Aerospace Cuts Dependence on Uncle Sam

Jan. 13, 2005
Except for only one year since 1908, the U.S. aerospace manufacturers have gotten a majority of their business from government contracts, which as recently at 10 years ago accounted for more than 75% of the industrys sales. But that is changing this ...

Except for only one year since 1908, the U.S. aerospace manufacturers have gotten a majority of their business from government contracts, which as recently at 10 years ago accounted for more than 75% of the industrys sales. But that is changing this year. As a result of the end of the Cold War and pressures to balance the federal budget, in 1997 the industry will sell as much to commercial customers as to Uncle Sam, announces Aerospace Industries Assn. of America (AIA) President Don Fuqua. This year we reach the 50-50 mark--50% of the industrys aerospace sales will be to customers other than the U.S. government, he said at AIAs annual year-end review and forecast luncheon Dec. 17. And next year the sales mix will shift to 55% nongovernment work, 45% U.S. government. The trend will continue far into the 21st century. While the direction of our industry has been clear for some time, the crossover brings with it a faint touch of cultural shock as we pass a significant milestone.

The industrys sales will increase this year by 11% to $129 billion, Fuqua said. AIA projects that sales will reach a record $144.5 billion in 1998.

Popular Sponsored Recommendations

What Does Agility Look Like for Today's Auto Industry?

Dec. 4, 2023
Without modern technologies, enterprises aren't able to fully analyze the risks and respond to ongoing supply chain issues and semiconductor shortages.

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!