WASHINGTON — A new analysis of the aerospace and defense (A&D) sector predicts gross exports to increase by $4.6 billion, or 3.2 percent over 2015 numbers, by the end of this year.
The analysis by Deloitte, titled "US Aerospace and Defense Export Competitiveness Study," concluded that sector exports topped $143 billion in 2015. Eighty-three percent of that total came from the commercial sector, showing that while defense exports remain lucrative, they pale in comparison to the money non-defense aviation exports can bring in.
"The sector continues to remain one of the largest contributors (in terms of trade balance) amongst the key comparable sectors, such as machinery manufacturing, chemical manufacturing, and petroleum and coal products," the authors of the study concluded. "The sector also consistently posted a positive trade balance throughout the 2010–2015 period. Overall, the US A&D sector continues to be a key contributor to America’s overall exports, creating employment and supporting growth in the nation’s gross domestic product (GDP)."
Based on Deloitte’s research, 2015 saw $11.9 billion in sales on the export of "military aircraft, engines, equipment and parts" and another $3.1 billion from "missiles, space vehicles, propulsion units, equipment, and parts." Ships accounted for $1.9 billion and ground vehicles $1.2 billion, respectively.
The report did not break out how much of the projected growth for 2016 will come from the defense versus commercial sectors, but given historical trends it seems likely it will continue to be largely driven by commercial aviation.
To read the full report, click here.
Aaron Mehta was deputy editor and senior Pentagon correspondent for Defense News, covering policy, strategy and acquisition at the highest levels of the Defense Department and its international partners.
