Blakey: Industry "Remarkably Durable" In Face Of Challenges

The aerospace industry is showing resiliency in trying economic times, ending 2008 with modest growth and continued strength in important areas like foreign trade balance and employment, according to the Aerospace Industries Association.

While the industry has not been immune to effects from the ongoing global financial crisis, it is showing relative strength, AIA president and CEO Marion Blakey said Wednesday during the annual AIA Year-End Review and Forecast.

"We are in an extremely challenging economic atmosphere, but our industry is proving to be remarkably durable," Blakey said. "We anticipate this to continue, and we expect our industry will continue to be an asset to the US economy as we climb out of our current financial hardships."

Aerospace sales are on pace to reach $204 billion for 2008, an increase of 2.1 percent. That's a lower rate than in recent years, but still encouraging and a record sales figure for the industry for the fifth consecutive year.

The industry will also continue to post very strong export numbers, reaching $99.2 billion for the year. That fuels a critically important foreign trade surplus of about $61 billion -- almost exactly the figure the industry logged in 2007, and the largest trade surplus of any US manufacturing sector.

Employment also remained solid, with an average workforce that will reach 655,500 for the year. The total was 657,700 in figures released in September. The average is about 10,000 more than the average for 2007.

AIA forecasts modest sales growth for 2009. Sales should reach $214 billion, a figure that is about 2.2 percent more than the total the industry would have achieved this year had a work stoppage not impacted the 2008 bottom line.

Blakey cautioned, however, that continued volatility in the global economy could affect that outlook.

FMI: www.aia-aerospace.org