Civil Aircraft Sales Fuel Record Year for Aerospace

ARLINGTON, Va., Dec. 13 /PRNewswire/ -- A surging civil aircraft market boosted the aerospace industry in 2006, taking total sales to another record level, AIA reported in its state-of-the-industry analysis released Wednesday.

Total sales increased by $14 billion, reaching a record $184.4 billion, a record level for the third year in a row. That represents a jump of 8.4 percent over 2005's final sales total.

Aerospace also logged a remarkable $52 billion positive trade balance, a vivid reminder of the industry's strength in the international marketplace, AIA President and CEO John Douglass said.

"The increasing trade surplus in the industry shows its importance on the global stage and positive impact on the U.S. economy," Douglass said. "It would be hard to overstate aerospace's positive contributions to our national economy, as evidenced by these very strong indicators."

The industry also added about 23,000 new jobs, reaching a total of 635,000.

Douglass presented the numbers during the 42nd Year-End Review and Forecast, addressing about 300 members of the media, industry, and government. The event showcases the many industry statistics AIA's Aerospace Research Center tracks, including performance over the last 12 months and a look ahead to 2007.

Douglass also touched on two important AIA initiatives for 2007. One is a revamp of export control regulations that hamper foreign trade of both civil and military products. Today's rules are outdated and need to be modernized, Douglass said, to increase cooperation with allies as well as help the industry's positive impact on the U.S. economy.

The other issue is to continue progressing with the international ethics and business practices initiative announced in July. AIA is working with counterparts in Europe, Japan, Brazil, and Canada to ensure high standards of business ethics are employed around the globe.

Douglass said the outlook for next year remains strong, with sales forecast to reach $195 billion, an increase of 6 percent. That would be yet another record year.

Most of the major AIA statistical categories showed growth in 2006. Military aircraft increased $2.8 billion to total $52.8, space jumped $1.3 billion to $38.6 billion, and related products went up $2.4 billion to $30.7 billion.

But the civil aircraft category stood out, increasing $8.3 billion to hit a total of $47.5 billion. Very strong future orders and backlog point to a thriving civil market for years to come.

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.