US aerospace and defense export growth faces global competition
US aerospace and defense industry export and labor market study by Deloitte
The US aerospace and defense (A&D) industry has been a significant contributor to America’s net exports, a top employer, taxpayer, and major contributor to the nation’s gross domestic product. However, recently we are seeing a slowdown in the industry.
A strong US dollar, increasing global competition, and decreasing export financing are causing US aerospace and defense (A&D) industry export growth to decline. At the same time, employment in the US aerospace and defense sector has declined significantly over the last five years, much of it due to budget sequestration. What can the industry do to change course?
Our latest aerospace and defense industry study includes developments and trends from two important focus areas in the US aerospace and defense industry: employment and exports.
Last year, we developed two separate reports that highlighted industry trends in both of these areas. This year, readers who download the report will experience the same beneficial information tied together in one comprehensive report.
Report findings include:
- Export growth slowed at 1.7 percent in 2016
- Exports directly supported 1.42 million jobs in 2016
- Net commercial exports rose sharply in 2016 by $9 billion or 12 percent
- US Foreign Military Sales declined by $13 billion or 28 percent in 2016
- Total employment in the US A&D sector decreased in 2016 by 0.3 percent
- Direct and indirect jobs lost in the defense subsector between 2011 and 2016 totaled 165,044