New Record Is Third In As Many Years

A surging civil aircraft market boosted the US aerospace industry in 2006, taking total sales to another record level, the Aerospace Industries Association (AIA) reported Wednesday.

Total sales increased by $14 billion, topping $184 billion. That sets a record for each of the past years and represents a jump of 8.4 percent over 2005.

US aerospace also logged a remarkable $52 billion positive trade balance and added about 23,000 new jobs, reaching a total of 635,000.

During an address at the AIA's 42nd Year-End Review and Forecast, association 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. It would be hard to overstate aerospace's positive contributions to our national economy, as evidenced by these very strong indicators."

He also said the US needs a revamp of export control regulations that hamper foreign trade of both civil and military products. Douglas says today's rules are outdated and need to be modernized to increase cooperation with allies as well as help the industry's positive impact on the U.S. economy.

AIA's 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.

FMI: www.aia-aerospace.org