Sales of U.S. military aircraft will fall by 2.4 percent this year to $58.2 billion, the lowest level since 2006, according to a preliminary estimate of the Aerospace Industries Association (AIA). Sales are expected to decline by another 10 percent in next year as budget cuts force the Pentagon to reduce procurement spending, the association said in its year-end review and forecast, released earlier this month.
Aerospace Industries Association
The U.S. aerospace industry’s sales tally grew by 3.4 percent this year, to $218 billion, led by a strong performance in the civil sector, according to preliminary estimates released by the Aerospace Industries Association (AIA) on December 5. The figure marks the industry’s ninth consecutive year of growth.
Aerospace Industries Association (AIA) president and CEO Marion Blakey said she jumped out of her chair this week when she heard President Obama say, during the final televised debate between U.S. presidential candidates, that sequestration “will not happen.” She said that the AIA is calling on the Obama Administration and Congress to star
Contracts with suppliers would have to be modified with untold cost consequences, if automatic U.S. government budget reductions through sequestration become a reality in January, according to Lockheed Martin chairman and CEO Bob Stevens. That could affect anywhere up to 40,000 suppliers in the case of Lockheed Martin, a $46 billion civil, government and defense contractor.
The U.S. government is revamping its export control regime for military-related products, a systemic reform long sought by the nation’s aerospace industry. The reform could facilitate prospective deals being pursued by U.S. companies here in the Asia Pacific region and other parts of the world.
The issue of military exports pits advocates of weapons nonproliferation against those who argue that the U.S. must remain economically competitive with other nations. But there is wide acknowledgment that the existing system of vetting products and technologies for export is deficient.
The German Aerospace Industries Association (BDLI) has brought 25 companies to the Singapore Airshow (Booth K93), while another 10 BDLI member companies are exhibiting on their separate stands. The German contingent comprises several mid-sized companies and suppliers, covering an extensive range of skills, products and services.
After a sluggish period in the global market, the BDLI says it expects the show to “prove decisive for the sales of new aircraft and helicopter systems as well as commercial and defense-related services.”
U.S. civil aircraft sales for 2011 are expected to total $49.7 billion, an increase of 3.2 percent over 2010, and the Aerospace Industries Association (AIA) believes the sector will boost its revenue to $51.7 billion this year. But overall aerospace sales will likely experience a moderate decline in 2012 due to government cuts in space and defense.
U.S. military aircraft sales rose by 6.7 percent, to $66.5 billion, in 2011, the 10th and probably final year of growth before steep government spending reductions. Sales of military aircraft are expected to decline by $1.4 billion in 2012, according to the Aerospace Industries Association (AIA).
The trend of robust U.S. military aircraft sales offsetting a lagging civil aircraft market is changing.
U.S. civil aircraft sales are expected to total $49.7 billion this year, a 3.2-percent annual increase.
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