- Advocacy & Policy
- Research Center
December 06, 2007Sustained growth in the civil aircraft market boosted the aerospace industry in 2007, taking total sales to yet another record level, AIA reported in its state-of-the-industry analysis Thursday. Total sales reached a record $198.8 billion, an increase of $15.5 billion, and set an industry record for the fourth consecutive year. With sales increasing across the board for nearly all product and customer categories in 2007, total sales jumped more than 8 percent over 2006's final sales tally. Aerospace also logged a notable $56.5 billion positive trade balance, a testament to the industry's position as a leader in the increasingly globalized marketplace, AIA President and CEO Marion Blakey said. With exports soaring to $92.5 billion in 2007 and imports reaching $36 billion, the aerospace industry continues to help offset the country's chronic trade deficit. "With good news in nearly every sector, I am pleased to see the American aerospace industry's strong international presence continuing to keep pace with our domestic successes," Blakey said. "Our impressive trade balance and surging sales in the civil aircraft market have laid a foundation for the industry's continued vitality. Additionally, a 19 percent increase in the backlog of civil orders indicates good days ahead." Blakey said the outlook for next year remains strong, with sales forecast to leap over the $200 billion threshold and hit $211 billion. If Blakey's expectations hold true, 2008 will be yet another record year for the aerospace industry. The industry also increased its production workforce by 25,900 jobs, or about 8 percent, to help boost the average number of total aerospace employees for the year to 637,000. According to the latest available figures, more than 642,000 total workers were employed by the aerospace industry in September. Blakey presented the numbers during AIA's 43rd Year-End Review and Forecast, addressing about 300 members of the media, industry and government. The event showcased the many industry statistics tracked by AIA's Aerospace Research Center, including industry performance over the last 12 months and a look ahead to 2008. Most of the major statistical categories tracked by AIA showed growth in 2007. Military aircraft increased 10 percent to $54.8 billion, space increased $605 million to $39.1 billion, and related products went up $1.9 billion to $33.8 billion. The civil aircraft category continued its rapid climb, owing to solid increases in both commercial transports and business jets, increasing $7.3 billion to hit a total of $53.3 billion. Strong future orders and a growing backlog should support a thriving civil market in the years ahead.