Abstract
Aerospace manufacturing is one of the few manufacturing industries where the U.S. still holds a dominant position, possessing a significant competitive advantage over other nations. The industry is a source of well-paid jobs and maintains a large trade surplus. Aerospace manufacturers are highly dependent on sales to airlines and the government, especially the U.S. military. Growing global demand for air travel and volatile fuel prices have led to a surge in demand for new commercial aircraft, causing a surge in commercial aerospace sales. On the other hand, military and overall government spending cuts have caused the industry’s defense and space segment sales to fall. The dichotomy of the industry’s various segments does not only come down to performance, with each segment differing from the other in trade, innovation, competition, and consolidation trends.
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Sources: IBISWorld Staff [2016a]. Aircraft, Engines & Parts Manufacturing in the U.S, Industry Report 33641a and Space Vehicle & Missile Manufacturing in the U.S, Industry Report 33641b.
Sources: IBISWorld Staff [2016a]. Aircraft, Engines & Parts Manufacturing in the U.S, Industry Report 33641a and Space Vehicle & Missile Manufacturing in the U.S, Industry Report 33641b.
Sources: International Monetary Fund World Economic Outlook [2016 April] via Data Mapper and International Air Transport Association (IATA) 2015. Economic Performance of the Airline Industry, Industry Forecast-December 2015.
Sources: US Census Bureau [2016]. Manufacturers’ Shipments, Inventories, and Orders (M3) Survey.
Sources: US Government Publishing Office [2016a]. Historical Tables, Budget of the United States Government, Fiscal Year 2017, table 3.2-Outlays by Function and Subfunction 2000–2015.
Sources: US Government Publishing Office [2016b]. Public Budget Database, Budget of the United States Government, Fiscal Year 2017, Outlays 2000–2015.
Sources: US Census Bureau [2016]. Manufacturers’ Shipments, Inventories, and Orders (M3) Survey.
Sources: US Government Publishing Office [2016c]. Historical Tables, Budget of the United States Government, Fiscal Year 2017, table 4.1-Outlays by Agency 2000–2015.
Sources: IBISWorld Staff [2016b]. Space Vehicle & Missile Manufacturing in the U.S, Industry Report 33641b. IBISWorld.
Sources: IBISWorld Staff [2016a]. Aircraft, Engines & Parts Manufacturing in the U.S, Industry Report 33641a and Space Vehicle & Missile Manufacturing in the U.S, Industry Report 33641b. IBISWorld.
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*Maksim Soshkin is a Senior Analyst at IBISWorld, an industry research firm providing business intelligence. He has authored a number of reports, with a particular focus on the aerospace, defense, and transportation sectors.
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Soshkin, M. The US Aerospace Industry: A Manufacturing Powerhouse. Bus Econ 51, 166–180 (2016). https://doi.org/10.1057/s11369-016-0008-y
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DOI: https://doi.org/10.1057/s11369-016-0008-y