A United Launch Alliance Delta IV lifts off in March Photo Credit/NASA
Aerospace products and services continue to represent an financial beacon for the United States, where they are responsible for more than 600,000 jobs. However, like many sectors, gains have been slowed by a sluggish global economy, according to a new report from the Aerospace Industries Association.
Overall, the industry group projects $216.5 billion in sales for 2010, the seventh consective year for an increase. Only a slight overall gain, $219.2 billion is forecast for 2011.
“Aerospace has produced solid results, including a new sales record for the seventh straight year, leading all manufacturers in trade surplus and providing a sense of stability amidst the chaos of economic upheaval,” AIA President and CEO Marion C. Blakey said in a statement this week that accompanied the organization’s annual assessment.
Blakey cited NASA’s relatively flat budget as one reason for the slow growth and suggested the industry must look to still stronger sales in the international market for new gains.
Orders of aircraft, spacecraft and other aerospace products made impressive gains this year, registering $195.6 billion, a 20 percent rise over last year. Record orders topped $347.6 billion three years ago. The industry continues to be a player in the overall balance of trade, contributing $53.3 billion to the U. S. balance in 2010, slightly below the sector’s 2009 numbers. Employment in all aerospace sectors continues a two-year decline, falling to 624,000 in 2010, down from a peak of 660,000 in 2008.
“Losing jobs is never good,” said Blakey, “But when viewed in the context of the overall business environment, our workforce is holding its own.” The AIA’s top executive looks to investments in the nation’s air transportation system for future job growth; and she cautioned against frenzied reductions in defense spending to reduce the budget deficit.
“The United States’ security relies on maintaining our defense technological advantage,” she said. “Additionally, if we don’t sustain the investment in the industrial base, opportunities for good jobs will dwindle.”