Aerospace Sector Sales a Record, but Job Rolls Shrank in ’91

The U.S. aerospace industry will post record sales of $140 billion in 1991, but employment during the year has dropped 8% to 1.16 million workers, the Aerospace Industries Assn. said Wednesday.

Also, the trade surplus generated by aerospace exports will widen to nearly $30 billion this year, exceeding last year’s record balance by 9%, the Washington-based trade group said. Exports are projected to hit $43 billion, while imports will be $13 billion.

In 1992, the aerospace industry is expected to post flat sales and experience further declines in employment, the association said. Industry sales are projected to hit $143 billion, while employment will drop 3% nationwide, it said.

The civil aircraft industry is expected to deliver 609 jetliners in 1992 with an estimated value of $30 billion, an 11% increase over the value of deliveries this year.

Although the aerospace industry appears strong, AIA President Don Fuqua said it is suffering from a competitive disadvantage versus foreign rivals and that the U.S. government is “now a big part of the problem.”

“Increased aerospace competitiveness is an absolute essential if the United States is to reduce its international trade deficit and stem the loss of American jobs,” Fuqua said.

The association is seeking improved government support of technology development and a coherent government policy that supports exports.

The association report found that the aerospace industry lost about 106,000 jobs during 1990, 45,000 from the military aircraft sector. Military missile production employment fell even faster.

Meanwhile, employment in commercial aircraft production was down 6,000 jobs to 315,000.