YEAR-END REVIEW AND FORECAST

Transcription

1 2013 YEAR-END REVIEW AND FORECAST The U.S. aerospace and defense industry is facing some of its greatest challenges in decades. While weathering numerous trials during 2013, our industry produced relatively flat results compared with An overall slight decrease in sales is forecast, reaching $220.1 billion for 2013 down from $222 billion last year with only civil aircraft sales showing growth. Sequestration effects on the industry and Defense Department have forced industry layoffs and divestitures and will continue to put pressure on the fragile industrial base. Despite these pressures, overall aerospace exports held their upward trend, improving by $12.5 billion, displaying positive growth in both civil and military sectors. However, employment will drop slightly this year by a projected 13,000 jobs, declining to 618,200. Sequestration is clearly hurting our industry s skilled and professional workforce and ultimately may stifle U.S. global competitiveness. The industry could see some relief from sequestration over the next two years if the Bipartisan Budget Act of 2013 passes, but the impact of cuts will remain significant and continue in 2014 and beyond. While larger companies continue to weather the worsening budget environment by aggressively downsizing and re-organizing, smaller companies in the defense industrial base are not faring as well, as they face even more difficult challenges. The continuation of sequestration will exacerbate the impact on the industrial base at all levels, especially among small and medium sized companies.

2 Civil Aircraft The industry remains extremely concerned about the potential overarching impact that sequestration cuts will have on Federal Aviation Administration s current operations and its implementation of NextGen technologies. The FAA has never experienced a reduction of this magnitude, and the budget process in 2014 could put additional pressures on agency activities. Congress still needs to finalize a full-year FY2014 appropriations bill for FAA and other federal agencies. The House s proposed budget for FY2014 was within the Budget Control Act cap. However, in meeting this overall target, the transportation appropriations bill resulted in deep cuts to NextGen and other FAA programs. In fact, cuts were so deep that the bill did not have enough political support to pass the full House when considered this summer. With the likely passing of the Bipartisan Budget Act of 2013, and an avoidance of a government shutdown in January, we will continue to fight for a strong FAA budget and adequate funding of FAA oversight and certification budgets that support our members Research, Development, Technology, and Engineering (RDT&E) and production activities. Implementing NextGen as currently envisioned, on schedule, and meeting the congressional mandate of UAS integration into the national airspace system by 2015 are key industry imperatives, and we will strongly support and contribute to meeting these deadlines. Despite this chaotic domestic budget environment, the sector posted an increase in deliveries for the third consecutive year. Total backlog for U.S. civil transport aircraft totaled 4,787 aircraft worth $344 billion equivalent to seven and one-half years at current production rates. Sixty-six percent of those orders are from foreign carriers. Production of the Boeing 787 continued to grow the 787 final assembly facilities in Washington and South Carolina are increasing the combined monthly production rate to 10 airplanes per month, rising to 12 per month by The Next-Generation 737 also had unprecedented orders in order to meet the demand, production of the 737 line will increase to 42 aircraft per month in mid-2014 and to 47 per month in The growth of unmanned systems for both civil and military use is projected to continue. It is estimated that Unmanned Aircraft Systems (UAS) spending will nearly double over the next decade, from $6.6 billion to $11.4 billion on an annual basis, and the segment is expected to generate $89 billion during the next 10 years. Administrator Huerta s UAS roadmap announcement in November established a plan including regulatory standards, policies, certification and operational procedures required to address full UAS integration into the national airspace system. As the economy continues to rise out of economic turmoil, the U.S. Maintenance, Repair and Overhaul (MRO) sector continues to expand by double digits as operators explore ways to maintain equipment and extend the life of their investments. By 2022, the global MRO market will nearly double to $84.7 billion dollars, driven by airframe and heavy engine maintenance. The U.S. represents 32.6 percent of the global market, expending $16.6 billion, followed by Western Europe at roughly $12 billion. The large civil aircraft market notched several landmark announcements in At the Dubai Airshow, Boeing launched the 777X with record-breaking orders and commitments for 259 aircraft from Emirates, Qatar airways and Etihad Airways, on top of an earlier order from German-carrier Lufthansa. The 777X orders at $95 billion marked the largest product launch by value in commercial jetliner history. In addition, Eithad ordered s, which marked the 1,000th 787 sold. 2

3 General Aviation Perhaps the greatest challenge to general aviation in 2013 was the 16-day government shutdown. The shutdown forced approximately 34 percent, or 15,514 of the FAA s 46,070 employees to be furloughed. The FAA Registry office was closed, delaying aircraft certification activities required for the sale, import and export of aircraft. The stoppage delayed deliveries of more than 150 new aircraft with a value of more than $1.9 billion. Other suspended activities included: aviation rulemaking; development, operational testing and evaluation of NextGen technologies; development of NextGen safety standards; and most contracting and budgeting functions. General aviation shipments are projected to reach 1,661 units by yearend, an increase of 9.7 percent over 2012 valued at $10.2 billion. Projections for 2014 call for deliveries to reach 1,801 units worth $11.3 billion. Multiengine turboprop deliveries were up 42 percent in 2013, followed by single-engine turboprops, up 10 percent, as the segment leaders. On the other hand, business jet deliveries continue to face significant challenges reflected by a decrease of 2.1 percent as of the third quarter over a year ago signaling a slower, more muted recovery. More than half of the expected market for general aviation aircraft will remain in exports. The small aircraft segment will benefit from the recently signed Small Airplane Revitalization Act (SARA). The law requires the FAA to adopt new certification regulations that should reduce the cost of small aircraft and avionics upgrades. SARA gives the FAA until Dec. 15, 2015 to change regulations that govern the certification of many general aviation aircraft. FAA Administrator Michael Huerta said the changes will greatly improve safety, and lower costs. In spite of the challenges, general aviation performance continues to improve, as a Gulfstream crew flying a G650 completed the fastest westbound around-the-world flight in July, setting a new record for a non-supersonic aircraft. Rotorcraft The U.S. civil rotorcraft market has regained and surpassed sales and unit production levels that have been down since 2009 despite a government shutdown that hampered deliveries, training and other essential activities. Following several years of slowly rebounding deliveries and sales, U.S. civil helicopter shipments are expected to reach 596 units this year, with a value of $2.35 billion and up from $1.73 billion a year ago. This steady, upward trajectory is expected to continue in 2014 as international and domestic demand grows across the civil markets. These markets include offshore oil and gas exploration and production, public safety, law enforcement, VIP transport, and emergency medical services BILLIONS OF DOLLARS Aerospace Industry Sales (P) 2014(E) 3

4 Military Military sales are down across all categories, with aircraft sales dropping 6.3 percent, or $3.75 billion, to $55.95 billion in Missiles dropped 4.6 percent, or $1.03 billion, to $21.37 billion; and DOD space spending dropped 5.3 percent, or $1.38 billion, to $24.77 billion. This reflects ongoing budget reductions caused in large part by sequestration and a drop in overseas contingency operations funding. Reductions in DOD spending were partially offset by nominal growth of 4.2 percent in defense exports. Foreign sales will continue to be a key area of focus for defense companies, but it is becoming clear that defense exports will not offset steep declines in domestic procurement spending. The onset of sequestration in March forced DOD to begin making difficult budget choices. While the impact of cuts in 2013 was minimized by a series of one-time actions taken by DOD, these actions will no longer be available in the future. The Bipartisan Budget Act of 2013, if passed, could potentially reduce the effects of sequestration for the next two years, but investment accounts the lifeblood of our industry will remain under significant pressure, despite the budget agreement. Modernization funding, though less than one-third of the defense budget, will likely absorb nearly half of the sequester s early year cuts, due to its immediate accessibility. As a consequence, DOD will be committing percent less to needed programs, which will erode the technological superiority of our warfighters that our nation so heavily relies upon. Aerospace Industry Sales By Product Group KEY Related Products & Services Space Missiles Military Aircraft Civil Aircraft BILLIONS OF DOLLARS $207.6 $212.8 $222.0 $220.1 $232.1 $33.1 $29.7 $30.0 $44.4 $46.8 $23.5 $23.2 $31.3 $31.0 $46.4 $44.8 $47.1 $22.4 $21.4 $ $61.9 $59.7 $59.7 $56.0 $ $48.2 $53.2 $62.2 $67.0 $ (P) 2014(E)

5 Trade The U.S. aerospace industry continues to lead the United States in the net export of manufactured goods, with a dramatic increase in exports of $12.5 billion, while imports increased by less than $5 billion. As a result, the favorable balance of trade in aerospace products increased from $65.7 billion in 2012 to $73.5 billion in Exports of civil aircraft, engines and parts continue to represent about 88 percent of all aerospace exports with almost all of the increase coming from the civil sector. Continued growth over the next several years is expected, given the large backlog of civil aircraft orders. A healthy global economy and high oil prices remain important factors in ongoing demand for new, more fuelefficient civil aircraft. There is reason for optimism with regard to export growth. In 2013, we saw the beginnings of implementation of Export Control Reform, with Congress passing legislation allowing commercial satellites to be moved from the U.S. Munitions List, and the Obama Administration initiating revisions to USML Category VIII (military aircraft) and Category XIX (military engines) by moving essentially commercial technologies to the Commerce Control List. Continued support for the Export-Import Bank is also a critical element of American competitiveness in overseas markets. The Bank not only facilitates sales of complete aircraft, but also fuels a continuing stream of revenue for parts suppliers and maintenance, repair and overhaul companies for the lifetime of the aircraft. Increasing defense exports is a critical priority for industry, given reductions in overall defense spending in the domestic market. We must see a renewed partnership between industry and government to develop and execute a National Defense Export Strategy that supports U.S. national security, foreign policy and economic interests. Aerospace Foreign Trade BILLIONS OF DOLLARS Imports Exports Surplus (P) 2013 EXPORTS SURPLUS IMPORTS

6 Space Overall space sales dropped 3.5 percent, or $1.62 billion, to $44.79 billion in 2013, largely driven by reductions in DOD space spending. However, despite gridlock in Washington, including Congress inability to agree on a new NASA Authorization and the sequestration of NASA s budget in the FY2013 continuing resolution, civil space programs continued to make substantial progress. This year marked the successful completion of NASA s Commercial Orbital Transportation Services program, with the certification of two providers of commercial cargo services to the International Space Station and the launch of new spacecraft to explore the moon and Mars. Our industry continues to support NASA s commercial launch priorities as well as its exploration and science programs. In 2013, the U.S. and the rest of the world experienced devastating severe weather that caused widespread destruction and significant loss of life. Storm prediction capabilities are critical to saving lives, protecting infrastruc- ture and informing recovery efforts. Continued funding for NOAA programs like polar-orbiting weather satellites remain critical for accurately predicting storm tracks and the impact of major weather events. In 2014 and beyond, sequestration budget cuts will continue to threaten progress if they continue unchanged. NASA risks dropping to a funding level of approximately $16 billion a reduction of nearly $2 billion from While the pending budget deal could potentially offer some relief, continued investment in ongoing space programs is crucial to our success. Budget prospects for U.S. military space programs also remain extremely uncertain given the downward pressure on defense spending even if a budget sequester is avoided in fiscal year Unclassified military space programs have been reduced as programs migrate from development to production. In the meantime, making investments for the next generation of systems such as defense support weather satellites is essential. Aerospace Shipments, Orders and Backlog BILLIONS OF DOLLARS Backlog Orders Shipments BACKLOG Peak P ORDERS SHIPMENTS 245.4

7 Employment After the sequester became law, the Pentagon in June outlined the policy s harmful effects on the DOD budget. Some defense firms responded to the sequester by divesting units while others offered buyouts to employees. The result is that aerospace employment will decrease slightly overall this year from 631,400 in 2012 to a projected 618,200 by year s end. Industry will have to pay particular attention to the impact overarching budgetary forces will have on research and development spending and the sector s efforts to attract and retain a skilled workforce. Until it is completely reversed, sequestration will remain a real and immediate threat to the U.S. aerospace industrial base. Left unchanged, further cuts envisioned under the Budget Control Act through 2021 will significantly erode the critical workforce that underpins the country s defense and aerospace capabilities. With the approach of 2014, it is also important to ensure that government leaders fully comprehend the importance of maintaining, strengthening and protecting American design and manufacturing capabilities EMPLOYEES (THOUSANDS) Aerospace Employment KEY Search, Detection & Navigation Instruments Guided Missiles, Space Vehicles & Parts Aircraft, Engines & Parts 2013 Total: (P) 7

8 Summary & Outlook At the close of 2013, the overall outlook is mixed, with substantial gains in the commercial sector largely offset by losses in the domestic military market, illustrating industry resilience in the face of significant challenges. Sustaining this trend, however, depends on continued economic growth in the U.S. and Europe, and favorable policy and budget decisions. Commercial aviation remains an American success story. Commercial aircraft represent America s leading manufactured export, supporting jobs and economic growth across all 50 states. To maintain this momentum and remain competitive in the global marketplace, a key AIA focus for 2014 is congressional reauthorization of the U.S. Export-Import Bank. Export credit is an important competitive tool for U.S. companies. Ex-Im Bank supplements rather than competes with other sources of finance. To lose that support would give foreign companies a substantial advantage over large and small U.S. business. Roughly 89 percent of Ex-Im Bank transactions involve small businesses. The mission to create economic opportunity also extends to the global competitive environment. We will continue to work aggressively with U.S. government trade financing, promotion, and enforcement agencies such as the U.S. Department of Commerce, U.S. Export-Import Bank, the U.S. Trade Development Agency to protect and grow market access for U.S. civil aviation products. Continued progress on the deployment of the Next Generation Air Transportation is hampered by the sequester cuts and poses a great risk. In allocating a four percent budget cut from the FY2013 sequester, the FAA reduced their capital budget by nine percent. And within the capital reduction, NextGen programs were reduced by 15 percent. In other words, short-term needs are receiving the highest priority for scarce funding. AIA will continue to advocate for a revision to the BCA caps and for final FAA appropriations in FY2014 that provide for an adequate balance between operating requirements and long-term capital needs. Growth in the capacity of our national airspace system and full integration of unmanned aircraft systems are dependent upon deployment of the Next Generation Air Transportation System. Maintaining investments in NextGen also will be a critical priority for industry in 2014 and beyond. AIA will continue to meet with key congressional leaders to underscore our concerns and to press for adequate funding for priorities such as NextGen, certification, UAS integration, and aeronautics and environmental research. America s space enterprise continues to return substantial dividends in the form of advanced research and spinoff technologies. However, continued investment is an absolute requirement if we are to maintain our leadership in space endeavors. While we celebrated the successful certification of two providers of commercial cargo services under NASA s COTS program, we are still dependent on Russia for crew-rated launch services. Sequestration cuts pose a direct threat to the development of domestic commercial crew services. Additional cuts will only serve to delay capabilities or cause the outright cancellation of important space programs. Advocating for advanced space program funding will remain a top priority for AIA in the years ahead. Despite the many triumphs of 2013, our industry faces major headwinds in the years to come. A dysfunctional fiscal environment has led to sequestration cuts across all government agencies, threatening investments in modernization at DOD, FAA, NASA and NOAA. Research and Development, the lifeblood of our nation s technological superiority, is especially hard-hit, as both universities and private companies conducting government-sponsored programs suffer cuts in funding. Going forward, sequestration s impacts will be felt in the form of many delayed or cancelled programs. A climate of uncertainty limits industry s ability to plan and invest in infrastructure, personnel and research and development. This is particularly damaging in the lower tiers of the industrial base supply chain. By June of this year, 88 percent of respondents to a supplier survey 8

9 reported negative impacts to their businesses that included lost revenue, cancelled contracts, hiring freezes and layoffs. After the early- October government shutdown that caused serious disruptions in the aerospace and defense industry, the number of companies harmed by Washington gridlock is approaching 100 percent. The uncertainty is also having negative impacts on our workforce, as companies are increasingly experiencing difficulties in recruitment and retention of talent. Our deepest concern remains the health of the aerospace and defense industrial base. Left unchanged, further cuts envisioned under the Budget Control Act through 2021 ($1.2 trillion in deficit reductions, with $500 billion to be absorbed by defense alone) will continue to erode industrial capabilities. While the impact on industry is not apparent to some, the supplier community is already suffering, larger companies have aggressively re-organized and downsized in preparation, and future cuts are expected to significantly exacerbate the impact on the industrial base at all levels, especially among small and medium sized companies. As further cuts to the military begin to take hold, U.S. military leaders have cautioned members of Congress that American men and women in uniform will bear the brunt of these cuts if a more rational budgeting approach cannot be agreed on. In September of 2013, three of the four Joint Chiefs told the House Armed Services Committee that if sequestration persisted they would struggle to meet even one major theater contingency, let alone execute the military s basic Strategic Planning Guidance of defeating an enemy in one theater while deterring another enemy in a different area. Supporting a predictable and stable defense budget, including adequate funding for investment accounts, will remain paramount in AIA s advocacy efforts in Our resolve going forward is to continue to oppose sequestration, secure adequate funding for essential aerospace and defense programs, fight against acquisition practices and regulatory burdens that harm the industry and its competitiveness, and create a more competitive industry globally that will continue to generate the largest positive trade balance of any U.S. manufacturing sector. 9

10 Table I Aerospace Industry Sales by Product Group * Calendar Years AIRCRAFT Total Year Sales Total Civil Military Missiles Space Related Products & Services Current Dollars (Billions) 2003 $ $75.96 $32.44 $43.52 $16.93 $35.86 $ (P) (E) Constant Dollars a (Billions) 2003 $ $82.05 $35.04 $47.01 $18.29 $38.73 $ (P) (E) Source: Aerospace Industries Association (AIA), based on company reports; The Budget of the United States Government, National Aeronautics and Space Administration (NASA), U.S. Department of Commerce, and Department of Defense, * Government purchases reflected as appropriated funding. a. Based on AIA s aerospace composite price deflator, (2009=100). E. Estimate. P. Preliminary. 10

11 Aerospace Industry Sales by Customer * Table II Year Total Sales AEROSPACE PRODUCTS AND SERVICES Total Department Other of Defense Customers NASA & Other Agencies Related Products & Services Current Dollars (Billions) 2003 $ $ $71.28 $16.52 $40.95 $ a (P) (E) Constant Dollars b (Billions) 2003 $ $ $77.00 $17.85 $44.23 $ a (P) (E) Calendar Years Source: Aerospace Industries Association (AIA), based on company reports; The Budget of the United States Government, National Aeronautics and Space Administration (NASA), Department of Commerce, and Department of Defense, * Government purchases reflected as appropriated funding. a. Beginning in 2005, NASA sales were reported separately from other agencies. b. Based on AIA s aerospace composite price deflator, (2009=100). E. Estimate. P. Preliminary. 11

12 Table III As of End-of-Year Shipments, Orders and Backlog: Aircraft & Parts and Search & Navigation Equipment Year Shipments Orders Backlog 1994 $112,511 $98,621 $183, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , (P) 245, , ,278 Source: Aerospace Industries Association (AIA), based on data from the Bureau of Census, Manufacturers Shipments, Inventories, and Orders (M3), Notes: Includes both Civil and Defense aerospace data. Not seasonally adjusted; includes aircraft, engine, and parts manufacturing. P. Preliminary. 12

13 U.S. Civil Transport Aircraft Backlog Table IV TOTAL BACKLOG: a Number of Aircraft 3,375 3,443 3,771 4,373 4,787 Value (in millions) $250,476 $255,591 $293,303 $317,287 $344,283 Boeing: B-737 2,076 2,186 2,365 3,074 3,467 B B B B Foreign Order Backlog Percent of Total Backlog: Number of Aircraft 79.5% 77.8% 67.0% 65.3% 65.5% Value 82.3% 81.2% 74.4% 72.5% 69.2% Number of Aircraft 2,682 2,679 2,528 2,856 3,136 Value (in millions) $206,167 $207,639 $218,112 $229,924 $238,235 Calendar Years Boeing: B-737 1,605 1,643 1,394 1,836 2,178 B B B B Domestic Order Backlog Percent of Total Backlog: Number of Aircraft 20.5% 22.2% 33.0% 34.7% 34.5% Value 17.7% 18.8% 25.6% 27.5% 30.8% Number of Aircraft ,243 1,517 1,651 Value (in millions) $44,310 $47,952 $75,191 $87,363 $106,048 Boeing: B ,238 1,289 B B B B Source: Aerospace Industries Association (AIA), based on Company SEC filings and Boeing reports, a. As of third quarter. 13

14 Table V Civil Aircraft Shipments Calendar Years Year TOTAL Number of Aircraft Shipped Transport Aircraft Helicopters General Aviation 2000 $3,794 $485 $493 $2, , , , , , , , , , , , , , ,009 3, , ,084 3, , , , , , , , , (P) 2, , (E) 3, ,801 Value (millions of dollars) 2000 $39,155 $30,327 $270 $8, ,043 34, , ,078 27, , ,180 21, , ,256 19, , ,848 21, , ,675 28, , ,657 33,386 1,330 11, ,097 28,263 1,486 13, ,105 34, , ,602 31, , ,269 36,171 1,145 8, ,874 49,127 1,730 8, (P) 63,648 51,068 2,350 10, (E) 68,841 55,000 2,540 11,301 Source: Aerospace Industries Association (AIA), based on company reports, data from the General Aviation Manufacturers Association (GAMA), Helicopter Association International (HAI) and Teal Group, E. Estimate. P. Preliminary. 14

15 U.S. Aerospace Balance of Trade Table VI (Millions of Dollars) (P) BALANCE OF TRADE Current Dollars $56,034 $51,152 $55,753 $65,744 $73,465 Constant Dollars a 56,034 51,199 55,534 64,860 71,980 AEROSPACE EXPORTS: AEROSPACE EXPORTS Current Dollars $81,166 $77,503 $85,326 $99,385 $111,937 Constant Dollars a 81,166 77,575 84,991 98, ,675 AEROSPACE IMPORTS Current Dollars $25,132 $26,351 $29,573 $33,641 $38,472 Constant Dollars a 25,132 26,375 29,457 33,188 37,694 Source: Aerospace Industries Association (AIA), based on data from the Department of Commerce and Economic Consulting Services (ECS), Note: Balance of Trade may not equal the difference between exports and imports due to rounding. Calendar Years a. Based on AIA s aerospace composite price deflator, (2009=100). P. Preliminary. 15

16 Table VII U.S. Imports of Aerospace Products Calendar Years (Millions of Dollars) (P) TOTAL IMPORTS $25,132 $26,351 $29,573 $33,641 $38,472 Aircraft $9,299 $9,041 $10,025 $10,267 13,199 Military Civil 9,299 8,979 9,900 10,163 13,030 Transports 4,955 3,258 4,972 4,588 6,594 General Aviation 2,337 2,191 2,667 2,730 3,044 Helicopters ,161 1,141 Other a 1,173 2,692 1,365 1,685 2,251 Aircraft Engines 3,752 3,799 4,101 5,146 5,508 Turbine 3,616 3,700 4,035 5,081 5,431 Piston Aircraft and Engine Parts 11,383 12,498 14,293 17,070 18,870 Spacecraft, Missiles, Rockets, and Parts 698 1,013 1,154 1, Source: Aerospace Industries Association (AIA), based on data from the U.S. Department of Commerce and Economic Consulting Services (ECS), Notes: Import data includes non-military aircraft parts and aerospace products previously exported from the United States. Totals may not equal sum of terms due to rounding. a. Includes used aircraft, gliders, balloons and airships. P. Preliminary. 16

17 U.S. Exports of Aerospace Products Table VIII (Millions of Dollars) (P) TOTAL EXPORTS $81,166 $77,503 $85,326 $99,385 $111, 937 TOTAL CIVIL EXPORTS $70,500 $67,128 $75,275 $86,814 $98,834 Complete Aircraft (D) (D) (D) (D) (D) Transports General Aviation Helicopters Used Aircraft Other Aircraft Aircraft Engines Turbine Piston Aircraft & Engine Parts, Including Spares Calendar Years Missiles, Rockets & Parts Spacecraft, Satellites & Parts TOTAL MILITARY EXPORTS $10,666 $10,375 $10,051 $12,571 $13,104 Complete Aircraft 2,235 1,742 1,738 3,442 2,357 Transports ,410 1,501 Helicopters Fighters & Bombers 1, Used Aircraft Other Aircraft Aircraft Engines Turbine Piston Aircraft & Engine Parts, Including Spares 6,126 6,404 6,242 6,836 6,873 Missiles, Rockets & Parts 1,509 1,741 1,502 1,745 3,102 Spacecraft, Satellites & Parts Source: Aerospace Industries Association (AIA), based on data from the U.S. Department of Commerce and Economic Consulting Services (ECS), Notes: Totals may not equal sum of terms due to rounding. D. Civil aerospace export data suppressed by the Bureau of Census beginning in the first quarter P. Preliminary. 17

18 Table IX Aerospace Related Employment Calendar Years Year Total Employment All Workers (thousands) Total Aircraft Aircraft Engines & Parts Other Aircraft Parts & Equipment Guided Missiles, Space Vehicles & Parts Search, Detection & Navigation Instruments (P) Q Q Q Q Q Q Q Aerospace Industries Association (AIA), based on data from the Bureau of Labor Statistics (BLS), Current Employment Statistics Survey, P. Preliminary. 18

19 Net Profit After Taxes Table X Aerospace Industry Profits* As a Percent of: Year Dollars Sales Assets Equity Sales Assets Equity (In Millions) All Manufacturing Corporations Profits as a Percent of: 1994 $5, , , , , , , , ,572 a , , , , , , , , , , (P) 23, Calendar Years Source: Aerospace Industries Association (AIA), based on data from the Bureau of the Census, Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations, *Not seasonally adjusted. a. Includes non-operating expenses (less interest expense) totaling $3.5 billion. P. Preliminary. 19

20 1000 Wilson Boulevard, Suite 1700 Arlington, Va