The U.S. Aerospace and Defense Industry Examined

A new report by Council on Competitiveness member Deloitte, commissioned by the Aerospace Industries Association (AIA), demonstrates the irreplaceable impact the aerospace and defense (A&D) industry has on America's economic and national security. Research shows that the U.S. Aerospace and Defense industry generates $324 billion of revenues, contributes 2.23 percent to GDP, has a direct payroll of $84 billion, pays Federal and State cash income taxes of $38 billion, and exports $90 billion of goods. A&D is the single largest contributor to the nation's trade balance.

“A&D makes contributions to national security, delivers humanitarian aid, spurs game changing technology to help reduce casualty rates in armed conflict, and brings safer and more fuel efficient jet transportation,” said Tom Captain, Global Aerospace & Defense Sector Leader, Deloitte. “Moreover, the industry continues to innovate with technology to connect our society with advances in digital communications. This study demonstrates the significant economic and financial contributions made by the aerospace and defense industry, and its broader impact on our society. These will be important considerations as constituents assess the impact of changes to investments in research and development and the industrial base, and the continued ability of the industry to create the next generation of innovative products and services.”

According to Council on Competitiveness President & CEO Deborah L. Wince-Smith, “The aerospace and defense industry has long been a source of strategic advantage for the United States. American defense companies have not only created the world’s most advanced technologies and systems, but also contributed to the development of technologies with wide commercial application. Deloitte’s study gives us real insight into this key industry.”

To view the report, please click here.