dropped sharply to $147.4 billion ac­ $30.9 billion, up almost 40 percent over cording to the Census Bureau. Most of the previous record (1 989) of $22.1 bil­ the decline was due to a plunge in orders lion. from the Department of Defense, which The big gain moved civil aircraft fell to the lowest level since 1981 . into second place among product cat­ Orders from the U.S. Government egories, after having trailed space sales totaled $56.8 billion, down from $80.6 for seven prior years. Space sales none­ billion in 1989. Census reported declin­ theless showed a strong gain, up 12 ing orders in all product categories. percent from $25.8 billion in 1989 to Despite those declines, the $28.9 billion in 1990. industry's backlog rose appreciably, from Sales of missile systems, at $12.1 $252.4 billion at the end of 1989 to billion, increased from 1989's $11 .2 bil­ $264.2 billion as of December 31 , 1990. lion. In the "Related products and ser­ This was due to the fact that non-gov­ vices" category, sales amounted to $22.4 ernment backlog experienced a large billion, which compares with $19.6 bil­ increase (more than $27 biiiLon) that lion in 1989. more than offset a sharp decline in the For 1990, aerospace industry sales backlog of government business (down represented 2.5 percent of the Gross more than $15 billion). The major com­ National Product and 4.6 percent of total ponent of the non-government backlog, sales by all U.S. manufacturing indus­ and also the major area of gain, was ci ~ l tries. The comparable figures for 1989 aircraft, engines and parts; the backlog were 2.3 percent and 4.1 percent. increase was more than $25 billion. Earnings These data once again underline the The industry recorded a net profit indicated shift in the industry product after taxes of $4.5 billion, compared mix during the 1990s, in which commer­ with $3.9 billion in 1989. Expressed as cial product manufacture is expected to a percentage of sales, the 1990 profit account for an ever-increasing percent­ (3.4 percent) approximated that of 1989 age of total sales.