In January 2016, the Aerospace Industries Association commissioned business information firm IHS, Inc. to quantify the economic contributions of the U.S. Aerospace and Defense (A&D) industry to the U.S. economy and provide enhanced understanding of the industry’s extensive supply chain, by economic sector at the national and state level. The key findings of this study measure the economic contribution the A&D industry makes in terms of employment, value added (contribution to GDP), sales (output), labor income and taxes within the broader economy.
In the study, IHS estimates that in 2015 the U.S. aerospace and defense industry fueled the following contributions to the U.S. economy:
Supported 1.7 million jobs within businesses producing end-user goods and services and within the industry’s supply chain, with about 531,000 jobs in the industry’s commercial aerospace segment (e.g. civil and general aviation aircraft, helicopters and space systems) and 511,000 jobs in the defense and national security segment of the industry (e.g. military aircraft, ground and sea systems, armaments and space systems).
Represented approximately two percent of the nation’s employment base and 13 percent of the nation’s manufacturing employment base.
Generated $300 billion in economic value, representing 1.8 percent of total nominal Gross Domestic Product in the U.S., and 10 percent of manufacturing output.
Produced labor income approximately 44 percent above the national average – $93,000 average labor income per job – reflecting the highly skilled nature of the workforce.
Provided tax receipts to federal, state and local governments from companies and their employees of $63 billion, or about 1.7 percent of total tax revenues.
AIA's President and CEO, Marion C. Blakey, in a recent letter to both chambers of Congress, made a strong case for the reautorization of the Export-Import Bank of the U.S.
We know that not reautorizing hte bank would be equivilent economic unilateral disarmament agains nearly 60 other foreign credit agencies. We hope you will join with us to support the Ex-Im Bank to sustain the American economy and U.S. jobs.
Sign the Petition
In the wake of an uneven global economic recovery, countries are competing in an unprecedented race to create jobs and stimulate economic growth through increased exports. In this competition, not all countries abide by the same set of rules that the United States follows to support their companies' exports. Indeed, American companies often come up against government-owned, government-protected or government-subsidized competitors from countries such as China, Brazil, India and various European nations, making for a brutally competitive and uneven playing field.
In this race, the U.S. Export-Import Bank (Ex-Im Bank) serves as a critical engine for U.S. jobs by leveling the playing field and helping American companies to compete toe-to-toe against their competitors in the global marketplace. Ex-Im Bank is acting as a vital catalyst of U.S. economic growth, enabling billions of dollars of exports and supporting hundreds of thousands of export-related U.S. jobs. In 2013 alone, Ex-Im Bank transactions promoted $34.7 billion of exports in fields such as power turbines, locomotives, agricultural equipment and satellites, and sustained or created more than 205,000 American jobs.
AIA believes that American companies can continue to compete and win in the global marketplace against their overseas counterparts, but they cannot do it with one hand tied behind their backs. Foreign competitors continue to enjoy significant financial assistance from their governments. To protect the competitiveness of our industry and American manufacturing, we need to ensure the Ex-Im Bank has the long-term support from Congress it needs to support and grow the American manufacturing workforce.
AIA and economist Dr. Stephen Fuller of George Mason University unveiled a new report detailing job loss figures resulting from the Budget Control Act of 2011.
As we enter a new era of budget austerity and the threat of draconian sequestration loom, failure to revise export controls could result in an ongoing loss of critical industrial base suppliers and pose an increasing risk to national security.