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Aerospace Still #1 Earner in 2002

WASHINGTON, D.C., March 27- Aerospace has continued its long trend of being the single largest net exporter of any industry sector of the U.S., with a net trade balance in 2002 of $30 billion. The industry's trade surplus grew $3.5 billion above 2001's balance, with a $1.7 billion decrease in exports and $5.2 billion decrease in imports.

AIA President and CEO John W. Douglass said that the decrease in both U.S. exports and imports of aerospace products reflected the financial decline of the world's airlines. However, he said, the overall trade balance for aerospace in 2002 improved moderately from the year before. "While this improvement is very good news," said Douglass, "it should not mask the fact that the U.S. aerospace industry is in a severe crisis that overshadows improving trade data."

According to data collected by AIA's Research Center, foreign sales decreased in 2002 by $1.7 billion from last year's $59 billion. Military aerospace exports, which peaked in 1998 at $12 billion, grew moderately in 2002 to $9.4 billion. On the other hand, civil aerospace exports declined after a one-year rebound--down $2 billion to $47 billion.

The largest component of civil aircraft exports, commercial transports, comprised $22 billion of the total--essentially unchanged from last year. General aviation exports decreased in 2002--down 13% to $1.2 billion. Meanwhile, civil helicopter exports declined 32% to $116 million. Used civil aircraft exports, on the other hand, more than doubled to $2.6 billion--helping exports and the trade balance, but not resulting in new production. In total, civil aircraft exports increased $1 billion.

Reflecting the decline in foreign civil aircraft production, exports of engine parts and aircraft parts dropped $2.0 billion to $17 billion and exports of complete civil aircraft engines fell $911 million to $4.3 billion.

Exports of spacecraft, satellites, and parts jumped up $325 million to $607 million in 2002.

Imports declined in 2002 for the first time in seven years. Imports of complete civil aircraft fell $2 billion to $13 billion. Aircraft engine imports dropped 22% to $3.8 billion. Aircraft and engine parts imports decreased $1.9 billion to $10 billion--reflecting decreased domestic production of civil aircraft. In total, imports of aerospace products decreased $5.2 billion, or 16%, to $27 billion.

P.A. Rel 2003-13

03.27.03

-AIA-

Contact: Matt Grimison, AIA
(703) 358-1076
matt.grimison@aia-aerospace.org