Aerospace sales hit a record level in 2005 as the industry’s three main sectors — civil aviation, defense, and space — all showed strength convergence, AIA reported in its state-of-the- industry analysis released Wednesday.
Sales increased by $14 billion to reach a record industry-wide level of $170 billion in 2005, an increase of 9.2 percent over 2004’s final sales number. AIA President and CEO John Douglass said the figure comes as all three aerospace sectors showed strong growth in the same year.
Douglass said the statistics are reflections on positive developments over the past year, with civil aviation gaining strength and airlines buying new planes and the new Vision for Space Exploration driving space technologies. The strong defense sales numbers show the administration’s dedication to keeping the nation secure.
“This is good news for our economy since aerospace provides a foreign trade surplus and is adding jobs,” Douglass said. “Our industry is also vitally important to national security, and the strong defense sales are a reflection of that fact.”
Douglass presented the statistics to about 300 members of the media, industry, and government at the 41st Annual Year-End Review and Forecast Luncheon Wednesday. The event unveils numerous statistics about industry performance over the last year and provides a look at what the industry may hold for the next 12 months.
AIA Research Director David Napier, who compiled the statistics, said the outlook for the next year is solid, calling for 8.2 percent growth to $184 billion. That would be another record year. Aerospace remains one of the most important cogs in the U.S. economy, registering a positive trade balance of $37 billion. That reflects an increase of $6.4 billion over last year’s surplus. Aerospace is one of the few manufacturing sectors of the economy that consistently shows a foreign trade surplus and posted the highest positive balance of all industry categories in 2004.
Founded in 1919, the Aerospace Industries Association represents the nation’s leading manufacturers and suppliers of civil, military, and business aircraft, helicopters, unmanned aerial vehicles, space systems, aircraft engines, materiel, and related components, equipment services, and information technology.
